Ford Territory 2007 News

Ford Australia has committed to continue building large cars alongside the new small car Focus. “I can guarantee you that neither Falcon nor Territory is under any threat,” Ford Australia spokeswoman Sinead McAlary says.“We believe there is an ongoing business case for both models.”Speculation grew when Ford Australia president Tom Gorman announced during a press conference, the decision to build Focus in Australia from 2011 giving the company the opportunity to “walk away from” less profitable segments.“What Tom was talking about was the opportunity for segment managing with production ... the ability to be more flexible in the model mix,” McAlary says.“What will be possible is to manage the mix of cars being built in a far more active way. It could be changed month to month depending on what the demands are for any other models."“The terminology may have led to some confusion but there is absolutely no threat to Falcon or Territory at this stage.”With the announcement that Ford will close its in-line six engine production facility in Geelong by 2010, questions were raised over whether the Falcon and the Territory would be re-engineered to take imported engines.While conceding Territory sales are sliding, McAlary says the large, locally developed SUV remains a key plank of Ford Australia planning.“Territory numbers are down but we believe it is still the right car for the segment ... we believe it is the best SUV available,” McAlary says. “We are currently well under way working on the next-generation Territory.”McAlary would not confirm a 2010 launch for the new-generation Territory, but there would be little point in unveiling a second-generation car before the switch to imported V6s.However, betting has firmed on an earlier arrival of a diesel powerplant for the Territory with McAlary confirming work has begun.“I can't give a time frame or confirmation of anything else specific about it (diesel) but it is something we are planning for and working on,” McAlary says.There has been speculation that an inline five-cylinder turbo diesel sourced from Volvo would suit, or the bi-turbo V6 from the Jaguar family, although that would be expensive.“There are several areas where we can source the engine but I can't be more specific than that at the moment,” McAlary says.There are no plans for a compact SUV model to sit beside the Territory nor are there plans to add any more imported SUV models to the line-up.While Falcon's numbers continue to fall, Ford believes the promise of a new model early next year will revive its fortunes.“Large car numbers are never going to go back to where they were a couple of years ago,” she says. “But there have been some good indicators in the market and with something in the order of 130,000 large family cars being sold this year we can still make a strong business case for a share of that with Falcon, particularly with the new model.” 

Ford delivered some good news this week with confirmation that the Focus will be manufactured at its Campbellfield assembly plant in Melbourne from 2011.It is a ray of hope for the workforce of around 5000 left at Ford Australia following the decision last week to cease production of its six-cylinder engine plant in Geelong at the cost of 600 jobs.The Focus development will add 300 jobs and help secure Ford's future in Australia.The Focus small car which is currently sold in Australia is sourced from South Africa with that operation told the news on Monday that it will no longer make the Focus post 2010.Australia will make hatch and sedan variants for right-hand-drive markets only with South Africa and New Zealand the initial recipients of an export program that will grow with more countries announced closer to the start of assembly in Melbourne.“It's a big opportunity for our local supply base as well as a big opportunity for us,” Ford Australia president Tom Gorman said.“As you can imagine this is a watershed announcement for us.”The Victorian and Federal governments will contribute $20 million each to the project where petrol and diesel Focuses will be made in Australia with imported powertrains. It is expected volume will reach 40,000 a year with 25,000 for Australia and the rest exported.There remains a chance Focus production could overtake Falcon numbers.“You have to keep a close eye on that,” Gorman said. “If we can pick up our volume in terms of overall market share with the Focus it's conceivable.“But at the moment what I like is that we have four very strong products . . . still a very important Falcon, Ute and a very important Territory and from 2011 it will be a very important Focus.”The small car market in Australia has more than doubled on the numbers when Ford pulled the plug on its Laser in 1998 which the Focus ended up replacing when it first arrived here in September 2002.“Ten years ago the small car market was less than 100,000 units and it will probably be 220,000-225,000 at the end of this year.”Ford says engineering and design for future Focus models will continue to be driven out of Europe.But there could be a chance for Ford Australia to have a greater say in product development providing Focus can grow with the “localisation” of the product.“We are a major player in Focus not only in the region but globally,” Gorman said.“I think as we raise our volume and we do better in terms of market penetration we can expect to have more of an input.”Gorman has ruled out niche variations of the Focus for Australian production but admits there is an opening for the Ford Performance Vehicles arm to develop a fresh warmed-over variant along the lines of the current XR5.“With FPV we've always talked to them about extending their reach,” Gorman added.“There is nothing to say we wouldn't have some desire to do stuff with FPV outside of the Falcon and Falcon Ute.“Once you localise, it gives you a whole range of opportunities that don't exist today.”Gorman defended the timing of the Focus deal, saying that it was not signed off until last Friday, two days after the grim news about the Geelong engine plant.“We weren't in a position to finalise the project until Friday.“It's a little early to judge morale (within Ford).“We're trying to be sensitive to the fact we made a very difficult announcement last Wednesday and there are 600 people whose lives have been dealt a little bit of a shock . . . more than a little, a big shock.“We're going to be working with them carefully on redeployment and retraining where necessary.“It's not a feeling of there's a big celebration here at the moment.“I'd say it's relatively muted at the moment given that we made a tough announcement last week.”

