Ford to shed 240 local jobs, cut production as demand slumps

[Fordman1]

Originally Posted by Buntz93ED

That's because Falcon underpins the next Mustang. And the 2015 Falcon will probably become a 4-door Mustang. Wheel base is almost identical.

If 'One Ford' is anything to go buy... Mustang and Falcon can survive off one platform. And what they both do in R&D and PD testing will complement each other.

And yes. Local Ford products are being made warm by the light of Ford turning a profit. And a non too shabby profit at that.

Nice try at being positive as always !

Mmmmmm....Lets see... THAT Platform, does it / or will it exist ??

I'm a betting a big no

Lets see ....

[Buntz]

Originally Posted by Barraxr8

Nice try at being positive as always !

Mmmmmm....Lets see... THAT Platform, does it / or will it exist ??

I'm a betting a big no

Lets see ....

At least I'm trying.

Originally Posted by Barraxr8

I don't, but I have VERY good contacts

The janitor?

Originally Posted by Bossxr8

You really shouldn't make those assumptions and try to pass them off as fact. Nothing has been decided yet.

Exactly. So how about all this doom and gloom, nay saying being peddled about be taken with the same grain of salt? Or I will just full on annoy everyone with my unfounded optimism.

[Bossxr8]

Originally Posted by Buntz93ED

That's because Falcon underpins the next Mustang. And the 2015 Falcon will probably become a 4-door Mustang. Wheel base is almost identical.

You really shouldn't make those assumptions and try to pass them off as fact. Nothing has been decided yet.

[jpd80]

Originally Posted by Bossxr8

They are still planning future Falcon updates even after FGII on the current platform, so at least they haven't decided to just let it wither away until 2015. I would have thought they would have tried to keep basically the same car going until 2015, but they want another update after the next one.

This has all changed very recently, public perception is now swinging heavily against Falcon
and I suspect that FoA are worried that a series II FG won't be enough to improve sales.
The fact that they are re balancing lower says that FoA has no confidence in new Territory
or EcoLPI to lift sales numbers, that being the case they won't be doing any further updates....

[JPFS1]

The ROT seems to be setting in... when public perception can't see a viable outcome for Ford Australia's manufacturing, you can almost be certain that this will be the outcome.

They were talking about the job cuts on ABC radio this morning, don't usually listen to that station, but while flicking, heard the subject and left it on, ALL feedback from jo blogs ringing in and their txt messages into the station were ALL negative about Ford Australia's future, even though they don't know the first thing about what's really going on and what can make it work.

This mindset though will not help sales along that's for sure.

[jpd80]

Originally Posted by JPFS1

The ROT seems to be setting in... when public perception can't see a viable outcome for Ford Australia's manufacturing, you can almost be certain that this will be the outcome.

They were talking about the job cuts on ABC radio this morning, don't usually listen to that station, but while flicking, heard the subject and left it on, ALL feedback from jo blogs ringing in and their txt messages into the station were ALL negative about Ford Australia's future, even though they don't know the first thing about what's really going on and what can make it work.

This mindset though will not help sales along that's for sure.

Everything is perception driven, look at Mitsubishi and the campaign waged against it,
saying a car is going to be killed is bad enough but say it enough times and it becomes a reality.

I'm not sure that Ford now deserves the flywheel of anti press it's now getting but
who outside of a few fans really cares about the soon to be released Territory?
Holden have successfully relegated that to page 55 with their profit announcement
and Ford announcing workforce custs at this instance have shot themselves in the foot.


This is like watching a greek tragedy unfold in front of you,
the best car is not selling and in fact facing the axe.

If this company cannot or will not engage in self promotion then they risk becoming extinct
as a local manufacturer and that will be their fault becuaethe market is still there but Ford
has chosen the minimalist/eficiency path.......

[Buntz]

Originally Posted by jpd80

Everything is perception driven, look at Mitsubishi and the campaign waged against it,
saying a car is going to be killed is bad enough but say it enough times and it becomes a reality.

I'm not sure that Ford now deserves the flywheel of anti press it's now getting but
who outside of a few fans really cares about the soon to be released Territory?
Holden have successfully relegated that to page 55 with their profit announcement
and Ford announcing workforce custs at this instance have shot themselves in the foot.


This is like watching a greek tragedy unfold in front of you,
the best car is not selling and in fact facing the axe.

