Ford Australia Reports Profit for 2009

[Quicksand]

Originally Posted by 4Vman

Being profitable and leading the sales are 2 mutually exclusive situations, in many instances the cheaper your product the more you sell.
Its very likely that Holden out sell Ford simply because of price hence the contrasting profitability of both companies.

If both companies had adopted the others strategy there might also be a reversal in sales numbers too.

The encouraging thing is Ford have found a way to be profitable at their current production levels, what this means is they can steadily grow the brand and gain incremental business based on product quality, not price...

Holden have geared their business to NEED volume and can't turn the "sausage machine" off hence their pricing and lack of profitability......

Out of curiosity which of the 2 companies, (Ford and Holden) sold the most cars made in Australia last month???
Which one sold the most SEDANS last month?????

I understand the notion, and agree with the principals. I'm ecstatic with the result and proud of the achievements of Ford. I do not disagree at all with the approach Ford has taken.

It is just interesting that there is a black and white view that you cannot sell the most cars and make a profit. Why not? What economic/business/commercial/etc reason is there for this?

Again, didn't Ford US just achieve this? Admittedly, they were only on the top of sales for April (and another month...can't remember), but if the trend continues they will be selling higher volumes than their competitors using profitable vehicles. I understand it is a different market over there influenced by different situations but i can't believe that it is that black and white here?

What about all of the other concepts that impact sales such as quality, brand loyalty, value, customer service, effective marketing etc. Surely it isn't as simple as 'Ford need to drop $10,000 from the retail price of their cars and start losing money to sell as many units as their competitors'? The above concepts are much harder to implement, but that seems to be the winning approach of Ford US and it is surely 'paying' off for them.

[4Vman]

Originally Posted by Inducted_Breeze

I understand the notion, and agree with the principals. I'm ecstatic with the result and proud of the achievements of Ford. I do not disagree at all with the approach Ford has taken.

It is just interesting that there is a black and white view that you cannot sell the most cars and make a profit. Why not? What economic/business/commercial/etc reason is there for this?

Again, didn't Ford US just achieve this? Admittedly, they were only on the top of sales for April (and another month...can't remember), but if the trend continues they will be selling higher volumes than their competitors using profitable vehicles. I understand it is a different market over there influenced by different situations but i can't believe that it is that black and white here?

What about all of the other concepts that impact sales such as quality, brand loyalty, value, customer service, effective marketing etc. Surely it isn't as simple as 'Ford need to drop $10,000 to sell as many units as Holden'? The above concepts are much harder to implement, but that seems to be the winning approach of Ford US and it is surely 'paying' off for them.

What you also need to understand is the ability to ramp up production to meet growing demand....
You cant expect to regain market leadership in sales numbers over night, market share is a gradual process, not an instant process, nor can you expect the factory to increase production easily, cost effectively or quickly...

It all takes time and in some cases years.. Be patient.

The other thing you need to remember is the old 80/20 rule...

[Quicksand]

Yep, totally agree.

"Baby steps"

[FordACE]

Awesome work Ford Australia. This is what we as Ford fans like to see.

[jpd80]

Originally Posted by Road_Warrior

That $210 Million loss that Holden made in 2009 included those same (or similar) 'special items' that Ford had to deal with in 2008.

The big special item was $225 million loss Holden directly attributed to cancelation of Pontiac G8.
Holden also made substantial losses in 2008 and 2007.

[imugli]

This is awesome news.
Congrats to FoA and all the guys here who made it possible.
Keep up the good work.

Oh, and (can't resist)

Shove that in your pipe hole and smoke it, GM!

[GASWAGON]

Great news Ford Aus...... Now some more focus on less warranty issues and the future should surely be profitable!!!!! Not happy about the I6 decision tho Oh well.

[Fordman1]

Originally Posted by EF_6

Great news Ford Aus...... Now some more focus on less warranty issues and the future should surely be profitable!!!!! Not happy about the I6 decision tho Oh well.

What I6 decision ?

The one to continue building it ?

Ford have rightsized the business, 'Laser focussed' on producing cars that "can be sold", not "need to be sold"...

GM ? The more things change, the more they stay the same

[GASWAGON]

Even better news then! Pity the Falcon won't see it next year though.....with 'Two' Turbo's where all that room is???

