Ford Prepares New Cutbacks in Australia

Ford Motor Co. plans to slash its vehicle production in Australia by one-third in June, eliminating 300 jobs, Bloomberg News reports.

Ford said last spring it would phase out its Australian assembly operations by October 2016. The company tells Bloomberg this year's reductions will slow combined daily output to 80-90 cars at its factories in Melbourne and nearby Geelong.

Sales of the Ford Falcon, the country's top-selling domestic car for 19 years, slumped to 10,600 units last year, according to the Federal Chamber of Automotive Industries.

Ford employed 3,000 people and was making more than 200 cars per day in Australia 18 months ago. It currently employs about 1,000 workers there.

Less costly imports and unfavorable exchange rates have squeezed Australia's auto industry, prompting General Motors Co. late last year to join Ford in announcing its departure from the country. Mitsubishi abandoned Australia three years ago.

Toyota, the only other local carmaker, has said it wants to cut production costs there by about US$3,400 per vehicle.