Ford assumes sole responsibility for FPV

[Sinead Phipps]

We've just made an announcement internally at FPV and Ford that we have signed an MOU with Prodrive for Ford to assume sole responsibility for FPV from the end of this year. Our media release is posted here:

Ford assumes sole responsibility for Ford Performance Vehicles

· Ford Australia and Prodrive Automotive Technology Asia Pacific Holdings (Prodrive) have entered into an MOU for Ford to purchase the assets of Ford Performance Vehicles (FPV) required to continue engineering, manufacturing and marketing the FPV brand in Australia.

· Development, production and marketing of FPV vehicles will move to Ford Australia’s Geelong and Campbellfield operations.

· Customers will experience no difference to their interactions with the FPV brand.

MELBOURNE, Australia (Thursday August 30 2012): Ford Australia and Prodrive today signed a Memorandum of Understanding (MOU) for Ford to purchase the assets of FPV required to engineer, manufacture and market the FPV brand in Australia.

Negotiations are expected to be completed shortly, with Ford to take responsibility for future activities of FPV from the end of 2012. Ford will become responsible for all future development programs, the manufacture of FPV engines and vehicles, and marketing the FPV brand.

Until now, FPV has operated under a Joint Venture agreement between Prodrive (51%) and Ford Australia (49%). The change followsa review by the partners of the FPV business and both partners concluding the current business situation was unsustainable in the long-term.

“We recognise the passion and dedication of FPV enthusiasts and their desire to see Ford high-performance vehicles available in the market,” said Ford Australia President & CEO Bob Graziano.

“Although this segment of the market is relatively niche, it is an important part of Ford’s performance history and DNA. Both partners have worked hard to ensure the FPV brand can continue to thrive in Australia post the change to our current arrangements.”

Production of FPV engines will move to Ford’s Geelong engine plant, while full vehicle assembly will take place at Ford’s Campbellfield plant. The additional work at both sites will offset the need for a small number of the previously announced redundancies across both sites.

Unfortunately, although Ford can take on responsibility for the FPV brand and in-source the manufacturing and other work, the change will see approximately 32 FPV staff become redundant at the end of 2012. All entitlements and other benefits for those staff will be provided.

“As a result of the business review, Prodrive has made the decision to exit the performance car market at the end of 2012,” said Prodrive Managing Director Bryan Mears.

“We have enjoyed great success through our partnership with Ford Australia and look forward to watching the FPV brand continue to thrive in the future.”

FPV vehicles will continue to be sold through Ford’s dedicated network of FPV specialist dealers Australia. There will be no change to current service and warranty arrangements.

“Our current and future customers should experience little, if any, change to the way they interact with the FPV brand,” said Graziano. “We look forward to continue providing them with the outstanding performance and specialist service they have enjoyed to date.”

# # #

[Kieron]

Where does that leave FPR Sinead?

[Road_Warrior]

Will this see the end of the "sticker and stripe specials" that many were concerned about?

[Sinead Phipps]

There won't be any change to FPR. The team is owned by Prodrive and they plan to continue with them and we plan to continue sponsoring them. The FPV line-up will also continue as is.

[Romulus]

Sinead, will Ford revive the XR8?

[PridenJoy]

I take it this means the FPV facility at Campbellfield will be no longer?


So FPV cars will have FORD badges on them again?

Well done FoA, thanks for taking pride in your performance brand and not letting it die.

[FPV GTHO]

I think Spoolman deserves an apology given the response he received not that long ago for trying to scoop this news.

[I6DOHC]

Wow....this seems like a pretty big deal.

Certainly a show of faith in the Falcon (and it's future) by Ford Australia.

Would have been a tradgedy to lose it & FPV with a Prodrive withdrawl.

[Road_Warrior]

I wonder if those comments from Bryan Mears about the cost and time it would take to engineer the Falcon for LHD take on new significance now that Ford is back in control of its performance cars?

[FPV GTHO]

Originally Posted by I6DOHC

Wow....this seems like a pretty big deal.

Certainly a show of faith in the Falcon (and it's future) by Ford Australia.

Would have been a tradgedy to lose it & FPV with a Prodrive withdrawl.

Not too sure where you going with that. FPV's future with Prodrive involvement was in a lose/lose situation IMO. If Falcon dies Prodrive is not needed. If it survives it does so through a much larger use of the global parts bin, with stuff like Mustang performance engines so again there's not much need for Prodrive.

[Pepscobra]

Sinead, what are the positives to come from this?

[Kieron]

I doubt FPV vehicles will have Ford badges PridenJoy, from a marketing POV it wouldn't make sense and the opening line was -
'Ford to purchase the assets of FPV required to engineer, manufacture and market the FPV brand in Australia'

I wouldn't necessarily say it's a show of faith in the Falcon, it's a show of faith of the niche FPV brand. Ford Aus would certainly be looking into the up coming model lineup to see what will and won't work with an FPV badge and I wouldn't be surprised to see a hot Mondeo get an FPV badge, fingers crossed for a Mustang at a decent price too.

[SteveJH]

R-spec was Prodrive going out with a bang?

