Holden and Toyota business as usual after Ford factory closures

Holden and Toyota say their operations will remain largely unaffected by Ford’s decision to cease local manufacturing in 2016. Ford’s factory output in recent years has fallen so low that Toyota and Holden will likely be able to take up the slack.

“Despite Ford's announcement to end local manufacturing we believe the industry can survive in Australia and has already adjusted in large part given Ford's relatively low production volumes,” Holden boss Mike Devereux said this afternoon. “The announcement by Ford today is a reminder of really just how tough it is for manufacturers in Australia.”

Holden said its plans to continue manufacturing cars until 2022 -- including a new Cruze small car and a new large sedan to replace the VF Commodore in 2016 -- are unchanged.

A media statement from Toyota Australia said in part: “Toyota is saddened to learn about Ford Australia’s decision. The operating environment is extremely tough at this time but Toyota believes that car manufacturing is an important contributor to the Australian economy. Toyota intends to maintain its operations in Australia. Toyota is still building cars at its Altona plant for domestic and export markets.”

In December 2012 Toyota opened a $330 million refurbished engine production facility producing petrol and hybrid engines for locally built cars as well as for export to Malaysia and Thailand. More than 70 per cent of the Camrys built in Melbourne are exported to the Middle East.

Ford’s news came on the same day Holden launched the new Commodore. But Ford says the timing was a coincidence.

The boss of Ford Australia Bob Graziano told News Limited he was informed of the decision to shut the Australian car factories by email late last night. Graziano told workers the news in the cafeteria on the Ford production line at Broadmeadows about 9am this morning.

“It was difficult news for them to hear but they’re professionals and I think they were quite appreciative that I lived up my commitment to tell them before we told anyone else … and as soon as the decision was taken,” Graziano told News Limited.

This reporter is on Twitter: @JoshuaDowling