Ford US boss reveals reasons for Australian factory axe

[flappist]

Originally Posted by BFZ Wagon

The boss of Ford North America needs to look at a map. Thailand and Indonesia (particularly Indonesia) are still a long way from everywhere else too.

So the only reason they can use is the 'cost of manufacture thing.'

They don't care about anywhere else except the North American market and if they can build cars cheap from tin pot 3rd world countries, then that's what they'll do.

Actually no they are not all that isolated compared to us. I am always amused when I fly to HK/PRC and when I am halfway there time wise that I am still above Australia. Of course that is from Brisbane, I f I flew from Melbourne it would be almost two thirds of the journey would be over Australia.

The world is not flat, maps tend to be very distorted and Australia is very big and a long way from everywhere else.

[Slow Ute]

Originally Posted by ebxr8240

It's not totally labour costs !! Have you seen these new manufacturing plants ?? They are made by robots !! Now they have a larger market they'll take over !! Robots don't have lunch breaks, wages, sick leave etc etc

That's exactly right. Look at the Germans. Similar wages, similar cost of living to Australia and how big is their auto industry and how competitive are they. The crappy euro value probably helps.

[Struggo]

Originally Posted by Slow Ute

That's exactly right. Look at the Germans. Similar wages, similar cost of living to Australia and how big is their auto industry and how competitive are they. The crappy euro value probably helps.

Well yes and no, the biggest difference is scale of production, if FoA produced 150,000 plus cars a year I'm sure it would not have been shut down.

[KIWI-1]

Originally Posted by Slow Ute

That's exactly right. Look at the Germans. Similar wages, similar cost of living to Australia and how big is their auto industry and how competitive are they. The crappy euro value probably helps.

Might also help that most European countries are the size of a matchbox with a population > Australia.

[rdmr]

Originally Posted by flappist

The world is not flat, maps tend to be very distorted and Australia is very big and a long way from everywhere else.

And thank goodness for that.

[Buntz]

Originally Posted by ESP

How is any of that a surprise - we've known this for years

He also doesnt mention the fact that people have moved on from FORD's general offerings..........conveniently forgot that one. There is no guarantee that FORD will continue to sell very well here in AU even with Imports if they dont get their **** together with relevant cars / relevant marketing and competitive pricing. There are stacks of offerings from other manufacturers to compete with down here - maybe more than other countries have per capita ? And take out the fact that without the historical Falcon / FPV sales anyways there is no longer that BLUE BLOOD dedication to buy FORD at all costs...........so Good Luck.........

You've hit the nail right on the head. Firstly, our governments have let the competition of car sales run wild, and hurt our local product. Then you have idiots like Joe Hockey saying that no one wants the current cars Australia builds. When in actual fact there are so many cars to choose from, every niche can be explored. And price-wise, Aussie built can't match prices from low cost countries.

But you've also nailed it GT on Ford's future here. We've seen them bring their great products from abroad, some which are consistently the best in class, yet fail to sell in the same volume of lesser cars. Ford is failing here as importer as well. And ending local manufacturing, cutting jobs, and the iconic Falcon... will only add speed to their current downward spiral.

I could care less about the Ford brand any more. I wish all the best to Holden and Toyota.

[imugli]

Originally Posted by Buntz

You've hit the nail right on the head. Firstly, our governments have let the competition of car sales run wild, and hurt our local product. Then you have idiots like Joe Hockey saying that no one wants the current cars Australia builds. When in actual fact there are so many cars to choose from, every niche can be explored. And price-wise, Aussie built can't match prices from low cost countries.

But you've also nailed it GT on Ford's future here. We've seen them bring their great products from abroad, some which are consistently the best in class, yet fail to sell in the same volume of lesser cars. Ford is failing here as importer as well. And ending local manufacturing, cutting jobs, and the iconic Falcon... will only add speed to their current downward spiral.

I could care less about the Ford brand any more. I wish all the best to Holden and Toyota.

They have already said (as have both Holden AND Toyota) that their import operation is profitable.