The Howard Government is under pressure to dole out billions of dollars of new aid to Australia's car-makers, in an urgent review of industry assistance prompted by Ford's decision to close its Geelon

The future of 600 workers at Ford's Geelong engine plant will be high on the agenda today (July 12) in a meeting between Ford management and the Australian Manufacturing Workers Union.The plant builds six-cylinder engines for the Ford Falcon.But speculation Ford may axe engine production there and move to an imported V6 engine for the Falcon beyond 2010 has the company on the back foot.The AMWU's vehicle division representative, Ian Jones, said any move to kill off engine production at Geelong would have a significant impact on the workers, the city and the region.Mr Jones had heard the speculation "for some time," he said."Normally, before they make these decisions they have discussions with us."In a bid to stem the fallout, Ford has moved to reassure its Geelong engine workers that their jobs are safe.Company spokeswoman Sinead McAlary said the workers were aware of the speculation."We confirmed for them, as we have done previously, that we are studying a whole range of alternatives across our entire business," Ms McAlary said."If and when any decisions are made that may effect them in any way, we would communicate with them at an appropriate time."But Ms McAlary would not confirm if the in-line six-cylinder engine production was on the chopping block."Everything is under study at the moment," she said."Just because we're studying something doesn't necessarily mean it's going to happen."Mr Jones said manufacturing the new V6 at Geelong would be preferred.But given the Ford Motor Company's depressed financial situation in Detroit, it may not have the financial capacity to endorse and back V6 production here, he said.Despite the Geelong concerns, Ford is expected to announce within weeks that it will add a third model to its Broadmeadows production line.Ms McAlary confirmed the company was looking at ways to better use plant capacity to get it up to 100 per cent "but nothing has been decided."Ford can build up to 120,000 vehicles a year at Broadmeadows but is currently building only 80,000 Falcons and Territorys.The Herald Sun understands the company may opt to build "completely knocked down" kits of another Ford vehicle from overseas.Mr Jones said the CKD option for Broadmeadows would be welcome news for the workforce, "but it doesn't help Geelong." 

