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2018 Kia Picanto
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When Ford's global CEO Alan Mulally joined the American carmaker from Boeing in 2006, its showrooms around the world offered around 97 different models.
Flash forward to today, and Ford has shrunk its line-up with the sale of Volvo, Jaguar, Land Rover and Aston Martin, along with the termination of numbers of models among its surviving brands.
According to Mulally however, the company will continue its One Ford strategy to bring its global line-up to under 30 models.
“There will be less than 30, on our way to 20 to 25. Fewer brands means you can put more focus into improving the quality of engineering,” Mulally told press in Europe this week, ahead of the Paris Auto Show.
“It helps all of our distribution, Ford store owners, suppliers, employees and consumers to know exactly what they’re getting.”
As a preview of the ongoing One Ford strategy, Mulally pointed to the new Focus, which was designed to be almost identical in every market, mechanically and cosmetically.
The Fiesta too is a global model. Although it has 10 region-specific variants around the world, around 65 percent of its parts are standard.
In the US, Ford is preparing to cancel its Mercury sub-brand, directing more funds and resources to the upmarket Lincoln brand.
In Australia, news of the One Ford plan has raised questions on the future of the local Falcon. Ford Australia CEO Marin Burela acknowledged last year that the company's global roadmap will have an effect on local operations.
“It is important as a company we continue to develop global platforms. ‘One Ford’ is important (as a global strategy) and we’re sticking to it,” Burela said.
"By the end of 2010 or 2011, we’ll be making a decision on our next large car.”
Burela's words last year, and Mulally's words this week suggests that even with all 30 remaining models (plus variants) across the Ford and Lincoln brands, the future of the Falcon as a unique model in one market alone is under a cloud.
Whether it is replaced entirely by the next-generation Taurus, or whether Ford Australia is utilised in the development of a new global platform (as is Holden with GM), the wholly-Australian rear-wheel-drive Falcon appears to be nearing the end of the road.
The issue for the Falcon - and for the Territory for that matter - is that current sales volumes in this market will not support the extensive development program, and the enormous costs involved, necessary to produce an all-new car for this market alone.
On current volumes, Falcon will struggle to reach 30,000 sales for 2010.
Territory, although still among the best buys and best drives in the segment (a testament to the quality of its engineering and execution when launched in 2004), will struggle to reach half that number.
The re-commitment to the I6 engine, thus extending the life of the current RWD Falcon platform, was a tacit confirmation that the current RWD Falcon platform will be Ford Australia's last.
The likely scenario, on our reading of the issue (and Ford Australia is understandably tight-lipped when it comes to such questions), is that the Mondeo or Taurus will assume the Falcon name and be built here as Ford Australia's 'family-sized' car.
Ford Australia's considerable expertise in RWD engineering will continue to be utilised in Ford's global model plans, developing premium RWD platforms for the likes of Mustang and other larger Ford global up-market models, as well as 4WD platforms (such as has been announced with the Ranger). Neither of which Ford Australia is likely to build here.
Where that leaves the Territory is uncertain.
The days of large RWD cars competing in the 'family car segment' - where price is a key competitive driver - is coming to an end. RWD is more expensive to develop, more expensive to make and, in an age of modular platforms, less flexible and less adaptable to shared drivetrain componentry. It is also heavier.
The odds are tightening on the Taurus as the next Australian Falcon in our estimation.
- Mike Stevens and Tim O'Brien
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13 Comments
Sounds a lot like Chicken Little to me. Ford must see how hard it is to sell a large FWD car here, given Mondeo's tiny market-share here. It just won't work and they must know that. I think that for as long as Ford want/need a RWD Mustang, there will be a RWD platform that can underpin future Falcons, and that is the only viable way forward for Ford Australia.
The problem for Ford Australia is 2 fold. Firstly, the volumes for the falcon arent enough to justify Australia getting a unique model, so we have to take another global model. The problem there is that this means we will be stuck with the Taurus or the Mondeo, neither of which will sell in enough volume to warrant building them here. So if you spend big on a new global RWD large car model which will share a platform with the Mustang, you may never get your investment back with small falcon sales. However if you dont take this route, you can say goodbye to ford prodcution in Oz. Ford Australia are pretty much screwed either way.
