There are three signs - shining like beacons and all pointing one way - that Ford Australia is at a crossroads.
First sign: the surprise resignation of Bill Osborne. I have met him, chatted with him, been present at a number of functions where he has spoken. He was a man who gave every indication that he was comfortable in his role, said he was enjoying Australia, and had the air of someone aware of the scale of the challenge but confident and at ease with the task ahead. He spoke of Ford Australia’s future like he was part of it.
There is thus more to Osborne’s departure than meets the eye.
Second sign: the arrival in Australia of US Ford Boss, Alan Mullaly, for meetings with both Federal and State Governments and bureaucrats, and to meet senior Ford Australia staff (and, one must assume in the light of Bill Osborne’s resignation, to begin moving deck-chairs in senior management).
Mullaly’s appearance is not as big as the sudden appearance of the Queen or the Pope, but it’s up there. The heads of the US automotive giants don’t swing around the world lightly, least of all to a minor outpost producing a small number of unique cars - made nowhere else in Ford’s global operation - exclusively for a small domestic market (throw NZ in there).
There is also more to Mullaly’s appearance than meets the eye.
Third sign: the announcement last year that Ford Australia would begin manufacture and assembly of the Ford Focus from 2010. The real import of this announcement was all but lost on the motoring media.
So where are those three signs pointing, and what does it mean?
This is what it means. We will never see an all-new model Territory or Falcon. We may, if we’re lucky, see a facelift - nothing more - before the curtain falls on these uniquely Australian Ford cars.
We will see a replacement of one of these models, and one only, with assembly and some manufacture here. It will most likely be a replacement for the Falcon, most likely sourced from Ford’s global stable, most likely offered in both V6 and diesel, most likely front wheel drive with AWD option, quite possibly based on the next Ford Taurus platform (with Ford Australia, no doubt, involved in its development).
Ford Australia does not have the capacity, nor will it see the investment dollars necessary, to produce three models, from three production lines.
So, count the Focus, one; the global ‘Falcon’ replacement, two. We will certainly lose assembly and manufacture of a third model. The announcement that Ford Australia would produce the Focus deleted - in the same breath - the Territory.
The size of the local market does not support the investment required for the tooling, let alone the hundreds of millions of dollars in design, engineering and product development for three locally-manufactured Ford Australia products. As all automotive manufacturers increasingly share product development, engineering and design costs across their global operations, the case has disappeared for the development and production of indigenous products for exclusively indigenous markets
Is there, then, salvation for Ford Australia in export? No, the horse has bolted for Ford. Toyota and Holden succeeded in establishing their bridgeheads in export markets when the Ausdollar was barely 60cents to the USD (it fell to 48cents in April 2001). Furthermore, Dearborn - Ford US - has ‘like’ established products in markets Ford Australia may potentially have targeted (like the Ford Victoria in the Middle East).
The irony in all this is that both the Territory and the Falcon are superb vehicles. But they will become victims of the times. A decade back, few foresaw the relentless rise and rise of China as an automotive manufacturing powerhouse; few foresaw that the barrel price of oil would quadruple; few Australians foresaw the resources boom taking the AUD to near-parity with the USD; few foresaw that automotive giants GM and Ford would be teetering on the brink of bankruptcy; and few could have imagined the scale of the meltdown in financial markets and stock values.
These facts of our recent history have left Ford Australia, and a financially wounded Ford US making decisions on its future, nowhere to turn for its dogged Australian operation.
If Falcons and Territories were bolting out the doors of Ford showrooms, and Ford Australia was riotously profitable, it may be different. But they’re not.
So, get used to the idea. We’ll lose them both.
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I’m a Holden man at heart but this is a sad prediction of things to come
“few foresaw that the barrel price of oil would quadruple”
Funny, a decade ago I was playing a computer game (Fallout) whose story specifcally mentioned oil prices rising, and a rise in Chinese industrial power. Plenty of people saw it coming, too bad it wasn’t the people who had the power to do something about it… (or rather, too bad they preferred to ignore it)
As someone who wants to buy an XR6 Turbo, this is sad news indeed. Like Dan I’m traditionally a Holden man (especially in the V8 space) but more losses in the RWD sedan stakes is always a bad thing for everyone.
Whether the forecast of this article is correct is not the point.