[Scott]

Well that's a nice [and unexpected] surprise. Well done Ford.

[Fordman1]

Originally Posted by EF_6

Even better news then! Pity the Falcon won't see it next year though.....with 'Two' Turbo's where all that room is???

I think you're quite confused...

What are you eluding too ?

[irish2]

Originally Posted by Barraxr8

I think you're quite confused...

What are you eluding too ?

Maybe he thinks coyote is a v6?

[vztrt]

http://www.caradvice.com.au/66923/fo...ofit-for-2009/

Ford Australia posts $13 million profit for 2009

May 7, 2010 by Tim Beissmann

Ford Australia returned a net after-tax profit of $13 million in 2009, the company’s first profit since 2005 and a $287 million improvement on 2008.

Ford Australia President and CEO, Marin Burela, said the combination of a $3.14 billion sales revenue, an improved company cost structure and the non-repeat of one-time actions associated with the restructure helped return the business to profitability one year ahead of plan.

“Like our parent company in the US, Ford Australia took decisive and immediate action at the onset of the global financial crisis in late 2008 in order to weather the breaking economic storm.

“We significantly changed our sales and production focus to build cars based on demand and introduced more fuel efficient vehicles like the Fiesta ECOnetic, while improving the environmental performance of our locally manufactured models,” Mr Burela said.

Although its sales figure of 99,279 was below that of 2008, Ford said the improved profit was a reflection of a rise in Falcon sedan share from 25 percent to 34 percent and an increased demand for higher-spec models.

Mr Burela also acknowledged the company’s enormous effort to streamline its build processes and its emphasis on an efficient, build-to-order production schedule with strong inventory management.

“These actions were not easy, and could not have been undertaken without the hard work and dedication of our employees and our dealers.

“But they have delivered on the goal of improving our cash reserves and returning Ford Australia to profit despite an industry-wide downturn in sales, providing a strong base for continued growth and profitability.”

Ford increased its local production volume in October last year by adding overtime to its Victorian plants, and has not ruled out the possibility of continuing on throughout 2010 if demand remains strong.

It is set to begin production of the special edition Falcon 50th anniversary models in June, celebrating its record as the longest-running vehicle nameplate in Ford Motor Company history.

The Falcon is still on track become the first four-cylinder EcoBoost-powered rear-wheel drive vehicle in the world when it goes on sale in 2011, and will also benefit from a new liquid phase injection LPG system.

A turbodiesel engine will be added to the Territory range, also from next year.

Ford recently announced a $20 million upgrade program for its Geelong casting plant which will allow it to produce around one million brake parts per year for Bosch Chassis Systems Australia.

“Our casting plant investment is just one example of Ford Australia taking a different approach to our business to ensure our long-term success in Australia,” Mr Burela said.

“In addition to being a major vehicle manufacturer we are now also a supplier to the broader automotive industry through our innovative partnership with Bosch, repositioning us for an even stronger future.”

According to VFACTS figures, over the first four months of 2010 Ford’s local sales have increased by 8.4 percent over 2009 (30,162 vs 27,822), despite its total market share falling from 10 percent to 9.1 percent.

The Fiesta has been the biggest improver, up 35.7 percent year-to-date to 3861 units, while the Territory (3588 vs 2801) and Mondeo (1654 vs 1297) have also enjoyed increases of over 25 percent.

The Falcon is 22.6 percent ahead of the same time last year with 10,091 sales, although the Falcon Ute is down 6.3 percent and trailing the Holden Ute by more than 700 units. Holden has sold 14,529 Commodore sedans and Sportwagons so far in 2010.

The Focus has perhaps been Ford’s most disappointing model so far this year with sales down 25 percent from 4213 to 3150.

[GASWAGON]

Originally Posted by irish2

Maybe he thinks coyote is a v6?

That i did Irish! I obviously have some catching up to do!!!! I still like my TTI6 idea though!!! Anyways???????

[GS608]

Yeah isn't I6 around till 2015?

[GASWAGON]

Oh God it's a 4! .... Hmmmmm???? The times they are a changing!!!!!

