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Ford Aust. CEO Confident Falcon Will Continue Beyond 2016


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FORD Australia president and CEO Marin Burela says he is confident the company's Falcon range will continue to be made in Australia after the current seventh-generation car is retired in 2016.

 

Speaking at celebrations marking Ford Australia's 85th anniversary and Falcon's 50th, Mr Burela said Ford had no plans to change the company's current operating structure and that head office in Detroit was delighted with the company's current performance.

 

"We have invested hundreds of millions of dollars in our Australian facilities at Geelong and Broadmeadows, and our view on that is that those facilities are there, we have invested in them, they are state of the art, we've got a great workforce building wonderful cars with great quality. "We will continue to do so."

 

As GoAuto has reported, Ford's 'One Ford' global model strategy dictates that the current Falcon will be the last to be designed and engineered exclusively in and for Australia, which means the next all-new Falcon is likely to be based on Ford's next-generation front/all-wheel-drive Taurus.

 

Federal industry minister Senator Kim Carr said today he was optimistic about the future for the Broadmeadows assembly plant.

 

"I believe there will be a Falcon made here after 2016," he said. "The substantive issue will be how much of it is made locally, and that is what we are talking through."

 

Senator Carr also indicated that Ford might be reconsidering its no-export policy (excepting New Zealand).

 

"We are working with all three companies to ensure that we have growth in the industry's volumes, and the way to do that is to grow domestic demand and international demand through exports," he said.

 

"We want all three companies to grow their export capacity, and the component manufacturers, too."

 

Mr Burela said the Broadmeadows operations were working overtime to meet the rising demand for the Falcon sedan.

 

"The great news is the Falcon in the last few months has been travelling in uncharted waters," he said.

 

"It is taking 41 per cent of the large sedan market. Only 18 months ago it was taking a 25 or 26 per cent share.

 

"We are regularly working overtime since June/July last year to meet demand. We are very happy with where we are and where we are going."

 

Mr Burela confirmed that Ford would freshen the FG Falcon, but said that no final decision had been made about the eighth-generation Falcon due for 2016.

 

"2016 is the natural break point of this (model) cycle," he said.

 

"The work we are doing and the plan we are on says we don't have to make a decision on all the aspects of the new Falcon until we get to the early part of 2012. So, we are in a good position."

 

He dismissed a suggestion that Detroit wanted to close Broadmeadows and supply Australia with imported large cars.

 

"No. Head office is absolutely delighted for us and what we have achieved over many years," he said.

 

"They were particularly delighted when we brought Ford Australia back to profit in 2009, and they know we are performing well in 2010."

 

Back in May, Ford reported its first positive result since 2005, a breakeven profit of $13 million earned on revenues of $3.14 billion.

 

Asked if he saw a long-term future for Broadmeadows, Senator Carr said Ford in Detroit placed great value on its local operations.

 

"I was in Detroit in May, and Alan Mulally made it very clear the value to Ford company leadership places on Australia. Ford values Australia as much as Australia values Ford."

 

He said both parties recognised the industry was going through a transition and this would involve the whole Australian automotive sector, assemblers and parts-makers.

 

"We are driving change in partnership with the companies, and I am absolutely confident Ford has a strong future in this country, as has the Australian automotive industry."

 

Senator Carr said the fuel economy of large cars made here had improved 20 per cent in the past two and a half years.

 

"What we are seeing is the transformation of the Australian automotive industry," he said.

 

These changes included new fuel systems, turbo-charging or, at Toyota, the introduction of Australian-made hybrid technology.

 

"We are in the business of making sure the Australian industry adapts to the new circumstances the industry finds itself in."

 

Senator Carr said he believed Ford Australia would become more closely linked into the Ford group's overseas production and supply network.

 

"All motor companies today make global platforms. The question is how much will be locally made and that is what we are talking through."

 

Senator Carr dismissed a suggestion that the opening of a new Ford group plant in Thailand – on the same day Ford Australia was celebrating half a century of Falcon production – represented a threat to future Falcon production in Australia.

 

"We have rear- and all-wheel drive capability that few countries in the world can replicate. There is a particular part of the market for that product.

 

"Big cars are popular in Australia for a reason: people want them.

 

"The biggest seller for the last 12 years has been a large car. Ford has a very important role to play in that sector."

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Edited by jpd80
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Great news JPD long may it continue, l think Falcon sales would have gone the same way as the Mondeo 300 a month down under if Ford had switched in onto a FWD platform.

 

Ford would never ever win Bathhurst ever again, and every car on the streets of Sydney would be a bloody Holden as Falcon buyers deserted Ford in droves what a frigging nightmare.

