Ford Announces $103 Million Investment in Local Vehicle Upgrade

[mcnews]

Ford Announces $103 Million Investment in Local Vehicle Upgrade

Ford invests an additional $103 million in Australian vehicles
Upgraded models will further reduce CO2 emissions
New models will go on sale in 2014

DETROIT (US, 09 JAN 2012)

Ford Motor Company will invest a further $103 million in clean technology and additional upgrades across the locally-produced Falcon and Territory lines; it was announced at the North American International Auto Show today.

The investment will enhance the competitiveness of Falcon and Territory by further reducing CO2 emissions and improving Falcon’s already enviable safety profile. The upgraded models will be launched in 2014 and will take Falcon through to at least the end of 2016.

Ford Australia’s product line up now offers customers vehicles with enhanced environmental performance and reduced running costs in every segment in which Ford participates, including Fiesta ECOnetic and diesel, Mondeo EcoBoost, Focus diesel, Territory Diesel, Ranger Diesel and Falcon EcoLPi. Falcon EcoBoost will be launched in the first half of 2012.

The investment announcement was made by Ford Asia Pacific and Africa President Joe Hinrichs, Ford Australia President and CEO Bob Graziano and Federal Minister for Manufacturing Senator Kim Carr. The funding includes $34 million from within the existing New Car Plan funding envelope and additional support from the Victorian State Government.

The announced $103 million investment comes on top of a $232 million sustainability initiative – the biggest environmental overhaul in the history of Falcon and Territory – which is now well advanced.

“Ford Australia’s $103 million investment in the design, engineering and manufacture of Falcon and Territory from 2014 continues our focus on providing vehicles with enhanced environmental performance in every segment in which we compete,” Mr Graziano said.

“Across our range we are rolling out new smart technologies which improve fuel economy and reduce CO2 emissions while remaining affordable for consumers, through the broader application of diesel engines, smarter powershift transmissions, EcoLPI, and global Ford technologies such as EcoBoost.

“There’s no doubt the large car segment is challenging, but it can remain viable if we continue to provide buyers what they want – fuel efficiency, design excellence, and features that enhance safety and the driving experience.”

The environmental initiatives are expected to reduce the CO2 footprint of the Falcon by up to a further 5.3 per cent. These initiatives will include:

Improved body aerodynamics: A reduction of 7.5 per cent in aero drag through a series of engineering and design enhancements.
Advanced low resistance tyres: A rolling resistance reduction of ten per cent through improved tread compound, more advanced hard inner lining and improved tyre technology to provide more even pressure distribution.
A new high technology transmission: A new high-technology six-speed transmission will reduce mass and weight as well as provide better acceleration values through significantly reduced reaction times, reduced vibrations and fuel consumption through improved torque conversion, and adaptive shifting which analyses the driver’s personal driving style and driving conditions and implements optimal shifting accordingly.

Additional new safety, technology and design features will complement the vehicles’ existing five star ANCAP rating and deliver customers a world-class vehicle package. Further details of the program’s specific features will be announced closer to launch in 2014.

Mr Graziano said that continually upgrading and improving the CO2 performance of Ford’s local vehicles was the best approach to improving the vehicles’ environmental credentials in the short-to-medium term.

“Few single technologies are readily available at a price most consumers can afford that by themselves will provide large reductions in CO2. Rather, we are reducing the CO2 footprint of our range – both domestically-produced and imported – through ongoing engineering and development.

“This $103 million investment is also good news for jobs, as it will provide direct employment for around 300 people during the design and engineering stages ––as well as supporting jobs and investment across our supply chain.”

Mr Graziano said Australia was one of only 13 countries in the world with the capabilities to design, develop and produce vehicles from the ground up, and that it was important to foster this strategic capability or it would have significant impacts on Australia’s capacity for innovation excellence.

“Every car manufacturing country in the world receives Government support – most far more than Australia receives – and there are many other countries that are desperate to develop their own auto industries because they know the flow-on impacts it has on education, R&D, skills and jobs, and revenue.

“We appreciate the support of the Federal Government and the Victorian State Government for this initiative and believe the flow-on benefits across the industry will deliver a positive return for all parties.”

