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Ford Falcon gets a lifeline

The change means the cheapest Falcon, the XT, starts at $37,235 (down from $40,290).

 

And it will bring good news for the company's 3500 production staff in Victoria. A fresh injection of more than $50 million is coming from Ford Motor Company that will secure the immediate future of the Falcon and Territory despite the worst showroom result in the history of the Ford flagship in 2011.

An announcement is planned for the Detroit motor show involving Ford's global chiefs, local president Bob Graziano, and a government delegation led by the Federal Minister for Industry Kim Carr. The true scale of the investment is still a secret, but it comes as both Ford Australia and GM Holden jockey for positions in the future model plans of their global parents.

Neither can afford to be left out of accelerating globalisation that is reducing the number of individual models produced around the world. Senator Carr is visiting Detroit with the Premier of South Australia, Jay Wetherill, to try and ensure the Australian makers are included and is locked into make-or-break talks with both Ford and GM.

"I want Australia to remain a player at the table. It's critical for the future of the Australian automotive industry. It's pivotal," Carr told News Limited on Friday before leaving for Detroit. "It's not just for Ford and General Motors, but the whole industry. There are nearly 200 companies involved in the industry.

"This mission is all about fighting for jobs in Australia. There is no question that the rise of the Australian dollar has placed jobs under threat." Australia's three makers all suffered showroom setbacks during 2011, although Toyota has committed $350 million to a new engine factory in Melbourne, as well as the costly switch to an all-new Camry for 2012, and are being forced to justify their local positions. Ford and Holden each employ more than 1000 engineers and designers who are primarily involved in offshore development work, although their places are cemented by the local manufacturing operations.

A Holden-designed midsized car soon goes in production by GM and Ford engineers are responsible for an all-new compact SUV called the EcoSport, which will be built in India and sold in Australia in 2013. The Figo baby car, also developed in Australia, was India's Car of the Year in 2011 and the Ranger pickup - which will be followed this year by an SUV called Endeavour - also comes from Broadmeadows and is the first ute anywhere in the world to win a five-star NCAP safety rating. But there are still doubts, and the latest Ford cash from Detroit only protects Ford Australia's factories at Broadmeadows and Geelong until around 2018, when an all-new car is intended to take on the Falcon nameplate.

There are also questions over the Commodore from 2018, when the current program expires, and that has prompted Senator Carr's latest visit to motown. He will meet with GM's CEO and Dan Akerson and the CEO of Ford, Alan Mulally.

"We're going to secure new investment. There is a genuine concern about the future of the industry given the rapid acceleration in the Australian dollar. The high currency has placed enormous pressure on Australian manufacturing."

The latest talks come following a similar visit to China last year to talk with regional motoring bosses. "I'm a regular visitor to Detroit. And I was also in Shanghai in August to meet with their regional leadership for the Asia-Pacific. We have been dealing with this issues for some months. It's not something you do in just five minutes."

Senator Carr will not be specific about his needs, or what he has to offer the carmakers, but said he is committed. "Our whole approach has been predicated on co-investment and we're seeking long-term commitments to Australian manufacturing. And that can only be secured by new investments.

"We have the flexibility, and the wit and wisdom, for Australian governments - there are responsibilities for state governments as well - to build the partnerships that will last us for years to come. It's about understanding their attitude towards global investments. "You have to talk to the global leaders about the role of Australia. If governments don't take a key interest in this you can guarantee that we will not remain a player at the table."