Focus sales this year are up 13% - Small cars in terms of market share are up by 1.78%.
Ranger is up close to 80%, while the segment is up 22%.
Modeo is down due to supply (the factory was on strike) and Fiesta is down but has just been updated.
Ford overall is UP 1.4% in a market where Toyota are DOWN 1.1% and Holden are DOWN 9.8%.
Falcon is down 28%, while Terry is up, but only by .7%.
New Kuga has just been launched, EcoSport is on the way, as are new Mondeo (eventually), Mustang, 7 seat Ranger SUV and another vehicle with Territory badging.

Profitable on an import only basis, Import sales increasing and new or updated models just launched or coming over next couple of years that will fill most if not all of the gaps in FoA's lineup.

Explain to me again why FoA are failing as an importer?

If you ask me, FoAs problem WAS the Falcon. It was seen as old hat and I think this carried through to peoples' perception of the Ford brand here. The Falcon WAS Ford to many people and this was costing FoA sales in other segments. Now it will have a lineup of vehicles that are cost competitive, with all the mod-cons expected in a vehicle (which Falcon has not) and for the most part, designed and engineered in Australia or Europe.

IMO the Falcon was a noose around FoAs neck for far too long and getting rid of it will propel them forward to far better sales in segments that are actually relevant these days.

[Buntz]

Originally Posted by imugli

They have already said (as have both Holden AND Toyota) that their import operation is profitable.

Focus sales this year are up 13% - Small cars in terms of market share are up by 1.78%.
Ranger is up close to 80%, while the segment is up 22%.
Modeo is down due to supply (the factory was on strike) and Fiesta is down but has just been updated.
Ford overall is UP 1.4% in a market where Toyota are DOWN 1.1% and Holden are DOWN 9.8%.
Falcon is down 28%, while Terry is up, but only by .7%.
New Kuga has just been launched, EcoSport is on the way, as are new Mondeo (eventually), Mustang, 7 seat Ranger SUV and another vehicle with Territory badging.

Profitable on an import only basis, Import sales increasing and new or updated models just launched or coming over next couple of years that will fill most if not all of the gaps in FoA's lineup.

Explain to me again why FoA are failing as an importer?

If you ask me, FoAs problem WAS the Falcon. It was seen as old hat and I think this carried through to peoples' perception of the Ford brand here. The Falcon WAS Ford to many people and this was costing FoA sales in other segments. Now it will have a lineup of vehicles that are cost competitive, with all the mod-cons expected in a vehicle (which Falcon has not) and for the most part, designed and engineered in Australia or Europe.

IMO the Falcon was a noose around FoAs neck for far too long and getting rid of it will propel them forward to far better sales in segments that are actually relevant these days.

Whoopty doo, 1.4%. A market fluctuation, and suddenly it's a revelation. And now the Falcon was the thing holding back Ford of Australia all this time. Well I've heard everything. Ford of Australia has always and only been the problem of Ford of Australia. That and the rubbish from Dearborn.

The reason why The Falcon never had all the mod cons of the other models is because Ford continually knocked back the car for global integration... at a time when it was competitive.

Pull your head out of your ****.

[imugli]

Originally Posted by Buntz

Whoopty doo, 1.4%. A market fluctuation, and suddenly it's a revelation. And now the Falcon was the thing holding back Ford of Australia all this time. Well I've heard everything. Ford of Australia has always and only been the problem of Ford of Australia. That and the rubbish from Dearborn.

The reason why The Falcon never had all the mod cons of the other models is because Ford continually knocked back the car for global integration... at a time when it was competitive.

Pull your head out of your ****.

The 1.4% was to demonstrate that Ford as a brand in the entire marketplace is doing better than Holden and Toyota, and that given Falcon is down and Territory is flat, that rise is in fact due to the rise in sales of its imported vehicles (as without them rising, FoA sales would be down as well), making the statement that FoA is failing as an importer hard to back up.