The Royal Automobile Club of Victoria has just completed its annual cost of ownership survey of a range of current models.The survey looks at total running cost and is based on vehicles travelling 15,000km a year, which is the Australian average.It factors in the cost of a typical car loan, depreciation, registration, club membership, comprehensive insurance plus servicing, fuel and tyre costs.Fuel costs were calculated on an unleaded petrol pump price of $1.26 a litre, $1.31 for diesel and 47c for LPG.Fuel prices have risen significantly since the survey was finished so true running costs will be even higher.The survey results show the cheapest car costs about $6000 a year to run, compared to $18,500 for the most expensive.The most affordable car was Hyundai's Getz at $116.54 a week, followed by Holden's Barina ($120.85) and the Toyota Yaris ($125.88).Go up a size and Toyota's Corolla was the winner at $154.49, followed by the Ford Focus ($156.49) and Holden Astra ($158.12).The medium class sector was won by Toyota's Camry at $193.05, followed by the Mazda6 at $197.85, and Honda Accord Euro ($218.07).Large cars are, as expected, more expensive to run but, surprisingly not that much more.The best was Mitsubishi's 380 at $200.44, so it is cheaper than the Honda Accord. Toyota's Aurion was next best ($217.60), followed by Ford's Falcon ($229.13).For large families, the Kia Carnival people mover at $216.68 beat the Honda Odyssey ($228) and Toyota Tarago ($267.61).Diesel and hybrid cars were cheaper to run but don't forget diesel cars initially cost more and replacement batteries for hybrids are hellishly expensive and have a short lifespan.The cheapest was the Honda Civic hybrid at $175.29, beating the Toyota Prius at $200.63. A VW Golf diesel was better than the Prius on the wallet at $187.93.A Ford Falcon running on LPG cost $211.43 a week, while the dual-fuel Commodore came in at $225.10.The popular compact SUV market was headed by Honda's CRV at $203.86, followed by Nissan's Xtrail ($207.36) and Subaru's Forester ($208.52).Medium SUVs had the Holden Captiva out in front at $225.16, followed by the Ford Territory ($234.47) and Toyota Prado ($286.16).At the expensive end of the running cost spreadsheet were the big four-wheel-drives.The cheapest was Nissan's Patrol at $269.53, while the Toyota LandCruiser cost $357.51 a week.

But times are changing, partly because of the fuel-price crisis and partly because sophisticated customers demand much more from their high-rider people movers. The trend is obvious from the creation of vehicles such as the Nissan Murano and the forthcoming BMW X6 4WD coupe, but there is more to come. The world's leading supplier of automotive data and auto industry intelligence, Jato Dynamics, says we are well into a period of transition in the 4WD world.Jato says it has has been tracking trends and believes many “new-to-the-market” 4WDs are noticeably smaller than the older, established models and a growing number — count the Ford Territory as one — have all-paw grip only as an optional extra.“Rising fuel costs, the spiralling CO2 debate and the associated social pressures are putting a strain on the SUV segment,” says Jato sales and marketing director Nasir Shah.“While many buyers still have a desire to own these cars, there is a genuine need to make them cheaper to own and run. If not, it will become a segment in serious decline.”Jato bases much of its research in Europe and is compiling a compelling story.“Even in a mountainous country such as Switzerland, where there's a really good justification for using an off-road vehicle, the large, thirsty models are starting to find themselves in the firing line,” says Judith Studer, research manager for Jato in Switzerland.“There are critical voices here relating to SUVs and they are starting to get louder.”Shah is sure the segment will need to continue to evolve, particularly as European governments crack down on heavy fuel use.“As long as SUVs are seen to be the environmental bad boys, they will continue to attract the attention of legislators,” he says.

