Major Ford announcement

[Alan D Segal]

Originally Posted by joeyy17

Rumours of Mustang to overtake once Falcon is gone have risen on the internet. Peoples opinions?

If you mean there's rumours that it will 'replace' the falcon on sale in australia, my opinion is:
1. It isn't a direct replacement because it is a coupe/convertible. Something like the fusion is more similar. Heck, they might even just leave the mondeo as the sedan offering.
2. It may be offered as a performance model, but I'd expect it to be a lot more expensive than the falcon performance models.
3. I don't think ford make them in RHD. Last time they brought the mustang out and converted it to RHD it was expensive and wasn't a big seller. It would be hard to convert them if they don't have local factories.

[KIWI-1]

NeillNZ,
Interesting article. Did you know the first Fords were assembled in Courtenay Place in the early 1900s? The move to Seaview took place in the 1930s.

Interesting article from two Ballarat parts supplies here: http://www.thecourier.com.au/story/1...closure/?cs=62

[bungarra]

Ok Unions, time to show your truly behind Australian workers. If the Automotive Union was supported by the MUA and TWU they could easily show Ford and other Automotive manufacturers that Australian jobs come first. The mUA needs ot start by refusing to unload imported Fords, then after a month of that add Korean and Chinese cars to the list, then Japanese and European cars to the list. The TWU refuse to deliver any current imported vehicles to dealers. Then the unions who run the Labor Party, need ot force Julia and her crew to change the government policy to a priority for Australian built vehicles. Vey few departments apart form the Military need more than a Falcon, Territory, Commodore etc. The unions and government say Buy Australian, then they need to lead the charge.

[russellw]

Originally Posted by LTDHO

$121m in the last year?
I have NFI how a buisiness can loose that much money, surely overheads aren't that high?

As usual, the devil is in the detail with financial results. On the face of it, the $141M loss represent about $4,166 per locally produced vehicle even assuming that there is no profit in imports (which currently make up the bulk of FoA sales) but there is one significant line in the announcement -

As a result, Ford has impaired its asset base by $143 million

In simple terms, the fixed assets of the company (plant, land, buildings) have been revalued downward by that amount as a pre-emptive move to the disposal of those assets so that there isn't a massive write-down when (and if) they are disposed of or simply left idle.

I suspect that this, in turn, translates to an actual operating profit that was then offset by the asset write downs although in the absence of detailed financials it is hard to be sure.

Cheers
Russ

[D Block]

Originally Posted by Loud_Noises

Somehow, I don't see another three years happening. With Falcon sales diminishing month by month, Ford HQ will only let the local operation bleed red ink for so long. Unless the next model is somehow a roaring success, I see management closing the doors 2 years earlier than announced today.

I agree....FG upgrade will be minimal. FORD will sit back after this announcement, guage responses, wait for change of governement, and then knowing the have already managed expectations down will pull the pin before 2016 and we will all go..oh it was going to happen anyway.

[4.0i_SiX]

very sad day indeed. Will strongly consider updating our G6e Turbo with on of the last Turbo models off the line..

[landau460]

Originally Posted by lotski

I dunno if I read it here, or somewhere else, but someone had the idea of having a massive cruise out to broady and geelong on their final day of production (yep, way in the future, but I think tonight we're all thinking about that day in three and a bit years time), as a last hurrah, a farewell and a thankyou to an amazing company and car. Anyway, I'm down for that.

I'd also like to add, a lot of us upset about the demise of Ford (and I have no doubts people have already said this), don't have a new one because we simply can't afford it.

I for example have only been out of uni for a year and a half, and my work in final year (2011) allowed me to get a loan (out of necessity) to buy my BF ute. Yes I'm working now, yes I could afford a new GT-P, if I wanted to (and I do). Should I? Or should I save, buy next year, and lump the 2016 model into my, hopefully, home loan that I've sunk far more money into than required, so I've got a bit of equity? Am I less entitled to be upset, and angry at the relevant ivory tower dwellers, than those who have bought a brand new Ford? No.

Who ever that was that thought of the cruise to broadmeadow / Geelong must of been reading my mind. I thought it might have been laughed at...