You have said in other threads that you are a Falcon man more than a ford man, so I can see why you would want to defend the Falcon, why you'd be upset about the end of the Falcon, why you've been pretty negative about the whole thing in other threads and why you're now telling me to get my head out of my **** after telling at least one other person who disagrees with you to get theirs out of the sand.

We have differing opinions, that's fine. It seems some of us can express those without resorting to personal insults, while you are obviously unable to.

[Buntz]

Originally Posted by imugli

The 1.4% was to demonstrate that Ford as a brand in the entire marketplace is doing better than Holden and Toyota, and that given Falcon is down and Territory is flat, that rise is in fact due to the rise in sales of its imported vehicles (as without them rising, FoA sales would be down as well), making the statement that FoA is failing as an importer hard to back up.

You have said in other threads that you are a Falcon man more than a ford man, so I can see why you would want to defend the Falcon, why you'd be upset about the end of the Falcon, why you've been pretty negative about the whole thing in other threads and why you're now telling me to get my head out of my **** after telling at least one other person who disagrees with you to get theirs out of the sand.

We have differing opinions, that's fine. It seems some of us can express those without resorting to personal insults, while you are obviously unable to.

No it doesn't indicate that they are doing better than Toyota. It means they've gained ground. How you can make something out to be something it's not? No one will surpass the iron clad reputation that Toyota has here in the car market.

I may have lived with the loss of the Falcon and Territory if it didn't also come at the loss of Ford's Australian Manufacturing. Ford didn't even fight to stay, they just made the decision and wound it down.

[I6DOHC]

Originally Posted by imugli

If you ask me, FoAs problem WAS the Falcon. It was seen as old hat and I think this carried through to peoples' perception of the Ford brand here.

Probably some truth to this, and the fact with humans there is a tendency to think the grass is greener elsewhere so many who were used to getting falcons sampled other brands. All's the pity, as the falcon is still a killer all-round package but there hasn't been too much effort of late to sell/promote that aspect of it. Sure you can argue it's a dying segment, but without the v8's and wagons in the range the target markets have shrunk. The mid-sizers aren't exactly volume sellers either (ie mondeo sells less than falcon) so there lies the conundrum.

In any case the market segmentation that has been caused due to destructive policies of successive governments has killed off any hope for a viable local car manufacturing industry, as no one single model line is selling in numbers to sustain the factories. Perhaps if the Aussie factories could have put out the Ranger platform alongside falcon/territory/mustang coupled with the US allowing exports there would have been hope, but Ford NA's first priority is always going to be to ensure viability of their local factories.

It's just sad to see this company, that was incorporated in 1925 (in Australia) pull out of manufacturing in this way, because they do a bloody good job of it. They have been building something (in FG & territory) that all Australians should be proud of (although there doesn't seem to be too many left) and it's something that not that many other nations can do. Be the greatest shame of a generation when the other local car makers inevitably shut up shop.

[Buntz]

Originally Posted by I6DOHC

Probably some truth to this, and the fact with humans there is a tendency to think the grass is greener elsewhere so many who were used to getting falcons sampled other brands. All's the pity, as the falcon is still a killer all-round package but there hasn't been too much effort of late to sell/promote that aspect of it. Sure you can argue it's a dying segment, but without the v8's and wagons in the range the target markets have shrunk. The mid-sizers aren't exactly volume sellers either (ie mondeo sells less than falcon) so there lies the conundrum.

In any case the market segmentation that has been caused due to destructive policies of successive governments has killed off any hope for a viable local car manufacturing industry, as no one single model line is selling in numbers to sustain the factories. Perhaps if the Aussie factories could have put out the Ranger platform alongside falcon/territory/mustang coupled with the US allowing exports there would have been hope, but Ford NA's first priority is always going to be to ensure viability of their local factories.

It's just sad to see this company, that was incorporated in 1925 (in Australia) pull out of manufacturing in this way, because they do a bloody good job of it. They have been building something (in FG & territory) that all Australians should be proud of (although there doesn't seem to be too many left) and it's something that not that many other nations can do. Be the greatest shame of a generation when the other local car makers inevitably shut up shop.

