Car pioneer Ford, affected with high costs, declining sales, and losses, is to shut its car and engine assembly plants in Australia by 2016. Ford, the smallest of all the major carmakers in the world, will close its plant in Broadmeadows in northern Melbourne and Geelong after almost nine decades in the country.
The carmaker will still keep on importing cars, and make them available through more than 200 dealers. Ford has battled declining sales in a divided market, skyrocketing operational costs, and a strong Australian currency. Ford has lost about 600 million Australian dollars in a matter of five years.
The closure is also associated partly with the adoption of Euro 5 emission standards, which will commence on November 1, 2016. The present engine lineup of the company in the Australian market only satisfied Euro 4 standards, and its engine plant will have to have a major change to fulfill regulations that are more stringent.