Ford Australia to Cut 350 Jobs

Ford Australia announced it will cut up to 350 jobs, or 15% of its Australian manufacturing work force, due to a slump in sales of large cars. The cuts, expected soon, come after an earlier announcement that 600 jobs would be lost when local 6 cylinder engine production ends in '10. A Ford spokesman said changing consumer preferences, rising fuel prices and economic factors had caused a decline in the large-car segment. He said the job losses would be voluntary and evenly split between two plants in the state of Victoria. Ford Motor Co. has seen its sales slump in the U.S. and abroad and the automaker lost $8.7 billion in the 2nd-Q as it moves to adjust from trucks to a stronger car lineup. He said Ford planned to hire about 300 workers in Australia when it starts production of the Ford Focus in 2011 but the current cuts were necessary in the interim. The Industry Minister said there can be more job cuts in the embattled automotive industry, warning that one-third of suppliers are in "a state of distress.