Ford CEO: Australian engineering might end without government support
Words: Andrew Sluys
Ford CEO Jim Farley has warned the brand’s Australian engineering arm might be axed without a change in government regulations.
Speaking to the media ahead of the Australian Grand Prix, Farley spoke about how pulling out of local development could spell the end of 1,500 jobs.
Ford’s Australian engineering arm is based in Melbourne, and has previously worked on vehicles such as the Ranger ute and Everest SUV.
Farley referenced design regulations as well as Australia’s New Vehicle Efficiency Standard (NVES), which is targeting high emitting vehicles.
“It’s a choice, because that engineering can be done in a lot of other places cheaper and faster,” Jim Farley said.
“Here in Australia, versus China or Vietnam or other places, there is a premium for innovation. So we’re willing to pay, but your government has to decide if they want engineers in their country, or do you want a country of hairdressers and bankers?”
“They need to decide if they want to help us equalise the cost differential, because this is among the most expensive places to have engineers on the planet.”
Following the Grand Prix, the Ford boss was reportedly meeting with Australian officials to talk about these strict regulations.
Similar to the clean car standard in New Zealand, Australia’s NVES issues fines to brands that sell high-emitting vehicles such as diesel utes and off-road SUVs.
“We want to reduce our CO2 footprint, but there’s a level that the customer can’t afford, and not all duty cycles can be electrified,” Farley said.
“So that duty cycle of towing and pure electrification; that right now, the technology doesn’t make that sensible. It has to be heavily subsidised by the OEM to be compliant.”
