Didnt realise it had dropped so much

[bobthebilda]

Just came across the following article. You hear the bad news, but until you look back you dont realise how bad it is.


http://www.carsguide.com.au/site/new...in_tough_times

Only 4 years ago, they were pumping 450 off the line each day on average.

Now I hear on average, the number is half that.

[ebxr8240]

Could be why CEO was replaced..

[04redxr8]

Could also be trying to predict upcoming market trends. Possibly playing it safe. If demand drops off, they have half the cars sitting around. if demand grows, then extend waiting list times and hire more staff to try and catch up.

Its better for the customer than continually slashing the prices and destroying resale value. I can't see the problem.

[vztrt]

Back in 06 they were running at full capacity (550 units, mind you 530 was about what was averaged). Then they went through two down-balances.

Now, they are running at 270 units a day.

This was all done through the Gorman years. They had a good reason when you would go out the back and it was full of cars to the point there was cars sitting there that were a year old (I believe this area is now sold off).

The current units per day put them back into the black and keeps their stock low. You must also remember that they have changed the way they run production. Back in 06 it was build stock, now its more of a built to order.

[mik]

its a tough industry , especially in Australia with so many different car /brands importers, i wonder if now that the dollar has risen if the trend of cheap imports flooding in might change and give our local car builders a shot on the arm?

[bobthebilda]

Originally Posted by mik

its a tough industry , especially in Australia with so many different car /brands importers, i wonder if now that the dollar has risen if the trend of cheap imports flooding in might change and give our local car builders a shot on the arm?

Sorry Mik, I must be misunderstanding what you are saying there. With the increase in the australian dollar, it normally adds to the woes of the local manufacturers, as the imports become cheaper. The high dollar does assist slightly as it decreases the costs of the imported components that go into the car, but all things being equal, its not good.

I have read some articles about the car companies complaining how hard things were when the aussie dollar was around 75 cents to $US, and the tariff rate was 10% (now 5%).

[Crazy Dazz]

Originally Posted by mik

i wonder if now that the dollar has risen if the trend of cheap imports flooding in might change and give our local car builders a shot on the arm?

Unfortunately the rampaging Aussie dollar will only make those imports cheaper. Remember last time this happened Ford decided to end production of the I6 in favour of imported V6.
It would be interesting to know what the production split is, and how that has changed over the past few years.
There are no more LWB models, no wagons, no V8s unless you buy FPV, and the Territory is dying in the ****.
I imagine they are losing a lot of sales to the Aurion. I am disgusted by the number of fleets converting to those hyped-up Camrys on the basis that they are an equivalent alternative.
I blame the tree-huggers. People are being made to feel guilty about driving large cars, and Ford have to waste their money complying with spurious emissions control instead of only improving the engines and fuel economy.

[FPV GTHO]

Exchange rate had nothing to do with cancelling the I6. V6 was probably still going to be a more expensive engine per unit than the I6.

[mik]

Originally Posted by bobthebilda

Sorry Mik, I must be misunderstanding what you are saying there. With the increase in the australian dollar, it normally adds to the woes of the local manufacturers, as the imports become cheaper. The high dollar does assist slightly as it decreases the costs of the imported components that go into the car, but all things being equal, its not good.

I have read some articles about the car companies complaining how hard things were when the aussie dollar was around 75 cents to $US, and the tariff rate was 10% (now 5%).

Mik
bugger goes to show what i know about economics :(




Crazy Dazz


Unfortunately the rampaging Aussie dollar will only make those imports cheaper. Remember last time this happened Ford decided to end production of the I6 in favour of imported V6.
It would be interesting to know what the production split is, and how that has changed over the past few years.
There are no more LWB models, no wagons, no V8s unless you buy FPV, and the Territory is dying in the ****.
I imagine they are losing a lot of sales to the Aurion. I am disgusted by the number of fleets converting to those hyped-up Camrys on the basis that they are an equivalent alternative.
I blame the tree-huggers. People are being made to feel guilty about driving large cars, and Ford have to waste their money complying with spurious emissions control instead of only improving the engines and fuel economy.

[FNQracing]

Such along way from only a decade ago. Could go on forever as to the reasons why - there are many - quality and stealerships are probably right up there. It may be too late to reverse?

[irlewy86]

Originally Posted by David Gelb KPMG automotive from Carsguide article

"In a relatively small market place like Australia, when you have only the four vehicle manufacturers, any significant reduction in local production is likely to have a very, very, tangible flow-through effect," he said.

Did they rehash an old quote or am I forgetting a manufacturer.

[irish2]

Ford slashes new car production in tough times

* By Ewin Hannan
* The Australian
* 17 October 2006

[mcnews]

Originally Posted by FPV GTHO

Exchange rate had nothing to do with cancelling the I6. V6 was probably still going to be a more expensive engine per unit than the I6.

And a damn good decision all round, I personally think Ford would be way worse off now if they went the V6 route. The work they have on the I6 to bring it up to modern standards is just awsome, the engine is simply fantastic. It is a ripper without a snail, and with a snail, well they have had to bring in a state of the art motor from the states with a litre more capacity and bolt a supercharger on to it to better it. The I6 is perhaps the best success story of the Aussie motor industry.

[Joe5619]

Lets take a look at those numbers again

2006: LOSS of 40.3M
2009: PROFIT of 13M

So, can someone please tell me where the problem is???????

