Ford US boss reveals reasons for Australian factory axe

[landau460]

Originally Posted by ltd

Sorry to say but it makes sense.
No massive shipping costs and no wild fluctuations of the Canadian Dollar against the US dollar; that and Americans and Canadians are proud to own a ford, whereas here we have governments, fleets and every other twit saying "I don't want a taxi".

Also, freight options in Canada include things like rail, road, sea, river and lake.
Ford Australia has to send exports by sea, which makes them too expensive.

Better let toyota know about the low volume sales here in australia, the large shipping costs over seas there building massive plant down in Vic to manufacture aurion camry plus hybrid engine! ...........
O yeah they have already done that they must have made a mistake. A company that big wouldn't make mistakes!

[Kevxr8Leexr6]

Just daydreaming........ government invests in takeover of all fords manufacturing plants, bring long term industry leaders like REPCO in to facilitate the venture and in mindset the designers, down to assembly already know what to do. bingo naming may not be ford but we have a aussie built car .

Wake up from dream with hand on it. :-)

[CyberWasp]

Last time I checked the distance is the same to Export a car as it is to Import it.
It is too far to send a vehicle to the USA from Australia, but it is not to far to send a vehicle from the USA to Australia.

Is it Hyundai or Kia that bring cars here from Slovakia? How much further from Australia can you get.

If you look at markets such as Asia / China then Australia is in a better position and closer than the USA to potential sales, if you are going to use the distance as an excuse.
Sure we would not be competing in the bargain basement section of the market, but vehicles in the higher end / performance / luxury markets are a possibility.

There is a thing called vision and marketing, these are things we seem to have little of lately.

[MAD]

Originally Posted by KIWI-1

Forgotten the Forte? Ford invented the new name because the GLi was a Taxi. Then they built a whole lotta yellow Forte Taxis.

I put that one down to them not wanting to advertise an AU-Gli (Ugly)

[Kieron]

Originally Posted by CyberWasp

Last time I checked the distance is the same to Export a car as it is to Import it.
It is too far to send a vehicle to the USA from Australia, but it is not to far to send a vehicle from the USA to Australia.

Is it Hyundai or Kia that bring cars here from Slovakia? How much further from Australia can you get.

If you look at markets such as Asia / China then Australia is in a better position and closer than the USA to potential sales, if you are going to use the distance as an excuse.
Sure we would not be competing in the bargain basement section of the market, but vehicles in the higher end / performance / luxury markets are a possibility.

There is a thing called vision and marketing, these are things we seem to have little of lately.

On the distance thing, we know Australia is an extremely small market, we know other markets are FAR larger than ours so, as a manufacturer, do you build your cars in the largest market and ship then to the smaller one or visa versa?

As an example, 157,000 F series vehicles were sold in the US market in June, lets say we could sell 2,000 a month in Aus, surely it makes sense to build them in the US and ship the 2,000 down here...


@Joe, I'd suggest the high aud was only one of the factors in Fords decision to pull out, there is no way in the world they wouldn't have looked into the future and modelled the value of the aud, and they would have come up with multiple scenarios based on world economies, Aus govt policies from both parties etc and how these affect the Aus economy.

As for Toyota? They apparently lost $400m on local manufacture last year and only made a profit due to its imports. They have also been looking at shutting down local manufacture.
Their new engine plant? Employs 270 odd people and produces around 16,000 engines per year mostly for local manufacture. Great effort by Toyota and I hope it continues, but what if Holds pulls out of local manufacture too? Will Toyota pull out? It's been stated by Deveraux that 2 local manufacturers are needed to support making cars here, Lang with continued govt support.

[zilo]

Originally Posted by CyberWasp

Last time I checked the distance is the same to Export a car as it is to Import it.
It is too far to send a vehicle to the USA from Australia, but it is not to far to send a vehicle from the USA to Australia.

.

Well said...hard to argue that one.

As for us being a small market...what...it took 90 years to figure that out?

[KIWI-1]

Originally Posted by CyberWasp

Last time I checked the distance is the same to Export a car as it is to Import it.

Not if you are exporting clockwise and importing counter-clockwise.

[Whitey-AMG]

Originally Posted by zilo

Well said...hard to argue that one.

As for us being a small market...what...it took 90 years to figure that out?

It's a BIG market if you have 3 major players with a small product portfolio - it becomes very small when you have 10+ players with a population that has a much more diverse taste in cars. Major players become providers to niche markets all of a sudden.......so yes - the market has gotten considerably smaller for a given product. To sell to that smaller niche market and make some coin - you need to build cars in Thailand for next to nothing and sell to Aussies for all of everything.....

[fte50]

Originally Posted by zilo

Just wait a little while longer...we hit 90 cents against the US dollar today.

we'll soon regain our place as the cheap place to manufacture which has a stable fully manipulable political/economic/free trade system to facilitate cheap imports to the US.