[jpd80]

Originally Posted by russellw

As usual, the devil is in the detail with financial results. On the face of it, the $141M loss represent about $4,166 per locally produced vehicle even assuming that there is no profit in imports (which currently make up the bulk of FoA sales) but there is one significant line in the announcement -

As a result, Ford has impaired its asset base by $143 million

In simple terms, the fixed assets of the company (plant, land, buildings) have been revalued downward by that amount as a pre-emptive move to the disposal of those assets so that there isn't a massive write-down when (and if) they are disposed of or simply left idle.

I suspect that this, in turn, translates to an actual operating profit that was then offset by the asset write downs although in the absence of detailed financials it is hard to be sure.

Cheers
Russ

Russell, I'm wondering whether those costs incurred also contain costs for 2014 Falcon and Territory updates brought forward
in a way to dump the costs now so that anything Ford makes from here on in will look like a profit with no more development costs.

[TMC]

The two remaining car manufacturers in this country (Toyota, GMH)have strong parent company ties who have cut them some slack to export. Ford USA want it all their way and have cut FoA loose. I will not buy an imported Ford out of principal. In Australia, Ford USA have damaged their name irreparably I feel.

I also think that it will be impossible for Ford to continue until 2016 after this announcement. If sales continue to drop they'll have to quit even earlier. :(

[FPV#1]

Whats going to happen to the parts side for all the fords out there?

[4vdean]

Prediction: this will be the longest thread in the history of AFF !

[Kable72]

Originally Posted by landau460

Who ever that was that thought of the cruise to broadmeadow / Geelong must of been reading my mind. I thought it might have been laughed at...

Yep, that was me. I opened a thread on it to see if there was much interest this morning.

[Guzz226]

Originally Posted by Lukeyson

Although we knew it was coming, once I heard the announcement, everyone said I was cranky for the rest of the day. lol

I wasn't planning on it, but I will be looking to purchase a 2016 FPV GT as a final goodbye, in 3 years ofcourse.

RIP Falcon 2016, I will still be enjoying mine for many years to come.

Me too - lets hope FPV GTs are still there after the update

[Wretched]

hmm interesting opinion piece written here.
http://www.theage.com.au/opinion/pol...k3mr.html#poll

It does have merit to it, that Ford did nothing to expand their business, to increase market share and to help alleviate the sliding sales.

Originally Posted by bungarra

Ok Unions, time to show your truly behind Australian workers. If the Automotive Union was supported by the MUA and TWU they could easily show Ford and other Automotive manufacturers that Australian jobs come first. The mUA needs ot start by refusing to unload imported Fords, then after a month of that add Korean and Chinese cars to the list, then Japanese and European cars to the list. The TWU refuse to deliver any current imported vehicles to dealers. Then the unions who run the Labor Party, need ot force Julia and her crew to change the government policy to a priority for Australian built vehicles. Vey few departments apart form the Military need more than a Falcon, Territory, Commodore etc. The unions and government say Buy Australian, then they need to lead the charge.

What? Are you nuts, union popularity is on the fall, their bullish tactics are not in favor with much of the public.
That their actions have been attributed to much of the unrest within the manufacturing industry of late.
I don't want to go into it all but if they do what you propose I can almost guarantee you that would be the death of unions in AU.

[Anchor]

Eh, it's been coming for a while. Honestly, they've gone from over 500 vehicles produced per day down to 148.
I have 27 cars on the board this month. 1 falcon sedan, 1 falcon ute and 4 territories. They aren't selling. There's more technology in a trend focus..

I vote for just cutting it completely, why poor more money into a failing industry. The age old argument of "imports are crap" isn't even remotely plausable anymore. I have just as many customers back with warranty issues on Aus vehicles as i do on imports.

Bring on the Fusion & Mustang. Ranger single cab can take over falcon ute. Ranger wagon (lol when it turns up) can take over territory and give us a real 4x4.

Bogans wanting 4 doors will have to get used to an AWD ecoboost that will probably outperform the current XR's anyway.

[ryeman]

Assuming the $A keeps declining could the Mustang floor pan be adapted to a sedan in both L and RHD using their world design centre here and export it back to the US as a Pontiac competitor?

