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Falcon safe ? for now

  • By Paul Gover
  • Herald Sun
image Ford boss Alan Mulally’s Australian visit included lobbying Canberra for a 'pause' in the planned cut in import tariffs.

The homegrown Ford Falcon and Territory are safe for at least five years.

Production of the two local heroes will continue into the next decade at the earliest, according to the president of the Ford Motor Company, Alan Mulally.

But the long-term future of local carmaking under the blue oval is likely to be with the smaller European-designed Focus, which will run side-by-side with the local family fighters on the Broadmeadows production line from 2011.

"I think there will always be a Falcon-sized vehicle. There is a market for Falcon, both here and overseas," Mulally said in Melbourne this week.

But he would not confirm a local production future for the Falcon that will eventually follow today's FG, or even the chance of it being designed in Australia. And he refused to be drawn on the potential for an imported car wearing a Falcon badge after 2012.

"There will be no new announcements today," Mulally said.

The worldwide Ford chief hit Melbourne the morning after lobbying Federal ministers in Canberra, including Prime Minister Rudd, for what he described as a `pause' in the planned cut in import tariffs on motor vehicles from 10 to five per cent in 2005.

"The key thing about the pause is the near term. It's an important time right now to take this pause. Right now I think it's a critical piece," Mulally said.

"Clearly, we are at a real transitional time in the auto industry worldwide. Our commitment is to continue to invest.

"Our real plan is to create a viable, complete business in Australia.

Australia is a tremendous opportunity for us."

Ford has already announced the end of local engine assembly and a switch to an imported V6 from 2010, then the start of Focus production in 2011, as the local operation is integrated into the One Ford global plan.

Mulally said he had good news for local workers as he headed for a staff briefing at Broadmeadows, although he could not rule out any additions to the 350 job losses announced last week as the company adjusts Falcon and Territory production to falling sales.

"We will size our production to the demand," he said.

Mulally said Ford Australia is strong and viable despite its recent troubles, including the resignation last week of company president Bill Osborne.

"You guys have got to be bullish on your industry. For where we are, in a terrible business environment, it's doing extremely well," he said.

The switch to Australian production of the Focus, which is currently imported, is part of a regional export plan for the car.

"In all honesty, Australia's connection is to Asia-Pacific. We need a strong export program. And we need to export into Asia," the executive vice-president for Ford in Asia-Pacific and Africa, John Parker, said at the Mulally briefing.

"It is absolutely critical that our Australian operations make the transformation from only building large cars, which have only one way to go which is down, to making cars which are relevant to what the Australian customer wants and what the AP customer wants.

"We can have scale. That was the big decision in driving Focus here."

 

Comments on this story

Displaying 3 of 9 comments

  • The decision has been made in the states, the Falcon will be discontinued. The Focus will replace it and a Ford Taurus will be imported to Australia from the States to be a large car offering.

    Rabbit of USA Posted on 11 March 2010 2:04pm
  • If anyone reads this from Ford Australia. Please, never stop making these cars here, they are way better than its rivals. All you need to do is market it a lot better and improve its reputaton against the old "we are Australian Commodore" cause that is no more!

    Nicole Posted on 14 November 2008 8:57am
  • The writing was on the wall way before the release of the FG. The Falcon as we know it will be no more. For a supposedly brand new car, the transition from BF to FG was minimal. The car looks doesn't even look like a Mid life face lift. It could be the BF series 3. How can Ford release a product like FG and hope to compete with the VE Commodore? The Commodore looks and feels as though it cost a Billion Dollars to develop. The FG looks like it had a few thousand spent on it to update it over a BF. The Falcon is history. Such a shame, because without a competitor, Holden will drop the ball when the time comes for the Next Commodore.

    George Seirlis of Melbourne Posted on 05 September 2008 3:37am
  • The end of Falcon's straight six will be a really sad occasion. And by their nature straight sixes are always smoother, more powerful than V6. That's why BMW keep their straight sixes. I guess that's what's going to happen to Oz car industry, dictated by their parent companies in the US and Japan. They don't give a damn if our Oz workers produce better cars than their counterparts in other countries. We are a too small market for them to care!!

    Aussie Paul of SA Posted on 04 September 2008 12:14am
  • this is great news for Australia. And we should look forward to a future merge of crown victoria, falcon and mustang platforms

    greg b of sydney Posted on 29 August 2008 11:51am
  • Better than nothing I guess. I'm not a big Falcon fan but it will be a shame if the Falcon is discontinued. Let's hope the Focus to be assembled here is better than the one sourced from SA. I almost bought one once but was turned away by the poor fit and finish and quality of the interior. Absolutely shocking. Such a shame for a good car with a great engine and decent handling.

    Amup of Perth Posted on 28 August 2008 5:38pm
  • It's important to remember that the focus will only be assembled in australia from a knocked down kit. This creates alot less jobs then actualy manafacturing a car because there's no/very little supply or R+D employment. But on the other hand, it's better then a totally imported vechicle.

    Karl Posted on 27 August 2008 10:03pm
  • Thats great news to see that Falcons Territorys will stiill be made aus

    RON CAMPBELL of WENDOUREE Posted on 27 August 2008 2:11pm
  • I get the impression that the Falcon as we know it might be a "bitsa car" in the future. That is it will be made up from parts in the parts bin to suite our needs in Australia. On the other hand, I believe the new Ford Focus will be a high volume export based vehicle designed to meet the needs of Australia and the Asia-Pacific market. Sounds like there will be winners and losers (unfortunately).

    Tony M of Melb Posted on 27 August 2008 1:06pm
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