[Road_Warrior]

Aah, so it's on top of the $232M already budgeted.

And do I read into those comments about the transmission as the Falcon getting a DSG transmission?

[Smoke Pursuit]

This is good news for local production / jobs...

Lets hope it pays off though and they aren't riding a dead horse.

[Geez Louise]

Heard this on the radio on the way into work. Good to see that investment is still willing to be made into the local market.

[FPVGT500]

Would the falcon undergo weight reduction not from only a lighter trans

[fou_bleu]

$335 million dollars to spend on what, new transmissions? Surely they'd be limiting what they spend on I6, with the pending axe not that far away...

[Bluehoon]

Good news, glad to hear.

Only issue is it doesn't end or stamp out the post 2016 speculation that's already rolling around.

[joolz]

Great news but the bashing is thick from the Heraldsun readers especially the Holden apes. One reader obvioulsy has no idea there is a new and current LPG Falcon!!!

http://www.heraldsun.com.au/business...-1226240564176

[Flat Top]

seems a lot to spend on Transmissions , (tyres-already deleveloped) ??aerodynamics????? am i missing something here?

[Road_Warrior]

Originally Posted by Flat Top

seems a lot to spend on Transmissions , (tyres-already deleveloped) ??aerodynamics????? am i missing something here?

It's in the detail of the article, changing the aerodynamics of the car and implementing new safety features is pretty extensive work, we're looking at a fairly substantial update when it arrives. At first I likened it to the ED-EF model change, but chances are it could be much more substantial than that.

[Fev]

Originally Posted by joolz

Great news but the bashing is thick from the Heraldsun readers especially the Holden apes. One reader obvioulsy has no idea there is a new and current LPG Falcon!!!

http://www.heraldsun.com.au/business...-1226240564176

That article is.. Well thats just terrible journalism showing one side of an obviously larger picture and the commentators are absolute idiots!!

I'm hoping my comment trying to straighten it out a little is published although
I hold no hopes it will be...

[ford man xf]

Originally Posted by Bluehoon

Only issue is it doesn't end or stamp out the post 2016 speculation that's already rolling around.

Very true, but it is something, who knows what might happen this year with the 4 cylinder Falcon, if Ford can convince Australian buyers that you can get good acceleration and economy out of a 4 cylinder engine in a Falcon body people could really warm to the car. Look at the options now available to Falcon & Territory buyers, Petrol, Turbo, LPG, 4 Cylinder, Diesel Territory.

I just can't stand Ford Australias marketing, look how Holden have marketed the Cruze as an Australian product, Holden like to brag about the fact it makes 2 cars in Australia, the Territory is Australian designed and built here since 2004, how many people know this.

[GT014]

Hopefully now with the guarantee to 2016, FG2 out, 4cyl coming it will make more people confident about buying a Ford now since the media keep putting it down saying falcon will be going any day soon. I'm sure carsguide will find a negative out of this good news !!

[aualright]

Originally Posted by REXY_2010

Hopefully now with the guarantee to 2016, FG2 out, 4cyl coming it will make more people confident about buying a Ford now since the media keep putting it down saying falcon will be going any day soon. I'm sure carsguide will find a negative out of this good news !!

It also appears Ford HQ understand the detrimental effect the speculation has not only on staff morale, but also the buying public.

Excellent news for FoA - 4 years of absolute certainty is a godsend and will hopefully limit the death riding from some media commentators.

****

[Rodge]

Guaranteed out to at least the end of 2016 is of course five years and should give customers some much needed confidence.

Aerodynamic work seems sensible as the current cd of 0.34 definitly needs improvement, can't figure the tyre thing as there's allready tyre companies that make fuel efficient low rolling resistance tyres, likewise the transmission, the existing 6 speed is world class in terms of quality and fuel efficiency, a DSG just opens up the possibility of more failures IMHO, why wouldn't they invest the money in making a generic copy of the ZF eight speed auto under licence ?? Maybe they just don't want to give the game away regarding the gearbox ?? Overall though, leaving aside the specific detail of what they do with the money this is fantastic news for all. Its a happy day

[BFZ Wagon]

Good to see. It means local manufacturing keeps going. Just wish Ford marketing would get their butts into gear and market the fact that the Territory and Falcons/FPV's are made here!!!

