Ford vows to stage comeback

[jpd80]

[FONT="Tahoma"]Horror start to 2012 caused by temporary supply problems, claims Ford

20 February 2012

By HAITHAM RAZAGUI...LINK

FORD Australia has high hopes of bouncing back to sales growth this year following a shaky start
to 2012 in which most models except the Focus small car, Territory SUV and Transit van delivered a
double-digit dip in volume.

The Blue Oval’s 5838 sales in January were down nine per cent – following a 4.2 per cent
full-year decline in 2011 – but Ford executives are optimistic that a recovery will take place
in coming months as supply constraints for volume-sellers like the Ranger and Focus are overcome.

Natural phenomena were to blame for the new Ranger’s slow start and the Falcon’s worst-ever
sales month as suppliers to Ford’s factory in Thailand were hit by floods that affected several
manufacturers – worst of all Honda – while Melbourne’s Christmas Day hail storm damaged
around 2000 MkII Falcons and numerous Territorys as they awaited their final inspections
before being shipped to dealers.

Ford Australia communications and public affairs director Sinead Phipps told GoAuto that Falcon
sales are expected to take off again next month once stocks of the recently facelifted car
are sufficiently replenished, aided by the presence of the LPG-powered LPi version, while the
four-cylinder EcoBoost version also promises to increase sales once it comes on stream after Easter.

Ms Phipps said supplies of the Thai-built Fiesta light car were not impacted as badly as
the Ranger because it uses fewer locally sourced parts.

For the same reason, shifting Australian Focus production from Germany to Thailand
is still on track for June.

Ford Australia general marketing manager David Katic told GoAuto that, although the Ranger factory
is on a hill and was not affected by the floods, several suppliers had been submerged and some
resorted to sending divers into the flood waters in a desperate attempt to salvage equipment.

He also said limited supply of diesel engines for the Mondeo mid-sizer is hurting sales because that
fuel type accounts for such a high proportion of the model’s local volume.

The next-generation Mondeo will continue to be sourced from Europe but Mr Katic said
U]moving production of Ford’s mid-sizer to Thailand would not help because the
diesel engines are produced in Europe and the company is not about to invest in a
diesel engine manufacturing facility in Asia, where petrol engines are preferred[/U].

Globally, Ford is rapidly expanding its capacity to produce efficient, downsized EcoBoost
petrol engines and Mr Katic agreed that eventually there is likely to be a swing back to petrol
power as tougher emissions regulations make it increasingly difficult and expensive to
develop diesel engines.

Some Australian Focus customers are also facing delays as the European factory struggles
to cope with demand. Mr Katic said that, until the Thailand factory comes online, the Focus
– which with 1576 sales in January achieved around 900 fewer units than the locally-built
Holden Cruze – will struggle to reach its sales potential.

The Focus ST hot hatch that will replace the previous-generation XR5 Turbo in the fourth quarter
of this year is likely to be sourced from Europe.

Mr Katic said limited supplies from Europe, the flooding in Thailand and Melbourne’s hail storm
meant the only vehicle Ford Australia could rely on stocks for last month was the Transit van –
sales of which were up 36.6 per cent.

As more of Ford’s model line-up falls into line with its ‘One Ford’ strategy of developing vehicles
for the global market – which could spell the end of the local Falcon and Territory – the company
is expanding its production capacity in Asia to satisfy local demand.

The factory from which Australia will source the Focus is close to completion and several
new factories are being built in India. The EcoSport sub-compact SUV will become Ford Australia’s
first Indian-sourced vehicle when it arrives in the second half of next year.

Ms Phipps said moving production to Asia gives Australia and other countries in the region
more control over supply.

It has taken until now for the brand’s local arm to secure just 200 Kuga SUVs per month from
the European factory – even though it is well into its product life and will be replaced by a
redesigned model in less than 18 months.

The new Kuga will be based on the global C1 platform that underpins the current-generation
Focus, meaning it is likely that Kuga production for this country will also eventually shift to Asia.

Ms Phipps told GoAuto that Ford Australia is able to secure good supplies from Thailand
because it is the Thai plant’s best customer.

She said the company is also confident of getting better supplies for the next-generation Kuga
as Australia “put its hand up early” for the car, meaning sufficient production slots should
be allocated from the outset.

[phillyc]

Well Ford sound positive! It takes someone like Go-Auto to actually report the full story, not the sensationalist tabloid type drive, carsguide etc.

I think February and particularly March will be much better and Ford will be back into the usual podium position for monthly sales.

[P6LTD351]

Sounds good. The range is great. Fingers crossed.

[Auslandau]

That's going to always be a problem ..... have a great line up with the Fiesta, Focus, Mondeo and Ranger being built overseas, Australia gets to wait in line. With the Kuga on its way Ford really are producing some really great cars. Get the F series happening and all would be very rosy

Good positive reporting with some good spin from FORD. The Xmas hail storm would have been devastating to B'meadows at the worst possible time!

