May 24, 2013

Who’s afraid of Ford’s closure? It was logical and no bad thing

In the context of its struggling global operations, Ford's decision to shut up shop in Australia is logical. And recent economic history tells us it will have few repercussions, say Glenn Dyer and Bernard Keane.

Ford’s decision to close its Australian operations is yet another of those giant economic Rorschach inkblots in which everyone sees what they’re predisposed to see.


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14 thoughts on “Who’s afraid of Ford’s closure? It was logical and no bad thing

  1. dunph

    As a reader poll I would be fascinated to know how many Crikey subscrbers drive an Aussie-manufactured (read GM / Ford / Holden) car …

    Reality-check is that the latte left prefer their chic little European models (preferably diesel / hybrid with a twist), while the staunch pro-union contingent get around in something more substantial – maybe a SUV or a sedan, made in China / Korea / Japan / Germany.

    The last bastion of real Australian buyers would appear to be tradies for utes and Government departments – which is just another form of industry subsidy …

  2. Mr Tank

    Lovely stuff and indeed compelling. Still, Holden wins!

  3. Peter Murphy

    The vehicle I own is a Toyota, and so were the last two I owned. However, mum drives a Ford Explorer.

  4. Mike Flanagan

    Whenever traversing the Hume Highway into Melbourne I was always intrigued by the proximity of the Ford Headquarters building to the Note Printing Branch of the Australian Reserve Bank.
    I often mused, it was to control transport and delivery costs.

  5. robinw

    “(Any parallels with News Limited, another whingeing, subsidised US subsidiary facing a remorseless decline in sales of its key products here, are of course coincidental.)” – beautiful.

  6. granorlewis

    “dunph” says it all. Why do Australians NOT buy Ford products? It goes back decades – they seem to have always been second choice. Can I have some back-up for your unsupported statement that “Productivity has…grown(strongly) under the Fair work Act.” I must read the wrong stats and writings.

  7. Andybob

    Manufacturing is regarded as a “real job” partly because it requires plant and skills that are nor readily replaceable. International trade has supposed to be putting an end to war for two centuries, but somehow wars still happen. They don’t even have to happen in our neck of the woods to disrupt logistics. An economy without a manufacturing sector doesn’t work if international trade is threatened.

  8. Michael Lines

    I’m a member of the “Latte-Left” and I drive a Subaru. The trouble is that Ford made cars which were just too big. The age of the Falcon is long past, and they just refused to adapt.

  9. Ian Brown

    I understand that ALL car producing countries subsidise their motor industries to some extent or another (do they know something that we are trying to forget?)and that Australian subsidy levels are low compared to many. This is not an argument for continuing to aid weak links but it is an argument against blind acceptance of the market fundamentalist/Ricardian ‘comparative advantage’ approach. As has been amply demonstrated, comparative advantage is manipulable. that to South Korea or Germany

  10. macca

    Too big, gas guzzling and unreliable. Good riddance.

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