Ford halts Melbourne Falcon assembly as demand drops off

[vztrt]

Originally Posted by Polyal

Maybe not exports directly, but being shared off a common platform would save alot of cost. The answer lies in a GWRD IMO, whether it happens or not is the key.

Agreed, the shared cost associated will be helpful to profitability. Unfortunately Ford have to weather the storm as they roll out the their line up.

Terri will be the first test and LPG will be the next.

Also I love how they are trying to model Ford's production on Holden numbers. Gotta love 'quality' journalism.

[Gas N Go]

I was in South Africa 2 weeks ago and saw a number of Territories on the road??? I had no idea Ford exported them overseas??? They should be doing this with the Territory and falcon to help justify its production.

[bobthebilda]

I dare say all the manufacturers are doing it tougher now than they were during the GFC, its not just unique to Ford Oz.

December 2008 and Jan 2009 and Feb 2009 australian production totals (Ford, Holden, Toyota) were 47023 cars. And that was in the midst of the GFC.

The last 3 months have seen 43052 cars made in Australia. At these numbers, I would assume camry exports have been decimated, thus calling into question the viability of Toyotas camry and aurion local production.

[Joe5619]

Interesting times ahead!!!

God hopes Ford have some plan in place!! Next Gen Ford Large car is still 4-5-6 years away, FG2/Eecoboost/LiLPG is still 7-8-9 months away.. What are they going to do in the mean time??

You can't keep running like this & as someone has said on here, current config at the plant is 2 Falcons to 1 Territ.. So they can't even build alot of territ to save them as the Falcon will get in the way becuase of this 2 to 1 thing.. A rebalance to 1 to 1 in the short term is really, really needed if you ask me.. But I guess new territ also needs to fire for this to work..

[prydey]

The managing director of GM Holden, Mike Devereux, has said he believes it is necessary for car makers to produce at least 100,000 cars annually to achieve the economies of scale needed to generate profits.

Last year, Ford Australia built 38,615 Falcons and 11,558 Territorys for a total of 50,173 cars. In the same time Holden built just 57,645 Commodores, but from next month will add a locally-produced version of the Cruze small car that is expected to add at least 30,000 sales to the company’s domestic total.

so even the holden boss seems to indicate that unless cruze can almost match commodore for sales, they won't achieve the necessary sales numbers to be profitable.

the mistake many make is to assume that the costs for the 2 company's are similar. my guess is ford can afford to sell less cars but that is just my guess. local manufacturing numbers weren't that much different between the 2 prior to cruze.

[Polyal]

I reckon thats a fair assumption considering Ford turned a small profit by selling less cars than Holden recently.

[jpd80]

The problem is not Ford going back to 3 day weeks to balance out the inventory,
it's assuming that if they do nothing else, then Falcon's sales will just come back.

I think that's a very dangerous assumption and my big fear is that the best
ever Territory may come at one a hell of a price, FG II being dead on arrival.

My prediction is that the 3-day week will extend into April and force Ford to make a decision...

[stang65]

Wait till the new models come out then we will see. The public know new models are on the way. So it is to be expected tat sales will drop. Also you can`t go on about one ford without the public getting a litttle nervous. Every company has it`s ups and downs.

But last but not least Ford is not Holdenas has been said, they have been able to sell less and still make a profit, that should show that they know what they are doing. ALSO HAVE NOTICED on Seek.com.au that they are hiring people for head office.

[BENT_8]

Originally Posted by stang65

Wait till the new models come out then we will see. The public know new models are on the way. So it is to be expected tat sales will drop. Also you can`t go on about one ford without the public getting a litttle nervous. Every company has it`s ups and downs.

But last but not least Ford is not Holdenas has been said, they have been able to sell less and still make a profit, that should show that they know what they are doing. ALSO HAVE NOTICED on Seek.com.au that they are hiring people for head office.

Have another read mate, unless Ford have snatched a heap of market share from other manufacturers to keep their total sales steady, the buyers arent waiting for the updates, if they were then the over all sales would have declined in anticipation which hasnt happened.
People are still buying new Fords, just not the larger varieties.

