Australia's best car stalled.

[Dave_au]

Interesting article in the Australian - the question is - truth or beat-up? Should have Ford Aus concentrated on the Territory further?

Link:http://www.theaustralian.news.com.au...-26017,00.html

Originally Posted by The Australian

Australia's best car stalled




COMMENT: Philip King | August 23, 2008


IF you needed more evidence that the Australian car industry has taken a wrong turn, then have a look at Ford and the Falcon.

The new FG model is probably the best car Australia has produced and certainly the most impressive Ford has developed here.

But no one is buying.

The lesson Ford and the other local makers have chosen to ignore is that the decline in large cars dates back much further than the recent rise in fuel prices and marks a profound, and almost certainly irreversible, shift in buying patterns.

But Ford, of all the local makers, should have known that other horses were worth backing.

Alone among the locals, it responded to these changes and built an SUV, the Territory.

Launched in 2004, it was an instant hit and dominated the mid-size SUV segment.

It was a brave decision made in the face of lower tariffs on SUVs, which effectively mean slimmer margins than on Falcon, and no guarantee of orders from government or business.

However, it's also a measure of what's wrong with the local industry.

Ford in the US was simultaneously developing an almost identical vehicle.

If it had adopted the Territory instead, Ford's troubles would be far smaller now.

The Territory should have been a global opportunity for Ford Australia.

And as scant resources were diverted into the FG Falcon, the Territory has been allowed to wither on the vine.

It's desperately in need of a design freshen-up and would have kept buyers coming if it could offer a diesel engine, as its rivals do, alongside the six-cylinder petrol.

Now it's haemorrhaging sales to imported Toyotas such as the Prado and Kluger.

Demand for the Territory is down 22 per cent in one of this year's few booming segments.

The Territory won't get a diesel for another two years, and Ford has to bridge the gap until then with a Falcon that buyers don't want.

In the absence of market-tilting tariffs and without a blinkered head office on the other side of the globe, it could have been a different story.

[Fairlane]

Media just love sinking the boot in. Kick em while their down.

Toyota will become a cult soon, if the media keep it up. Territory sales down, well deerr its a 2004 design, an update will be here in 09.

[JC]

Originally Posted by Fairlane

Media just love sinking the boot in. Kick em while their down.

Toyota will become a cult soon, if the media keep it up. Territory sales down, well deerr its a 2004 design, an update will be here in 09.

Sorry, but where have you been for the last 20 odd years? Toyota is already a cult - every grey haired cardigan wearer drives one, LOL.

I don't think the article is a kick down, more like spelling out reality. I've always said ford marketing couldn't sell a beer in a brewery - just look at what Holden has rebadged the humble old wagon as; based on the advertising alone, it's got me interested.

[irlewy86]

I thought the Territory was due to be upgraded Q3 2009. Less than 12 months away, considering it shares platform with Falcon the R&D spent on either is valuable. However why this vehicle didn't get to England where the soccer Mum car is god and Ford of Europe lack anything bigger than a Mondeo is a bit daft.

[the_scotsman]

Originally Posted by irlewy86

However why this vehicle didn't get to England where the soccer Mum car is god and Ford of Europe lack anything bigger than a Mondeo is a bit daft.

Ford have the Galaxy in Europe...similar to the Tarago. Those type of vehicles are a shitload more popular in the UK than 4WD/SUV vehicles.

I reckon the Galaxy would do well over here, I loved them when they first came out.

[Nikked]

...here we go again

[Windsor220]

Its not like the Territory has stopped selling completely. Of course its going to slow down a bit before the new model.
When is a new model Terri coming by the way?

Falcon is doing ok.

[Yellow_Festiva]

Sorry, but it's just business. What a joke. Tell me, how much does a large SUV cost to develop??

So we have a world class SUV and Ford US decided that they will just go ahead and waste millions to make their own.

It's this sort of STUPIDITY on Fords behalf that is lowering them deeper into the grave...

We are quick to bag the Japanese and the Koreans. I read that the Daewoo Kalos (Barina) is sold in one form or another to OVER 100 COUNTRIES..... No wonder they can sell a car for under 15 grand retail and still turn a profit.

Wake up Ford....

[Bossxr8]

Ford HQ will never learn, they have their heads jammed so far up their own ar5ses that they can't see the answer to some of their problems lies in the Falcon and Territory, as well as some of the excellent Euro stuff.

At least they have decided to make the new Fiesta in the US.

It seems like Detroit still suffers from the not made here syndrome. The only reason the Fiesta got the nod was because it doesn't cut the lunch of any of Fords US made products.

