Ford announces $20m upgrade to Geelong casting plant

[Ohio XB]

This is an interesting article that my wife is taking to the Cleveland Casting Plant here in Ohio tomorrow. It is slated to be closed in December. Ford stated they are getting out of the casting business in the US.

It's interesting that Ford has found these great ideas to implement in Australia to reduce enviromental impact. I think they are great moves. Funny how they were not mentioned for the Cleveland facility, though they did just recently get an some award. Here in the US it seems plants get awards just before they close them down. Ironic.

There are two BRAND NEW cupola furnaces sitting in the back lot at Ford that were purchsed to replace the original furnaces (1950's) to update the plant for enviromental purposes and efficiency. Then Ford announced they were getting out of the casting business in the US and now the two mega-buck furnaces sit rusting outside. It would seem they could put these things in, be current with pollution requirements, and implement the Geelong plans here too.......but instead they would rather cast parts in Mexico.


Steve

[Road_Warrior]

Well I guess doing it that way Ford can dodge the stringent US environmental regulations relating to heavy industries and instead make engines in countries that aren't as strict with those types of manufacturing facilities.

[burnz]

a V6 open up the door for export, paticuly the FWD market.

[Chilliman]

This is good news, just not the 'great news' that I think alot of people were expecting. The Diesel block mis-interpretation was a positive sign that maybe there is hope for automotive manufacturing in Australia into the second half of this decade - until it turned out that it was a mis-quote.

Not saying that Australian auto manufacturing's demise is inevitable but it certainly is in a precarious position and any glimmer of hope, Aussie Auto enthusiasts will latch onto.

At the core of the uncertaintity, Australian Ford enthusiasts want the following questions answered:

1. Will there be a Falcon post-2015?
2. Will it be FWD or RWD?
3. Will it still be manufactured in Australia?

I guess that the answers, to some of these questions at least, will be answered next year.

[Paxton]

Originally Posted by Chilliman

This is good news, just not the 'great news' that I think alot of people were expecting. The Diesel block mis-interpretation was a positive sign that maybe there is hope for automotive manufacturing in Australia into the second half of this decade - until it turned out that it was a mis-quote.

It is bloody hard playing devil's advocate, but Ford have stated in their own press release that Diesel will be cast locally. I don't know which way to take it...

[Luke Plaizier]

Is that the release at the start of this thread, or a different release?


Lukeyson

[Chilliman]

Originally Posted by Paxton

It is bloody hard playing devil's advocate, but Ford have stated in their own press release that Diesel will be cast locally. I don't know which way to take it...

Ford Australia's marketing department might be sub-par but their physcological warfare department is top notch

[JPFS1]

Originally Posted by Paxton

It is bloody hard playing devil's advocate, but Ford have stated in their own press release that Diesel will be cast locally. I don't know which way to take it...

I haven't seen an official Ford press release or even one quote from Marin etc about casting the Diesel block locally.

[Paxton]

Originally Posted by JPFS1

I haven't seen an official Ford press release or even one quote from Marin etc about casting the Diesel block locally.

There is a Press Release on the Ford website, as found here: http://www.ford.com.au/servlet/ContentServer?pageid=1178852649394&cid=12488710844 44&pagename=FOA%2FDFYArticle%2FWeb-Standalone&theme=default&direction=ltr&c=DFYArticl e&site=FOA&aldata=||period::20100401,20100631