[stang65]

Originally Posted by BENT_8

Have another read mate, unless Ford have snatched a heap of market share from other manufacturers to keep their total sales steady, the buyers arent waiting for the updates, if they were then the over all sales would have declined in anticipation which hasnt happened.
People are still buying new Fords, just not the larger varieties.

AHH MY GRASSHOPPER, you must have faith, everyody has been hurting, have yo got money to go out and buy a brand new car. At least they made money last year unlike holden and they didn`t make 100,000 cars to break even like holden have to..

You think they don`t have meetings to address the market. Just because they have down days to clear stock isn`t the end of the world. Maybe there getting ready for the FG2 maybe there tooling up for ecoboost.Unfortunately neither you or I know the real story but time will tell.

[Road_Warrior]

I'm going to plant an I.E.D. in Drive's lunch room.

[music189]

Don't worry the carbon tax will be the final nail in the coffin for all Aussie manufacturing.

At least we should all be able to get real cheap Falcons and commodores before the lights get turned off. If you reckon petrol's costly wait for the carbon tax and cant catch trains cause they run on electricity ooooo dirty dirty Julia (sorry a bit of a rant that)

Ford need to come out with pushies cause thats all well be able to afford to use

Ford dont seem to be able to get anything right, the cars are fantastic best in class but no one buys them why?????

New Terri, no AWD petrol why not??
FG; Curtain airbags on option why?? the media cans them for it

Been trying to buy a CL Fiesta Auto pwr shift sedan 2010, no curtain bags is option, hardly any imported why??

[Struggo]

Originally Posted by Road_Warrior

I'm going to plant an I.E.D. in Drive's lunch room.

[Elguapo]

Ford Australia are only concerned about one thing....profits. IF they can boost profits by ceasing production and selling only imports then that's what they'll do. I for one have been really disappointed in my locally built Territory and have been put off buying another locally made car, be that Ford or Holden. If Telstra can terminate a contract with a supplier that results in 700 job losses and no one bats an eye lid you can be sure Ford will have no hesitation to do the same.

[b0son]

Economy bounces back and Falcon's sales still fall off a cliff?

Its pretty obvious then what game Holden are playing - last man standing. With the almost inevitable demise of the Falcon, the Commodore may finally return to decent profits.

[Ford_The_Win]

Originally Posted by b0son

Economy bounces back and Falcon's sales still fall off a cliff?

Its pretty obvious then what game Holden are playing - last man standing. With the almost inevitable demise of the Falcon, the Commodore may finally return to decent profits.

But aren't there greater implications for Commodore if Falcon dies, with suppliers etc?

[Road_Warrior]

Originally Posted by Ford_The_Win

But aren't there greater implications for Commodore if Falcon dies, with suppliers etc?

Yep. Ford and Holden, despite being competitors are partners in the Australian automotive industry. If a car maker the size of FoA falls, it is going to mean a whole world of pain for Holden and the suppliers that provide parts for both of them.

[b0son]

Originally Posted by Road_Warrior

Yep. Ford and Holden, despite being competitors are partners in the Australian automotive industry. If a car maker the size of FoA falls, it is going to mean a whole world of pain for Holden and the suppliers that provide parts for both of them.

In the short term, yes. But Holden will likely start dipping into the GM parts bin rather than going bespoke componentry, much as Ford often did.

Ultimately, picking up that much market share will probably help Holden more than the problems with part suppliers will hinder them.

That said, without Ford to push them along, its unlikely Holden will push as hard to improve the car. Less choice always has a downside beyond the obvious.

[Struggo]

Originally Posted by Road_Warrior

Yep. Ford and Holden, despite being competitors are partners in the Australian automotive industry. If a car maker the size of FoA falls, it is going to mean a whole world of pain for Holden and the suppliers that provide parts for both of them.

True Road Warrior, but if FoA only produce 50,000 vehicles per annum, this only means Toyota and Holden need to find an extra 25,000 sales each either domestically or via export markets.

IMHO, that is achievable with the locally built Camry/Aurion and Commodore/Caprice/Cruze.