Its articles like this that will destroy our local products prematurely as they erode consumer confidence.
After assisting in the killing of MMA, the media have now found another local to hack away at.
Exactly Alec.
We don’t want the ganging up effect, to destroy the companies we have. Support them - don’t drill them.
If it happens, report it. Other than that, stay away.
Poor form TMR. Poor form.
*Alec* to insult everyone’s intelligence and blame the media for the demise of MMA is just irresponsible. Sure, the media has a big part in stirring trouble - in other fields, bu this article really opens people’s eyes to the dire situation the Australian and indeed the Global automotive market is. It’s a shame to see the falcon as a possible loss.
I think we need to be aware that this will not only happen to Ford Australia but I suspect it might also effect Holden. The reality is that the motor industry will have to change dramatically in the next 5 years. The price of fuel has accelerated these changes in chassis design and engine development. If Ford Australia is willing to look at using electric engines (hybrid) with combustion engines (FWD combustion with electric RWD) then I believe there is a future for Ford Australia. If not I fear we will be importing Ford cars from overseas.
Cars have become like computers, they become old within 6 months because the change in technology. We need to embrace change not fight it as has happened in America.
I do recall that Nostradamus made an obscure prediction in 1561 that went thusly:
“In the decade of twenty and ten, the Southern Land will be robbed of the Falcon and the Mighty General will laugh. Fluffy white clouds will emanate from the rear no more, and the boh-gans will be saddened”.
I guess we now know what he was on about.
*Adam*, remember I said “Assisting”……
And after re-reading what I wrote, I find it hard to see how you think I have insulted anyone’s intelligence.
If this happens to Ford, here is another few issues to consider:
1. Toyota Australia is just an assembly base, Camry’s and Aurions can be assembled in many factories across the Globe. Toyota is already on record as saying they are only here as long as its viable. If the others go, so will they.
2. Holden, although I’m proud of there achievements, now have Buick building a “Statesman” in China, and if it gets too hard here in Australia, or America wants cheaper G8’s, you can bet GM will be looking for other ways (and countries) to build there G8’s.
I am proud that Australia has its own automotive industry. The benefits are great.
At the end of the day, not only do we get world class cars, the rub on effects are investment and experience in:
1. Research and Developement
2. Education Advancement
3. Competiveness with overseas markets
4. Consumer choice
5. components Manufacture
6. Manufacturing expertise and advancement
And if you think the experience gained from these benefits doesn’t rub off on other industries in Australia, then Adam, you are insulting your own intelligence!
It would be sad to see the Falcon and Territory go, but I can’t help but hope that a platform sharing scenario between it, the Mustang and the Crown Vic comes to pass and the Falcon soldiers on for a bit longer, even if it’s just assembled here. Sadly though I find that hard to believe, Ford needs to cut costs where ever it can and Falcon is a prime target. It’s not too late to integrate it into a shared platform, however it may be seen as simpler to build the Taurus here. That may not be the worst thing, as the current Taurus seems to be a much better car than the last version sold here.
Also, Ford have taken steps to ensure they continue to build cars here by adding the Focus to the production schedule, I don’t see GM doing the same thing here. If the Commodore were to get scrapped then that will be the end for Aussie built Holdens, and potentially GM may see a unique brand with no unique products as unnecessary and scrap Holden altogether, going with Chev to take its place (okay I know thats far fetched but still possible).
I’m not so certain about this but I’ve heard that adapting a production line to build both RWD and FWD cars is difficult, so if Ford were to scrap the RWD Falcon that would certainly simplify things wouldn’t it?
Also I’d like to weigh in with the Mitsubishi example, the media didn’t kill the car, but they certainly didn’t do anything to help restore consumer confidence which although not solely responsible for the demise of the 380, certainly didn’t help. If Australia were to lose Either Holden or Ford then the other would not feel pressured to continue to build here and would quickly cease operations, Toyota too would do the same (after all the Camry and Aurion can be sourced from just about anywhere worldwide) as they’ve been looking for excuses to pull out for a while. We can’t let this happen.
Its a shame that fewer and fewer Australians are buying their local product. Thats the real issue - whatever the reasons are behind it and the reasons are many and serious.