[Ford PR]

Hi forum members, there are some questions regarding parts and service on the thread. We wanted to assure you that we have a robust plan to ensure we are able to serve our customers with replacement parts long into the future. Ford isn't leaving Australia and the service and repair of vehicles will remain the focus for us and our network of dealers across Australia.

[TC200six]

Originally Posted by joeyy17

Rumours of Mustang to overtake once Falcon is gone have risen on the internet. Peoples opinions?

I wouldn't call them rumours, more like speculation. It has been reported last year that Ford will be building a RHD Mustang. Whether we get it here is anyone's guess. Obviously it isn't a true replacement but it fills the void for RWD.
http://www.autocar.co.uk/car-news/ne...and-drive-2015
http://www.just-auto.com/news/ford-p..._id126633.aspx

[Road_Warrior]

Originally Posted by ryeman

Assuming the $A keeps declining could the Mustang floor pan be adapted to a sedan in both L and RHD using their world design centre here and export it back to the US as a Pontiac competitor?

What?? Pontiac is a dead brand.

[GT-GTF]

In relation to the original thread title "major ford announcement" -

As the owner of several Aussie built Fords (currently and historically) the most disappointing aspect of the announcement was that Ford will no longer build cars in Australia and everything that means for the Aussie workers who will be laid off and for the future of manufacturing in Australia.

As a passionate supporter of Aussie car manufacturing generally, the second most disappopinting aspect of the announcement for me was its timing to coincide with the launch of the new commodore. I have no doubt it was timed to sabotage the launch. They are clearly trying to take Holden's Aussie manufacturing down with them.

I find that despicable.

[FacultY]

Originally Posted by jpd80

Russell, I'm wondering whether those costs incurred also contain costs for 2014 Falcon and Territory updates brought forward
in a way to dump the costs now so that anything Ford makes from here on in will look like a profit with no more development costs.

I also wonder if this includes the buyout of FPV from prodrive?

[ryeman]

Originally Posted by Road_Warrior

What?? Pontiac is a dead brand.

So there would be no competition?

[Brazen]

Im sorry I need to vent and family and friends dont get how much this matters to me.

Im still annoyed that Ford painted the picture that Australia was at fault for the closing of the plant. That the "cost structure was double of that of Europe and four times of that of Asia" - when pressed on the 7.30 Report what were the higher costs in Australia? Bob Graziano then states that it wasnt that we are more expensive - it was that Ford in Australia doesnt have the scale of other plants, ie they need more volume to bring down costs - rather than needing to move to another country.

So it is Ford's fault not Australia for the plant closing, they didnt build enough here to make the plant viable. Building 30,000 uniquely engineered vehicles compared to the plants which pump out 200,000 and they make it sound like Australia was the problem. I think they are bloody lucky they were in Australia - a Falcon plant building only 17,000 mainstream family sedans a year would not have survived anywhere else in the world for as long as they did here.

And why announce this 3 and a half years out and before the new model is realeased in 2014? Many things can change in 3 and a half year. The AUD could collapse causing a Mazda 3 to be $30,000, a change of Government could change things - three senators including Nick Xenophon want a 10% increase in tariff and will demand it if they hold the balance of power. They could wait till 2015 after the new model has been on sale for a year and that would still give employees 1 and a half years to find a new job. Announcing it this early is just condeming the Falcon to poor sales.

If the problem is volume, they have 3.5 years for a solution. Ford manufacture 2.5 million cars a year. Surely there is scope for Australia to have an extra 50,000 from that especially with changing currencies, changing trends, changing policies, changing worldwide trade agreements and the growth of wages in Asia and China.

[2011G6E]

Mazda would never let a 3 be "worth $30,000"...

They've got such a huge market, world wide, that they can afford to take a bit of a hit in such a tiny market as ours and still make thier profits elsewhere. Not to mention most of the big makers from around the world have moved manufacture (or are planning to do so) to India, the costs of production become very cheap...hell, even Harley Davidson is looking at opening a plant in India.

[Brazen]

Originally Posted by 2011G6E

Mazda would never let a 3 be "worth $30,000"...

