Ford to force plant closures in Australia 0

Ford is set to close plants across Australia for one week it has been confirmed. The decision comes after administrators were appointed at CMI Industrial, a parts manufacturer in Australia.

Sinead Phipps, Ford’s spokeswoman in Australia said that on Thursday the 26th April, car production would come to a halt. She said that business will resume on Thursday the 3rd May.

CMI – Ford’s supplier of parts

As there is no access to parts, Ford factories are unable to operate. CMI’s administrators will take several days to bring the business back to full operation. The news will come as a bitter blow to Ford as a company and especially employees at the factory.

Several days to recover

Ms Phipps said Ford believed it would take CMI administrators several days to stabilise the business and resume production, and it would then be 24 hours before parts were available to Ford. 1800 employees were understood to have stood down at both Broadmeadows and the Geelong plants. Monday 23rd May is supposed to be a scheduled day off and it is to go ahead Sinead Phipps confirmed. Ms Phipps said “We won’t be producing cars on Friday, Monday or Tuesday. Obviously the whole process needs a bit of time to happen before we can start our production line again.”

AdminstartorsAdministrators Grant Thornton and McGrathNicol took control on the morning of 26th April. They are looking for new buyers and in the meantime are attempting to get the company’s finances into order. There have been no indications as to when the factory will reopen as of yet. If the business is restructured then it can reopen into a profitable and important business once again, according to Bill Shorten, a Workplace Relations Minister Bill Shorten. Meetings between Ms Phipps and administrators are set to continue throughout the week,

CMI recovery vital for Ford

Can CMI be saved? Without them it appears that Ford do not have a leg to stand on in Australia. The news is currently in it’s very early stages. As the week continues there could be signs of recovery from CMI.

The news will also have a negative effect on the whole Australian automotive industry and the Australian economy as a whole. It is a shame especially considering that the Australian car market was receiving some positive press in recent times.