Very well put old bean.

[UberKnee]

Originally Posted by Buntz

Whoopty doo, 1.4%. A market fluctuation, and suddenly it's a revelation. And now the Falcon was the thing holding back Ford of Australia all this time. Well I've heard everything. Ford of Australia has always and only been the problem of Ford of Australia. That and the rubbish from Dearborn.

The reason why The Falcon never had all the mod cons of the other models is because Ford continually knocked back the car for global integration... at a time when it was competitive.

Pull your head out of your ****.

Its still good for Ford to have had growth while Toyota and Hoden sold less than previous. It costs a ****ton of money invested as well to go with all the fancy tech. Imports have it because they're in cars sold globally and built in huge numbers. An Aussie only car sold in a country where the journalists have shunned Ford is a tough prospect to pour billions in investment into. With all of Holdens spin and export they're still crying poor because of the money they've had to invest in the VE and VF.

[Wretched]

GT to be killed off?

Ford's iconic GT Falcon will be an early casualty of the blue oval's decision to shut down its local manufacturing operations.

An inside source has confirmed to Drive that Ford Performance Vehicles - the company's official performance division - will be killed off next year when the final iteration of the Falcon is launched.

In a bid to ensure fans of fast Fords are still catered for until the Falcon is phased out in 2016 - and eliminating the costs to produce new unique visual parts of FPV vehicles - it is understood the company will revive the XR8 badge utilising the GT's high-performance components, such as its 335kW supercharged V8 engine, Brembo brakes and sports suspension.

Ford Australia spokesman, Neil McDonald, would not confirm any details on FPV's imminent closure when contacted by Drive.
Advertisement

"We are not in a position to comment on FPV and any future product plans at this point," he said.

The decision to close FPV early will no doubt prevent the company from sending off the Falcon without a revived GT-HO, leaving the latest 430kW HSV GTS as the fastest and most powerful production car built in Australia.

Beyond 2016, Ford will then replace the outgoing Falcon with a global product line-up which includes two variants of an all-new Mustang coupe currently under development. The entry-level pony car will be powered by a twin-turbo V6, priced from about $40,000, while the flagship will be a V8 coupe priced from about $60,000. Our source also indicated the next-generation Mustang will not be built with supercharged powerplants, thereby eliminating the likes of high-powered Shelby models in the future.

It’s believed the closure of FPV will not result in early job losses. After acquiring full ownership of the FPV brand in August last year, Ford made 32 workers redundant and took the performance brand’s remaining infrastructure in-house to its own operations at Geelong and Broadmeadows.

McDonald did, however, confirm that the company’s global vice president of sales and marketing, Jim Farley, would outline some of the upcoming changes at a media briefing in Sydney next month.

“We can confirm Jim is coming to the event in Sydney … to look at a range of things moving forward,” he said.

“In terms of specific models, we’re not in a position to comment on that from this far out.”

During the media briefing, Ford is expected to also outline its plans for replacing the Falcon family sedan. The Ford Taurus, a US-built mid-size car, is largely expected to shore up the company’s sedan offering. There is also speculation that the Ford Territory will be replaced by a closely-aligned, albeit larger, American sibling, the Ford Explorer.

Ford Performance Vehicles has been an integral part of Ford’s Australian operations ever since it was founded in 2002. The performance bloodline traces further back to 1991, when English engineering company Tickford began a collaboration with Ford Australia to produce high performance variants of the Falcon.

FPV currently produces five Falcon performance variants in Australia: the GT, GT-P, GS and F6 sedans, and a GS ute.

While Ford plans to succeed the Falcon sedan variants, its flagship performance ute will not be replaced. Instead, the Ranger will carryover the hay-hauling banner.

The Ford Mustang will be an all-new model designed for global sales, with its design said to be inspired by the Evos concept car which Ford Australia displayed at the Australian motor show last year.

