FORD is to close down its Australian car-making operations until next Wednesday

[csv8]

Ford to close plants

From: AAP April 26, 2012 2:22PM

FORD is to close down its Australian car-making operations until next Wednesday, a company spokeswoman said.

The company has made the decision in response to the failure of parts manufacturer CMI Industrial.

Ford spokeswoman Sinead Phipps said production would cease from the close of business today.

Thats not good news..what if the supplier cann't start supplying parts ???????
Lets hope Ford don't use this as an excuse to kill Falcon......

[Black F6]

They will just get new supplier, its only a minor setback, people will still get paid, i just dont know why they didnt get another supplier by now, if i cant get something from one person you go see the next person who has it

[EFFalcon]

Originally Posted by Black F6

They will just get new supplier, its only a minor setback, people will still get paid, i just dont know why they didnt get another supplier by now, if i cant get something from one person you go see the next person who has it

if they're custom components then no, no one else has it.
lead time is involved for tooling etc.

[DJL351]

Originally Posted by Black F6

They will just get new supplier, its only a minor setback, people will still get paid, i just dont know why they didnt get another supplier by now, if i cant get something from one person you go see the next person who has it

So other than ZF - who makes the ZF gearbox?

Yes, people will be getting paid - assuming they have leave to cover the shutdown; if they don't.... well then they'll be hurting.

[Road_Warrior]

I wonder what costs would be involved for Ford to assume control of the parts factory and start making those parts itself...and then spin the operation off on its own for sale as a going concern once it was trading profitably.

[greens_tuf]

You've gotta love the news headlines

"Ford shuts plant, workers stood down. FORD is to close its Australian car-making operations until Wednesday, with almost 2000 workers to be stood down."

Without reading the article, I thought Ford was closing its AUS operations LOL. That's really gonna help sales!

[SteveJH]

Originally Posted by DJL351

So other than ZF - who makes the ZF gearbox?

Yes, people will be getting paid - assuming they have leave to cover the shutdown; if they don't.... well then they'll be hurting.

1) Ford US manufacture a licensed build version of the ZF 6 speed gear box, this box is used in the diesel Territory and the Ecoboost falcon I believe.

2) If they are permanent employee's (not casual) and cannot work due to a fault of the company, as far as I am aware they still get paid?

[BLUEYBA]

Originally Posted by EFFalcon

if they're custom components then no, no one else has it.
lead time is involved for tooling etc.

I think i read or heard that there is a company in New Zealand that can provide the product needed.

[Road_Warrior]

Well - one positive that can be drawn from this is a week of no production means the dealer and paddock stock of cars can be whittled down a bit.

[SteveJH]

Originally Posted by BLUEYBA

I think i read or heard that there is a company in New Zealand that can provide the product needed.

Transport would be interesting though.

Shipments (at least initially) would need to be flown in, which adds considerable cost.

Does the New Zealand company have enough *free* production capacity to do the job? No point giving them a contract if they can only produce small numbers of units.

[nstg8a]

im sure i read in one of the earlier articles that stood down employees will be paid 50% of their normal pay.

[DJL351]

Originally Posted by SteveJH

1) Ford US manufacture a licensed build version of the ZF 6 speed gear box, this box is used in the diesel Territory and the Ecoboost falcon I believe.

It was in relation to the silly 'just find someone else' response.

Originally Posted by SteveJH

2) If they are permanent employee's (not casual) and cannot work due to a fault of the company, as far as I am aware they still get paid?

http://www.perthnow.com.au/business/...-1226338962233

Originally Posted by PerthNow

The company's Broadmeadows and Geelong factories already had a scheduled day off for Monday, and would bring workers' leave entitlements forward to ensure they were paid if the temporary stand-downs did occur.

[Road_Warrior]

Here's an idea. Ford assumes all of CMI's debt and employee responsibilities, in exchange for all of CMI's tooling, materials and assets (apart from rented assets like the factory). The premises is handed back to the landlord (now that Ford has dealt with the outstanding rent) and Ford relocates all of the tooling, materials and workers to the Geelong plant and starts making all of the parts CMI used to make, itself. This should 1) give Ford a stable, more accessable supply of these parts 2) reduce overall costs and 3) give the Geelong plant an extra avenue to keep its plant ticking over and people in work for when production of the I6 starts to be wound back.

The way I'm seeing it, is that there are too many "middle man" suppliers. CMI makes the suspension arms, which are then sold to DANA, who fit them to suspension modules which are then sold to Ford. Surely they can make do without that extra supplier in the process adding costs to the price of parts and therefore the overall cost at the end ?? Or make it so DANA instead of Ford assumes the debt and employees but makes all the compoments, either way, there needs to be some sort of reduction in the amount of processes here. The car makers used to make all of this crap themselves but spun it all off in the 1990's and 2000's citing cost and efficiency dividends, but it seems to me that the wheel could turn full circle and the car makers could be forced into making their own parts again.

[Archilino]

A union rep just said on channel 10 news that Ford could've stopped this if it wanted to (re closure of plant until wednesday). Is he insinuating they should've paid the rent or found the part elsewhere?

[Joe5619]

This topic is a repost...


As been said in the other topic, there is so many down days schedule over the next 2 months that these will mean NOTHING to Ford.. Other planned down days will just be cancell to replace these ones.. It is a tea cup in a storm, or what ever the saying is!!