[tezxr8man]

its no good sitting back and talking about it how bout we all get out and buy one?? i look at Ford and Holden in Australia as a bit of a mate really how many times has a falcon or commodore been there in a time of need and helped out by getting you there. Now it's time to return the favour and it sounds more like we are treating it like a family member with cancer and just sitting there watching them die, when we can all help by going out and buying a brand new one and not going for the imported car because its cheaper and bla bla bla

[b0son]

Originally Posted by tezxr8man

its no good sitting back and talking about it how bout we all get out and buy one??

you first.

[tezxr8man]

Originally Posted by b0son

you first.

allready in the process dude, gotta put your money where your mouth is
and believe what you say

[Brazen]

Well I think the Territory selling its pants off when the new model comes out is a given.

But whats frustrating is that I feel Falcon is so bloody close in hitting the sweet spot in the market again. Get rid of that 90s derived styling with some facsia updates and whack the V6 diesel in it.

This is the same company which underestimated Mondeo diesel demand, and buyers have to wait for months for diesel stock yet they dont want to put it in the Falcon...??? ARRGGH so close yet so far.

Look at Mondeo sales now which has a diesel engine, there is a big market there just waiting to be tapped. I know country people would go nuts for a diesel Falcon, and all the trendy latte set think diesel is 'so euro', fleets love diesel - some fleets are diesel only e.g. Woolworths. Having it there would improve diesel economy of production scale for Territory too. Its a no-brainer.

[vztrt]

Originally Posted by Brazen

Having it there would improve diesel economy of production scale for Territory too. Its a no-brainer.

So you can guarantee that putting a V6 diesel in the Falcon would be a cheap project?

[Brazen]

Originally Posted by vztrt

So you can guarantee that putting a V6 diesel in the Falcon would be a cheap project?

Why not, its done for the Territory.

It will do a lot better than the Ecoboost for sure.

[vztrt]

Originally Posted by Brazen

Why not, its done for the Territory.

It will do a lot better than the Ecoboost for sure.

So you can't. The last V6 project they undertook for the Falcon was quite expensive and didn't go well (and put them in the situation they are now).

I would have no problem with a diesel variant in the Falcon series. As there it could pull an extra 3-400 sales a month but it would need to be a cheap project for it to even be considered.

[Brazen]

Originally Posted by vztrt

So you can't. The last V6 project they undertook for the Falcon was quite expensive and didn't go well (and put them in the situation they are now).

I would have no problem with a diesel variant in the Falcon series. As there it could pull an extra 3-400 sales a month but it would need to be a cheap project for it to even be considered.

The engineering work has been done for the Territory, which shares major components with the Falcon. The engines will be delivered to the same Australian docks taken to the assembly line within inches of Falcons. Totally different kettle of fish than the global V6.

The diesel will also be a lot cheaper and more worthwhile to implement than Burela's EgoStroke...sorry EcoBoost engine.

[Magna]

this might sound crazy but what if Ford priced their spare parts more reasonably? theres some parts, like trim pieces that are highway robbery. like the plastic bit on the back of the front seats $250!!!! the rectangle plastic piece between the icc and top console $75

it would be a win-win-win people get cheaper parts, ford sells more parts, more demand on suppliers for parts plus cars would look heaps better

btw i did buy a new terri last year

[Ford_The_Win]

Originally Posted by Magna

this might sound crazy but what if Ford priced their spare parts more reasonably? theres some parts, like trim pieces that are highway robbery. like the plastic bit on the back of the front seats $250!!!! the rectangle plastic piece between the icc and top console $75

it would be a win-win-win people get cheaper parts, ford sells more parts, more demand on suppliers for parts plus cars would look heaps better

btw i did buy a new terri last year

Or they could just build cars properly that don't need new parts all the time?
Ford have burned a lot of people over the years by letting con artists run their dealerships and letting dodgy cars leave the factory. The pillocks in head office still think it's 1986 and Ford is everyone's default choice.

[Magna]

Originally Posted by Ford_The_Win

Or they could just build cars properly that don't need new parts all the time?
Ford have burned a lot of people over the years by letting con artists run their dealerships and letting dodgy cars leave the factory. The pillocks in head office still think it's 1986 and Ford is everyone's default choice.

but interior trim always get bumped and scratched especially in the cargo area it would be good to replace if it wasn't so expensive.