Abbott to Ford: export or die

[csv8]

Its 7 years old but relevant...http://www.caranddriver.com/features...-save-ford-now

[Polyal]

Originally Posted by Brazen

He is bang on the money.

Funny that people commenting on an internet forum think they know the ins and outs better than he does. Abbott is probably on a first name basis with the CEO of Ford Australia. you need to read between the lines this speech was directed at Ford US telling them that a Liberal government wants a volume push from Ford and that the government will support them and that the government is a firm believer in the industry and the vehicles it produces.

Ford need to sell more than 10,000 Falcons a year or 12,000 Terrriories to keep them sustainable. They need to export them otherwise how can they justify the design and engineering and manufacture of the next models.

This is the really first time we have heard passionate talk about the car industry from a potential Prime Minister, this is exactly what Ford US needs to hear.

Thats all well and good but show me a market where the Falcon in its current state will work. Its (generally) behind the times and not selling for a reason.

The way I see it is this...(just my opinion)

Ford globally do not have a decent large sedan, talking E platform here not some souped up Taruas/Mondeo. There seems to be a market that BMW/Merc/GM amoung others play in. Linclon...whats going on there?

So what is FoA good at? A few things but amoung them its unique capability is producing a high quality RWD sedan for the budget they have.

Ford NA have the "need", we have the "skill"...it would be a similar deal to the Ranger with the exception that we would then continue to produce the Falcon/Tez here.

I agree its nice to finally see someone say something that pushes the owners though. But being on a first name basis with the CEO of FoA is nothing when Ford NA tell FoA when to wipe their bottom.

[flappist]

Lets also be a bit honest here.

We don't want Ford to make "cars" in Australia, we want Ford to make large RWD T6 and V8 sedans and utes with a Falcon or derivative badge on them........

[LeadFoot81]

Originally Posted by Tony Abbott

Why isn’t the Territory sold in the US? Why isn’t it sold in the Middle East? Why isn’t it sold in Europe? Why isn’t it part of the offering wherever its manufacturer is selling, given the quality of that particular car. And the same goes for the other cars that are made in this country.

If he's made aware of the problems stopping exports, will he actually have the guts to address them?

[jpd80]

Originally Posted by DASH GT

Depends if your talking about local operations or overseas.

Ford Australia has very little control of its destiny. Most of the decisions are made in the US. Funny how Ford's US productions are at full capacity.

Or it could be that the US is a consumer based market where as Australia is a commodities and resources based economy...
The wealth and business activity in Australia flows basically from mining and primary industry..

[ryeman]

Originally Posted by LeadFoot81

If he's made aware of the problems stopping exports, will he actually have the guts to address them?

Manipulate the currency?

[CAT600]

Originally Posted by flappist

Lets also be a bit honest here.

We don't want Ford to make "cars" in Australia, we want Ford to make large RWD T6 and V8 sedans and utes with a Falcon or derivative badge on them........

Yep... 90% of the passion comes from the desire to see the performance arm succeed onwards.

Sustainability of the base platform is a totally different issue

Daniel

[mik]

Exporting is all well and good, but if you can't build a car in Australia even for the local market without a handout, lets not forget all 3 makers do need handouts to stay afloat.
.yet every other country in the world can ship their product here by the thousands be it good or bad and still make a quid , you have to conclude we are getting the rough end of the trading stick.

[Gobes32]

Originally Posted by flappist

Lets also be a bit honest here.

We don't want Ford to make "cars" in Australia, we want Ford to make large RWD T6 and V8 sedans and utes with a Falcon or derivative badge on them........

My self interest dictates that I would rather Ford have large volume vehicles flowing through the plant, i.e, Ranger. I know for a fact 335KW cars don't pay off my house any faster.

[ryeman]

Well at least we are world leaders in nievity

[DJM83]

Originally Posted by turbodewd

If Tony Abbot could have a word with Barry O'Farrell about his state's purchasing policy we may not be having this discussion!

One states purchasing policy wouldn't change much

[flappist]

Originally Posted by ryeman

Well at least we are world leaders in nievity

Lucky it is only that and not naivety.......

[bobthebilda]

Originally Posted by Brazen

Ford need to sell more than 10,000 Falcons a year or 12,000 Terrriories to keep them sustainable. They need to export them otherwise how can they justify the design and engineering and manufacture of the next models.

Ford need to make at least 30,000. Most of the government funding is contingent on car makers, and their suppliers, making 30,000 cars per annum, or parts for 30,000 cars per annum. I can't remember the exact figure, but Ford are getting around $90 million or so in gov. money. Their suppliers are probably getting multiples of that. Theres a good chance that if Ford dont maintain a production rate of 30,000 cars per annum, the cost to produce a local car goes up $6-7000. Not a good starting point if you are already losing money.

[redsfan]

Originally Posted by Polyal

Thats all well and good but show me a market where the Falcon in its current state will work. Its (generally) behind the times and not selling for a reason.

The way I see it is this...(just my opinion)

Ford globally do not have a decent large sedan, talking E platform here not some souped up Taruas/Mondeo. There seems to be a market that BMW/Merc/GM amoung others play in. Linclon...whats going on there?

So what is FoA good at? A few things but amoung them its unique capability is producing a high quality RWD sedan for the budget they have.

Ford NA have the "need", we have the "skill"...it would be a similar deal to the Ranger with the exception that we would then continue to produce the Falcon/Tez here.

I agree its nice to finally see someone say something that pushes the owners though. But being on a first name basis with the CEO of FoA is nothing when Ford NA tell FoA when to wipe their bottom.

