Ford said it will shut down its two auto plants in Australia and will end production in the country in 2016.
The company cited soaring manufacturing costs and plummeting sales as reasons for this shut down. The company’s production plants are located in the state of Victoria.
Ford Australia President Bob Graziano said reduced demand for large cars and the high price of production in Australia had left the manufacturing operation uncompetitive.
The closure will result in the loss of 1,200 jobs and will transform the company into an import-only brand in Australia. Ford began making cars in Australia in 1925 and is the third largest auto manufacturer in the country.
“We understand the very real impact that this will have on our team,” Graziano told reporters at the company’s Melbourne plant. “We came to this conclusion only after thoroughly reviewing our business and exhausting all other alternatives.”
Source: The Associated Press via Detroit Free Press