They've got such a huge market, world wide, that they can afford to take a bit of a hit in such a tiny market as ours and still make thier profits elsewhere. Not to mention most of the big makers from around the world have moved manufacture (or are planning to do so) to India, the costs of production become very cheap...hell, even Harley Davidson is looking at opening a plant in India.

some makers are setting up in India purely to feed the appetite for cars from the growing middle class in India and the prohibitive tariffs - they are not setting up there for cost cutting, exports will be simply a bonus. Wages make up only a small part of car making costs anyway.

[russellw]

Originally Posted by GT-GTS

As a passionate supporter of Aussie car manufacturing generally, the second most disappopinting aspect of the announcement for me was its timing to coincide with the launch of the new commodore. I have no doubt it was timed to sabotage the launch. They are clearly trying to take Holden's Aussie manufacturing down with them.

I find that despicable.

I would very much doubt that the timing was deliberately aimed at that - one could equally argue that it was despicable of Ford to make the announcement on the same day that Hazel Hawke died if you want to apply your logic.

There's not a lot of data sharing between FoA and GMHA so it is hardly a surprise that the two announcements conflicted.

Russ

[I6DOHC]

Originally Posted by russellw

....

As a result, Ford has impaired its asset base by $143 million

In simple terms, the fixed assets of the company (plant, land, buildings) have been revalued downward by that amount as a pre-emptive move to the disposal of those assets so that there isn't a massive write-down when (and if) they are disposed of or simply left idle.

I suspect that this, in turn, translates to an actual operating profit that was then offset by the asset write downs although in the absence of detailed financials it is hard to be sure.

Cheers
Russ

Exactly right. This is what had me scratching my head as well, as it appears that it's really a convenient loss to report in order to add weight to (or provide the means for) Detroit justifying pulling the plug on the Australian factories. Having seen the machinations of big business from the inside this would have been one of the 'strategies' kicked around the boardroom tables.

I am just not convinced there wasn't a way to return things back to profitability, particularly by leveraging from the One-Ford program (for all of the new tech), relying on the solid foundation of the FG/FH and for Detroit to allow an export program for the vehicles produced. Sure there would be some pain in all of this but that is the same for all businesses.

Some things are worth fighting the fight for as that is the Australian way.

Just a pity I'm not a billionaire or I'd buy both factories myself and try to figure out a way to keep them running. Is anyone out there friends with one?

[GT-GTF]

Originally Posted by russellw

I would very much doubt that the timing was deliberately aimed at that - one could equally argue that it was despicable of Ford to make the announcement on the same day that Hazel Hawke died if you want to apply your logic.

There's not a lot of data sharing between FoA and GMHA so it is hardly a surprise that the two announcements conflicted.

Russ

Russ

The Holden announcement was well flagged publically in advance and Ford was aware it was coming. That allowed them an opportunity to time their announcement to "spoil" the commodore party.

Ford could have made its announcement at a time that did not spoil the party but chose not to.

As for poor old Hazel (God rest her soul), she (unlike Ford) had no control over the timing of her passing and Ford clearly could have no advance warning of it.

[V8 6I]

I remember a quote from some Ford exec in the 70s that If they could make more money selling washing machines instead of cars they will.Start looking for the Ford badge in you local white goods retailer starting 2017.

[Shonky.]

Originally Posted by Anchor

Eh, it's been coming for a while. Honestly, they've gone from over 500 vehicles produced per day down to 148.
I have 27 cars on the board this month. 1 falcon sedan, 1 falcon ute and 4 territories. They aren't selling. There's more technology in a trend focus..

I vote for just cutting it completely, why poor more money into a failing industry. The age old argument of "imports are crap" isn't even remotely plausable anymore. I have just as many customers back with warranty issues on Aus vehicles as i do on imports.

Bring on the Fusion & Mustang. Ranger single cab can take over falcon ute. Ranger wagon (lol when it turns up) can take over territory and give us a real 4x4.

Bogans wanting 4 doors will have to get used to an AWD ecoboost that will probably outperform the current XR's anyway.

no wonder Falcon and Terry didn't sell, with people like you tasked with doing so