Typical journalistic scaremongering, first of all Lincoln need a RWD platform to compete against the likes of cadillac, BMW and Mercedes and then as the previous post has said ford need to keep the mustang RWD, as stated back at the detroit motor show the falcon and mustang will be most likely built using the same platform. Yes the falcon will not confined to australia, it will be based on a Global platfrom, but it will a Global RWD platform, which FOA will most likely lead development of due to there better understanding of the RWD sedan. FoA has just spent $40Million developing the 5.0L Supercharged miami engine, and another $130million developing the LiLPG I6 and the 2.0L ecoboost engine (which will set longitudinally not horizontally like the rest of ecoboost family) for the falcon, and 2.7L turbo diesel for the new territory, I don't see the next falcon being FWD/AWD it just doesn't make financal sense after spending thats much money just is effectively future proofing for the next gen falcon in 2015/2016.
Typical journalistic scaremongering, first of all Lincoln need a RWD platform to compete against the likes of cadillac, BMW and Mercedes and then as the previous post has said ford need to keep the mustang RWD, as stated back at the detroit motor show the falcon and mustang will be most likely built using the same platform. Yes the falcon will not confined to australia, it will be based on a Global platfrom, but it will a Global RWD platform, which FOA will most likely lead development of due to there better understanding of the RWD sedan. FoA has just spent $40Million developing the 5.0L Supercharged miami engine, and another $130million developing the LiLPG I6 and the 2.0L ecoboost engine (which will set longitudinally not horizontally like the rest of ecoboost family) for the falcon, and 2.7L turbo diesel for the new territory, I don't see the next falcon being FWD/AWD it just doesn't make financal sense after spending thats much money just is effectively future proofing for the next gen falcon in 2015/2016.
Did you miss these bits? "Ford Australia's considerable expertise in RWD engineering will continue to be utilised in Ford's global model plans, developing premium RWD platforms for the likes of Mustang and other larger Ford global up-market models..." "The days of large RWD cars competing in the 'family car segment' - where price is a key competitive driver - is coming to an end. RWD is more expensive to develop, more expensive to make and, in an age of modular platforms, less flexible and less adaptable to shared drivetrain componentry. It is also heavier." Despite what you, as an enthusiast, might think - the majority of buyers don't know RWD from FWD. Sadly, too many of my friends aren't enthusiasts, but I know this much, because one day this very topic occurred to me and so I took on the experiment of asking each of them. These are intelligent people with roles in active upper management, academia, the lot - and very few of them could tell me if their car was RWD or FWD. Those with AWD cars knew what they had, because that's always used as a marketing tool. But you'll rarely see "rear wheel drive" slapped across an ad, simply because its advantage over FWD is debatable and so it's not a smart marketing tool to use on anyone but enthusiasts with an established love for RWD. Overall, Ford could bravely switch to a FWD model and put together a solid marketing plan that would cover not only how to sell it, but also how to defend against the likely "Front-wheel-drive? That's for sissies. Trust us: you want our rear-wheel-drive Commodore" advertising from Holden. You guys are buyers, yes, but most of you are either enthusiasts with a preference the practicality and usefulness of which could be argued for hours (some might say RWD offers little beyond fun and tradition, and that's called an emotional bias). The other buyers, and possibly the majority, don't give a rat's arse if it's FWD or RWD. If the next Falcon is attractive, well-priced, good on fuel and comfortable to drive, the question of whether it's pushed or pulled will be so far beyond irrelevant to so many people that your minds will collectively explode at the discovery of it. The Commodore and Falcon are the top selling large cars, I have to concede that, it's simply a fact. But I'm not convinced it's got as much to do with their rear-wheel-drive status as so many seem to think - and they're certainly not challenged by much, considering the best of what most of their competitors have to offer are not sold in Australia. People wanting a large car in Australia aren't exactly spoiled for choice, and I reckon it's more that than their RWD layouts that explains the success of the Falcon and the Commodore. And of course, if you look at the sales of the FWD Cruze, it's obvious that once you take 'large' out of the equation, people are happy to drive FWD.