[jpd80]

Yes, confirms that 2,000 Falcons and Territorys got hit in the hailstorm on Christmas day
and couldn't get delivered in January. Pretty sure that most of them would have been
customer orders and not just dealer stock, hopefully February punches back...

[P6LTD351]

so are we saying there would be roughly 1000 Falcons out of that 2000 that were hail damaged? Could we see the Falcon top 2000 sales in Feb?

[Auslandau]

Originally Posted by eb2monty

so are we saying there would be roughly 1000 Falcons out of that 2000 that were hail damaged? Could we see the Falcon top 2000 sales in Feb?

IF the figure is correct (not doubting) and all cars are fixed and ready to go Feb might very well be a very good month for them. Might shut a few people up!

[P6LTD351]

Originally Posted by Auslandau

IF the figure is correct (not doubting) and all cars are fixed and ready to go Feb might very well be a very good month for them. Might shut a few people up!

Let's hope so! I will be honest. I was one of the doubters a few months back. My passion though, came from a WANT for Ford (and particularly the Falcon) to do well. My negativity was through frustration that we have this great car and it's just not selling.

Since then, I have taken the glass half full approach. We are Ford fans, we should show it.

[jpd80]

Originally Posted by eb2monty

so are we saying there would be roughly 1000 Falcons out of that 2000 that were hail damaged? Could we see the Falcon top 2000 sales in Feb?

Just a wild guess but maybe more like 800 Falcon Sedans, 800 Territory and 400 Falcon Utes.
If those numbers were added to January's figures, I think they would look more like November's tally.

[P6LTD351]

BTW do Ford do mid month projections? e.g. would they know how they are tracking at this point for sales in Feb?

[P6LTD351]

Originally Posted by jpd80

Just a wild guess but maybe more like 800 Falcon Sedans, 800 Territory and 400 Falcon Utes

You think? But the Falcon sold 950 in Jan. Surely those that couldn't be registered because of hail damage would be on top of that, hence my prediction for 2000 Falcon sales in Feb (pending all of those that were damaged having been repaired).

[jpd80]

Originally Posted by eb2monty

BTW do Ford do mid month projections? e.g. would they know how they are tracking at this point for sales in Feb?

They do tracks stock and would know dealer orders, stock, customer orders and when deliveries are made...
Four day week production next month is a sign that Ford are keeping tabs on stock levels and reserving space for Ecoboost.
More correctly, a lot of recent EcoLPIs have been built to stock so as to forward build to make space for Ecoboost next month

[Auslandau]

Originally Posted by eb2monty

BTW do Ford do mid month projections? e.g. would they know how they are tracking at this point for sales in Feb?

As they almost build to order with as minimal stock as possible so they know exactly where they are at any given time.

[TC200six]

Heard a comment by 4BC radio host Garry Hardgrave today who said Ford will be import only in Australia in the next 5 years. This wasn't an interview like that time when Joe Hockey went on a rant against the Australian car industry, but a brief comment. The station is owned by Fairfax who also owns drivel.com.au, perhaps there could be a conspiracy about their links with eachother?

[P6LTD351]

Originally Posted by TC200six

Heard a comment by 4BC radio host Garry Hardgrave today who said Ford will be import only in Australia in the next 5 years. This wasn't an interview like that time when Joe Hockey went on a rant against the Australian car industry, but a brief comment. The station is owned by Fairfax who also owns drivel.com.au, perhaps there could be a conspiracy about their links with eachother?

Yeah I wouldn't take too much notice of that comment. I could just as easily say the same thing. At the end of the day, Ford knows what pathway they are going to take. If they don't at this stage, let's hope Falcon and Territory go great guns over the coming months as a decision will be forthcoming from Ford soon.

[TC200six]

Originally Posted by eb2monty

Yeah I wouldn't take too much notice of that comment. I could just as easily say the same thing. At the end of the day, Ford knows what pathway they are going to take. If they don't at this stage, let's hope Falcon and Territory go great guns over the coming months as a decision will be forthcoming from Ford soon.

I agree. I hope Ford jumps back, even if the Falcon's days are numbered, the Territory is still there. It's just these views that media personalities express which Ford doesn't need.

[morak001]

Originally Posted by Auslandau

IF the figure is correct (not doubting) and all cars are fixed and ready to go Feb might very well be a very good month for them. Might shut a few people up!

Would these cars in question be fixed or replaced?

I mean, if they are repaired, could they still be sold as brand new cars to the public?

[P6LTD351]

Originally Posted by morak001

Would these cars in question be fixed or replaced?

I mean, if they are repaired, could they still be sold as brand new cars to the public?

They can be sold as new cars as long as the dealer discloses they were damaged and repaired.

You would be surprised how many cars are repaired before being sold as new.

As these are 'hail damaged' the dealer MUST disclose. Many of these have been discounted.

[Auslandau]

Originally Posted by morak001

Would these cars in question be fixed or replaced?

I mean, if they are repaired, could they still be sold as brand new cars to the public?