[DanielXR8]

Originally Posted by Rodge

Guaranteed out to at least the end of 2016 is of course five years and should give customers some much needed confidence.

Aerodynamic work seems sensible as the current cd of 0.34 definitly needs improvement, can't figure the tyre thing as there's allready tyre companies that make fuel efficient low rolling resistance tyres, likewise the transmission, the existing 6 speed is world class in terms of quality and fuel efficiency, a DSG just opens up the possibility of more failures IMHO, why wouldn't they invest the money in making a generic copy of the ZF eight speed auto under licence ?? Maybe they just don't want to give the game away regarding the gearbox ?? Overall though, leaving aside the specific detail of what they do with the money this is fantastic news for all. Its a happy day

The current ZF transmission although brilliant, is probably costing Ford AU a lot of money to buy. If they can replace it with the inhouse variant of say an 8 speed box, there might be a money saving - especially if Territory is heading that way. No one seems to be complaining about the switch from the 6 speed ZF to the Ford clone in the diesel Terri, so it won't be an issue if they do this for the great majority of buyers.

Very much doubt a DSG box would be on the horizon for Terri and Falcon at this stage in their life cycle.

Really this money amounts to a confirmation of one more face lift and some engineering work to try and squeeze a bit more fuel economy out of the cars, to keep them competitive in the last part of their lives in the Ford catalogue. AKA EL Falcon vs ED/EF.

[Polyal]

Dont Ford use the corporate 6SPD now?

Death to DSG...unless the Linclon is based off the Falcon one day then IMO the gearbox is the last thing that needs to be touched.

Fix up that rear end for gods sake, its not a normal situation were we almost except it as "with tolerance" now.

[Rodge]

They're not complaining yet my friend becuase the generic copied six speed gearbox hasn't been in service for long. The way I see it, its like orange juice, there's the real McKoy and the copy. Long term durability and smoothe performance remains to be seen.

[1TUFFUTE]

i read that article linked further up......i cant believe te ignorance of some people. they think ford needs to develop the falcon for export to america yeah holden is showing how well spent that mony was. And they think fords need better economy....despite the ecolpi having better eco then alot of small cars allready. Alot hate that the gov is helping a large company saying its a waste of tax payers money....and they cant see the clear fact that ford aus supports 10s of thousands of aussie jobs. 103mill is nothing for that greater good...despite the fact its going to eco engineering not as a money prop for a sinking company . Noone realizes how much trouble holden aus is actually in with the profit income of the cruze replacing the commadore now cutting their profit margins in half...which means to stay viable they need to sell twice as many cars....which their not. Plus holden just recieved a 32mill gov amount to help them keep afloat....not to develpe economy on an allready class leading car. A car that was found to be australias most safe second hand car you can buy.
Oh not to mention all those comments..."holdens are better at burnouts...and all weddings need holdes doing skids" BOGANS

[jpd80]

Originally Posted by Flat Top

seems a lot to spend on Transmissions , (tyres-already deleveloped) ??aerodynamics????? am i missing something here?

New bonnet, Territory headlights, new grille, new tail and lights, lighter version of 6-speed auto similar to Ecoboost, the tyers, the reduced drag, it all adds up to $103 million.

The $232 million sustainability initiative is already here in the form of SZ territory and FGII.

IMO, the post 2016 vehicle decision hasn't been made, I bet they wanna see results from EcoLPI and Ecoboost first..

[dimka100]

So the way I'm reading this is Ford Australia has 103 million to spend on developing the next Falcon and Territory update to be released in 2014, meaning that:

1. The existing Falcon FGII will need to maintain decent sales for a period of 2 years with no updates.
2. The existing Territory will need to maintain decent sales for a period of 2 years with no updates.
3. All engines to be sold in 2014 will need Euro V compliance as far as I understand hence development dollars will partly be spent to achieve that.
4. Safety upgrades are probably necessary to keep the ANCAP5 rating as its a continuously evolving system.