With new SUVs, it's a case of four wheels good, but two wheels good enough.They cost less, weigh less, drink less and are more popular — and more such models are on their way to showrooms for buyers who want to look adventurous but have no intention of going off-road.Sales of two-wheel-drive sports utility vehicles such as Ford's Territory (which started the trend locally) and the Korean-made Hyundai Tucson exceed their 4WD equivalents.Toyota will introduce a 2WD version of its Kluger wagon when a second-generation model is released in August. Suzuki will import a 2WD version of its existing SX4 wagon. Presently both models come with an all-wheel-drive function.Because of the success of the Tucson, Hyundai also plans to add another two-wheel-drive SUV to its range, but is tight-lipped about which.Car companies have found the typical macho look of a 4WD is a strong selling point, though the majority of these wagons serve as cars and never use their off-road capability.In the Ford Territory range, 2WD versions are $4800-$5350 less than their all-wheel-drive counterparts, and account for 55 per cent of total Territory sales.In the smaller Hyundai Tucson, the difference is $4000, and the 2WD model, called the City, makes up 60 per cent of sales.Ford Territory Ghia owner Sandra Cameron bought a rear-wheel-drive version of the Ford Territory Ghia (list price $52,090) three weeks ago, and said she was never interested in the all-wheel-drive version.“I totally love it because it's like a car — I'm not about to go off-road,” she says.Sandra has three sons, and said her priority was to get a roomy wagon. “I got a seven-seater because my children will always want to bring friends along,” she said. “In the Territory you're raised a bit, so you can see out better, but getting in and out is no problem at all.”Hyundai spokesman Richard Power said: “People like SUVs for the high-riding stance and the convenience.“In the case of the City, it's popular because it's lighter, with a smaller engine, so it saves fuel. There are plenty of people who like the style of SUVs but have no intention of ever going off-road.”The four-cylinder Tucson City weighs 158kg less than its six-cylinder, all-wheel-drive equivalent, and averages 9.2 litres per 100km, compared with 11 litres per 100km for the all-wheel-drive model. Even the petrol tank has been made smaller in order to cut weight.In the Territory, the weight saving is 80kg and the official fuel economy rating is 12.2 litres per 100km for the 2WD, compared with 12.8 litres per 100km for the all-wheel-drive.

And more "fake 4WDs" are on the way as buyers, who want to look adventurous but have no intention of going off-road, embrace the idea of two-wheel drive sport-utility vehicles (SUVs).Sales are booming for the Australian-made Ford Territory, which started the trend, and the Korean-made Hyundai Tucson that followed.Toyota will introduce a 2WD version of its Kluger wagon when a second-generation model is released in August, and Suzuki will import a 2WD version of its existing SX4 wagon.Both Kluger and SX4 have all-wheel-drive at present. Because of the success of the Tucson, Hyundai also plans to add another two-wheel-drive SUV to its range, but so far is tight-lipped about which model it will be based on.Car companies have found the typical macho look of a 4WD is a strong selling point, though the majority of these wagons serve as cars and never use their off-road capability.In the Ford Territory range, 2WD versions are $4800-$5350 less than their all-wheel-drive counterparts, and account for 55 per cent of total Territory sales.In the smaller Hyundai Tucson, the difference is $4000, and the 2WD model, called the City, makes up 60 per cent of sales.Ford Territory Ghia owner Sandra Cameron, of Caloundra on the Sunshine Coast, bought a rear-wheel-drive version of the Ford Territory Ghia (list price $52,090) three weeks ago, and said she was never interested in the all-wheel-drive version."I totally love it because it's like a car – I'm not about to go off-road," she said. She has three sons, and said her priority was to get a roomy wagon."I got a seven-seater because my children will always want to bring friends along," she said."In the Territory you're raised a bit, so you get good visibility, but getting in and out is no problem whatsoever."Hyundai spokesman Richard Power said: "People like SUVs for the high-riding stance and the convenience. "In the case of the City, it's popular because it is lighter, with a smaller engine, so saves fuel. There are plenty of people who like the style of SUVs, but have no intention of ever going off-road."The four-cylinder Tucson City weighs 158kg less than its six-cylinder, all-wheel-drive equivalent, and averages 9.2 litres per 100km, compared with 11 litres per 100km for the all-wheel-drive model.Even the petrol tank has been made smaller, in order to cut weight. In the Ford Territory, the weight saving is 80kg and the official fuel economy rating is 12.2 litres per 100km for the 2WD, compared with 12.8 litres per 100km for the all-wheel-drive.

