FORD'S engine plant will remain in Geelong until at least 2016, Federal Industry Minister Kim Carr says, despite the firm posting another flagging sales result.
Mr Carr yesterday said he expected the Norlane works to continue manufacturing engines for the locally produced Falcon and Territory for another five years at least.
The call follows the Blue Oval's announcement last month of a decision to cut 240 jobs from the Norlane and Broadmeadows plants, although the split between the two plants would remain unknown until voluntary redundancies and acceptance numbers were in.
Falcon sales nosedived during last month, down 47 per cent on last April.
Yearly sales in the flagship model are down 41 per cent on the same time last year, again putting pressure on the local car producer.
Territory sales, long the brand's saving grace, are also down dramatically in the past month. Territory sales in April were down 44 per cent compared to April last year.
However, Federal Chamber of Automotive Industries CEO Andrew McKellar said a longer than usual Easter had not helped sales.
Chamber figures showed overall vehicle sales last month were down 8.8 per cent on last April.
Ford's planned job cuts would reduce production from 260 to 209 vehicles a day from July. Ford is currently making cars only three days a week.
There has been speculation that after 2016 the Falcon will be replaced by an all-wheel drive platform, possibly based on the US Taurus.
Ford spokeswoman Sinead McAlary has said the latest slump was largely due to the current lack of an LPG Falcon.
Ms McAlary said Ford stopped producing LPG Falcons last September, but a new gas system was due in the middle of the year, as well as a new EcoBoost four-cylinder coming in the latter half of this year.
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Chamber figures showed overall vehicle sales last month were down 8.8 per cent on last April. Ford's planned job cuts would reduce production from 260 to 209 vehicles a day from July. Ford is currently making cars only three days a week.
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