Ford Australia’s announcement today that it is closing its manufacturing down in 2016 can be laid at the feet of the most inept government in the history of this nation. Yes, alright, we had a GFC… and they make big vehicles when the market is down sizing… but listen to Bob Graziano when asked what led to today’s decision…
“A number of factors including labour costs. Local manufacturing is simply unprofitable. Our costs are double that of Europe and nearly four times that of Ford in Asia.”
What has contributed greatly to that? The totally illegal (we were told it wasn’t going to happen!) Carbon Tax… or Wealth Redistribution Tax… which made us uncompetitive overnight plus – since Labor came to power – the weight of increasing wages, truckloads of red tape, and other added costs to small business… and the government’s complete inability to support small business (ref. 5 Small Business Ministers in a few years!).
Sadly there will be a long list of small manufacturers who will be caught up in this mess. Autodom and APV Automotive have already gone.