Though the large-car segment grew 4.7 per cent in March, small and light cars still dominate the Federal Chamber of Automotive Industries' Vfacts figures for the month.Holden sold 5752 VE Commodores and Toyota managed 2037 Aurion V6 sales, the first time the car has eclipsed 2000 sales since it was launched last year.The Aurion's kissin' cousin Camry four-cylinder managed 2574 sales.Ford and Mitsubishi still trail in the family sedan stakes, selling 3249 and 1022 respectively. But their lowly large-car sales were offset by strong import performances.Overall, Mitsubishi had a 22 per cent lift in first-quarter sales against the same period last year, on the back of solid Colt, Lancer, Outlander and Pajero sales.Ford's Focus and Territory helped maintain the momentum for the Broadmeadows-based carmaker, as well as fleet sales that pushed Fairlane numbers to 263 for the month.FCAI chief executive Peter Sturrock says the remarkably strong start to the year may have even taken industry optimists by surprise."Consumers appear to have shaken off any lingering concerns about fuel prices and interest rates and have responded enthusiastically to the intensely competitive prices," he says.The new-vehicle market is being pushed by deflation, with new cars becoming cheaper and better equipped as the various brands fight it out.The market was up 8.3 per cent, compared with March last year, with an all-time sales record of 94,392 vehicles.If the sales momentum continues, this year could eclipse one million sales for the first time.In the first three months of the year 255,068 vehicles were sold, up 20,463, or 8.7 per cent, on the same period last year and surpassing the previous record for the quarter of 237,000 set two years ago. Despite the buoyant first quarter, the FCAI is still forecasting 970,000 sales this year.All segments, except people movers, are experiencing growth.The fastest-growing of all segments remains small passenger cars, which added 8532 sales, or 16.7 per cent, in the first quarter compared with last year. The small-car stars continue to be the Toyota Corolla and Mazda3, selling 4029 and 3182 respectively last month.Light-car sales grew 3334, or 11.9 per cent, SUV compact 2851, 22.2 per cent, and SUV medium 1617, 4.7 per cent.Toyota set a cracking pace in March with 21,390 sales, giving it No.1 sales spot ahead of Holden on 13,454 and Ford on 10,074.So far this year, Toyota has 22 per cent of the market, with Holden at No.2 with 14.3 per cent and Ford third with 10.7 per cent.

"All of our efforts are going into Falcon," said Ford chief Tom Gorman.However, he has ruled out an early launch for the car, despite the current model haemorrhaging sales.In the first two months of the year Ford is down 1250 sales or 2.6 per cent market share.Only strong sales of Fiesta, Focus and new Ranger have stemmed the company bleeding from the 2304 drop in Falcon sales."Falcon will continue to be a challenge in our final year of BF Mark II," Gorman said.He would also not reveal whether Falcon will have a diesel option at launch."My first (priority) would be LPG. It is critically important to us," he said."Diesel would be next ahead of hybrid. Ethanol also is a player."Gorman welcome the Federal Opposition's proposal to implement a $500 million Green Car Innovation Fund but said it was "too early" to say how it would affect production.Gorman also ruled out a facelift to Territory before the next Falcon is released."We're not going to change the face of the Territory this year," he said."We're going all out on Falcon and Falcon Ute."With the small and light car segments booming largely on sales of cheaper models, Ford's strategy seems to be to bring in new upmarket models.Ford announced it would this year introduce a Fiesta Zetec five-door, Fiesta XR4, Focus Coupe-Cabriolet, Focus turbo-diesel and Focus styling updates.Gorman ruled out a price war on Fiesta and Focus."We're not about bringing in Korean product and rebadging it," he said, referring to Holden importing Korean-made Daewoo Barinas and Vivas, and rebadging them as Holdens."Our strategy is about building great driving cars."We're not into dropping the price. We stand by the product and what it delivers."