Abbott to Ford: export or die

[BroadyFord]

He's completely right!

Export or die, warns Abbott

http://www.goauto.com.au/mellor/mell...257B4A0082DF21

12 April 2013
By IAN PORTER
OPPOSITION leader Tony Abbott has delivered a stern warning to Ford Australia, saying its policy of not widely exporting the Territory breaks his heart.

In a speech to the Australian Automotive Expo in Sydney last night, Mr Abbott said that he would prefer that any company which received Government assistance should make a big effort to export the vehicles it designs and makes in Australia.

Ford sells some Territory soft-roaders and Falcon sedans and utes in nearby markets, but its export efforts are dwarfed by those of Toyota and, more recently, GM Holden.

“As someone who has driven a Territory for most of the last decade, I know what a great product that is,” Mr Abbott said.

“I know it is emblematic of the great products that people can make right across the motoring sector generally here in Australia, and the thing that breaks my heart is that this great Australian car is virtually only available here in this country.

“Why isn’t the Territory sold in the US? Why isn’t it sold in the Middle East? Why isn’t it sold in Europe? Why isn’t it part of the offering wherever its manufacturer is selling, given the quality of that particular car. And the same goes for the other cars that are made in this country.”

“So the challenge that Sophie (Mirabella, opposition spokesman on industry) and Scott (Ryan, parliamentary secretary for small business and fair competition) and I throw to the motor manufacturers of this country is: yes, we will support you, because the last thing we want to see is the end of motor manufacturing in this country.

“But, please, do the right thing by your designers, your workers. Give them a fighting chance of a long-term future by making sure that the excellence of their product is more obvious to the wider world.”

“Yes, I want the motor industry in this country, every aspect of it, to flourish, I really do. And the best thing that we can do for the motor industry in this country is to buy Australian-produced motor products, from the Ford Territory and the Commodore and the other products here, and all the products that you make and import and export, that’s the best thing that we can do.”

A diplomatic cable posted on whistleblower site Wikileaks in 2011 revealed that Ford Australia knocked back the federal government’s offer of “co-investment opportunities” to develop a left-hand-drive export program for the Falcon and Territory as far back as 1999.

''[Former Industry Minister Kim] Carr is very worried about Ford's future in Australia,” the cable, signed off by former Melbourne-based US Consul-General Michael Thurston, says.

“He told [the Consul-General's office] Melbourne he fears Ford will not succeed in attracting the necessary investment to update its aging product lines,” it says.

According to the cable, Mr Thurston said separate talks with Ford's management ''provided us a different perspective of its future — it sees itself very much as part of Ford's global business and would be willing to make sacrifices for the good of the greater company''.

Mr Abbott’s speech to the Australian Automotive Expo in Sydney comes a day after a dire warning from the current head of industrial giant BHP Billiton and US car-maker Ford’s former global chief executive, Jac Nasser, that the end of the motor industry Australia was “inevitable”.

And it came as GM Holden chief executive Mike Devereux travels to Adelaide to hold crisis talks with South Australian Premier Jay Weatherill after announcing 500 job cuts despite a $50 million grant from SA’s public purse tied to job security.

Mr Abbott has also been quite vocal about threatening to cut support to Australia’s ailing car-making industry, saying early last year he would pull $500 million out of assistance programs and sparking party room infighting as shadow ministers argued for its reinstatement.

Late last year, GM Holden managing director Mike Devereux entered the fray, calling on Mr Abbott to commit to an Australian automotive industry before September’s federal election, or risk losing it.

However, Mr Abbott last night indicated that any government he led would continue to support the motor industry.

“And, yes, I accept that at least for the foreseeable future there will be a role for government providing specific support for motor manufacturing industry, I accept that. I fully accept that.

“But I want the industry to be clear, too, that it has a job to respond to the support of government by doing what it can to ensure that Australian-produced cars are more being marketed to the world and not simply being marketed here in Australia.”

Mr Abbott said that a coalition government would set out to make it easier to design and produce excellent products.

He said that was why he would get rid of the carbon tax and why any government he led would make a “serious effort” to reduce the red-tape burden on businesses generally.

“The carbon tax is not the only burden that manufacturers in this country face,” Mr Abbott said.

“There are red-tape burdens, workplace relations burdens, there is the fact that we are a relatively small market, there is the high dollar.

“It’s all very well talking about the rights of workers, and we must respect the rights of workers.

“It’s all very well talking about the importance of a clean environment and, obviously, we only have one planet to live on. But, in the end, if we don’t have profitable private businesses, nothing else really works.”