Whether people are savvy to the difference between FWD and RWD is less important than the fact that a FWD Falcon will be massively uncompetitive against Commodore in any back-to-back comparisons, much as Aurion is and Magna/380 was. Ask yourself why people buy Falcon over Mondeo now. I doubt it is about FWD vs RWD so much as the fact that a base-model Falcon is faster than the sportiest Mondeo and does it effortlessly. One in 4 Commdores are V8s and even if Ford go to an AWD set-up for their fast Falcons, they will be adding a lot of weight in the process, making it harder to be competitive against Commodore. I just cannot see an angle from which it can work. If Toyota, the kings of marketing, can't sell a FWD car as good as Aurion, Ford have no hope.
I really feel like I've covered this, but with different factors. So let's remove the RWD versus FWD bit and replace it with Speed/Performance versus Styling/Economy. "The other buyers, and possibly the majority, don't give a rat's *** if it's faster than the Commodore. If the next Falcon is attractive, well-priced, good on fuel and comfortable to drive, the question of whether it's faster or slower than some other car will be so far beyond irrelevant to so many people that your minds will collectively explode at the discovery of it." I'll add this caveat, because it's a valid point and I agree it'll make the difference to a lot of people: so long as it's got the means to tow as much or around the same weight as the Commodore, the regular people won't care.
That's a very naive attitude, I think. As I pointed out, neither Mitsubishi nor Toyota have managed to sell excellent FWD family cars, and Mondeo has been dismal for Ford, so why would anyone expect things to be significantly different for a FWD Falcon? Mondeo fits your criteria more than adequately, yet it only manages to sell in comparatively small numbers. The question has to be what happens when Falcon goes FWD - will people keep buying it or will they go to Commodore? If the situation was as simple as you think, people would already be choosing Mondeo over Falcon and Commodore, because it certainly meeets your criteria, but there just isn't any evidence that is happening.
They can get rid of the RWD Falcon if AND ONLY IF they bring the mustang here.
Allan Mullally announced about 6 months [or so] ago that the Next Generation Falcon and Mustang WILL share various components. For example the Mustang will use the Falcons Control Blade IRS [which is the mustangs Achilles heel] and they WILL both be built on a Global Platform - which means the Falcon Will be RWD because I can't se the Yanks putting up with a FWD Mustang. RWD
Wheelnut, you seem to have a talent for referencing quotes and details I can never find links for. Perhaps you have one I can read?
From another Australian Automotive News website The legendary Ford Mustang will be twinned with Australia's own Ford Falcon in a plan to drive the local brand forward beyond 2015. Yesterday at the Detroit Motor Show by Ford's worldwide president, Alan Mulally. He pointed to a continued role for the Falcon in Australia within an integrated global product plan. "We'll be in the Falcon market, yes. But as we go forward we'll continue to use all our assets around the world," Mulally said. "We have learned so much from the Falcon, because it's a dynamite car. Whatever that Falcon morphs to, for the next one, it will be available for everyone around the world. He also effectively dismissed suggestions that the Falcon, a traditional rear-wheel drive design, would be replaced by the front-drive Taurus built for the USA. [another key point for all you Ford bashers to be aware of] The Taurus has already failed once in Australia, in the 1990s. "We're going to have a large sedan. The whole thing about rear-wheel drive? We're going to have a rear-wheel drive car," Mulally said. "And we've got the Mustang. So you can imagine, going forward, that there will be a next version of the Falcon that will be even better. In capital letters." Rumours of a end to the Falcon's run in Australia, and perhaps even an end to local production by Ford, were categorically denied yesterday in Detroit by the president of Ford Australia, Marin Burela. "No company that was going to pull out of Australia would be spending $230 million on bringing the world's best powertrain technology to Australia for the Falcon,"
Here's one from an interview with Drive earlier this year. ""Front-wheel-drive, rear-wheel-drive ... the response has been very mixed," Ford Australia president Marin Burela said. "There's been a lot of feedback to date ... but the jury's still out there on rear-wheel-drive, front-wheel-drive, all-wheel-drive. "There are those who are very strong large-car enthusiasts who take the view that says rear-wheel-drive, all-wheel-drive is the answer [for the Falcon], [and there are] those who are just looking for the comfort of a large car and are not disturbed by having a front-wheel-drive [Falcon].""