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Ford will shut plants despite government offer of help

The boss of Ford Australia, Bob Graziano, says the decision to shut the manufacturing operations won't be reversed.

Ford will shut its Australian factories despite an offer from the Federal Government to try to save them. Australia's oldest automotive manufacturer will close its Victorian car-making facility in Broadmeadows and the engine plant in Geelong by no later than October 2016.

But the newly appointed Federal Industry Minister Ian Macfarlane has revisited the idea of a rescue package ahead of his meeting with the car maker at its Broadmeadows head office later this afternoon.

"I'm prepared to look at anything … I never die wondering," Mr Macfarlane said of Ford's manufacturing operations after a tour of the Toyota factory in Altona on the outskirts of Melbourne earlier in the day..

But after the Ford meeting,  the boss of Ford Australia Bob Graziano told News Corp there was “no change” regarding its decision to shut its loss-making manufacturing operations. “We are not going to reverse the decision,” said Mr Graziano.

Ford spokeswoman Sinead Phipps added: “We’ve been very emphatic with our plan and there is no change to that plan.”

When News Corp asked Mr Macfarlane if anything was said in his two-hour meeting that might indicate Ford would keep its manufacturing operations running beyond 2016, he said: “I don’t discuss private conversations but I was very impressed with the design and engineering facilities Ford has in Australia.”

Earlier in the day Mr Macfarlane said if Ford can’t make vehicles in Australia he would ensure there was sufficient funding to support Ford’s design, research and development division, which employs about 1100 people, almost twice as many as Holden and almost five times more than Toyota.

“If (Ford) can’t make vehicles here -- and Ford have apparently made that decision -- then I want to make sure the really smart end of that, the design, the R and D, the stuff that goes into cars these days is staying here in Australia and staying for a long time,” said Mr Macfarlane. However, Ford had already committed to keep its design, research and development centre in Australia. It made the announcement in May, long before the change of government. 

When asked if the Ford factories would remain open all the way to their October 2016 deadline, Mr Graziano told media last week: “We are committed to getting there if we can. But I cannot predict what would happen externally that may prevent us from doing that. People want guarantees and what we continue to say is that is the intent – to go to the end of October 2016.”

When the Ford factory closes about 1200 blue collar jobs will be lost, as well as thousands more at parts suppliers. Ford lost $430 million in Australia over the past two years as Falcon sales fell to record lows. Ford will continue to sell cars in Australia, as it has done since the early 1900s, but as an import-only brand.

This reporter is on Twitter: @JoshuaDowling