Falcon safe ? for now

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.

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."