If Falcon had a production run of 20k+ or so a year it would have had more $$ spent on R&D over it's lifetime and would be a much different vehicle than what it is now.

[ryeman]

The general, non enthusiast, public look at the FG and from side-on at least conclude nothing has changed for years, how wrong they are...how v sad!

[axialmark]

Yes Brazen is correct, however the problems for our local industry started back in about 1978 when the government of the time started reducing import tariffs to encourage imports to balance the trade deficit. Unfortunately successive governments from both parties have continued this trend which has impacted the profitability of all local manufacturing and agriculture across the board. Now post GFC with the Aussie dollar one of the highest valued currencies it has just made an already bad situation much worse. When our dollar was low it was exy to import but you could make money from export, now our dollar is high imports are cheaper than ever and there is no money in export. A key factor here is that while ever our dollar stays high the industry will suffer even with exports. Interesting that the Japanese industry is suffering the same fate. However FULL credit to Mr Abbott for making the statement lets just hope that when he gets into power he has appropriate support from caucus to follow through with out opposition to his efforts from within.

[Road_Warrior]

Originally Posted by axialmark

Yes Brazen is correct, however the problems for our local industry started back in about 1978 when the government of the time started reducing import tariffs to encourage imports to balance the trade deficit. Unfortunately successive governments from both parties have continued this trend which has impacted the profitability of all local manufacturing and agriculture across the board. Now post GFC with the Aussie dollar one of the highest valued currencies it has just made an already bad situation much worse. When our dollar was low it was exy to import but you could make money from export, now our dollar is high imports are cheaper than ever and there is no money in export. A key factor here is that while ever our dollar stays high the industry will suffer even with exports. Interesting that the Japanese industry is suffering the same fate. However FULL credit to Mr Abbott for making the statement lets just hope that when he gets into power he has appropriate support from caucus to follow through with out opposition to his efforts from within.

Not to mention the FACT that imports are subsidised by the governments in their respective countries of origin.

[Vesper Martini]

It could be that Ford cannot make and sell the Territory in the US for nearly half the price it’s sold in Australia, like Commodore is.
But seriously
Perhaps it is a pipe dream for Abbott but Ford AUS really do need to change their direction somehow. because at the moment it’s looking like a bad investment for the Government

[oldtimer]

Pie in the sky political bull.

Ford US will never agree to Australian vehicles competing with there markets.

The major problem is no 1st world country does not want to not have a car manufacturing industry. We need a vehicle manufacturing industry in case of war, the governe\ment of any persuasion will keep on pouring money into ONE of the major companies no matter what.

The question is:- WHICH ONE? Holden or Ford.

Toyota won't cut the ice, the USA is our defence partner.

The other problem for Abbott is "Where is he going to get the money from?"

Interesting time ahead folks.

OT

[Charliewool]

Cash for clunkers.. With a bonus for your "clunker" if you trade it on an Aussie made car.
Funded by the billions that Govcos been supporting the local auto industry.

[irish2]

Originally Posted by mik

Exporting is all well and good, but if you can't build a car in Australia even for the local market without a handout, lets not forget all 3 makers do need handouts to stay afloat.
.yet every other country in the world can ship their product here by the thousands be it good or bad and still make a quid , you have to conclude we are getting the rough end of the trading stick.

Every other car industry in the world receive government assistance. Either in the form of subsidies, import tariffs, or low taxes. Australia offers the lowest assistance to the auto industry per capita than almost every other car producing nation.

[Charliewool]

Better still... Cash for clunkers ONLY if you buy Australian made

[jpd80]

The best way to shorten up the used car market is to force substandard vehicles off the road and crush them..

[Nikked]

Originally Posted by jpd80

The best way to shorten up the used car market is to force substandard vehicles off the road and crush them..

No more VN's!


Sorry Riksta

[MrMaestro]

Why does LHD matter anyway? Exports to the US would be on razor-thin margins, it wouldn't be worth it unless the volumes were huge.

Europe on the other hand, why can't Falcon and Territory be sold there where they would be up against more expensive "saloons" and SUVs from BMW, Mercedes and Audi? Obviously they can't compete with that competition on quality, but on bang-for-back surely they would make give them a run for their money. And no costly LHD development program. The only issue would be complying with EU emissions standards.

[Brazen]

Originally Posted by irish2

Australia offers the lowest assistance to the auto industry per capita than almost every other car producing nation.

Fixed.

[jpd80]

Lincoln MKR for USA and China:

[prydey]

Originally Posted by Polyal

Thats all well and good but show me a market where the Falcon in its current state will work. Its (generally) behind the times and not selling for a reason.

Originally Posted by redsfan

If Falcon had a production run of 20k+ or so a year it would have had more $$ spent on R&D over it's lifetime and would be a much different vehicle than what it is now.

so which one of you two have owned an FG or FG2 for a period of time? i always laugh at these type of comments, insinuating that falcon is some second rate product that is missing endless features that all others offer.

[FPV8U]

If nothing else it will give Ford USA a nudge to investigate how far the government is really willing to go, enough support for our industry and there are markets out there for the Territory and possibly upmarket Falcons in Europe, Parts of Asia and Sth Africa.

How did the initial run of 100 territory's go in Thailand?


USA won't happen, but something like this could help bring a GRWD platform Into production in Australia.

[bobthebilda]

Originally Posted by prydey

i always laugh at these type of comments, insinuating that falcon is some second rate product that is missing endless features that all others offer.

Well it is missing one special feature that all of the good sellers have in common, and that is customers.