Just wondering how far will 103 Million go in changes considering that the FGII changes have been very minor at best, sure the Territory changes have been more significant but that's considering it was a 232 million investment (i.e. 2.3 times bigger).

[1TUFFUTE]

Originally Posted by jpd80

New bonnet, Territory headlights, new grille, new tail and lights, lighter version of 6-speed auto similar to Ecoboost, the tyers, the reduced drag, it all adds up to $103 million.

The $232 million sustainability initiative is already here in the form of SZ territory and FGII.

IMO, the post 2016 vehicle decision hasn't been made, I bet they wanna see results from EcoLPI and Ecoboost first..

i was thinking that ecoboost is the key..and am wondering if they delay the molding of falcon into whatever world platform they want to..over time so as to spread the cost of loosing falcon in one great big hit and all that expenditure on the next model. Maybe engineering the next falcon model so it evolves(for lack of better words) into the next world model.Ford seem very smart with their money descisions of late..so would make sense maybe for a country with such a good car manufacturing ability as aus...

[Joe5619]

Good news.. A little lack on details though??


Good thing about this, is we get a pretty nice update to Falcon right when the new Commdore hits showrooms.


Is the 103M just from the 2 govenments? Is Ford putting anything in?

[davenl5l]

ahhh ford investing but holden looking for hand outs from sa gov

[jpd80]

Originally Posted by 1TUFFUTE

i was thinking that ecoboost is the key..and am wondering if they delay the molding of falcon into whatever world platform they want to..over time so as to spread the cost of loosing falcon in one great big hit and all that expenditure on the next model. Maybe engineering the next falcon model so it evolves(for lack of better words) into the next world model.Ford seem very smart with their money descisions of late..so would make sense maybe for a country with such a good car manufacturing ability as aus...

Yes, I think the jury is still out on which way to hop with a large car.
Sure they could put Taurus onto a Mondeo/Fusion platform, that would be logical but
I'm thinking that since large car sales are reducing everywhere, the scales of economy
are not as overwhelmingly large for a FWD/AWD as they once were, maybe RWD is viable too...

If Taurus, Mustang, Falcon and Territory all shared parts, thing could be a lot different
and for the US combining a future Taurus with a Mustang may serve their purposes better...

And then there's Edge, Ford is having an ulcer deciding what to do with it,
I doubt they want that on a Ford Europe platform, the fear is it will be like S-Max, not good...

[ford man xf]

Who was it that I heard on the radio trumping up Holden and now that Ford has this investment the Government now needs to look at investing in Holden, surely this was not a Government minister, the way it was worded was as if too say that Holden is more important than Ford in Australia. I missed the start of the news so I didn't catch the persons name. Holdens been getting handouts too, people out there amaze me how ignorant they are, some of the talk back radio comments of people, most people are under the belief that the Australian Government should not be throwing money at an overseas company and should be investing in Holdens future because it's Australian!! And people are unaware of the money the Government has poured into Holden over the years!

[theboxmike]

Originally Posted by ford man xf

Who was it that I heard on the radio trumping up Holden and now that Ford has this investment the Government now needs to look at investing in Holden, surely this was not a Government minister, the way it was worded was as if too say that Holden is more important than Ford in Australia. I missed the start of the news so I didn't catch the persons name. Holdens been getting handouts too, people out there amaze me how ignorant they are, some of the talk back radio comments of people, most people are under the belief that the Australian Government should not be throwing money at an overseas company and should be investing in Holdens future because it's Australian!! And people are unaware of the money the Government has poured into Holden over the years!

Australians are pretty dumb on the whole aren't they

[rancidpunx]

Great news for the falcon and Aussie Jobs, but just goes to show the publics thoughts about Ford. I read every comment posted an i'd say 95% of people are against the handout.
Nobody has a clue about whats going on with the Falcon or Holden Handouts, its sad to read.
The FG is a fantastic car but nobody knows about it. Im willing to bet if you had a survey on the street about what the Falcon has to offer, nearly every response would be that they have no idea and dont care.

[Polyal]

Handout...LOL...its called investment, because the gov wont see that money back in some way or form will they...