Ford Australia, through Tickford, converted a small number of Mustangs to right-hand drive between 2001 and 2003. The last time the iconic muscle car was imported in large numbers was during the 1960s.

http://theage.drive.com.au/motor-new...716-2q1nh.html

[Road_Warrior]

During the media briefing, Ford is expected to also outline its plans for replacing the Falcon family sedan. The Ford Taurus, a US-built mid-size car, is largely expected to shore up the company’s sedan offering. There is also speculation that the Ford Territory will be replaced by a closely-aligned, albeit larger, American sibling, the Ford Explorer.

Drivel have been peddling this garbage for years. There. Will. Be. No. Taurus. Coming. Here.

[Bossxr8]

If they are so in the know as they claim why do they keep mentioning Taurus. Everyone else knows it's not coming here. Idiots.

As for FPV being canned i'm not surprised, there has been talk of this for a while. Hence why I posted that the XR8 was a good chance to return.

Although it will be sad to see it go, if they offer all the good FPV stuff like the engines and brakes on XR's then at least the performance will still remain. Might even improve a little with a little less weight.

[Fordman1]

Originally Posted by Road_Warrior

Drivel have been peddling this garbage for years. There. Will. Be. No. Taurus. Coming. Here.

^^^^^^^^^^ This !!

[Moby Vic]

Canada isn't invulnerable. My Crown Vic was built at the St. Thomas Assembly Plant in Ontario. Ford milked the Panther chassis (Ford Crown Victoria, Mercury Grand Marquis, and Lincoln Town Car) dry and then closed the plant when production ceased in 2011.

The problem was that the Canadian dollar was worth more than the American dollar, and it was a union plant, so wages were very high. It was also an old plant. It opened in 1967—they built Falcons there then!

Ford sold the property, and now another company makes food there.

The Cortina suffered a similar fate in England. Now it's Falcon's turn.

[4.0i OHC]

Originally Posted by KIWI-1

Forgotten the Forte? Ford invented the new name because the GLi was a Taxi. Then they built a whole lotta yellow Forte Taxis.

And then they changed the name to XT because Forte became a taxi, and stopped building taxis a few months later.

[jpd80]

And then they found fleets wouldn't by XT so they started selling discounted XR6s and destroyed the status of that model.

[KIWI-1]

Originally Posted by jpd80

And then they found fleets wouldn't by XT so they started selling discounted XR6s and destroyed the status of that model.

+1
Wife was a regular renter through interstate work and always "upgraded" to an XR6. They probably made more $$$ charging renters for scraping the front spoiler than did for renting the car.

[4.0i OHC]

Originally Posted by jpd80

And then they found fleets wouldn't by XT so they started selling discounted XR6s and destroyed the status of that model.

That happened when BA came out and the XR6 was an XT with a body kit, suspension mods, and different colours. What happened to the old AU days when fleets would all buy Futuras?

[Elks]

Originally Posted by 4.0i OHC

What happened to the old AU days when fleets would all buy Futuras?

Or the even older days when they would buy and SPack

[Pepscobra]

What are fleets mainly buying nowadays then?
Still commodore, or something smaller?

[old_mate]

I ordered a sedan through europcar over the weekend and got a nissan pulsar. Was maybe expecting camry

[NX74205]

Originally Posted by Pepscobra

What are fleets mainly buying nowadays then?
Still commodore, or something smaller?

Camry/Aurion/i45

[blk6t]

Originally Posted by 4.0i OHC

That happened when BA came out and the XR6 was an XT with a body kit, suspension mods, and different colours. What happened to the old AU days when fleets would all buy Futuras?

Exactly, the XR6 used to be something special in the AU era.

Holden went in the other direction and made the SV6 more unique with a different engine.

[T-Pak Addict]

Originally Posted by 4.0i OHC

And then they changed the name to XT because Forte became a taxi, and stopped building taxis a few months later.

then a some XT's became X Taxi's,,,,

[Road_Warrior]

So today I'm told that the new Fusion is (or is supposed to be) exported from its current main production base of Flat Rock; MI, to South Korea and Taiwan.

Is this correct?