Ford Announces $20M Green Upgrade to Create Jobs, Retain Skills
Wednesday, April 14, 2010
A $20 million environmental and technical upgrade to Ford's Geelong Casting Plant will increase the size of its workforce by 50 per cent and ensure vital automotive manufacturing skills remain in Australia.
The upgrade continues Ford's significant investment in its local operations, creating 50 new jobs at the modernised Plant, securing the employment of 100 existing Plant employees, and supporting further employment along the supply chain.
Production work that was potentially headed to China will now take place in Geelong, retaining vital manufacturing skills and know-how onshore and strengthening the Australian automotive industry.
The investment to 'green' the Geelong Casting Plant comes on top of the $230 million investment in sustainability initiatives for Falcon and Territory announced last year, part of Ford’s ten year, $1.8 billion investment in local operations and ongoing commitment to Australian manufacturing.
Ford Australia President and CEO Marin Burela said the company was leading the industry in finding new, innovative ways to extend its business through collaboration with partners across the sector.
"Our $20 million investment is great news for local jobs, great news for the environment, great news for the automotive sector and great news for Ford Australia," Mr Burela said.
"It keeps in Australia work that could otherwise have gone to Chinese manufacturers, which is a fantastic testament to the skills and productivity of our workforce."
"It is vital that automotive manufacturing skills remain in Australia for the viability and strength of the entire sector, and we're very pleased the Australian and Victorian Governments have recognised this through their support."
Under an agreement with global components supplier Bosch the upgraded Plant will be a centre of excellence for brake rotor casting.
The Plant will manufacture around 1 million brake components annually for Bosch Chassis Systems Australia, a supplier of automotive brake systems.
"It's no secret we were looking at a range of options for the Plant, including new ownership, however after careful consideration we have a growth plan that takes the Plant to full capacity and, importantly, creates new jobs at Ford."
The Plant will also manufacture engine blocks for Ford’s new Euro IV compliant I6 petrol engine for FG Falcon and the new Territory diesel and petrol variants, supported by the Australian Government under the Automotive Competitiveness and Investment Scheme program.
"Our I6 engine continues to be the cornerstone of our success in Australia and its evolution over the last 50 years is testament to the engineering ingenuity we have at Ford Australia," Mr Burela said.
"Its upgrade to Euro IV emissions standards proves that it is possible to enjoy the benefits of a large car along with improved fuel economy and reduced emissions."
The Casting Plant upgrade will benefit the environment through:
An electricity efficiency gain of more than 5,100 kW hours a day, obtained by reducing furnace idle times;
Increased use of recycled stormwater to 77,000 litres a week, or 3.7 million litres a year – around 20 per cent of all water used at the Plant will be from recycled stormwater, up from the current 5 per cent;
Increased use of recycled shredded metal, increasing from 32 per cent to 70 per cent - 67 tonnes of metal a day will be recycled, or almost 15,000 tonnes a year; and
Sand reclamation to increase to almost 100 per cent by selling around 138 tonnes of surplus sand each week for cement production, reducing sand landfill requirements to zero.
Mr Burela said the investment demonstrated the strength of Ford’s Australian operations.
"Ford Australia enjoyed a strong 2009 and we’re looking even stronger in 2010. In fact we’ve had to schedule overtime days for five of the last six months to keep up with customer demand and we're currently selling almost 100 per cent of our vehicle supply each month."
"Building on this growth, in coming months we’ll be unveiling a range of upgrades and innovations to celebrate Falcon's 50th year, in addition to already announced enhancements such as Falcon EcoBoost and Falcon LPi."
The Casting Plant upgrade will be undertaken continuously over the next 36 months.

[JPFS1]

Paxton - I think the media release is wrong.

All the talk was about the green upgrades to the plant and new brake castings.

They went to the effort of setting up displays of the brake discs etc, but not a mention or direct quote about diesel casting?? I think they got a couple of words on that release in the wrong spot.

[irlewy86]

http://minister.innovation.gov.au/Ca...ONFIDENCE.aspx

Kim Carr's release still manages to mince the diesel/petrol engine together but seems to make it clearer that only the I6 is being cast in Geelong.

[Paxton]

Originally Posted by JPFS1

Paxton - I think the media release is wrong.

All the talk was about the green upgrades to the plant and new brake castings.

They went to the effort of setting up displays of the brake discs etc, but not a mention or direct quote about diesel casting?? I think they got a couple of words on that release in the wrong spot.