However, Mr Abbott had nothing to say about the high Australian dollar and the aggressive currency war being waged against Australia by the US and Japan.

[mik]

Talk is cheap, it is very easy to sit in your arm chair and and say why are`nt you exporting? we make it so easy to for every other country to flood our market, but when the boot is on the other foot they don`t make it so easy.

[Gobes32]

If he is willing to ask the other countries why are you making our exports so expensive then he has my backing. We need a hard nosed leader who is not afraid to fracture diplomatic relations with countries that have quite visibly shown they are happy to do it to us.

[flappist]

Good topic but please keep it on track. If it turns into a party political slanging match it will end.

[aussie muscle]

it is good that he will support the industry at least. That's more than he was going to commit too before.

[ryeman]

Exporting is like breathing, you don't have to be a Rhodes Scholar to work that out.
The writing has been on the wall for years and currency wars make that impossible unless WE go back to 'fixing' ours.

[distortion]

Ford Australia doesn't have the balls to export against the wishes of Ford US. Ford US want to export their cars and not compete with ours!

[turbodewd]

If Tony Abbot could have a word with Barry O'Farrell about his state's purchasing policy we may not be having this discussion!

[CAT600]

Hes just telling it how it is.... not everyone will like to hear this but

[Ducati888]

The product is good. Why isn't it manufactured in Thailand like the Aussie designed Ranger, in LHD, for the rest of the world? Or better still, made here in LHD for the rest of the world? Surely the market for SUV's is booming everywhere.

[Bluehoon]

The talk is great, but the stakes of the game are highier then he can afford.

It's a egg on face gamgle that has high stakes with the very people he wants to vote for him...

[Road_Warrior]

Originally Posted by distortion

Ford Australia doesn't have the balls to export against the wishes of Ford US. Ford US want to export their cars and not compete with ours!

Are you serious? Ford Australia doesn't have the authority to export against the wishes of Ford US. Like it or not, Dearborn calls the shots. This is something that Mr Abbott does not realise.

[Joe5619]

I'm glad we know where they stand. Let’s face it; he will be the prime minster come September. I do agree with him, Ford can't stay at current production levels & except government money. They need to at least double (as a minimum) or close up shop. I just hope Ford comes to the table!!

[Resurrection]

Dearborn will not allow Ford Australia to export the Falcon to lucrative markets. The Falcon is not part of Ford's 'One Ford' plans. Ford Australia was first of the locals to try exports with the Capri and that wasn't a success. No way will they get a second chance.

[Polyal]

Originally Posted by Road_Warrior

Are you serious? Ford Australia doesn't have the authority to export against the wishes of Ford US. Like it or not, Dearborn calls the shots. This is something that Mr Abbott does not realise.

THIS!

LOL Abbott thinking he holds any swagger against Ford NA.

The only thing they can say is that they will pull funding if they dont atleast intergrate into a global program. Or atleast design the cars so they have the potential to be exported.

He is grandstanding and quite clearly has NFI how it all works, very simple high level talks that have no substance.

The only way the Falcon will survive, and we keep spme jobs, is of Ford NA give the green light to some kind of GRWD platform. We then leverage off this to lessen the development costs and maybe we could export to other RHD countries. But that is a massive decision but one that I dream of for Ford. Given the rise in growing markets I fail to see how the volume isnt there for a true 5 series / E class competitor. Brand it how ever you like but the platform potential is there IMO.

You can then base Territory versions off it too etc.

Just do it already.

/waits for sympathisers to state Ford is "looking into it"....been pretty quiet for a while Mr Mulally.

[flappist]

Originally Posted by Road_Warrior

Are you serious? Ford Australia doesn't have the authority to export against the wishes of Ford US. Like it or not, Dearborn calls the shots. This is something that Mr Abbott does not realise.

I would be very surprised in any of our senior politicians are not very aware of the real picture.

This may be sabre rattling or it may be a serious position but should he be abale to enforce his policies then Ford, whether it be Dearborn or Melbourne will either step up to the plate or pull the pin.

[Gobes32]

I do not believe Ford Oz has any wishes to export to the US, the dollar is too volatile and we could never handle the production demands of a mildly successful vehicle. Australia should have, and did try to secure, Ranger production. Thailand cannot be bothered with 100, 000 units when the Focus and Fiesta lines are running at a milion a year. 100,000 rangers would see Ford hiring up to 3500 production people again. Bit of a pipe dream unfortunately.

[tezxr8man]

Originally Posted by Joe5619

I'm glad we know where they stand. Let’s face it; he will be the prime minster come September. I do agree with him, Ford can't stay at current production levels & except government money. They need to at least double (as a minimum) or close up shop. I just hope Ford comes to the table!!

