Ford to keep engine plant open

FORD Australia today announced that it will not shut its Geelong engine plant after all, granting its venerable in-line six-cylinder engine a stay of execution.

The company’s president Marin Burela said the company would adapt the 4.0-litre engine in order for it to meet strict new Euro IV emission controls that come into place in 2010.

Ford Australia announced in July 2007 that it would kill off the engine, which has been produced locally since 1960, and replace it with a 3.5-litre V6 made in the US from 2010.

Burela, who hails from Geelong, announced that the company has abandoned this plan and is now ready to invest $21 million on the engine plant so it can make the upgraded six-cylinder unit.

The company says the development means that 400 jobs at Ford will remain, while an estimated 900 jobs in the component industry have also been saved.

“It’s great news for the people who love this I6,” Mr Burela said.

“This is a great, great day for the people of Geelong, a great day for the people of Ford of Geelong and I think a great day for Ford Australia,” he said.

The $21 million investment is coming from Ford Australia (rather that its head office in Detroit), the Federal Government has re-pledged $13 million that had been allocated and then withdrawn when the engine plant closure was announced, while the Victorian Government has lent an unspecified level of financial support.

Mr Burela (left) said the money would go to making the I6 more efficient than ever before.

“Our investment will go into developing the engine to meet Euro IV emission standards, standards that currently don’t exist in Australia, standards that will in fact take the whole development process of the engine to a whole new level that will deliver the environmental targets and standards that will make it viable into the next decade.”

Mr Burela said Ford Australia was actively working with companies that form its local supply chain, who had thought the engine was dead and buried.

“It’s an incredible day for our suppliers, who have supported us through thick and thin, many of whom have felt the pain and the difficulties that the industry has suffered as a whole over the years and certainly over the last few months,” Mr Burela said.

“We will continue to source components from those suppliers and we are talking with them as we speak about what this will mean to them.”

Federal industry minister Kim Carr said the announcement was not only great news for Geelong, but also Australia’s automotive industry.

“Ford workers and their families will be rejoicing today, and the Federal Government would like to congratulate Ford on making this optimistic and forward-looking decision,” said Senator Carr.

The changes needed to bring the I6 engine up to Euro IV standard were largely locked in place when Ford Australia announced its decision to kill off the engine.

Those plans have now been dusted-off, while some new technology that has come to light in the last year from elsewhere in the Ford world will be incorporated into the design.

No major changes will be made to the existing engine for it to comply with the new environmental standard.

GoAuto understands the upgrade will focus on injection, calibration and exhaust, and company sources have confirmed the work will not involve moving to a direct injection system.

Stay tuned to GoAuto for further reports.

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Ford confirms Geelong engine plant closure