I understand completely, it is just that the media release is about as clear as Rudd on this matter, and I think a number of the members are getting slightly confused on the matter.

Obviously, the casting plant isn't properly equipped for casting CGI, and Ford won't be spending anything on the motor, or getting the plant ready to cast it.

[Brazen]

Yep it is basically saying the the I6 petrol blocks will be cast for the petrol and diesel Territory. Basically Marketing is using the press release as another opportunity to advertise the fact that the Territory will have diesel variants.

Didnt any of these Marketing types know that a good media release should be perfectly clear and should only have to be read once.

[vztrt]

Originally Posted by Big Damo

Every time I go look at the careers section of FoA's website it always says they have no openings....

Ford aren't really hiring staff they hire people on contract so if they need to get rid of them its a lot easier (read cheaper) to wait till the contract runs out then have to fire people.

[jpd80]

"It's no secret we were looking at a range of options for the Plant, including new ownership, however after careful consideration we have a growth plan that takes the Plant to full capacity and, importantly, creates new jobs at Ford."

What better way to improve the value of your casting plant than to diversify products
and not be completely dependent on the I-6 for sole income generation. It is still possible
that Ford is preparing the plant for sale down the track once production
and returns from Bosch are established, maybe 2015 is looming large...

[Fordman1]

Originally Posted by Paxton

There is a Press Release on the Ford website, as found here: http://www.ford.com.au/servlet/ContentServer?pageid=1178852649394&cid=12488710844 44&pagename=FOA%2FDFYArticle%2FWeb-Standalone&theme=default&direction=ltr&c=DFYArticl e&site=FOA&aldata=||period::20100401,20100631

There will be NO DIESEL BLOCKS cast in Australia.... period.

There will be NO V6 diesel engine assembly in Australia, it will be 'brought in' 'fully built up' from the Uk.

The release must have been written by a co-op student

The release is wrong - I will eat my car if I am not correct...

[Fordman1]

Originally Posted by jpd80

What better way to improve the value of your casting plant than to
diversify products
and not be completely dependent on the I-6 for sole income generation.
It is still possible that Ford is preparing the plant for sale down the track once production
and returns from Bosch are established, maybe 2015 is looming large...

I think you're right on the money there ....

It is common knowledge in the industry that FoA are trying to sell the Casting Plant.

Casting is seen as a 'non-core' business..

[jpd80]

Originally Posted by Barraxr8

I think you're right on the money there ....

It is common knowledge in the industry that FoA are trying to sell the Casting Plant.

Casting is seen as a 'non-core' business..

My prediction is that the castings plant will be sold as a going concern
with income independent of Ford sometime around 2012-2013.

Ford will leap to the defense of the I-6 but if you look closely the maneuvering
to use other engines has already started and will accelerate in the next few years.

[Road_Warrior]

The level of investment required to tool up the plant to produce the diesel engine would exceed the amount of money that has been quoted anyway.

[Franco Cozzo]

Originally Posted by vztrt

Ford aren't really hiring staff they hire people on contract so if they need to get rid of them its a lot easier (read cheaper) to wait till the contract runs out then have to fire people.

Ah yes, I found openings on job search websites, they do 3 month contracts with possibility of staying on longer.

[vztrt]

Originally Posted by Big Damo

Ah yes, I found openings on job search websites, they do 3 month contracts with possibility of staying on longer.

Just remember Ford isn't the only company doing this.

[phillyc]

http://www.carsales.com.au/news/2010...heir-way-19035

Ford's assets to pay their way?

Originally Posted by carsales

words - Ken Gratton
Are 'wholesale' customers the means of securing local manufacturing in Oz?

How much is production of Bosch brake rotors worth to Ford Australia? The contract, as we reported yesterday, is not finalised yet, but an arrangement to cast as many as one million rotors a year from the one plant must be worth a substantial sum of money to the local vehicle builder.