MMA’s demise had little to do with the media and plenty to do with the fact that they built one car - the 380 - and it was as bland as a sausage-roll without sauce and its resale values reflected that.
Great car, in fact arguably better than its Aussie competition, but…
I think the FG Falcon is the best Aussie car being built at the moment (and I grew up a Holden guy). To see it go would be a real shame - but even the most optimistic Ford supporter would have to be questioning the Falcon’s future, or sticking their head in the sand.
Ford may already have established produsts in markets where they could sell the Aussie Developed Falcon such as the Crown Victoria.. However GM had established products in the same markets where the Commodore and Statesman are now being sold in particulatr the Middle East [2x MECOTY].. the Yanks and Sheiks can’t get enough of them
GM aren’t worried that their US built cars have lost out to a colonial import - what do they care its still a GM product when all said and done.
Whereas Ford-Dearbourne appear to have this inferiority complex they’re worried that if they allowed the Or-si developed Falcon into the States people would see how inferior the US built Fords like the Crown Victoria are
Toyota Australia is doing welL for themselves and unlike Holden and Ford, it reporting profit.
2005 / 2006 … $56 million
2006 / 2007 … $184 million
2007 / 2008 … $232 million
Going UP, UP, UP !!
Says alot between the operation efficency of Toyota Australia compared to Ford Australia and GM.
So much for all the critism Toyota has copped over the years, now we know who had the most sustainable regime all along.
OMG….Dingo has infected TMR using another alias(Shane T)!!
On subject….it’ll be a sad day if these predictions come true BUT Ford has made some serious mistakes in the past and even though there isn’t a dud in the Ford Show rooms TODAY the mistakes of the past might have switched people off they might not be listening.
Nobody infects TMR Carl
Good to hear that Steane.
One thing that does stand out about car development and design is direction can be changed over night. I thinks Fords attitude and alignment to the Asia-Pacific is the right move. I hope that Australia will become the R&D of the Asia-Pacific region. I still believe the Falcon as a rear wheel drive car will be around at least for another decade at which time cars as we know them will be very different.
Makes me think buying up some EB and EL GT’s would be a smart thing to do, cheap investment as it stands right now.
A VERY sad day indeed.
You forgot the fourth sign.
Last year Ford HQ was talking about Falcon underpinning the global platform for Mustang and Crown Vic.
This visit Alan Mulally is talking about the global vehicle platform in terms of Falcon/Taurus/Crown Vic. Now either the Taurus is going to change its tune to RWD or Falcon and Crown Vic are going backwards.
Goodbye Falcon 1 Tonner
Steane, it’s true. The same person posing here as Shane T has been wrecking a similar site to yours. He’s used dozens of aliases (Google “sociopath”, if you will) and will probably lob here in the morning using my nickname or someone elses that refutes this comment.
So, here’s the deal. I won’t be making any more comments here in the foreseeable future. Let’s see what follows. Good luck.
Its interesting Golfschwein. We have the Dingo factor completely under control. One comment on a post, anyone is entitled to (provided its not abusive) but being a knob, will not be tolerated by us, as much as we would like the pageloads for our advertisers.
Yet despite us having it under control, the folks who have an issue with ‘the dog’ seem drawn to the sites where he has his dirty little nose into any Ford/Holden/Toyota article.
Personally, I think you all need your daily dose of ‘dingo fever’, can’t live without it.
Case in point is your comment just now…if it wasn’t for Dingo, you wouldn’t have commented at all. As we don’t have a ‘Dingo’ problem in this part of the country, I don’t doubt that we won’t be seeing a comment from you for a while
And thats a shame - because I know you are a car nut with plenty to say about your passion.
Steane - why was my comment deleted ??
I really feel quite saddened by Ford’s ability to create seperate markets\models for each of their sales territories, makes you wonder why they dont follow the European makes like BMW, Mercedes ect where they have the same model offered worldwide… Imagine if Ford followed suite and offered the following range world wide, they could acheive some real economies of scale, each manufacturing arena would be exporting their models and importing others, might cost a few jobs in certain areas but it would be really nice to be able to go anywhere in the world and buy a falcon, mustang, focus ect. Parts wouldnt be such as issue as this is the global catalogue, if you couldnt get it from the US, then check Singapore or South Africa and dealers would be happy as they have an extensive range of cars to sell. I reckon the Broadmedows plant would be running 24×7 if they had to send Falcons and Territories to the US, UK, SA and the Aussie car industy would finally get some recognition that we make a kick arse car !!!