If this company cannot or will not engage in self promotion then they risk becoming extinct
as a local manufacturer and that will be their fault becuaethe market is still there but Ford
has chosen the minimalist/eficiency path.......

It just seems like Dearborn are smiling as they tie FoA's hands... and slowly watch what they do here... die.

[jpd80]

Originally Posted by Buntz93ED

It just seems like Dearborn are smiling as they tie FoA's hands... and slowly watch what they do here... die.

No, Ford has shot the FG and Updated Territory models out in the market just assuming that they will sell,
it is Ford head office asking what is going on, you told us that Falcon and Territory will sell better than our
corporate platform vehicles, explain your selves and why we should bankroll you for another $700 million
when our corporate vehicles would probably sell just as good or better.......

FoA are hopeless at self promotion, this is their biggest downfall and thinking they have more time than they do...

[Buntz]

Originally Posted by jpd80

No, Ford has shot the FG and Updated Territory models out in the market just assuming that they will sell,
it is Ford head office asking what is going on, you told us that Falcon and Territory will sell better than our
corporate platform vehicles, explain your selves and why we should bankroll you for another $700 million
when our corporate vehicles would probably sell just as good or better.......

FoA are hopeless at self promotion, this is their biggest downfall and thinking they have more time than they do...

It costs money to advertise.

[Polyal]

Originally Posted by JPFS1

The ROT seems to be setting in... when public perception can't see a viable outcome for Ford Australia's manufacturing, you can almost be certain that this will be the outcome.

They were talking about the job cuts on ABC radio this morning, don't usually listen to that station, but while flicking, heard the subject and left it on, ALL feedback from jo blogs ringing in and their txt messages into the station were ALL negative about Ford Australia's future, even though they don't know the first thing about what's really going on and what can make it work.

This mindset though will not help sales along that's for sure.

Agreed, Foa and Marketing need to pull their finger out now, not in 3 months time.

They need a lovey dovey add talking about the future and all the tech that is coming in one add. It can be done, Holden has done it in the past. They talked about sidi and how Holden means alot to Australia blah blah blah and it seemed to work well enough.

Ford US need to also work out whats going on with the platform and Brand. Im sure regardless of sales over the next few years the decision is made and its either going to be really good, or really bad. I cant see any middle ground.

No doubt Fords response will be another fluffy message about the T6 program and hope the blind masses think that is somehow related to manufacturing here.

[whiteelfalcon]

Globally ford know what they have planned.
The CEO of the fmc says rwd blah blah blah global one ford blah blah blah..... Australia?, Where's that? Scamper, scamper, along you little reporter.

It is clear what is going to happen to the falcon and sometime off in the future territory. It is easy enough to see. Look at the current global ("american") vehicles. fusion/lincon line, bit larger taurus, and the edge line.

Right where a smaller falcon, (read current dunnydore size) and territory sit in the market. The next US sedan models due out ~2013, and the hint of taurus maybe a year or so later seems to sit right when the falcon will die off.

http://www.roadandtrack.com/future-c...nd-lincoln-mkz

http://www.autotropolis.com/auto-new...fficiency.html


I'm sure the Aussie team would have had a very small hand in helping the design of these vehicles along the way, over the past couple of years, but they have spent the past few years working on the ranger, giving the parent company a reason to keeping ford Australia operating.
Thanks Ladies and Gents for doing that.

I hope ford Australia hangs around long enough that we get to see these new vehicles. Ford Australia has been technology back water for the past few decades.

It is only now with one ford blah blah over the past couple of years that anything interesting has occurred.

Originally Posted by Polyal

Ford US need to also work out whats going on with the platform and Brand. Im sure regardless of sales over the next few years the decision is made and its either going to be really good, or really bad. I cant see any middle ground.

[Ford17]

Some of these articles seem to have a red slant to them.

So Holden have made their once-in 5 year profit. They made $112 million profit for 2010, but only after $579 million of accumulated losses over the preceding five years. So their net position is 'only' a loss of some $467 million over the years 2005 to 2010.

Yet we are told they (Holden) are seemingly doing everything right.

To the contrary it would seem. They have been losing money by cranking up the volume on production to achieve record sales figures. It surely must be obvious, based on Holden's inability to make a profit over the last 6 years as a whole, that their supply is not being met by demand at the correct price point (being the price which to make a profit). i.e. they are discounting the Commodore to below cost.

What needs to be realised is large family RWD sedans are now essentially a boutique market product.