[oranpark addict]

Originally Posted by Joe5619

Lets take a look at those numbers again

2006: LOSS of 40.3M
2009: PROFIT of 13M

So, can someone please tell me where the problem is???????

And that's the bottom line. They may make less units but they are making more money, so they have smartened up and made a whole lot of changes

[bobthebilda]

Originally Posted by Joe5619

Lets take a look at those numbers again

2006: LOSS of 40.3M
2009: PROFIT of 13M

So, can someone please tell me where the problem is???????

Joe the thread wasnt about money, it was about quantities, and simply a look back at different times. But since you asked


Firstly, no one knows where that $13 million come from. Did imports allow them a $50 million profit, and local manufacturing make a $37 million loss. Who knows, they may have made all the profits on spare parts alone.

2009 had 10% import duty, 2010 now has 5%. It is estimated that the 5% drop would have lowered the average import cost of a $35000 car by 3%. Take $1000 off each of Fords 50,000 local products, and you lose $50 million.

If you had $500 million. Would you develop a new car with it and earn $13 million per year, or would you put it in the bank and earn $25 million with it, or just buyback your own shares.

[Joe5619]

Originally Posted by bobthebilda

2009 had 10% import duty, 2010 now has 5%. It is estimated that the 5% drop would have lowered the average import cost of a $35000 car by 3%. Take $1000 off each of Fords 50,000 local products, and you lose $50 million.

A) I really don’t understand the point to the whole topic other than to "have a go" at Ford
B) Could you please explain the above quote, as it makes no sense to me at all.. Lower duty rates does not cost Ford Aust anything on local production (other than having better priced competition)

[Mr Hardware]

Who cares? Making a tonne of cars and making a loss is a holden thing.

[Smoke Pursuit]

The way they are setup now protects resale somewhat by only building what they can sell rather then stocking cars in melbourne as well as dealers. I dont think they would have survived building 530 FG's / Territorys a day over the last 2 years, demand just isnt there.

[NC1183]

You do realize, that the article in the OP was from October 2006

[Auslandau]

Originally Posted by NC1183

You do realize, that the article in the OP was from October 2006

Yes that is right but it is stating the fact that the prediction was correct and that Ford was smart enough to 1/2 production but reverse the loss. That in itself should be news worthy ..... But it will go unnoticed

[b0son]

Originally Posted by vztrt

Now, they are running at 270 units a day.

and still calling it capacity.

[FNQracing]

Originally Posted by mcnews

And a damn good decision all round, I personally think Ford would be way worse off now if they went the V6 route. The work they have on the I6 to bring it up to modern standards is just awsome, the engine is simply fantastic. It is a ripper without a snail, and with a snail, well they have had to bring in a state of the art motor from the states with a litre more capacity and bolt a supercharger on to it to better it. The I6 is perhaps the best success story of the Aussie motor industry.

Absolutely!

I'm just pi$$ed that it took them so long to do it. The I6 always had great power/torque figures, but was either inefficient, blew head gaskets, or made a lot of noise while doing it. Now that they have got it right (after 40 years) no one knows about it because no one is buying Falcons anymore.

The I6 ever since BA has been a real pearler of an engine.

[Smoke Pursuit]

Originally Posted by b0son

and still calling it capacity.

Well it is capacity for the hours they are working... When they were building double that they were working extra shifts aswell as saturdays....

[vztrt]

Originally Posted by b0son

and still calling it capacity.

Yes, seeing as they build JIT and with smaller staff then they did in 06 its a 3 month process just to get the line running at a higher number.

But naturally the internet expert such as yourself would know this!

[DanielXR8]

Originally Posted by ebxr8240

Could be why CEO was replaced..

I suspect Burela has done what he could, but you can only go on like Ford Australia has for so long, before you burn enough customers and have no where to go. By the time he took charge, the damage had been done and Ford was well and truly on the nose with the punters.

It will take years to rebuild the brand and while Burela seemed to be making a start on that, it will take committment and lots of cash to make it work. Since its been obvious that Ford Australia have been starved of capital for years, I don't think anyone can get their hopes up on that score. If what Ford Australia does lines up with global operations, then all well and good, otherwise it will inevitably go.

I think Burela jumped and if the auto industry was your career, well, I can't blame him.

Dan

[DanielXR8]

Originally Posted by Joe5619

Lets take a look at those numbers again

2006: LOSS of 40.3M
2009: PROFIT of 13M

So, can someone please tell me where the problem is???????

Because there comes a tipping point where the money needed to invest and get a 13 million profit (Falcon & territory) could get a better return elsewhere.

The only way to not hit that point after all the cost cutting and efficiencies have been extracted is to sell more cars.

[Joe5619]

Originally Posted by DanielXR8

Because there comes a tipping point where the money needed to invest and get a 13 million profit (Falcon & territory) could get a better return elsewhere.

The only way to not hit that point after all the cost cutting and efficiencies have been extracted is to sell more cars.

A) But Ford was selling more cars in 2006 & still made a loss!!
B) You realise all those millions spent in R&D for the FG are expenses included in the profit number?

[stang65]

Originally Posted by NC1183

You do realize, that the article in the OP was from October 2006

This article is dated October 2006

I think the thread title is misleading and should have been more specific as most people including myself thought this was a recent article as October finished yesterday.

eg Didn`t realise it had dropped so much look at this article from 2006.

[stang65]

Just realised who the thread starter was Whats new ? Racked another one on the board.