$103m injection for Ford

The Koreans starred, the Japanese mounted a comeback, and One Ford hit the headlines with an extended family of Focus-based newcomers that it is certain to make a big hit in Australia. But it was one car and the commitment of its company chief that made the most impact as America fought back on the opening day of the 2011 North American International Motor Show.

A new investment plan has been finalised since August that will provide a freshen for the Falcon, as well as a range of efficiency improvements, to take the car and the Territory SUV through to at least 2016. It protects more than 3500 jobs at Ford's Victorian manufacturing sites at Broadmeadows and Geelong.

The deal was predicted by Carsguide on the weekend and involves investment from both Ford Motor Company and the Federal government, under its Automotive Transformation scheme. Ford confirmed the deal yesterday in an unprecedented move to try and end speculation about the future of the Falcon, following the worst sales year in its history through 2011. Falcon sales fell to less than 19,000 and the total production at Broadmeadows - including Falcon ute and Territory - was only 45,000 vehicles.

But Ford is upbeat about the new deal and says it marks a significant turning point for its local production.

"There is no way to make this story bad," says the head of Ford Asia-Pacific, Joe Hinrichs.

He is present at an announcement on the opening day of the Detroit motor show that also includes Ford's global chief Alan Mulally, local president Bob Graziano, and Federal Minister for Industry, Senator Kim Carr.

"A $103 million investment is a very significant amount. I'm very, very pleased about this announcement," says Carr.

The fresh Ford deal was pulled together quickly when it became obvious that falling sales were threatening even the short-term future of the Falcon.

"We did not have a plan to make this level of investment in the Falcon," admits Hinrichs.

He says Ford would not set up a new factory for the relatively low production levels at Broadmeadows, but confirms the company is still profitable and viable.

"We're not in the business to lose money," he says.

But Hinrichs refuses to comment on anything beyond 2016, even though GM Holden is currently working on a new deal for its factory in Adelaide that will confirm production of two cars through to around 2020.

"Does that man this is a 20-year plan? No, candidly. But it gives us several years to decide," he says.