Aint that for sure, problem is when they're gone they aint ever coming back.

Shame on Australia for adopting policies / or lack of, allowing this to happen !

[Brazen]

Credit Suisse predicts the dollar will be 75 cents in 12 months.

Call me crazy but I have this deep down feeling that in a year or so we will hear reports of 'Ford considers reversing Broadmeadows closure'... Wishful thinking perhaps.

[jpd80]

Originally Posted by Brazen

Credit Suisse predicts the dollar will be 75 cents in 12 months.

Call me crazy but I have this deep down feeling that in a year or so we will hear reports of 'Ford considers reversing Broadmeadows closure'... Wishful thinking perhaps.

While it probably won't save FoA, I hope and pray it gives the other guys a reprieve...

See I didn't mention________.

[Whitey-AMG]

Originally Posted by Brazen

Credit Suisse predicts the dollar will be 75 cents in 12 months.

Call me crazy but I have this deep down feeling that in a year or so we will hear reports of 'Ford considers reversing Broadmeadows closure'... Wishful thinking perhaps.

Geelong and Broady were churning out Falcon and Terri.....no one is buying Falcons anymore. They will not reconsider. Ranger and Focus for the Aussie market are made in Thailand. ( and Fiesta ) ). They will ship them over in bucket loads. Mustang will come from USA. Ford USA have invested half a billion in their ops in Thailand - they will be shutting their doors here for good.

They will turn the broady and geelong factories into commission housing for the masses of unemployed we will end up with in 5 years time.

FORD.......GO Further. ( from australia )

[EDManual]

before the dollar drops any further we should sell our houses and put the money into something else overseas!

Put up the tarriffs!

[Brazen]

Originally Posted by jpd80

See I didn't mention________.

Just slap me on the back of the head, I mention "Holden" more than Frankie J does.

[jpd80]

The last thing we would want to see is Ford retreating into its shell, FG II still has some "mileage"
left in it and the proper selection of available features in this lead up time could be a good precursor
to those items becoming regular fitment in the 2014 car.

I would love to see Ford fiddle around with the tech and luxury options to blend in the features
that customers like and give Falcon and Territory a fuller or more complete feeling in presentation.

Work with what you've got and where possible try to at least match VF in some key features and
get under it on price to cover the rest...it can be done.

[Brazen]

Originally Posted by jpd80

Work with what you've got and where possible try to at least match VF in some key features and
get under it on price to cover the rest...it can be done.

I hate to mention the M word, but I wonder if marketing has to be considered. What has struck me, with such devastating news about the closure of a company in Australia making cars for 90 years, the associated massive job losses, the negative public comments.. after all this the Falcon hasn't really dropped in sales.

If such negative news still results in a month of 1200 sales, It shows to me that Falcon has been running on the minimum sales the nameplate can muster for months and that it hasnt been running at its potential.

[jpd80]

Originally Posted by Brazen

I hate to mention the M word, but I wonder if marketing has to be considered. What has struck me, with such devastating news about the closure of a company in Australia making cars for 90 years, the associated massive job losses, the negative public comments.. after all this the Falcon hasn't really dropped in sales.

If such negative news still results in a month of 1200 sales, It shows to me that Falcon has been running on the minimum sales the nameplate can muster for months and that it hasnt been running at its potential.

Especially in the midst of a major launch by a competitor with a perceived huge advantage.
Negative news has the initial effect of flushing out sales of buyers who may have been waiting.
What happens in the ensuing months will be interesting, fuel prices will play a big part and while
Brand X has a new toy, it's sales expectations are obviously much higher than those for Falcon
That may also play to Ford if they offer value packs in Falcon and Territory as I mentioned above.

There's a huge opportunity for Ford here with new products to get a lot more traffic into dealers
which may have a greater flow on effect to Falcon and Territory by association, that's the key.

Dealer activity - first get people into the dealerships to look at products and then show them what you've got.
That works a lot more than people can imagine and I've seen many "walk ins" wanting one product but actually leave with another.

[UberKnee]

Originally Posted by Road_Warrior

If Australia is so isolated, why then is our new car market dominated by imports?

It can't be that isolated if a whole buttload of car makers have gone to the trouble and expense of sending shiploads of their products here to sell in a market of "...only one million units."

Because its pretty damn cheap to build cars elsewhere for lower wages then send them to Australia and sell them at Australian prices. When you're manufacturing and selling low volume in Australia its not worth it, despite the size of the country we have a very small number of people.

It'd cost Kia, Nissan, Merc, etc. bugger all to send cars here, compared to building them here.

[vztrt]

Originally Posted by Brazen

I hate to mention the M word, but I wonder if marketing has to be considered. What has struck me, with such devastating news about the closure of a company in Australia making cars for 90 years, the associated massive job losses, the negative public comments.. after all this the Falcon hasn't really dropped in sales.

