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Old 17-05-2018, 02:35 AM   #3
happy1
FF.Com.Au Hardcore
 
Join Date: Jun 2010
Location: Perth
Posts: 1,315
Default Re: I Have a Good Idea

Hi,
I don't understand what you are upset about. I think it was great that there were some assistance from the government to produce cars locally.

If you look at FG production numbers from 2008 to 2015 it seems to total at about 150.000 sedans (I didn't count the utes). That is a miniscule production for a car model, with its high development cost.

I can't understand how Ford made any money when you look at development cost, manufacturing cost, sales numbers and finance cost for the investment.

I don't have actual numbers, but just guessing;
FG Development cost $ 700 million ?
Average sales price for a Falcon approx. $30.000 each,
Minus materials, subcontractor components and labour Maybe $20.000 for each car?
That would leave a possible gross total from production of 150.000 units * $ 10.000, which equals $1.5 billion.
Now subtract the development cost and finance cost for that, At least $700 million,
The result looks to have been no real profit. Probably true losses.
At least it gave local engineering, local subcontractors, local jobs, and a feeling of 'Made in Australia'.

It would perhaps have been a better business model to run a local manufacturing line of an overseas model, that way there wouldn't have been the huge development cost.
However, as said in the article above, the cost of manufacturing in Australia may be 4 times higher than in Thailand or other low cost countries. Therefore if it was a less desirable product with less local patriotism, it may not have sold as much as the Falcon numbers did.
Rest in peace Falcon, and thanks to the manufacturer for putting in the effort over the years.
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