Ford committed to factory closures: Graziano

Road_Warrior · 07-10-2013, 01:01 PM

http://www.carpoint.com.au/news/2013...MEIwJk5uZT0xNQ..

Quote:

Graziano says industry minister welcome to visit but there is no prospect of a reversal
Ford Australia president and CEO Bob Graziano (pictured) says he will welcome a visit from new federal industry minister Ian Macfarlane this week but rejects any chance of the company’s decision to end local manufacturing being changed.

“We are not going to reverse the decision we have taken,” Graziano told motoring.com.au.

Graziano also made it clear Ford could not guarantee it would continue to build the Falcon and Territory at its two Victorian plants all the way out to October 2016.

“We have always talked about it as our intent to go to 2016 and we are committed to getting there if we can,” he said. “But I cannot predict what would happen externally that may prevent us from doing that."

During a tour of Holden’s operations in Adelaide last week Macfarlane revealed his desire to convince Ford to stay in Australia as a manufacturer.

Graziano announced in May that Ford would close its two Victorian plants, cease manufacture of the Falcon sedan and ute and Territory SUV and retrench 1200 workers no later than October 2016.

The Blue Oval has lost $430 million on its Australian operations in the last two years as Falcon sales have dived in a splintering market turning away from large cars.

"I'd like to think I can do something with Ford," Macfarlane was quoted as saying. "I want to have another discussion with the Ford people. I'm going to see what I can do over there."

Graziano said he had read Macfarlane’s comments in the newspapers.

“It would have surprised me if he didn’t [want Ford to stay as a manufacturer],” he said. “But I think he will come down and we will have the conversation and we will see where it goes."

Graziano said he was pleased Macfarlane was visiting Ford.

“I have known him since I have gotten down here and I have a tremendous amount of respect for him and so I am looking forward to having a conversation with him about Ford.

“I just want to provide him with an overview of the company. We have not had the chance to have that conversation, and maybe show him around a bit. He is new in his role and in that capacity I am really anxious to talk to him about the company.

“I think it is an opportunity for us to talk to him about ... what we do today and what it is we will be doing in the future. I haven’t had the opportunity to have that conversation with him in that role and I am really pleased he is coming.”

Macfarlane's automotive plate is already full as Holden seeks additional taxpayer funding to keep building cars in Australia.

If a deal can't be reached, that would leave Toyota Australia as the only local manufacturer and facing a tough challenge to survive, given the supplier economies of scale issues it would face.

Falcon sedan sales dropped to record lows in July and August below 600, but lifted in September to 846. There have been 12 recent production down days to cope with the slowing demand, although no more are scheduled for 2013.

Graziano says Ford remains committed to a $103 million “freshening” of the Falcon and Territory in 2014.

“I think we did about 2300 vehicles (Falcon sedan and ute and Territory) off the platform last month, which wasn’t a bad go for a month,” he said. “We are very focussed on getting that freshening out there and seeing where we go from there."

He said he understood why there was scepticism about whether Ford would operate its Broadmeadows assembly line and Geelong engine plant all the way out to October 2016.

“People want guarantees and what we continue to say is that is the intent – to go to the end of October 2016.

“And people say ‘you are not being specific and you’re not guaranteeing and you are not committing’. We are just trying to be honest.

“But right now we are focussed on that freshening and taking it to October 2016, and that hasn’t changed from May.”

No surprises there. But I note for the first time in the media he is flagging the prospect of the plant closures being brought forward – if the market/economic conditions leave Ford with little option that is.

jpd80 · 07-10-2013, 02:04 PM

If sales stay where they are, Ford will most likely keep production through to October 2016
but if sales were to permanently dive away to levels like they did recently, then yes, Ford would/should pull the pin early.

I don't think people can afford the luxury of thinking that they can hold off buy a Falcon until late 2016.

**Bluehoon** · 07-10-2013, 02:22 PM

Quote:

Originally Posted by jpd80

If sales stay where they are, Ford will most likely keep production through to October 2016
but if sales were to permanently dive away to levels like they did recently, then yes, Ford would/should pull the pin early.

I don't think people can afford the luxury of thinking that they can hold off buy a Falcon until late 2016.

I'd have to agree.

Personally I'd watch the sales in 2014 and make move to buy late 2014 early 2015. Tough call between the XR8 & XR6T though...

Road_Warrior · 07-10-2013, 02:31 PM

Quote:

Originally Posted by jpd80

If sales stay where they are, Ford will most likely keep production through to October 2016
but if sales were to permanently dive away to levels like they did recently, then yes, Ford would/should pull the pin early.

I don't think people can afford the luxury of thinking that they can hold off buy a Falcon until late 2016.

Those are precisely my thoughts as well.