I don't know why everything is about export. why not have a domestic market that aims to have local product able to be profitable and competitive with the rest of the market??

If every country aims to take over the world with exports what does that prove to anyone??

Self reliance is a better way to be. In australia we don't really need any thing from the rest of the world

[Nikked]

I think ford would have a greater idea on what they need to do to keep them selves alive then a government....

[jpd80]

Originally Posted by flappist

I would be very surprised in any of our senior politicians are not very aware of the real picture.

This may be sabre rattling or it may be a serious position but should he be abale to enforce his policies then Ford, whether it be Dearborn or Melbourne will either step up to the plate or pull the pin.

Agree,
Is this a put up or shut up request from the alternative Prime Minister?

<<Show me a sustainability plan that I (Abbott) can support>>>

[BroadyFord]

Abbott has now (possibly unintentionally) piled a heap of responsibility onto himself - he's come out fighting for the industry saying he wants it to flourish.

If Ford fails under his tenure though, then he would look pretty foolish.

[braad]

So why dont we have more tax on imports? We cant even sell our own product for cheaper than imports now.

[Joe5619]

Originally Posted by tezxr8man

I don't know why everything is about export. why not have a domestic market that aims to have local product able to be profitable and competitive with the rest of the market??

If every country aims to take over the world with exports what does that prove to anyone??

Self reliance is a better way to be. In australia we don't really need any thing from the rest of the world

I'm not necessary saying huge amounts of exports either, but volumes at Ford need to increase for it to continue long term. I like the idea of Fusion/Mondeo being built here (with some level of exports), alongside Falcon & Territory.


IMO Ford needs increased volumes ASAP. AND yes I know this doesn’t guarantee profits (before someone says it), but it helps your chances of profit!!

[Brazen]

He is bang on the money.

Funny that people commenting on an internet forum think they know the ins and outs better than he does. Abbott is probably on a first name basis with the CEO of Ford Australia. you need to read between the lines this speech was directed at Ford US telling them that a Liberal government wants a volume push from Ford and that the government will support them and that the government is a firm believer in the industry and the vehicles it produces.

Ford need to sell more than 10,000 Falcons a year or 12,000 Terrriories to keep them sustainable. They need to export them otherwise how can they justify the design and engineering and manufacture of the next models.

This is the really first time we have heard passionate talk about the car industry from a potential Prime Minister, this is exactly what Ford US needs to hear.

[Gobes32]

Brazen has it right I believe. It's great that the auto industry is a current news story. Makes you wonder what Mr Abbott thinks of Holden's tantrums of "give me money or I will take my bat and ball and go home".

[Peter B - CV8]

Originally Posted by flappist

I would be very surprised in any of our senior politicians are not very aware of the real picture.

This may be sabre rattling or it may be a serious position but should he be abale to enforce his policies then Ford, whether it be Dearborn or Melbourne will either step up to the plate or pull the pin.

Exactly right. He's "sending them a message".

[Smoke Pursuit]

Originally Posted by Nikked

I think ford would have a greater idea on what they need to do to keep them selves alive then a government....

Depends if your talking about local operations or overseas.

Ford Australia has very little control of its destiny. Most of the decisions are made in the US. Funny how Ford's US productions are at full capacity.

[superfly]

Originally Posted by Road_Warrior

Are you serious? Ford Australia doesn't have the authority to export against the wishes of Ford US. Like it or not, Dearborn calls the shots. This is something that Mr Abbott does not realise.

Is this 100% correct? I've always wondered why Ford doesn't do more exporting.

It's great though to see Abott thinking about the Australian car industry (whether he's correct or not) and how to keep it sustainable.

[Road_Warrior]

Originally Posted by superfly

Is this 100% correct? I've always wondered why Ford doesn't do more exporting.

It's great though to see Abott thinking about the Australian car industry (whether he's correct or not) and how to keep it sustainable.

Not making LHD products is an issue, but clashing with global models that are Detroit's pet projects are an even bigger obstacle.

[graham7773]

Originally Posted by Ducati888

The product is good. Why isn't it manufactured in Thailand like the Aussie designed Ranger, in LHD, for the rest of the world? Or better still, made here in LHD for the rest of the world? Surely the market for SUV's is booming everywhere.

I think the whole point of this exercise is to improve/increase the production of Australian cars for export, not to have them manufactured in other countries. How does manufacturing Australian vehicles anywhere but in Australia benefit Australian workers or the Australian economy?