If such negative news still results in a month of 1200 sales, It shows to me that Falcon has been running on the minimum sales the nameplate can muster for months and that it hasnt been running at its potential.

We will see how much impact the new Vf campaign will effect their sales. They are meant to be better then Ford at marketing their cars. If they can reverse the falling trend of the commodore then you could be right.

The interesting thing is the VE never outsold the VZ year on year in sales. I think this trend has been happening since VY.

[outback_ute]

Originally Posted by zilo

Well said...hard to argue that one.

As for us being a small market...what...it took 90 years to figure that out?

Don't forget what the import tariffs used to be - or do a bit of research if you do not know. 30 years ago it was a very different picture.

[BFZ Wagon]

The boss of Ford North America needs to look at a map. Thailand and Indonesia (particularly Indonesia) are still a long way from everywhere else too.

So the only reason they can use is the 'cost of manufacture thing.'

They don't care about anywhere else except the North American market and if they can build cars cheap from tin pot 3rd world countries, then that's what they'll do.

[UberKnee]

Originally Posted by Brazen

I hate to mention the M word, but I wonder if marketing has to be considered. What has struck me, with such devastating news about the closure of a company in Australia making cars for 90 years, the associated massive job losses, the negative public comments.. after all this the Falcon hasn't really dropped in sales.

If such negative news still results in a month of 1200 sales, It shows to me that Falcon has been running on the minimum sales the nameplate can muster for months and that it hasnt been running at its potential.

I'd say the average buyer just doesn't really care. They're not getting their panties in a wad over Ford Aus ending local manufacturing. They can still buy a Ford Falcon now and if that is what you're looking for you'll buy it. People buy alot more imports than they do local bogan mobiles so Fords announcement doesn't affect most people for the immediate future. Just gives them one less option on the market in 3 years time.

[NX74205]

Originally Posted by BFZ Wagon

The boss of Ford North America needs to look at a map. Thailand and Indonesia (particularly Indonesia) are still a long way from everywhere else too.

Remind me again, which cars do Ford Thailand and Indonesia export to the US?

[Dr Smith]

Originally Posted by Brazen

Credit Suisse predicts the dollar will be 75 cents in 12 months.

Call me crazy but I have this deep down feeling that in a year or so we will hear reports of 'Ford considers reversing Broadmeadows closure'... Wishful thinking perhaps.

Just out of interest do you know what they predicted in 2011-2012 the $Aust would be in 2013?

[chookaradley]

Would an AUD 0.75c serriously make Ford reconsider?

[DanielXR8]

Originally Posted by jpd80

The last thing we would want to see is Ford retreating into its shell, FG II still has some "mileage"
left in it and the proper selection of available features in this lead up time could be a good precursor
to those items becoming regular fitment in the 2014 car.

I would love to see Ford fiddle around with the tech and luxury options to blend in the features
that customers like and give Falcon and Territory a fuller or more complete feeling in presentation.

Work with what you've got and where possible try to at least match VF in some key features and
get under it on price to cover the rest...it can be done.

Given they don't have to worry about what comes post the FG/FH platform for Falcon, they might as well simplify the range, throw everything but the kitchen sink in and let the car compete as well as it can. VF is now outgunning Falcon on standard equipment and trim and still will even if they give every FG the works. Why disadvantage the car more then necessary.

No need to hold anything back for next years model. The 2014 will have a reskin and some tweaks to keep things interesting and only has a two year run, so an update of it isn't required either. Might as well launch it with everything included too.

Let the Falcon go out as the best value, best equipped Falcon ever.

[Joe5619]

Originally Posted by ESP

Geelong and Broady were churning out Falcon and Terri.....no one is buying Falcons anymore. They will not reconsider. Ranger and Focus for the Aussie market are made in Thailand. ( and Fiesta ) ). They will ship them over in bucket loads. Mustang will come from USA. Ford USA have invested half a billion in their ops in Thailand - they will be shutting their doors here for good.

They will turn the broady and geelong factories into commission housing for the masses of unemployed we will end up with in 5 years time.

FORD.......GO Further. ( from australia )

And where does Fords Medium size car come from. The segment is doing well for Toyota & Ford can ever get enough supply from Europe. It is a nice sized replacement for Falcon (sort of). Give it the right egines & price points & this model could be doing allot better. I personally still hold some hope the dollar continues to drop & Ford might reconsider & build the Mondeo sedan, hatch & wagon here for our region.

[ebxr8240]

It's not totally labour costs !! Have you seen these new manufacturing plants ?? They are made by robots !! Now they have a larger market they'll take over !! Robots don't have lunch breaks, wages, sick leave etc etc

[Franco Cozzo]

Will Ford be clearing out any tools they have? I'd be interested in seeing what they sell.

[Bossxr8]

Hasn't been decided yet. These things will take time to sort out. The tradies want their tools but they are company property and they will probably have to buy them from Ford.