[RedHotGT]

I wonder why there seems to be a 10year period for these niche performance brands to operate or survive?

Tickford was in effect from EB-AU 1992-2002
FPV (Prodrive) BA - FG 2002-2012

Obviously prior to the EB there was a 10 year gap (give or take a few months) for V8s and real 'performance' cars produced by Ford.

Does anyone else see this pattern? And following that - what does the next 10 year period hold?

[PridenJoy]

Originally Posted by Kieron

I doubt FPV vehicles will have Ford badges PridenJoy, from a marketing POV it wouldn't make sense and the opening line was -
'Ford to purchase the assets of FPV required to engineer, manufacture and market the FPV brand in Australia'

Nothing wrong with having both FORD and FPV badges ala BA BF cars...

[RHR]

How are prodrive doing as a company anyway? Weren't they in formula 1. Other than FPV you really don't hear much about them any more

[Resurrection]

Unfortunately this means Prodrives services will no longer be required and this makes it easier for FoA to dismantle this operation post 2016 when there will be no donor car for FPV to modify.

To those who don't agree with me, bookmark this post and contact me in 2017.

A sad day.

[Wretched]

Originally Posted by Resurrection

Unfortunately this means Prodrives services will no longer be required and this makes it easier for FoA to dismantle this operation post 2016 when there will be no donor car for FPV to modify.

To those who don't agree with me, bookmark this post and contact me in 2017.

A sad day.

I'm inclined to agree.
After SpoolMan's original post I am starting to see it all come in to effect now.

I'm skeptical on what this takeover will bring. Guess we'll see soon enough!!

[EgoFG]

I See this as very positive !

FPV will now be able to use names from ford History (like XR8).
It explains the decrease in Ford workforce (economies of scale)
If Ford had no faith in the local market, they would have been better off financially to let FPV wither and die.

[Nikked]

Originally Posted by loftie

I wonder why there seems to be a 10year period for these niche performance brands to operate or survive?

Tickford was in effect from EB-AU 1992-2002
FPV (Prodrive) BA - FG 2002-2012

Obviously prior to the EB there was a 10 year gap (give or take a few months) for V8s and real 'performance' cars produced by Ford.

Does anyone else see this pattern? And following that - what does the next 10 year period hold?

FPV came about after Tickford was bought out by Prodrive....

[Road_Warrior]

Originally Posted by EgoFG

I See this as very positive !

FPV will now be able to use names from ford History (like XR8).
It explains the decrease in Ford workforce (economies of scale)
If Ford had no faith in the local market, they would have been better off financially to let FPV wither and die.

What's the bet the GS will suddenly die and the XR8 will suddenly return with a 315kw supercharged V8...

[Fordman]

It's hard to say whether its a negative or a positive, although it was inevitable i believe this was some time in the making.

I for one am interested to see what happens now in terms of FPV's direction - the direction that Ford takes the product.

[FPV8U]

Let's hope this is a positive sign and we will see some exciting new FPV products.

[JPFS1]

Ford do a lot of the design work as it is, so from that point, nothing much changes, I'm more concerned about the bureaucracies a large organisation brings to a niche product line and the inefficiencies because of this, (or efficiency depending on how you look at it) in moving the product forward or in a particular direction.

[EgoFG]

How about FPV feedback to Ford HQ !
I think Ford is getting some performance expertise for their V8s at a cheap price.

[I6DOHC]

Originally Posted by FPV GTHO

Not too sure where you going with that.

I was coming from the angle of losing the GT with Prodrive pulling out. As others have said, Ford could have just chosen to cut & run by folding FPV. Paraphrasing the press release, it was stated FPV services a niche market (ie small) but Ford see the value for the brand in maintaining operations.

I'm probably still stuck in the 70's, but to me when I hear 'GT' referenced as a car model I instantly associated it with Falcon. So to see the GT preserved by virtue of FPV surviving post-Prodrive comes as some sort of positive.

[FPV GTHO]

The GT and its architecture were not at stake, there's still a return on investment required there.

[WPR1]

Hopefully this also means some oversea's ST models can be sold in OZ with FPV badges

[Grunter]

Originally Posted by JPFS1

Ford do a lot of the design work as it is, so from that point, nothing much changes, I'm more concerned about the bureaucracies a large organisation brings to a niche product line and the inefficiencies because of this, (or efficiency depending on how you look at it) in moving the product forward or in a particular direction.

I'm really trying hard not to be negative on this announcement, but I have the same thought as you. FPV (as it was), added value to the Falcon provided by Ford. Bringing it in-house, FPV vehicles now become a very small part of the big machine. I couldn't see Ford alone taking the full risk (or allocating additional resources) to bring a unique S/C 5.0 to the FPV range (given all the work that was needed to do so).

Also thinking of you guys and gals that are losing your jobs at the end of the year. Stay strong and be proud of what you've been a part of and helped create (some of you since the beginning of the Tickford days)!

[DJM83]

Originally Posted by WPR1

Hopefully this also means some oversea's ST models can be sold in OZ with FPV badges

I hope not, leave the ST badged cars ST badged. There is only 2 anyway.