[irlewy86]

Originally Posted by Yellow_Festiva

We are quick to bag the Japanese and the Koreans. I read that the Daewoo Kalos (Barina) is sold in one form or another to OVER 100 COUNTRIES..... No wonder they can sell a car for under 15 grand retail and still turn a profit.

Wake up Ford....

With its awesome safety rating would this constitute genocide on GM's behalf?

[Yellow_Festiva]

You don't get it. Car companies make money by selling cars. I would hazzard to guess that over half the worlds car buyers will not give 2 hoots about how safe a car is. Cheap economical reliable transport. This is what most of the world consumers want. The emerging markets are crying out for these sort of cars.

Stay on the topic at hand, you want to bag how safe or unsafe a certain car is there are several other threads already started.

[Spanrz]

Originally Posted by Yellow_Festiva

You don't get it. Car companies make money by selling cars.

Incorrect (partially). New sales don't make much margins. Neither do Used sales.
Selling a New car, creates cash flow, but not much profit.

They make money off the parts that they sell to repair the vehicles.

I work in a 450 million dollar company. There is around 4% margin of profit on New Sales and around 8% margin of profit on Used.
Parts is over 25%.

Also, some manufacturers have cheap things to sell, but they make up the price difference in the resale of parts to repair.
That's why some cars are cheaper than others in the same class, but tell me this, go and buy a genuine part (of the same type of part) for an Australian Car to a Japanese/Korean car, and you'll think different in your method of madness.

It's business.

[Carby]

Here's another genius with the benefit of hindsight. How long ago were Aussies losing there love affair with large cars? I believe the Commodore was still the top selling car last year, so when exactly does the decline in large car sales date back to?

How long does it take to develop a new car - 5 years from scratch?

In any event Australia does not have a good record in making small cars - our market is way too small, the margins on small vehicles miniscule and there is competition from manufacturers that make hundreds of thousands of small cars a year. In essence, if we don't have to manufacture large cars, I can't see Australia manufacturing cars at all - certainly one would think that Holden and Fords manufacturing days in Australia are numbered.

[Hunter]

Originally Posted by Carby

Here's another genius with the benefit of hindsight. How long ago were Aussies losing there love affair with large cars? I believe the Commodore was still the top selling car last year, so when exactly does the decline in large car sales date back to?

The commodore and the falcon only sell as many as they do because of FLEET SALES. Amongst private buyers the Commodore is ranked something like 5th - The Mazda 3 and the Corolla top the list!

[Carby]

Originally Posted by Hunter

The commodore and the falcon only sell as many as they do because of FLEET SALES. Amongst private buyers the Commodore is ranked something like 5th - The Mazda 3 and the Corolla top the list!

So What?? Fleets have a choice on Low Rollas ans Mazda 3's as well!

[flappist]

Originally Posted by Carby

So What?? Fleets have a choice on Low Rollas ans Mazda 3's as well!

Fleet sale: I drive a car that someone else is subsidizing or paying for.
Priviate sale: I drive a car that I am paying for.

Ever wondered why Telstra staff car parks are full of XR6s, XR8s, Territories and SSs.....

[Carby]

Originally Posted by flappist

Fleet sale: I drive a car that someone else is subsidizing or paying for.
Priviate sale: I drive a car that I am paying for.

Ever wondered why Telstra staff car parks are full of XR6s, XR8s, Territories and SSs.....

Well thanks for stating the obvious - but with novated leases coming to the fore and a relaxing of vehicles able to be purchaed under a salary package, it still doesn't alter the fact that the Commodore was the top selling sedan last year, as they say it's in the record books.

Anyway it's not the point of my argument - my point is that some smart journo with the benefit of hindsight is now panning Ford for not seeing the signs of a shift to small cars earlier. Like the huge Ford company is going to drop it's bread and butter car of the last 40 odd years and go small, much like Holden did with it's first Commodore which ultimately lost market leadership to Falcon based on that change, on the first indications of a change in buying patterns? The Car companies are wary of change until they just about know for sure what the new market conditions are.

I'm sure I didn't see this clown writing an article two years ago telling Ford to make a more economical Falcon and or Territory.......... :

[XR Martin]

They're $36990 Drive away with $2k of fuel now...

[TC200six]

Stupid media. As Fairlane said, it's all about kicking them while they down to stop them from recovering from the days when Falcon was lucky to sell over 2000 sedans a month.

How dare they do such a thing, start an article with the statement of, "But no one is buying". The FG's are really appearing on the streets, people are buying them even private owners, look on this forum, there are private owners too if some people are a bit cunning with the Falcon because they are a popular taxi and don't count fleet sales.

