Ford Oz plans third car for production
Richard Blackburn, The Sydney Morning Herald, 06/07/07
Ford Australia is planning to fill the gap in its production capacity by assembling a third model alongside its locally built Falcon and Territory models. RICHARD BLACKBURN reports.
A Falcon passes through Ford Australias Broadmeadows production line, which also builds the Territory SUV.
Ford is to build a third model in Australia in an attempt to turn around the brand's dramatic slide in popularity.
The company has told its dealers it is looking to build a third model at its Broadmeadows Plant (pictured) to fill the capacity gap left by poor sales of the Falcon and Territory.
It would not reveal the identity of the third vehicle to dealers but the most likely option is a small car. Ford imports two small cars: the Ford Focus and the Ford Fiesta. Either car could be sent in kit form to Australia for assembly. This would be a far more cost-effective option than establishing an entirely new car line locally.
Dealers say the Focus, which is currently made in South Africa, is the most logical option.
The wildcard could be a small Toyota RAV4-sized off-roader based on the Ford Focus. Dubbed the X-Max, the soft-roader has been spotted undergoing testing in Europe.
Ford spokeswoman Sinead McAlary says the company is looking at ways to get its production line back to full capacity.
"We are looking at a whole range of different options to improve the utilisation of our production capacity in Broadmeadows but nothing has been confirmed," she says.
She refused to comment further but it is believed the new car will not be based on the Falcon-Territory platform.
Ford's production line can build 120,000 vehicles a year but slow sales have seen production scaled back to just 80,000 units.
A new model would underpin the Ford plant and provide an increasingly agitated dealer network with a low-cost, high-volume vehicle to boost their sales. Export opportunities are also being pursued. Dealers were told a decision could be made in the next two to four weeks.
The revelation came during a crisis meeting with dealers where Ford boss Tom Gorman apologised for mistakes made by his team and announced wide-ranging price cuts aimed at boosting flagging sales.
The maker has cut the price of its popular XR6 Falcon model by up to $6000 and reduced prices for the Territory soft-roader (by up to $2700), Focus small-car ($1000) and Ranger ute (up to $4500). Most vehicles have also received more equipment at no extra cost.
The company also committed to spending an additional $20 million on marketing before the end of this year.
Dealers say the changes are welcome but some are nervous retail discounts will upset fleet customers and damage resale values.
One dealer told Drive the jury was out on the changes. "It will come down to execution of the plan. Ford hasn't been strong on execution in recent years," he says. "It's hard to see the light at the end of the tunnel."
Ford has taken a hammering in the sales race this year. Figures released this week show that Falcon sales are down by 24.7 per cent to June 30 on the same period last year, while Territory sales have slumped 10.8 per cent.
Dealers have voiced their frustrations, with some believed to have complained to Ford in the United States.
In a recent dealer satisfaction survey, Ford finished last out of 25 makers in most categories.
One dealer says the company's decision to shelve plans for a diesel version of the Territory was "bloody stupid".
Territory's main opposition in the mid-sized off-roader market, the Toyota Prado, sells as many diesel versions as it does petrol.
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