Falcon's numbers dropping to 500/month and Territory to 800/month would have rattled them, but with the bounce back up to 800/1100-ish respectively Graziano seems pretty happy with that (well, as happy as you can be I guess) judging from the comments in the article. But if the numbers head further south then no doubt they will reassess the October 2016 closure date.

Kieron · 07-10-2013, 02:36 PM

Bluehoon, Falcon rep was built on the V8, so to have the last of the Falcon V8's sounds better to me

I can only see FG sales maintaining low numbers and sharply dropping off by third quarter next year, it's old hat in an increasingly shrinking market segment and the FH really needs to be out first quarter next year to compete.

jpd80 · 07-10-2013, 03:05 PM

Quote:

Originally Posted by Kieron

Bluehoon, Falcon rep was built on the V8, so to have the last of the Falcon V8's sounds better to me

I can only see FG sales maintaining low numbers and sharply dropping off by third quarter next year, it's old hat in an increasingly shrinking market segment and the FH really needs to be out first quarter next year to compete.

VF is already feeling the pinch with Holden reportedly bumping up sales last month by registering a lot of MY13 discount stock.
I see Ford's use of keenly priced XR6 and XR6 Turbo stock as fundamental in keeping Falcon sales continuing with attractive sales.

Rodge · 07-10-2013, 03:14 PM

Best bargains for those not fuusy on colour choice will be clearance and demo stock 6-12 months after closure.

Kieron · 07-10-2013, 03:57 PM

Quote:

Originally Posted by jpd80

VF is already feeling the pinch with Holden reportedly bumping up sales last month by registering a lot of MY13 discount stock.
I see Ford's use of keenly priced XR6 and XR6 Turbo stock as fundamental in keeping Falcon sales continuing with attractive sales.

For sure mate, but as Falcons bread n butter are fleet sales will this amount to much? fleets are already massively discounted and Holden have traditionally been very strong in this area. Resale of FG's compared to VF's will be less attractive when looking at the total cost of ownership too.

jpd80 · 07-10-2013, 04:18 PM

Quote:

Originally Posted by Kieron

For sure mate, but as Falcons bread n butter are fleet sales will this amount to much? fleets are already massively discounted and Holden have traditionally been very strong in this area. Resale of FG's compared to VF's will be less attractive when looking at the total cost of ownership too.

All we can hope for is a calming influence in business, hopefully the conservatives have
some strategies in place to lift business confidence and get them replacing fleets with Aussie vehicles.

Elks · 07-10-2013, 05:18 PM

At last Bob Graziano commits to something.

Joe5619 · 07-10-2013, 09:06 PM

How about Bob gets off his **** an commits to FPR???

Seriously, when is this guy going back to America?

XR Martin · 07-10-2013, 09:17 PM

Im not waiting to 2016, but I am waiting for the update to see what exactly what we're going to get.
XR8 with the current GS drivetrain at SS prices would be very tempting.

Syndrome · 07-10-2013, 09:19 PM

Wow. First time I've seen Ford openly and vocally commit to something............

borough · 07-10-2013, 09:26 PM

Well Mr Graziano I'm committed to never buying another Ford once my FG is gone. There are plenty of other imports to buy that will do the job just as good and come with 5 yr unlimited km warranty. Mondeo just makes me laugh, i would rather get a Kia Optima.

LeadFoot81 · 07-10-2013, 09:53 PM

Quote:

Originally Posted by borough

Well Mr Graziano I'm committed to never buying another Ford once my FG is gone. There are plenty of other imports to buy that will do the job just as good and come with 5 yr unlimited km warranty. Mondeo just makes me laugh, i would rather get a Kia Optima.

Bye, have a beautiful time!

pottery beige · 07-10-2013, 10:05 PM

Buy your big boofy Proudly Aussie Built Falcons while you can....

mik · 07-10-2013, 10:50 PM

Mr Graziano “But I cannot predict what would happen externally that may prevent us from doing that."
i wonder if he's got the US economy in the back of his mind ? lots of talk about the US economy being close to up the creek without a paddle.

Road_Warrior · 07-10-2013, 10:57 PM

Quote:

Originally Posted by mik

Mr Graziano “But I cannot predict what would happen externally that may prevent us from doing that."
i wonder if he's got the US economy in the back of his mind ? lots of talk about the US economy being close to up the creek without a paddle.

He could be in terms of what the exchange rate may do against the greenback if the US economy tanks. But I think the spirit of what he was referring to was more local, i.e. market/sales pressures and political influences. Obviously the previous Govt's FBT changes put all the local car makers on a war footing and that's not something they will forget quickly because they are astute political players who know how fickle politics can be.

jpd80 · 07-10-2013, 10:58 PM

Quote:

Originally Posted by mik

Mr Graziano “But I cannot predict what would happen externally that may prevent us from doing that."
i wonder if he's got the US economy in the back of his mind ? lots of talk about the US economy being close to up the creek without a paddle.

