Is the Falcon going the way of the Dodo?

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Is the Falcon going the way of the Dodo?
Stephen Ottley
March 4, 2011 - 9:31AM

Lagging sales figures could mean the Falcon is going the way of the Dodo.
Flagging sales have put the locally-produced Falcon on the endangered list

The Ford Falcon is becoming an endangered species. Pressure is mounting on Ford Australia’s local manufacturing operation as the iconic Falcon model continues its sales slide.

The latest car sales figures released yesterday show that Falcon sales have slumped to less than half its arch-rival, the Holden Commodore. Only 1,572 Falcons were sold in February according to the sales numbers released by the Federal Chamber of Automotive Industries (FCAI).

In stark contrast Holden sold 3,829 Commodores, making it the biggest selling car in the country.

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The decline raises questions about the viability of Ford’s Australian manufacturing operations. Sales of locally-built Fords have almost halved in the past five years as buyers have flocked to smaller cars, and things have got even worse this year, with sales in the first two months dropping by almost a third.

In contrast, Ford’s smaller Focus and Fiesta cars are selling well. The situation raises questions about Ford’s decision to abandon plans to build the next-generation Focus in Australia.

The car was due to be built at Ford’s Broadmeadows headquarters from later this year, but Ford decided instead to focus on developing a four-cylinder Falcon, dubbed EcoBoost, late this year.

Ford Australia spokesman Neil McDonald tried to put a positive spin on the sales figures.

“Obviously Focus is one of our important new vehicles this year, along with a host of other models in the pipeline - new Territory, Falcon LPi, Falcon EcoBoost and Ranger. Focus arrives in Q3 and it will deliver some high-tech, efficient modern motoring solutions in that competitive small car segment.”

The decision to abandon local Focus production brought into sharper focus this week by Holden’s high-profile launch of its locally made small car, the Cruze.

Holden managing director Mike Devereux said the car was vital for Holden to add more production to its South Australian factory. He believes car makers need to produce at least 100,000 cars locally in order to get economies of scale.

The Cruze currently comfortably outsells the Falcon, despite being imported from Korea.

Currently Ford’s Broadmeadows plant is operating well below its maximum capacity of 120,000 vehicles per year; last year it sold only 50,000 locally made cars in Australia. McDonald says adding the EcoBoost Falcon will entice buyers back to large cars.

“With rising fuel costs consumers are becoming more acutely conscious of fuel economy,” he says. “EcoBoost Falcon will deliver the performance of a six cylinder with the fuel economy of a four, without sacrificing space and creature comforts, which Falcon customers expect and demand of their vehicles.”

Ford secured $42 million from the Green Car Innovation Fund to develop the EcoBoost Falcon and diesel-engined Territory SUV.

But it wasn’t just bad news for Ford and the Falcon. Large car sales are continue to drop as buyers look for smaller, more fuel efficient vehicles. Even the Commodore is down 9.5 per cent year-to-date.

The trend to smaller cars is also putting pressure on the whole local manufacturing industry, that comprises Ford, Holden and Toyota, and is reliant on large and medium cars. The latest figures from the FCAI show that locally made cars are down 21.4 per cent year-to-date, with less than 20,000 sold.

Ford Falcon sales decline

2003 – 73,220

2004 – 65,384

2005 – 53,080

2006 – 42,390

2007 – 33,941

2008 – 31,936

2009 – 31,023

2010 – 29,516

My comment Its down to advertising and marketing,which is pathetic compared to the darkside,