Not enough though, to support a company as relatively large as Ford Australia, in isolation.

But with Ford also accruing revenue through another facility, ACART (Advanced Centre for Automotive Research and Testing), there's a business model emerging for Ford to raise revenue and improve profit -- without necessarily building and selling more cars. Offering 'B2B' services for all its R&D or production facilities could make each facility its own 'profit centre' within Ford Australia.
Cont'd.

Interesting, and it's a great way to 'ingratiate' themselves with head office. I actually think it is an excellent way to operate. So long as the ultimate focus is on the core business.

[Max460]

Originally Posted by gazza414

I've been thru the Ford Casting Plant in recent years..absolutely 3rd world quality control and reject rate

Its lucky to be operating at all.

What a ridiculously un-qualified and slanderous comment!

And to add to the question about CGI, the plant does have the production equipment and processes to make CGI. The plant made CGI exhaust manifold for decades until 2005 when volume constraints saw them outsourced.

The plant still produces SGI for crankshafts.

[Bossxr8]

Originally Posted by Big Damo

I think they're just doing an "Australian Government".

Create "new jobs", with the intention of just promoting staff who already work in the organisation, but still advertise and interview, then 6 months later tell them they where unsuccessfull and withdraw all advertising.

Nope.

All the new guys in my area are first timers.

They have hired on at least 3 seperate occasions this year, so the jobs are there. They would not advertise some jobs as they must have a heap of job applications sitting there in the employment office to choose from. Its not hard for them to find workers.

If you want a job go into the employment office and fill in a job application, if they want you they will call you when they become available.

[Franco Cozzo]

Just a question about production line, whats it like working on it? Whats involved?

[Bossxr8]

Fairly repetitive. Pays ok.

Basically involves adding bits to the engine via airtools etc. If your good with your hands its fairly easy, but most of the jobs seem to be going to the stamping plant lately.

[Gobes32]

Stamping plant is not too bad, you have the opportunity to move around a lot more and not be stuck in the same place. Having said that, stamping plant is a lot harder work as in lifting, etc. Show a bit of smarts and they will pay for you to do your doggers ticket, forklift, etc. Some people might suggest stamping is more dangerous but that could be said with any place where you are working with sheet metal........ Very sharp. The bottom line is that Ford are a good company to work for with the opportunity to take home a good wage if you are willing to work overtime.

[Franco Cozzo]

Originally Posted by Gobes32

Stamping plant is not too bad, you have the opportunity to move around a lot more and not be stuck in the same place. Having said that, stamping plant is a lot harder work as in lifting, etc. Show a bit of smarts and they will pay for you to do your doggers ticket, forklift, etc. Some people might suggest stamping is more dangerous but that could be said with any place where you are working with sheet metal........ Very sharp. The bottom line is that Ford are a good company to work for with the opportunity to take home a good wage if you are willing to work overtime.

I'm 18 at the moment and I'm a first year apprentice mechanic, would I start an "apprenticeship" as a production line worker? Or just go onto minumum wage for my age, rather than first year apprentice wages?

I'm on $7.05 an hour at the moment...

What I'd like to do is if possible, work at Ford Australia, in any position and see if I can transfer to a dealership position as an apprentice mechanic to make me look more appropriate for the job, having some experience behind me at Ford.

[XR Martin]

I can imagine working as an apprentice at a Ford dealer might change you opinion on Fords in general.

Also you will probably earn more at the Factory than what you ever could as a mechanic (unless you're a specialist and own your own workshop)

[Franco Cozzo]

Originally Posted by XR6 Martin

I can imagine working as an apprentice at a Ford dealer might change you opinion on Fords in general.

Also you will probably earn more at the Factory than what you ever could as a mechanic (unless you're a specialist and own your own workshop)

Agreed, after I get my trade qualification as a mechanic I'll look into some other avenue. I work at Honda but my true passion lies with Ford