No, he talking about buyers in Australia and no control over what happens with them....

NX74205 · 08-10-2013, 12:47 AM

Quote:

Originally Posted by borough

Well Mr Graziano I'm committed to never buying another Ford once my FG is gone. There are plenty of other imports to buy that will do the job just as good and come with 5 yr unlimited km warranty. Mondeo just makes me laugh, i would rather get a Kia Optima.

Don't let the door hit you on the way out.

The rest of us are staying loyal to Ford.

Syndrome · 08-10-2013, 10:03 AM

Quote:

Originally Posted by NX74205

The rest of us are staying loyal to Ford.

Why? .

Wretched · 08-10-2013, 10:07 AM

Quote:

Originally Posted by Syndrome

Why? .

Why not?
Ford have a range of cars that are sold worldwide and rank in the top of each category. Ford is not Falcon, Falcon WAS a model within the Ford range.

Focus was the top selling model in 2012, has a strong reputation, Fiesta too.
Falcon had its time, the buying public have made their choice and the big sedan is not it.

Syndrome · 08-10-2013, 10:32 AM

Ford used to be a valuable contributor to Australian industry and society. Once 2016 passes they will be no different to any other vehicle importer. Hence I see any loyalty to this brand as blind faith.

**DJM83** · 08-10-2013, 10:58 AM

Quote:

Originally Posted by Syndrome

Why? .

Because Ford have plenty of cars that i would own, its isnt all about the local cars. And i am a Ford Fan ie fan of the brand not a model.

So when 2016 comes around i expect this forums membership base will drop by about 3/4?
Doubt it.

Wretched · 08-10-2013, 11:03 AM

Quote:

Originally Posted by Syndrome

Ford used to be a valuable contributor to Australian industry and society. Once 2016 passes they will be no different to any other vehicle importer. Hence I see any loyalty to this brand as blind faith.

That may be your opinion and your decision as to why you follow a car maker.
For me it has nothing to do with where the car is made, more to do with the cars in their range, their history and heritage.

blk6t · 08-10-2013, 11:10 AM

Quote:

Originally Posted by Syndrome

Ford used to be a valuable contributor to Australian industry and society. Once 2016 passes they will be no different to any other vehicle importer. Hence I see any loyalty to this brand as blind faith.

There are a lot of brands that used to be valuable contributors to the Australian industry and society, that I'm sure we still continue to buy without second thought. If we turned our back on every brand that has moved manufacturing overseas, you would have a very empty house hold.

At the end of the day, the Falcon is a product that is no longer selling to the volumes required to cover the cost. Lots of companies are constantly chopping and changing their product line to stay profitable.

Why would Ford or any other manufacturer make a product that is loss?

That said, we all know it's cheaper to build overseas.

Road_Warrior · 08-10-2013, 11:14 AM

Quote:

Originally Posted by Wretched

Falcon WAS a model within the Ford range.

Until they stop making them it still IS a model in the Ford range.

stazza · 08-10-2013, 11:41 AM

Quote:

Originally Posted by borough

Well Mr Graziano I'm committed to never buying another Ford once my FG is gone. There are plenty of other imports to buy that will do the job just as good and come with 5 yr unlimited km warranty. Mondeo just makes me laugh, i would rather get a Kia Optima.

Are you for real?

Ford would likely have continued if the imports weren't so abundant over here.

What a dumb statement.

westy73 · 08-10-2013, 11:58 AM

Quote:

Originally Posted by blk6t

There are a lot of brands that used to be valuable contributors to the Australian industry and society, that I'm sure we still continue to buy without second thought. If we turned our back on every brand that has moved manufacturing overseas, you would have a very empty house hold.

At the end of the day, the Falcon is a product that is no longer selling to the volumes required to cover the cost. Lots of companies are constantly chopping and changing their product line to stay profitable.

Why would Ford or any other manufacturer make a product that is loss?

That said, we all know it's cheaper to build overseas.

Ok so running with your last point here....

Let's say Falcon can be developed and built 8-10K cheaper overseas somewhere and then imported. If we were to see that sort of cost saving on the Falcon would people then reconsider it ??

I mean most people seem to agree it is great bang for the buck now.
Is it purely a monetary thing preventing it from selling here in the numbers to make it viable for manufacturing ??
Would Aussies buy an imported Falcon that was much cheaper to the hip pocket ?

Interesting thought.

strobe · 08-10-2013, 12:03 PM

Quote:

Originally Posted by Syndrome

Ford used to be a valuable contributor to Australian industry and society. Once 2016 passes they will be no different to any other vehicle importer. Hence I see any loyalty to this brand as blind faith.

What about the design jobs that are staying? Everyone seems to forget about them. Surely they keep Ford above import only brands, if that's your thing.