Ford about to announce plant closure: MP

Ford Australia could announce on Wednesday the closure of its Geelong engine manufacturing plant by 2010, a senior federal politician says.

But a Ford spokeswoman denies the company has made a decision on the future of the plant, which supplies six-cylinder engines for its Falcon and Territory ranges.

Opposition industry spokesman Kim Carr told Fairfax newspapers the motor industry was expecting Ford to announce the closure on Wednesday.

"The industry is bracing itself for a decision and we fear the worst," he said.

But the Ford spokeswoman said the company was considering a number of options and was not prepared to make any comment.

Ford has had to rethink the future of the plant with falling sales of large Australian-made cars, a Howard government plan to halve tariffs on imported cars to five per cent by 2010, and tough new emissions laws for new cars due in 2010.

Ford could opt to import a more efficient V6 engine to replace the locally designed in-line six cylinder fitted to the Falcon and Territory.

Up to 600 jobs could be lost in Geelong if the plant closes.

Ford Australia built its first Australian factory in Geelong, Victoria's second largest city, in 1925.