[nstg8a]

Originally Posted by Archilino

A union rep just said on channel 10 news that Ford could've stopped this if it wanted to (re closure of plant until wednesday). Is he insinuating they should've paid the rent or found the part elsewhere?

union reps will always say management could have done better, regardless of the actual costs or ramifications of 'better' options.

as said, its only a few days, and easily made up by swapping round the down days.

[Stefan]

Latest article all seem to mention ford is in dispute with the supplier, I dare say Ford has not paid it's bills for some reason or another which has obviously dented cash-flow sending the company into receivership.

I dare say Ford has initiated this in some way or another.

[Jim Goose]

ahh there is thread on this already...

[Joe5619]

Originally Posted by Stefan

Latest article all seem to mention ford is in dispute with the supplier, I dare say Ford has not paid it's bills for some reason or another which has obviously dented cash-flow sending the company into receivership.

I dare say Ford has initiated this in some way or another.

Please have some sort of facts before you say things like that!!!!

[Fordman1]

Originally Posted by Stefan

Latest article all seem to mention ford is in dispute with the supplier, I dare say Ford has not paid it's bills for some reason or another which has obviously dented cash-flow sending the company into receivership.

I dare say Ford has initiated this in some way or another.

Rubbish !

Manufacturing in this country is struggling, especially component suppliers to the Automotive industry due to reduced volume from the 3 local Automotive manufacturer's.

Ford Australia is profitable and pay's it's bills as required.

I dare say you don't know what you're talking about

[superroo]

Originally Posted by Road_Warrior

Here's an idea. Ford assumes all of CMI's debt and employee responsibilities, in exchange for all of CMI's tooling, materials and assets

Slight problem with that. Ford should already own the tooling.

Originally Posted by Stefan

Latest article all seem to mention ford is in dispute with the supplier, I dare say Ford has not paid it's bills for some reason or another which has obviously dented cash-flow sending the company into receivership.

I dare say Ford has initiated this in some way or another.

This is very close to home to what happens throughout the entire auto industry of late. Any excuses from the big guys to not pay invoices, and they are on to it.

Cheers

[Polyal]

JIT...awesome! Cant even last what 2-3 days of production if one supplier cracks it?

[JG34JA]

Isn't JIT the philosophical antithesis of Henry Ford's vertical integration of all of his manufacturing? River Rouge comes to mind.

[jpd80]

Originally Posted by JG34JA

Isn't JIT the philosophical antithesis of Henry Ford's vertical integration of all of his manufacturing? River Rouge comes to mind.

HF1 Insisted on micromanaging his business and controlling every step until he realised that the business was to big for one man to control.
When Ford began outsourcing and tendering, it became obvious that huge savings were possible.

The cost of warehousing parts far outweighs any benefits from keeping so many parts on site and continually refreshing,
it's kind of like the supply side equivalent of stockpiled product costing you money sitting there..

[Charliewool]

I don't think it's as simple as Ford just footing CMI's 160k rent bill?
From all reports CMI have been kaput for a while (and possibly trading while insolvent, which is very naughty)
Was also mentioned this arvo that Ford have propped CMI up financially in the past (more than once) to keep supply?
I believe Ford's lost patience?
Also a great way to lower employee leave liabilties during quiet times?

Who we should have sympathy for is the CMI employees, if in fact the place is in receivers hands.. because those poor bastards will be at the bottom when what's left of the pie's divided!..
Unfortunately posts regarding manufacturing going under (especially auto related) are going to become increasingly more prevalent....
Hawke/Keating.. "free trade" anyone??

[superroo]

Correct charlie.
Have a look at who they are connected to (owned by??) and the picture starts to clear up a bit.

[BroadyFord]

Ford makes this situation sound as if there's a mad rush of buyers for the Falcon and that they need to start producing ASAP. We all know this is hardly the case!

I would have thought a couple of down days are a good thing, i.e. enabling existing stock to be purchased instead of churning out an excess amount of Falcons which nobody wants.

[Road_Warrior]

Originally Posted by superroo

Slight problem with that. Ford should already own the tooling.

Why would Ford own the tooling of another company? And if they did, it would be one less problem to overcome if they wanted to take over the operation, not an additional problem.

Originally Posted by jpd80

HF1 Insisted on micromanaging his business and controlling every step until he realised that the business was to big for one man to control.
When Ford began outsourcing and tendering, it became obvious that huge savings were possible.

The cost of warehousing parts far outweighs any benefits from keeping so many parts on site and continually refreshing,
it's kind of like the supply side equivalent of stockpiled product costing you money sitting there..

But what if Ford was JIT supplying to itself, it would be more cost efficient than them both..?

[HUNTER8]

Originally Posted by BLUEYBA

I think i read or heard that there is a company in New Zealand that can provide the product needed.

Funny about that.......
If you go to the CMI Industrial website you see it's not a smallish operation.
http://www.cmiindustrial.com.au/locations.html

[Loonar]

Originally Posted by Charliewool

I don't think it's as simple as Ford just footing CMI's 160k rent bill?
From all reports CMI have been kaput for a while (and possibly trading while insolvent, which is very naughty)
Was also mentioned this arvo that Ford have propped CMI up financially in the past (more than once) to keep supply?
I believe Ford's lost patience?
Also a great way to lower employee leave liabilties during quiet times?

Who we should have sympathy for is the CMI employees, if in fact the place is in receivers hands.. because those poor bastards will be at the bottom when what's left of the pie's divided!..
Unfortunately posts regarding manufacturing going under (especially auto related) are going to become increasingly more prevalent....
Hawke/Keating.. "free trade" anyone??

Spot on, old son.... see post 34 "Ford supplier lockout"