BREAKING NEWS FORD will continue operating its Geelong engine plant, saving 1300 jobs – 400 at Ford and up to 900 among its suppliers.
"$21 million will be invested in plant and equipment and further investment will go towards engineering the inline-6 engine to meet the stringent Euro IV environmental standard,'' Federal Industry Minister Senator Kim Carr saiod this morning.
The inline-6 is a unique Australian engine that uses components from suppliers in Geelong and across the country.
All three Australian-based motor vehicle producers will now be making engines to meet the new Euro IV standards when they are introduced into Australia in 2010,'' Senator Carr said.
Ford will invest the $21 million continued use post-2010, as well as invest in considerable engineering development of the I6 engine to ensure compliance with stringent Euro IV emissions standards.
This adds to the $200 million that the company has previously invested in facilities and product development in Geelong since 2006 and will supplement the company's ongoing Geelong-based stamping, R&D and Proving Ground facilities, the company said in a statement just issued.
"This decision is good news, not only for our employees in Geelong, our suppliers and the surrounding community, but also for the many fans of our I6 engine, which will now be re-engineered to achieve Euro IV emissions standards," said Ford Australia president and CEO Marin Burela.
Ford said that in addition to direct employment benefits for the Geelong region, retaining the engine plant was expected to provide an on-flow of business to local service providers. Australian component suppliers would also benefit due to the continued requirement for a number of engine components, including intake manifolds, engine pistons, gaskets and bearings.
"This is the first step in a broad product investment strategy to reduce emissions and deliver improved fuel economy across our locally built vehicle line-up, including Falcon, Falcon Ute and Territory."
Ford said it believed the Federal Government's new Green Car Innovation Fund provided a framework for the company to investigate an additional range of environmentally-oriented product investment initiatives which, when combined with emissions improvements to the popular I6 engine, wouldl increase future competitiveness.
"Our I6 engine continues to receive rave reviews for its performance, fuel economy and quietness. Keeping this engine in our product line-up will allow us to maintain our competitive edge and provide a distinct advantage over our direct competition," said Mr Burela.
"When added to our other proposed future product actions, we will offer consumers a range of choices that will allow them to continue enjoying all the benefits of Australia’s only locally manufactured vehicle to achieve a 5-star safety rating, along with continued fuel economy improvements and reduced emissions."
Good news for our local industry!
