Ford hedges bets on Victoria

[Bossxr8]

Originally Posted by jpd80

That was different, Ford actually bought back existing franchises, the suggestion above was
to start up in competition against dealers they sold franchises to for sales and service of new Fords.

There's a big difference...

OK, and I see what you mean by predatory in that case.

Won't happen.

[JG34JA]

Originally Posted by bobthebilda

If the top selling car in australia is selling approx. 40,000 cars a year, then the only way a manufacturer is going to remain viable in australia, is to be making the top 3 or 4 cars in australia, and all to be selling 30 to 40,000 a year. Holden have proven that you can get alot of money from the government to make a car, but if its not viable, then within a few years, you end up nagging and screaming at the government for more money. If Holden need more assistance after selling 33,000 cruzes with base model @ $21990, It would be a very brave Ford OZ exec. to try and peddle a business case for adding $19990 Focus's to the assembly line.

I think time will show, that even Holden can still lose money from a $149 million handout.

Great post. With current buyer preferences, you'd have to be making the Commodore, the Mazda 3 and maybe a Corolla/Cruze in your factory to comfortably exceed the 105,000 per year that is needed at Elisabeth IIRC.

Gone are the days of the HD Holden: they sold 180,000 in 14 months!

This is the thing: as the market has become more fragmented and buyer choice increased through many more models sold; and individual model volumes lessen - the overheads and throughput volume for an Aussie factory have remained fixed (or are at least are harder to reduce, or maybe have risen?) and this is squeezing manufacturing here badly.

If you have a million sales a year, and 10 models on sale you'd be safe for around 100,000 sales. If you have a million sales a year but 100 different models on sale, you get 10,000 sales. Killer.

[DanielXR8]

Originally Posted by charles_wif_xf

If they were smart, Ford Aus would set up service centres owned by Ford Aus. They would need to provide a first class service experience that would give the Ford brand real value.

Exactly. This has some other benefits too, in offering more service centres for regional and rural Australia, where there aren't enough or the local dealer has soured his/her relationship with the local community and its hurting the brand, but Ford feels compelled to stay with them to stay in the market.

Offer Mazda style roadshows for regional Australians to test drive the Ford range and an online or selling agent model (not a full dealership) for sales and you are done.

Finally use the model to start putting pressure on the existing franshises to lift their game or be phased out with the new model.

The dealer network is Fords number one challenge in Australia as far as I am concerned. Ford have been ignoring them at the loss of sales for years and now that the reality of the market is setting in, its time they addressed it. Ford is very close to loosing its third position on the ladder.

[phillyc]

Might be good to get back ON TOPIC.

[phillyc]

Originally Posted by Road_Warrior

Nah not Focus. The segment is too competitive and profits too narrow, you can't have volume at the expense of profits.

You know, local production of the Ranger to satisfy the demand from the resources sector would be a gimme.

Well, the federal government has buy Australian when it comes to vehicle purchases if there is a vehicle to suit. ie Cruze now. So, if they need a 4WD Ute, then Ranger could be it.

Originally Posted by pottery beige

there is no demand for Ranger in the resource sector.. 0.. Zilch......

they like Toyomotos...

Perhaps, the Government could make it conditional to buy Australian made as part of the mine approval process. They are talking about this for steel etc. But for now it is only talk.

Ford have just fronted some more cash ie $50M and really they are watching the market decide. But, right now Ford are continuing to inject large sums into Falcon and Territory. We have EcoLPi launched, but a full on production is only now starting with FG2 Falcons. EcoBoost FG2 Falcon is immenent and Diesel Territory was a sales smash hit in the 2nd half of 2011 with an easy category win.

[bobthebilda]

Originally Posted by phillyc

Well, the federal government has buy Australian when it comes to vehicle purchases if there is a vehicle to suit. ie Cruze now. So, if they need a 4WD Ute, then Ranger could be it.
Perhaps, the Government could make it conditional to buy Australian made as part of the mine approval process. They are talking about this for steel etc. But for now it is only talk.
.