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Great news JPD long may it continue, l think Falcon sales would have gone the same way as the Mondeo 300 a month down under if Ford had switched in onto a FWD platform.

 

Ford would never ever win Bathhurst ever again, and every car on the streets of Sydney would be a bloody Holden as Falcon buyers deserted Ford in droves what a frigging nightmare.

 

I think the big change will be inclusion of Ecoboost Falcon, it's going to

change people's perception of large RWDs as gas hogs and offer mid

sized customers a real alternative.

 

The 300/month Mondeo might be a nice car but it's seen as too close to the fuel

efficient Falcon and gets lost in the rush for large RWD....

Edited by jpd80
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As GoAuto has reported, Ford's 'One Ford' global model strategy dictates that the current Falcon will be the last to be designed and engineered exclusively in and for Australia, which means the next all-new Falcon is likely to be based on Ford's next-generation front/all-wheel-drive Taurus.
I hope that means the Falcon name moves to a new platform, but there'll still be a upcoming global RWD like I've seen mentioned here.
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I'm betting the Falcon and Mustang share a lot of parts in their next iterations.

 

We could see a situation where each vehicle is developed separately

but with the other in mind, a bit like the first Mustang and the Falcon

immediately after it....

Edited by jpd80
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They will share electical, suspension, and some engines and transmissions going forward, with each remaining on their own platforms.

They should consider an LHD Falcon for export as well. I'm not saying it will sell in huge volume in America or Europe, but I'm sure even an additional 20-40K units a year would help with production costs.

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They should consider an LHD Falcon for export as well. I'm not saying it will sell in huge volume in America or Europe, but I'm sure even an additional 20-40K units a year would help with production costs.

 

Last I heard, the next MKZ and a proposed Ford-branded sports sedan were going to be based off of the Falcon.

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They should consider an LHD Falcon for export as well. I'm not saying it will sell in huge volume in America or Europe, but I'm sure even an additional 20-40K units a year would help with production costs.

 

I doubt Falcon will find that much volume in US or Europe. If the car does make it to these markets, it will surely be sold as a performance sedan. We are talking very low volumes due to taxation and fuel economy restrictions. More promising for Ford Aus is to target the emerging markets like China. I can see Ford selling 10-15k Falcon throughout East Asia pretty easily. Also, don't forget the Middle East market now that Ford is discontinuing the Crown Vic and Town Car. Great opportunity for Ford Aus to come up with a product plan to expand Falcon's sales footprint.

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I doubt Falcon will find that much volume in US or Europe. If the car does make it to these markets, it will surely be sold as a performance sedan. We are talking very low volumes due to taxation and fuel economy restrictions. More promising for Ford Aus is to target the emerging markets like China. I can see Ford selling 10-15k Falcon throughout East Asia pretty easily. Also, don't forget the Middle East market now that Ford is discontinuing the Crown Vic and Town Car. Great opportunity for Ford Aus to come up with a product plan to expand Falcon's sales footprint.

Don forget the Ecoboost 2.0 Falcon is released early next year and FoA have said that

there's no technical reason stopping the V6 diesel in Territory going into the Falcon.

So there's several options for exports, one of the big negatives to Falcon getting

into the Middle East was that the Crown Victoria always sold well there and Ford did

not want internal competition.With the panthers ceasing production next year,

there could be a crack opening for Falcon and a Fairlane to be exported there as LHD units.

That would allow the development costs for possible US versions to be amortized elsewhere.....

Edited by jpd80
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Are you sure that wasn't MKS?

There's been a lot of rumors for a while about Lincoln and RWD......

 

MKZ and "Thunderbird" project (4 door coupe concept) are both rumored to be Falcon-based.

A full-sized RWD Lincoln should be coming under GRWD.

There is debate as to if this will be the next-gen MKS, or allow the MKS to continue being Taurus-based and use GRWD for an MKR.

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MKZ and "Thunderbird" project (4 door coupe concept) are both rumored to be Falcon-based.

A full-sized RWD Lincoln should be coming under GRWD.

There is debate as to if this will be the next-gen MKS, or allow the MKS to continue being Taurus-based and use GRWD for an MKR.

I think Marin Burela tipped FoA's hand by saying he's confident that the 7th generation Falcon will be replaced in 2016,

Falcon is a constantly evolving platform so it really doesn't matter when the US gets on board. It's unlike most North American product cycles and introduces changes progressively over several models to reduce the cost.

 

That's where our RWD is different to GM's Zeta....

Edited by jpd80
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I think Marin Burela tipped FoA's hand by saying he's confident that the 7th generation Falcon will be replaced in 2016,

Falcon is a constantly evolving platform so it really doesn't matter when the US gets on board. It's unlike most North American product cycles and introduces changes progressively over several models to reduce the cost.