The bread and butter models for cheap motoring in this country are now sourced from Korea and elsewhere. The Falcon 500 or GL, as the most basic model car available on the market, is something long gone. You want basic, you've now got Kia, or Hyundai or something else.

The standard Falcon these days is as good as any other vehicle of its size and price range, offered anywhere else in the world. Perhaps it’s a cultural cringe thing here that prevents many people from actually realising this.

Ford seem to be the only one of the two local manufacturers who understand the boutique nature of the large car market they're dealing with. Their latest strategy is to match costs to production, and to match supply and demand, whilst generating a profit.

Sometimes businesses don't understand their core product, deviate too far from it; and it’s often to their detriment. To me at least, it looks like Ford understand this exactly.

[apstar]

So now we know why Ford decide to bring forward the Ecoboost engine into the Mondeo.... no it wasn't out of kindness they were in denial and yes someone at FoA will get a bonus for all of this, my next car may not be a Ford if they keep stuffing up the Mondeo give us what Ford Europe gives their customers CHOICE

[SEZ213]

Originally Posted by apstar

So now we know why Ford decide to bring forward the Ecoboost engine into the Mondeo.... no it wasn't out of kindness they were in denial and yes someone at FoA will get a bonus for all of this, my next car may not be a Ford if they keep stuffing up the Mondeo give us what Ford Europe gives their customers CHOICE

That kind of attitude doesn't help.

Did Ford meet the market? No

Does that mean they don't give a toss? Who knows.

What I do know is that those who have purchased new cars - are helping - those who are just bitching about them canning jobs...which I'll say again...is VOLUNTARY...are not.

We have this perception that Ford should bend over backwards and they should keep the Falcon. Yeah, they probably should, but anyone in business with half a brain, knows that if your EBIT is crap...it's not viable. If they're only making 50c for every dollar they spend, they begin operating at a loss - which isn't viable for any business.

R&D for these kinds of projects isn't cheap - they need to make the money back somehow...and if people aren't buying their vehicles...they have to make ends meet somewhere.

Ford Europe are NOT Ford Australia - they may be under the one banner, but run two very different businesses strategically. The market in Europe is a lot higher, and for anyone to suggest that Ford Australia should do exactly what Ford Europe does - should never go into business for themselves...

[Ford17]

I'm not sure some flash-in-the-pan marketing program is going to change the situation here.

The large RWD Family car segment is now a small, boutique, market.

Holden aren't doing anything right by flooding the market with cars at below cost. That's a sure-fire way to put yourself out of business altogether.

[Polyal]

Originally Posted by Forda

I'm not sure some flash-in-the-pan marketing program is going to change the situation here.

The large RWD Family car segment is now a small, boutique, market.

Holden aren't doing anything right by flooding the market with cars at below cost. That's a sure-fire way to put yourself out of business altogether.

Its not going to fix it but doing nothing and slowly dying is not an option I would utilize.

[Ford17]

Originally Posted by Polyal

Its not going to fix it but doing nothing and slowly dying is not an option I would utilize.

Dying is what happens when you sell at below cost continuously.
Making a profit does not involve selling the most cars.
Understanding your market and adapting to it keeps you in the game.

[ED Classic]

Originally Posted by Forda

I'm not sure some flash-in-the-pan marketing program is going to change the situation here.

The large RWD Family car segment is now a small, boutique, market.

Holden aren't doing anything right by flooding the market with cars at below cost. That's a sure-fire way to put yourself out of business altogether.

Yes agree

[Polyal]

Ah yes but you know that being number one has a snowball effect yes? Why would someone buy from a company that is perceived to be struggling?

The sheep that buy the commodores are giving into popular belief that Holden is more successful or better because they sell more.

[Ford17]

Originally Posted by Polyal

Ah yes but you know that being number one has a snowball effect yes? Why would someone buy from a company that is perceived to be struggling?

The sheep that buy the commodores are giving into popular belief that Holden is more successful or better because they sell more.

Ford are not, have never been, and are unlikely to ever be, for sale.

Holden's strategy of being number one at any cost is yesterday's tactic.
The US Parent is now majority owned by the US Obama Government, who won't be rushing in at any request to bail them out of financial strife.

[Polyal]

Originally Posted by Forda

Ford are not, have never been, and are unlikely to ever be, for sale.