If I was in charge, this is what I would mandate as the Ford world wide range and it ensures almost all the market segements are covered, Im working on the proviso that you may loose a customer based on the fact they didnt like the model offered in a particular market space, but they would gain customers based on the overwhelming choice. I would also mandate that each vehicle has a 3yr \ 100 000km with roadside assitance and free servicing for the first 12 months. Last but not least, I would make it a rule that any child under 10 years old if given a free Ford Tshirt, hat, ruler and pencil at car shows, Im doing this to ensure the next generation of car owners buy Fords.
Small Car - Fiesta
Small Medium - Focus
Medium - Mondeo
Large RWD - Falcon
Large FWD - Crown Victoria
Large Sports - Mustang
People Mover - CMax
Work Ute - Ranger
Big Ute - F Series
Small CrossOver - Kuga
Large CrossOver - Territory
Medium 4×4 - Expidition
Large 4×4 - Explorer
Sports - Ford GT or whtever they are replacing it with
Commercial Van - Transit
Mini Bus - Transit Mini
I would still encourage companies like FPV, SVT etc to create custom limited production runs of the cars listed above to ensure the enthusiasts get their fill. I wonder what FPV could do with a Mustang ?
Further to this, I would like to see dealers have the option to apply ugrades to the vehicles but expand this from the standard run of the mill carpet mats, cargo liners etc to :
ECU upgrades
Suspension upgrades
Body Kits
Rims and Tyres
All these upgrades should be backed by Ford’s 3 year warranty.
Just my 2 bits
Kiffsta
I agree with wheelnut in that Dearbourne is too scared to embrace the Aussie Falcon. I am a holden man throughout and it is fantastic to see GM embrace worldwide production in the last five years. Ford US has no one to blame but themselves. What a great “Crown Victoria” the Falcon would have been. No wonder VW is #3.
I think Chris is on the money, we know they won’t do it but it is a great idea none the less.
If they base the Mustang off the FG Falcon platform they get, a better chassis, IRS and better suspension than currently offered, it is already proven in worse conditions than available in the USA, to me that would make finical sense for Ford global not just here in Australia, Americans are fools anyway so it won’t happen.
One thing with all the lists of “one car for one market”… The only stationwagon is the bloody Mondeo front wheel drive waste of space. I blame the whole Ford empires demise on the lack of a decent stationwagon since the mid 90’s EF and EL. The AU just gave the world the impression that Ford wagons handled poorly (in fact, “handling” is an overstatement…) and they havn’t bothered since.
Ford also happens to own or part own so many other makers that they would’ve thought importing more of their others would have resulted in the slack being taken up. However, most companies and small business owners or self employed trades just went and bought Holden SportsWagons or deluded themselves into think that the UTE was a practical proposition.
Its all hype, dont get ya knickers in a knot yet, it aint over till the fat lady sings….. Its just a slow news week!
Gentlemen,
After reading all that, I feel sick! as I just purchased a Brand New Territory Ghia SY mkii 2009 April built. The first ever car we ahve purchased new! I think I will be offloading it when the 5 year lease runs out!
Yo John, you have just purchased a terrific car offering arguably the best ride, best value and best all-round performance in the segment.
The Territory was, and is, a remarkable achievement in engineering and development for Ford Australia; it’s such a damn shame there don’t appear to export markets for it in Ford’s global strategy.
Yes, the Falcon’s likely replacement will come from a global Ford platform - the shortest odds are on the Taurus - but it is certain to be built here and certain to retain the Falcon nameplate.
Not so certain, but still a number of years down the track (there are at least two more updates in store for the Territory) is the future for Territory.
But we live in different times. Models come and go, and nameplates come and go. Where once the discontinuation of a model was problematic - not so anymore.
Mitsubishi continues to support the 380, just as it did when it was manufacturerd here; Holden supports the Monaro; the Barina badge has swapped from a European-sourced car to a Korean one; and wait a year or two and watch used Fairlane values start to climb.
The Territory is super buying… it’s a pity more Aussie buyers don’t recognise that fact.
The Insider