The rumours are true, Ford Australia today confirmed it will cut a further 450 jobs from its Victorian work force.

The cuts have been blamed on the global economic slowdown and falling demand for large passenger cars. It’s also a tacit acknowledgement that the much vaunted FG Falcon range has been a failure.

The new limited edition FPV Falcon GT

 Ford Australia CEO Marin Burela said it was a difficult time for affected families and everyone at Ford.

“We don’t take these issues lightly, but we need to secure and protect the business,“ he said. 

According to Mr Burela the retrenchments will at this stage be voluntary and the company believes there will be sufficient interest in the plan to avoid actual sackings.

Mr Burela said he was convinced that as the company goes through the restructure phase, it can build a way forward. “Many things are happening around the world. We can’t control the external factors. The things we can control are the things we’re acting on.“

Mr Burela told Media at the Australian International Motorshow that the company was in transition and was becoming a “small car company”.

Ford unveiled the new Fiesta at the show but also displayed a re-badged Falcon GT celebrating 40 years of the GT.

Meanwhile Holden also announced a decision to wind back production at their South Australian factory.