Ford tried to save our manufacturing plants: Mullaly

[Road_Warrior]

http://www.carsguide.com.au/news-and...ord_bosses_qa/

The global boss of Ford Alan Mulally delayed the shutdown of the company’s Australian factories in more than 300 meetings held over seven years -- during which time the car giant lost more than half a billion dollars trying to keep them alive.

In an exclusive interview with News Corp in Sydney today Mr Mulally revealed the sharp decline in Falcon sales and reduced output at Ford’s car assembly line in Broadmeadows and the engine factory in Geelong were discussed weekly at the highest levels of the company in Detroit “ever since I started at Ford”.

The former Boeing executive, who joined Ford in 2006, was in Australia to confirm plans to reintroduce the Ford Mustang and unveil 11 other top secret models that will help fill the void when the Falcon and Territory exit Australian showrooms in 2016. Mr Mulally said the decision in May to shut the Australian factories was made in Detroit approximately 48 hours before Ford employees were told on the production lines.

“We really had been trying hard to find a way to make it work for years,” Mr Mulally said. “Ever since I started we’ve been reviewing all the operations around the world and (Australia) was a regular part of our review process since I’ve been here.” He said the future of the Australian operations would be discussed in two-and-a-half hour meetings every Thursday scheduled to give Ford executives in Detroit an update on all markets around the world.

“I will always feel really good that we worked so hard (to keep Ford’s manufacturing operations in Australia),” said Mr Mulally. “We take these decisions very seriously. It impacts a lot of people’s lives. It was a very thoughtful decision, a very hard decision.” He said company founder Henry Ford’s original vision was to “manufacture cars where we had major markets”.

“But at the end of the day when you look at the exchange rates, and the cost structure it was clearly best to serve Australian customers (from overseas factories),” he said. Ford’s chief operating officer Mark Fields said the three-year notice was among the longest warning of a factory closure in the Ford world.

“The approach we took was to treat people respectfully … and give them enough time to transition to the next chapter of their lives,” said Mr Fields. “We knew there was going to be an impact which is why we wanted an orderly transition. We wanted to be absolutely as transparent as we can.” Ford said it is committed to keeping the Falcon alive until October 2016 even though industry analysts predict a drop-off in demand as a result of it going out of production.

“We will always take into account the changing environment (but) our plan is to make an orderly transition,” Mr Mulally said. The Mondeo medium-sized car will likely replace the Falcon because sales of large sedans have dropped below their mid-size peers. Ford also unveiled a new locally-designed and engineered seven-seat SUV called the Everest -- but it will be likely be made in Thailand.

The Ford Mustang due in Australia in late 2015 or early 2016 will not be revealed until next April at the New York motor show. Ford says it will increase the number of models in its Australian range by 30 per cent between now and when the last Falcon rolls off the Broadmeadows production line. Among the stars in its line-up is a new car with a special key that can be programmed by parents of teenagers.

It can mute the stereo, limit the speed and ensure all safety systems cannot be switched off. It will also call 000 in a crash in which airbags deploy. Ford vehicles have been on sale in Australia for almost 110 years and the company has manufactured locally since 1925. But it will become an import-only brand by the end of 2016.

Finally some words from Ford’s top man. For me, that has been the one thing that has been lacking in the aftermath of the closure announcement.