Depends on the damage. Many would be repaired and some would be sold to the auctions. Those that are fixed, the customer wouldn't know but if I was picking one up I would have a good look anyway ...... but you would anyways picking up a new car. You would be surprised on how many cars are 'fixed' prior to pick up. Not saying they are thrashed or trashed ...... just moving them around the yard, on and off trucks etc little scrapes do happen. Nothing to worry about in my books .... it happens to all.

They can be sold as new cars as long as the dealer discloses they were damaged and repaired.

Not necessarily ...... if the damage was fixable they do not need to disclose.

[P6LTD351]

Originally Posted by Auslandau

Not necessarily ...... if the damage was fixable they do not need to disclose.

I thought if it was hail damage they had to? As opposed to other damage that gets repaired.

[Auslandau]

Originally Posted by eb2monty

I thought if it was hail damage they had to? As opposed to other damage that gets repaired.

Nope ...... if its a couple of dents, fix it and ship it.

[P6LTD351]

Originally Posted by Auslandau

Nope ...... if its a couple of dents, fix it and ship it.

So what about the ones recently damaged? Obviously it gets to an extent where it delays them by that long, the new owners are told about it? Why would Knox Ford advertise hail damaged cars fully repaired and with full warranty at discount prices?

[Joe5619]

Goods news, about time someone wrote something nice!!!

I hope Falcon sales are better from here on, so the Vfacts topics that come every month are more positives. And all the negative people can Shut the F up!!.

[Bossxr8]

Feb should be a good month for numbers, as I said a few weeks ago, its March and April that are looking very shaky for Falcon as they have bugger all private and rental fleet orders, hence the 4 down days needed in March. Thats what's worrying.

Territory is doing very well though, full order books and a waiting list.

Ford seriously need to do something to fix these supply problems from Europe, how many years do they have to put up with this crap from Ford Europe. Shifting Focus to Thailand can't come soon enough, they just need to find alternate sources for Mondeo and Kuga, which might go to Thailand. Should just assemble Mondeo here.

[Auslandau]

Originally Posted by eb2monty

So what about the ones recently damaged? Obviously it gets to an extent where it delays them by that long, the new owners are told about it? Why would Knox Ford advertise hail damaged cars fully repaired and with full warranty at discount prices?

If the car has been regarded as a write off due to hail ....... which does not require a VIV to be registered ...... then that is a different kettle of fish. There are 3 stages of hail damaged cars .....

1. Car is fixed because of minimal damage. The customer is none the wiser.

2. Car has been written of due to hail damage. Can be repaired because it is fixable, falling just into the category of written off but because it has been deemed as a repairable write off it has to be stated by law that it has been hail damaged but fixed. Someone who has a new car on order would not receive one of these cars. Ford (or whoever) fixes it and discounts it as a hail damaged car.

3. Car is written off due to bad hail damage. A, C pillars, on front edge of roof on edges of panels etc, sold as written off through the auctions and not worth being fixed by Ford. Can still be bought and registered without going through a VIV as all hail damaged cars are exempt even though written off but are pretty ugly

[jpd80]

Originally Posted by Bossxr8

Feb should be a good month for numbers, as I said a few weeks ago, its March and April that are looking very shaky for Falcon as they have bugger all private and rental fleet orders, hence the 4 down days needed in March. Thats what's worrying.

Territory is doing very well though, full order books and a waiting list.

Ford seriously need to do something to fix these supply problems from Europe, how many years do they have to put up with this crap from Ford Europe. Shifting Focus to Thailand can't come soon enough, they just need to find alternate sources for Mondeo and Kuga, which might go to Thailand. Should just assemble Mondeo here.

You know my thoughts Boss, Mondeo should be given a walk up start to Broadmeadows production.
IMO, if advertised properly, Ford might get 1,000/mth and maybe some regional exports in FAPA too..

[Bossxr8]

Would be interesting to know how short Genk production is Vs orders per month, and wether there is enough excess to make a second production base viable.

Problem is high aussie dollar pretty much kills any chance of exporting them.

[jpd80]

Originally Posted by Bossxr8

Would be interesting to know how short Genk production is Vs orders per month, and wether there is enough excess to make a second production base viable.

Problem is high aussie dollar pretty much kills any chance of exporting them.

Unless I'm mistaken, FoE's Genk produced S-max too but i think Mondeo production is pretty low...
It's the diesel production that's limited because we take the 2.0 shared with Focus, Kuga and S-Max.
I'm hoping Thailand gets a diesel plant so we get unfetted supply of cars.

[naddis01]

What is the 2.2 diesel supply like? Why don't we get that one anyway?

[jpd80]

Originally Posted by naddis01

What is the 2.2 diesel supply like? Why don't we get that one anyway?

the 2.2 TDCI has a combined of around 6.5 l/100 km versus 5.6 l/100 km for the 2.0 TDCI,
it's pretty obvious that Ford wanted to maximize diesel fuel economy so ordered the 2.0,
there is a 1.6 TDCI with 4.3 l/100 km but the poor 0-100 kph in 11.9 seconds rules it out.