Governments only pruchased 58000 vehicles last year (approx 6% of all purchased in australia). It would be a fair bet that the majority of them were Australian made. They arent a big enough player to help the manufacturers too much.

I think its been proven that governments shouldnt be telling companies what sort of cars should be purchased in order to win business. In a few years time, businesses wont have a choice of Territories or Rangers, they'll be driving around in the australian version of the Lada Niva.

[Gobes32]

Who is the largest vehicle purchaser, for interests sake.

[davenl5l]

this is a great thread with thougtful insights...good to see for a change instead of lots of rubbish

[Road_Warrior]

Originally Posted by bobthebilda

Governments only pruchased 58000 vehicles last year (approx 6% of all purchased in australia). It would be a fair bet that the majority of them were Australian made. They arent a big enough player to help the manufacturers too much.

There are just as many (if not more) imported vehicles constituting the WA Government fleet as there are Australian made cars. Particularly in the agency I work for, they had a 50/50 split, not on purpose either.

The primary consideration given to Govt fleet vehicle purchases is its green car rating, followed by engine size and body type. And local governments just buy whatever they want, mainly imported hatchback type cars for the minions whilst the few directors, CEO and the Mayor can get a Calais or G6E if they want.

[prydey]

Originally Posted by DanielXR8

The dealer network is Fords number one challenge in Australia as far as I am concerned.

of course it is, because you personally know 2 dealers that you didn't like 5 years ago and a handful of other owners have whinged on AFF therefore it must be true.

also, poor customer service stories are only heard about of ford dealers. they really are a blight on the auto industry

[Ford_The_Win]

Originally Posted by prydey

also, poor customer service stories are only heard about of ford dealers. they really are a blight on the auto industry

I agree, it's not a Ford only problem at all. From my experience Mitsubishi and Toyota are just as bad.

[charles_wif_xf]

I never meant to say that ALL the Ford branded dealers are dodgy and provide sub par after sales service. It is by pulling into line the few that are dodgy and they work at improving public perception that they will succeed. Besides, providing actual choice for the customer with regards to the warranty needs of their car is a win win situation for all.

[sgt_doofey]

http://www.adelaidenow.com.au/busine...-1226240603300

THE Ford Falcon will continue to be produced in Melbourne until at least 2016 after a $103 million investment from the car company and the Victorian and federal governments.

The funding will be used to boost the fuel efficiency and emissions performance in the Ford Falcon and Ford Territory, both produced in Australia.

Acting Victorian Premier Peter Ryan said the announcement secured the immediate future of the Falcon and the 3,500 jobs at Ford's Geelong and Broadmeadows plants.

"This secures the jobs that are here, but there was a concern about, particularly, 300 jobs that were perhaps at risk because of design-related issues. Now, those jobs are secured," Mr Ryan told reporters at Ford's Geelong plant on Tuesday.

The upgraded models will be released in 2014 and will ensure the vehicles are produced at the Geelong and Broadmeadows plants until at least the end of 2016.

Most of the body parts are produced at the Geelong stamping plant with the vehicles assembled in Broadmeadows.

The federal government will provide $34 million but Mr Ryan did not specify the Victorian government's contribution.

Prime Minister Julia Gillard said the announcement was great news for the future of the automotive industry in Australia.

Federal Manufacturing Minister Kim Carr, who also announced the deal at the Detroit Motor Show in the US, said the government was working with the company to ensure its future in Australia.

"This announcement is an important step in our ongoing commitment to strengthen the sector," Senator Carr said in a statement.

Ford Australia president Bob Graziano said Australia was one of only 13 countries in the world with the capability to design, develop and produce vehicles from the ground up.

"There's no doubt the large car segment is challenging, but it can remain viable if we continue to provide buyers with what they want: fuel efficiency, design excellence and features that enhance safety and the driving experience," he said.

The Australian Manufacturing Workers' Union said the $103 million investment to refresh Ford's current model line-up was a major boost to the company's fortunes and a long-awaited sign that the bad times may be over.

[mik]

good to see the big falcon will be with us for some years yet, hopefully Holden will too.