They having a slow news day and have to put that in there, all that negativity does just kills the appeal of new Falcon so people won't buy it and try and make Ford Australia close local production like Mitsubishi. I know it won't as easy for them to kill Ford oz with a bigger range then Mitsubishi, but those idiots will try.

[Fordman1]

The article is right about the need for a freshening for Territory (and a diesel engine).

If Tom Gorman had made the right decisions 2 years ago FoA would at least have a facelifted diesel SUV (and it would still be the No 1 seller in it's segment).

Uncle Geoff had the right plan - pity it went south when he left for Europe.

[ED Classic]

Originally Posted by Barraxr8

The article is right about the need for a freshening for Territory (and a diesel engine).

If Tom Gorman had made the right decisions 2 years ago FoA would at least have a facelifted diesel SUV (and it would still be the No 1 seller in it's segment).

Uncle Geoff had the right plan - pity it went south when he left for Europe.

Yes I agree...

A Diesel will boost sales massively, And on top of all that I am not so sure that releasing up spec and more economical engines and safety feautures (and much much better Turbo engines, and a 5 Auto on the base Falcon etc etc) along with everything else onto Falcon then leaving them more than 18 months to make it onto Territory when people know the next model will almost certainly get them...is very good for sales at all...Of course Terri sales will drop in that time by quite a bit!!

[Dave_au]

Originally Posted by Laser '81

Stupid media. As Fairlane said, it's all about kicking them while they down to stop them from recovering from the days when Falcon was lucky to sell over 2000 sedans a month.

The media has some blood on it's hands for the closure of MMAL's Tonsley Park. That coverage impacted the sales and appeal of the Magnas & 380s and probably resale values as well.

[Wally]

Originally Posted by Dave_au

Interesting article in the Australian - the question is - truth or beat-up? Should have Ford Aus concentrated on the Territory further?

Link:http://www.theaustralian.news.com.au...-26017,00.html

What does it matter if it's truth or beat up?

[Green X]

If they had a brain they would stick the Ranger CRTD in the Territory, Mabey not the ideal solution but it has enough Poke and puts a diesel on the cards.

[4Vman]

Kenworth sacked 80 people today.. Ford did the same to 350 last week, next month Ford are working 13 days.. Holden have significantly reduced V8 powered vehicle production and are offering MASSIVE staff discounts at the moment to move stale production stock, the automotive industry here is stoofed...

[Rob]

Originally Posted by 4Vman

Kenworth sacked 80 people today.. Ford did the same to 350 last week, next month Ford are working 13 days.. Holden have significantly reduced V8 powered vehicle production and are offering MASSIVE staff discounts at the moment to move stale production stock, the automotive industry here is stoofed...

I was thinking the same thing - when I read Kenworth let 80 workers go, it sort of struck home a bit more. Not only the automotive industry, but transport and logistics.

Ford need to begin local production of the Focus ASAP.

[4Vman]

Originally Posted by Rob

I was thinking the same thing - when I read Kenworth let 80 workers go, it sort of struck home a bit more. Not only the automotive industry, but transport and logistics.

Ford need to begin local production of the Focus ASAP.

Here's a sobbering stat, for every job lost at a car manufacturer 7 more are lost at associated suppliers and industries...
The problem exists across the entire Australian automotive industry, its by no means isolated to Ford...

[Bossxr8]

Originally Posted by 4Vman

Kenworth sacked 80 people today.. Ford did the same to 350 last week, next month Ford are working 13 days.. Holden have significantly reduced V8 powered vehicle production and are offering MASSIVE staff discounts at the moment to move stale production stock, the automotive industry here is stoofed...

You changed your tack pretty quick, just a few months ago you were bagging people with "the sky is falling in" line.

[4Vman]

Originally Posted by Bossxr8

You changed your tack pretty quick, just a few months ago you were bagging people with "the sky is falling in" line.

There's a pretty BIG difference between bagging out and blaming Ford and the FG (which i did oppose and still do oppose) and acknowledging that our wider automotive industry is stuffed.
Its not Fords fault, nor is it a reflection on the FG...

[Nikked]

Originally Posted by 4Vman

There's a pretty BIG difference between bagging out and blaming Ford and the FG (which i did oppose and still do oppose) and acknowledging that our wider automotive industry is stuffed.
Its not Fords fault, nor is it a reflection on the FG...

Exactly, Both Australia and America are struggling in the industry, hopefully there is light at the end of the tunnel...



...still stupid media overhyped "energy crisis" "Global warming" stories have fooled alot of people into a frenzy, i believe thats a problem...well part of it...