Ford Australia Reports 2007 Financial Results

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Ford Motor Company of Australia Limited* today reported a net after-tax loss of $87.2 million for its 2007 fiscal year.

Net sales revenue was $3.3 billion from sales of 108,071 vehicles. Overall market share was 10.3 per cent, down from 11.9 per cent in 2006, resulting from a year-on-year decline in sales of 6,894 units.

"Ford Australia experienced a challenging year in 2007, with the ongoing transition of our product mix contributing to lower sales volume and market share," said Ford Australia President, Bill Osborne.

Despite the challenges, the company continued to invest in and launch new vehicle programs such as the new Mondeo and the all-new FG Falcon range, which is now on sale. The company also announced it would begin producing the globally successful range of Focus small cars in Australia from 2011 onwards.

Significant investment in world-class research and development facilities in Geelong and at the company's Proving Ground in Lara also continued throughout the year.

"We continued to make significant investments in our facilities that will help secure the long-term future of Ford in Australia. These will further establish our business as a centre of automotive design and engineering excellence in the development of class-leading vehicles for Australia and overseas markets," said Mr Osborne.

While Falcon ran second in the large car vehicle segment for the 2007 calendar year, Territory maintained its position as the most popular Sport Utility Vehicle in the country. It again dominated the medium SUV segment with sales of 17,290 units, equating to a 23.2 per cent share of the segment.

There was also a surge of activity on the imported product front with the launch of five new models.

"The enhancement of the Ford portfolio through the arrival of Ranger, Fiesta XR4, Focus turbo-diesel, Mondeo and Focus Coupe-Cabriolet has created the most impressive Ford line-up in recent history," said Mr Osborne.

"Ford now offers a model to cater for almost every consumer preference, ranging from German-designed fuel efficient small cars, through to three different petrol alternatives (diesel, LPG and E10), safety-laden family vehicles and luxurious performance cars.

"The arrival of the all-new FG Falcon in May will further boost our showroom appeal. Combined with the strategic decisions we are implementing to produce small cars in Australia and access global engine technologies, our strong vehicle line-up sees Ford better positioned than ever before to maximise opportunities associated with changing consumer buying patterns."

* These financial results relate to Ford Motor Company of Australia Limited, Ford Sales Company of Australia Limited and Foral Service Proprietary Limited, and have been prepared in accordance with the Australian equivalent to the International Financial Reporting Standards (AIFRS)