That's where our RWD is different to GM's Zeta....

... and in weight

... and in flexibility

... and in awesomeness

:hysterical:

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MKZ and "Thunderbird" project (4 door coupe concept) are both rumored to be Falcon-based.

A full-sized RWD Lincoln should be coming under GRWD.

There is debate as to if this will be the next-gen MKS, or allow the MKS to continue being Taurus-based and use GRWD for an MKR.

Ford already has a midsize RWD car that will almost always move over 100K units a year. As long as Ford is building the Mustang, there is a business case for RWD. Hopefully any platform sharing leads to an improved Mustang and not a overweight Camaro clone.

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Don forget the Ecoboost 2.0 Falcon is released early next year and FoA have said that

there's no technical reason stopping the V6 diesel in Territory going into the Falcon.

So there's several options for exports, one of the big negatives to Falcon getting

into the Middle East was that the Crown Victoria always sold well there and Ford did

not want internal competition.With the panthers ceasing production next year,

there could be a crack opening for Falcon and a Fairlane to be exported there as LHD units.

That would allow the development costs for possible US versions to be amortized elsewhere.....

 

Selling Falcon with smaller engines in US or Europe brings us back to the original problem(s)... In the US, it will conflict with Taurus; and in Europe, too close in size to Mondeo (and the fact that market for non-luxury brand executive class car has disappeared). But it's worth thinking about for 2016 and beyond; certainly from the perspective of what Ford can do with the Falcon platform in Lincoln application.

 

The Middle East and China on the other hand are now low hanging fruit for Ford Aus. The 2.0T will play well in China where large cars with smallish engine have always been in demand. The V8 will of course continue to find plenty of attention in the Middle East. There may even be enough volume to bring back LTD/Fairlane on the next platform if Ford Aus do some homework and really figure out the demand. How many Chevy Caprice/Buick Park Avenue is Holden selling in the Middle East/China every year?

Edited by bzcat
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Selling Falcon with smaller engines in US or Europe brings us back to the original problem(s)... In the US, it will conflict with Taurus; and in Europe, too close in size to Mondeo (and the fact that market for non-luxury brand executive class car has disappeared). But it's worth thinking about for 2016 and beyond; certainly from the perspective of what Ford can do with the Falcon platform in Lincoln application.

 

The Middle East and China on the other hand are now low hanging fruit for Ford Aus. The 2.0T will play well in China where large cars with smallish engine have always been in demand. The V8 will of course continue to find plenty of attention in the Middle East. There may even be enough volume to bring back LTD/Fairlane on the next platform if Ford Aus do some homework and really figure out the demand. How many Chevy Caprice/Buick Park Avenue is Holden selling in the Middle East/China every year?

We've had word back through the Aussie Government's minister for the car industry that Ford has withdrawn

the Crown Victoria from Middle East and that Taurus is being given heavy incentives to encourage sales.

The government has also signed agreements with Chinese Auto makerswanting to increase their

automotive knowledge level so I wonder whether that opens up another chance of exports...

 

The minister has made several unexpected visits to Geelong engine and Broadmeadows assembly this week,

all our regular sources have clammed up so something big is happening behind the scenes. The government is

in election mode at the moment and may well be prepared to throw money at Ford to have an export model.

 

All I've been told is that an announcement will be made in the near future,

fingers crossed that it means an expansion of the Falcon platform.

Edited by jpd80
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I saw on Aussie web forums that the Falcon is considered 'for Bogans'. In USA that is 'mullet'.

 

Luxury car buyers are moving to AWD sedans, so I don't see any needed 'revival' of RWD 17mpg tanks for average buyers. American housewives, who decide what to buy 80% of the time, do not want RWD sedans They see AWD SUV's as primary transportaion for families, and nothing else. When the husband get permission to buy a sporty car, a coupe is it, not a Crown Vic.

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Luxury car buyers are moving to AWD sedans, so I don't see any needed 'revival' of RWD 17mpg tanks for average buyers.

Modern RWD fuel economy is nothing like panthers, how much economy do you want?

 

Falcon gives better fuel economy that the 4,000 lb Taurus, Ecoboost 2.0 available next year

in Falcon will set the benchmark even higher giving even better economy that 2.4 Camry....

 

Fuel efficient 2.7 V6 diesel is going into Territory CUV next year and will

also fit in Falcon if ever needed getting Focus like fuel economy.......

 

Hope that improves your vision a little bit, USA is not in their target, it's Asia and China,

Edited by jpd80
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