Holden's strategy of being number one at any cost is yesterday's tactic.
The US Parent is now majority owned by the US Obama Government, who won't be rushing in at any request to bail them out of financial strife.

I agree Fords strategy gives for a better financial record, but we will see I guess who is manufacturing here long term. After all we are talking about Australian jobs, that should be priority, just at the moment Holden look better with that regard.

Its like GM vs Fords small/meduim strategy aswell. Fords give consumers better cars, GM's give consumers a better price. Hard call to say which one is better...IIRC GM small cars are outselling Fords even though Fords increased last month. But again, perhaps Fords margins are better. Both strategy's can work and its not simple to say which one is better.

[Road_Warrior]

No this car would be imported, not made here.

This is the 'consolation prize' I was talking about for losing our RWD performance Fords. The rest of it would be CD4 cars made here.

[Fordman1]

Originally Posted by Road_Warrior

No this car would be imported, not made here.

This is the 'consolation prize' I was talking about for losing our RWD performance Fords. The rest of it would be CD4 cars made here.

That sounds plausible...

Well it would be a solution for local manufacturing...

FoA your turn .... now come up with a business plan that works !!

[jpd80]

Originally Posted by Barraxr8

That sounds plausible...

Well it would be a solution for local manufacturing...

FoA your turn .... now come up with a business plan that works !!

Thought was given to:
Locally manufactured CD4 FWD/AWD Sedan and SUV for FoA
Imported RHD Mustang and 4-door coupe for FPV....

If Ford had nuts they'd go sue a couple of toe rags for destroying
Falcon's market with constant innuendo and unfounded rumors.
Don't go quietly into the night like Bits-a-missin'

[Fordman1]

Originally Posted by jpd80

Thought was given to:
Locally manufactured CD4 FWD/AWD Sedan and SUV for FoA
Imported RHD Mustang and 4-door coupe for FPV....

If Ford had nuts they'd go sue a couple of toe rags for destroying
Falcon's market with constant innuendo and unfounded rumors.

Yes...

This plan would give FoA great possibilities.

'Drive' journalists need a good punch in the face....

But so do some people at Ford.

[Road_Warrior]

Originally Posted by Barraxr8

'Drive' journalists need a good punch in the face....

Please form an orderly queue behind me.

[gtfpv]

the 1st thing that comes to mind with me , is typical greedy economic company . they could afford to carry the excess labour for a while , and shed maybe BS JOBS. but no lets save some admin arrrce and shares and chop our labour , then what next , continue lesser /smaller business , or fingd they are under resourced and underskilled come time for new projects and plant upkeep . typical uni degree economics on how to send a company and country down the gurgler . its amazing how dumb our top people have become . useless would be the word .

[Swedishmoose]

Hi...

too many idiotic decisions, FoMoCo's one Ford policy, The Mondeo as a main competitor, no available Diesel for the Falcon, scrapped Falcon Station Wagon, no export markets (except NZ), high Aussie Dollar, free trade with the US and some Asian nations, changing consumer taste, dying crowd of enthusiasts for big classic RWD sedan .....and the list goes on and on and on...

I don't see a future for the Falcon, the Territory and a Ford production in Australia.

Too many wrong decisions and if there were a fewgood ones, they came toooooooo late.

An excellent Falcon FG and Territory (exceptional value for money), one of the best engines ever made in Australia (turbocharged Barra) and a genuine good product messed up by decisions of people who are overpaid and don't give a s*** about Broadmeadows, Geelong , the Falcon and the Territory.

If they can make more money by axing Falcon, Territory and FoA.......they will do it. Thats the sad part.

And now i hope i am wrong and they get their act together.

The Moose

[FPV]

We just need to give it time, the product release gap is what has caused this (in other words not delivering what people want), but as said previously, this is not the same case as Mitsubishi. The switch between making a decision on engines for Falcon and Territory was bound to have some impact, and right now FOA is suffering, but we are nearly through the worst of it.

Territory is out in a month, Falcon facelift in 3rd/4th quarter. There is not much that we can say and do now except wait for them to come online and if possible buy them. Put simply, this production drop is needed, they can't keep making cars at the same rate if they are just piling up in the car park and they are not the models people are holding out for.

Now previously it has been said Falcon's future will be decided this year, but to make a decision prior to the major releases would be a mistake. Lets hope the decision really has been delayed until next year as JPD80 has said, and lets hope they have a strong run in the second half of the year.

[Road_Warrior]

I concur.