[Fordman1]

Originally Posted by EF_6

Oh God it's a 4! .... Hmmmmm???? The times they are a changing!!!!!

Mate do some reading ...

Coyote = new 5 litre V8 Falcon inc SC'd version

Ecoboost = new Turbo I4 Falcon

I6 Continues as always ....

Suggest you ask questions

[Walt Kowalski]

Originally Posted by 4Vman

Outstanding!! It also vindicates their strategy and should silence the critics who want market share at any cost...

Spot on. No point in winning the sales ladder and losing money on most cars sold.

Marin Beurela has done an excellent job and understands that if you are selling hot dogs at the Melbourne Cup (for instance) and making money on every hot dog, there is no way the guys chasing best selling hot dog status can send you broke while you continue to make profit on every hot doggie sold.

I want Falcon around for a LONG time.

Just build the G6ET Ute before Holden does a Calais 6.0l ute.

Even a 50th anniversary Falcon G6ET ute is better than none.

[Bossxr8]

Gee, the trolls have gone amazingly quiet.

[phillyc]

Originally Posted by Bossxr8

Gee, the trolls have gone amazingly quiet.

Silence is golden sometimes

[uranium_death]

Originally Posted by Bossxr8

Gee, the trolls have gone amazingly quiet.

Get off my bridge! If you want to pass, you must pay a toll.
I am not scared of billygoats.

[FPV GTHO]

Originally Posted by Inducted_Breeze

After all, why is not not possible for Ford to have higher sales than it's competitors AND make a profit? Is this not possible? Ford US is topping the charts in sales AND is making a profit.

Its the nature of the US market, in that basically every model line Ford US sells is built in North America due to stupid UAW regulations and pressure. Therefore theyre already geared towards a wide production output. The US market is also incredibly price sensitive, so basically unless youre a top end sports car manufacturer the only way to make money is by selling more units.

[just_pazz]

Where's brazen and his band of GM superheros!?

[jpd80]

Originally Posted by just_pazz

Where's brazen and his band of GM superheros!?

Down the pub with Toby and Jezz crying in their beers.

[Brazen]

Originally Posted by just_pazz

Where's brazen and his band of GM superheros!?

I was just down at Holden picking up my paycheque with some motoring journalists. A few more positive GM forum posts and I also get a free Epica.

Seriously, well done Ford. Territory will be a cash cow next year with the diesel so hopefully it can only get better.

PS what I learnt from my pro-GM journalist cohorts...
*Falcon G8E is very likely
*There is a diesel silver Falcon mule running around
*Statesman is dead to be replaced with Caprice and Caprice V
*Columnn shift being developed for Commodore (no joke, what the...???)
*Dedicated LPG Commodore coming in November
*Only style change to upgraded Commodore is front bumper/grill with a softer front end, wheels and interior also changed. Back looks the same.

[phillyc]

Originally Posted by Brazen

I was just down at Holden picking up my paycheque with some motoring journalists. A few more positive GM forum posts and I also get a free Epica.

Seriously, well done Ford. Territory will be a cash cow next year with the diesel so hopefully it can only get better.

Didn't know there were enough people willing to be given free Epica's too! What a horrid car.

[Joe5619]

Originally Posted by Brazen

*Falcon G8E is very likely
*There is a diesel silver Falcon mule running around

These are the final 2 peices that I think Ford really need.. Hopdefully they dont take years & years to get to market.

[uranium_death]

Originally Posted by Joe5619

These are the final 2 peices that I think Ford really need.. Hopdefully they dont take years & years to get to market.

Although we had V8 Fairmonts for how long and sold bugger all?

No...the puzzle NOW is complete. People have already clearly shown they don't want 8-Cylinder luxury.

The current line-up is complete as it is. Its results speak for themselves.

[Fordman1]

Originally Posted by Joe5619

These are the final 2 peices that I think Ford really need.. Hopdefully they dont take years & years to get to market.

Neither will happen...

I'm thinking V8 will end up being a FPV only product too..

[R-Design]

Originally Posted by Brazen

PS what I learnt from my pro-GM journalist cohorts...
*Falcon G8E is very likely

I heard it was going to be called the G8 ESP and be a limited edition anniversary model to commemorate 30 years of the XD model.