Lost Focus deal: Ford Oz given 'big' state incentive

The Australian government gave Ford Australia "a big incentive" that enabled it to wrest production of the next-generation Ford Focus from Ford Southern Africa.

Hal Feder, president and chief executive of Ford SA, has confirmed that the incentive was specific to Ford and not available to other automakers in Australia but was unable to elaborate on its nature.

Feder did not know if it complied with World Trade Organisation rules but stressed that company-specific incentives were given to automaker in many countries, among them China, Thailand, Brazil and Mexico.

Jay Meek, of the Australian Trade Commission in Johannesburg, said he did not have details of the incentives given to Ford Australia .

Ford SA confirmed last week that it had lost the contract to assemble the next-generation Ford Focus to Australia from 2010 partly because of uncertainty over the outcome of the mid-term review of the motor industry development programme (MIDP).

The loss has jeopardised the jobs of many of Ford SA's 3000 workers at its Silverton plant if the company does not win a bid for an alternative production contract.

Feder said Australian government officials would be in South Africa next week for discussions with the trade and industry department over the mid-term review of the MIDP.

In 2004 Australia unofficially lodged an objection with the WTO over exports of South African leather to Australia

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