No Christmas goodwill for Ford workers
Monthly figures released on Wednesday by the Federal Chamber of Automotive Industries will confirm that Falcon sales have dipped to their lowest levels in 53 years, with about 580 vehicles sold during August. Preliminary numbers also show the Falcon's SUV sibling, the Territory, fell to about 800 sales during the same month.
The performances contributed to a 20 per cent drop in overall sales for the Blue Oval brand compared with the corresponding period last year.
Ford Australia is halfway through a 12-day shutdown spread across August and September. Of Ford's 1200 manufacturing employees, 750 have been stood down on half-wages, with the option of topping up their salaries using annual leave entitlements.
The August sales result followed a previous record low of 594 Falcons sales during July. Ford will now consider whether to schedule more down days at its Broadmeadows plant in the approach to Christmas. It is understood the federal election result on Saturday will be a key consideration.
Ford spokeswoman Sinead Phipps said six of the 12 shutdown days already flagged were directly attributable to recent changes to the fringe benefits tax. The controversial FBT adjustments, labelled by the car industry a $1.8 billion rort, have become an important policy issue.
"The 12 days that we currently have are spread equally across August and September, and we'll see what happens in September before we decide if we need to do any more or not," she said.
"The [August] figures are in line with what our dealers were reporting back when the FBT changes were implemented, so there was no great surprise."
Dave Smith, the national secretary of the Australian Manufacturing Workers Union vehicle division, disputed the significance of the recent FBT changes.
"To be quite honest, I'm pretty dirty," he said of Ford Australia's reaction to the changes.
"The government announced the changes to the FBT and it was only a matter of days that the company was out announcing more down days. Ford have made a decision to pull the pin on manufacturing in Australia - it's no coincidence that there's been a massive drop in their sales. It's a direct result of that decision.
Ford arch-rival Holden mostly weathered the so-called effects of FBT changes in August by posting about 2800 sales of its new VF Commodore, an increase of 400 cars compared with August 2012.
The Mazda3 was the top-selling car in August with 4180 sales, ahead of the Toyota Corolla (3680), which remains the highest seller for the first eight months of the year.
Frequently Asked Questions about this Article…
Ford Australia has implemented a 12-day shutdown across August and September. Of the company's 1,200 manufacturing employees, 750 have been stood down on half wages during the shutdown, with the option to top up pay using annual leave. Management is also considering additional down days as it assesses sales and other factors heading into Christmas.
In August the Falcon fell to about 580 sales — its lowest level in 53 years — and the Territory dropped to roughly 800 sales. Those results contributed to a 20% fall in overall Ford brand sales versus the same period last year, signalling weakening domestic demand that investors should monitor when assessing Ford Australia's near-term revenue and manufacturing outlook.
Ford spokeswoman Sinead Phipps said six of the 12 shutdown days already flagged were directly attributable to recent FBT changes, which the car industry has labelled a $1.8 billion rort. However, the national secretary of the AMWU vehicle division, Dave Smith, disputed the significance of the FBT changes. For investors, FBT policy debate remains an important background issue affecting industry dynamics.
Ford has about 1,200 manufacturing employees at its Broadmeadows plant. During the 12-day shutdown spread across August and September, roughly 750 workers have been stood down on half wages, with the option to use annual leave to top up their pay.
Yes. Ford said it will review September results before deciding whether more shutdown days are needed. The company also indicated the federal election result would be a key consideration in planning further production adjustments ahead of Christmas.
Holden largely weathered the effects attributed to FBT changes by posting about 2,800 sales of its new VF Commodore in August — an increase of about 400 cars versus August 2012. The Mazda3 was the top-selling car in August with 4,180 sales, followed by the Toyota Corolla with 3,680 sales (the Corolla remains the highest seller for the first eight months of the year).
Falcon sales hit a record low in July with 594 units and fell further in August to about 580 units, marking the lowest monthly sales in 53 years. These consecutive lows are a red flag for investors tracking Ford Australia's model-level performance.
Investors should watch monthly vehicle sales data (model-level and brand-wide), announcements about additional manufacturing shutdown days, policy changes like FBT adjustments, and political events such as the federal election — all of which the article highlights as influencing production, workforce pay, and near-term sales trends for companies like Ford Australia.
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