Should Ford build a third vehicle in Australia?

[Road_Warrior]

Regardless of what happens with the next-gen Falcon platform, it is highly unlikely that sales volume of that car will exceed 50,000 units per year. Large and large-ish cars in Australia have become more of a niche player against smaller cars and SUV's.

The thing is this: the Broadmeadows assembly plant has a capacity of 120,000 units per annum, so even if the new car does sell well (as does it's Territory cousin, whatever that may be in the future), there is still a lot of unused capacity in the assembly plant.

Should Ford look at this as a 'wasted asset' and bring a third vehicle line to Australia to be built, and at the same time, bring the plant's production to near capacity?

As we know, there was a plan to build the third gen Focus here, but that was canned in favour of Ecoboost Falcons. Bill Osborne, the CEO who only lasted 6 months, wanted to build everything here - Focus, Mondeo, Falcon and Territory - perhaps he could see the potential and wanted to make full use of the plant?

Should a third platform be built here, and what should it be?

[Gobes32]

Would have been nice to score Ranger production, a lot of poential volume there. The hard part is that Thailand are such a mass producer that Australia will only be left with niche models like the Falcon and Territory.

[2011G6E]

Hard to compete with the volumes and price of production that come out of Asian countries. Not to mention it would be made in such small numbers it would have to cost a fortune to get back input costs, driving sellers away in droves.

Too hard...just keep plugging along effciently with the production levels they have, kee the extra capacity as a backup for if the market ever turns around, and don't try to compete against people we have no hope in hell of matching.
Know your limitations, accept them, and quietly just keep doing what you do best.

Not to mention are the buyers there to take up the extra production, or will they just sit unloved in storage yards until massive discount sales have t happen to get rid of them? Walk into a Ford dealer now and a lot of them look like Focus/Fiesta/Mondeo/Ranger dealerships...with possibly a Territory shoved over in the corner and a row of Falcons along one side of the yard where they hope no one will notice them, almost as if they are embarassed to be building large cars.

[Ducati888]

It wouldn't necessarily need to be small nubmer production if they could secure some export business like Holden and Toyota have.

More Camrys are made & exported than are sold here.

[Brazen]

Focus/Kuga production is perfect for today's market - lots of profitable private buyers and local production means you can have variants tailored to local buyers. Kuga especially would be good as it would fetch Falcon prices but only costs as much as a Focus to build.

Toyota publicly said at the Melbourne Motor show that Kluger is no longer the default third model for local production, they are now even considering local Corolla or Rav4.

I am betting Rav4 as it will take the new 2.5 litre 4 cylinder engine that is being built in Victoria next year. And they already sell around 1200 a month of the imported Rav4s here anyway, and that is a model which is getting quite old.

[Road_Warrior]

Originally Posted by Ducati888

It wouldn't necessarily need to be small nubmer production if they could secure some export business like Holden and Toyota have.

More Camrys are made & exported than are sold here.

The danger there is that your business case is reliant on exports and when exposed to fickle exchange rates and global economic problems, it can make that ongoing business case rather precarious - just ask Holden how their exports went during the GFC.

The third vehicle line could be a niche product for domestic consumption only, but it would need to be something people actually want, as opposed to Ford telling people what they think they want. Something like the Kuga, or maybe even the T6 SUV?

[Ducati888]

Originally Posted by Road_Warrior

The danger there is that your business case is reliant on exports and when exposed to fickle exchange rates and global economic problems, it can make that ongoing business case rather precarious - just ask Holden how their exports went during the GFC.

The third vehicle line could be a niche product for domestic consumption only, but it would need to be something people actually want, as opposed to Ford telling people what they think they want. Something like the Kuga, or maybe even the T6 SUV?

Everybody is at the whim of changing exchange rates, not just Australia. Exports globally would have slowed down during and after the GFC. GM US wnet bust on domestic market alone. The business needs to be viable for many reasons, but exchange rate is a cop out excuse businesses spin.

Ford need to build a smaller AWD wagon in Australia, for domestic use and export, the size of a RAV 4 and market it as well as Holden did with the Cruze.

[burnz]

yep a CDK focus/fiesta would have fitted the bill.

and their's no reason they cant export falc/terry to the UK..
for extra pocket money.

[Ford_The_Win]

Originally Posted by burnz

and their's no reason they cant export falc/terry to the UK..
for extra pocket money.

One could argue that Falcon and Terri are enormous, way too big and way too thirsty for UK tastes, a full-sized sedan over there is around 5-series/Mondeo sized with a 4 cylinder, whereas Falcon is the same size as a 7 series. I don't think they would tolerate the build quality issues either.

[jpd80]

Originally Posted by Ford_The_Win

One could argue that Falcon and Terri are enormous, way too big and way too thirsty for UK tastes, a full-sized sedan over there is around 5-series/Mondeo sized with a 4 cylinder, whereas Falcon is the same size as a 7 series. I don't think they would tolerate the build quality issues either.

Diesel Territory would work as would Eco Boost I-4 Falcon

[Resurrection]

Third vehicle? What about a second vehicle first!

[Nikked]

Originally Posted by Resurrection

Third vehicle? What about a second vehicle first!

Territory?

[DJM83]

Originally Posted by Resurrection

Third vehicle? What about a second vehicle first!

Uumm last time i checked, falcon and Territory are 2 different cars.

[XRtowcar]

Right hook Mustang?

[jpd80]

Possibilities that are financially viable:
1) Mondeo 5-door and Station Wagon
2) Ford Escape
3) Ford Edge...Ford Europe is developing the next gen version

Any of those would be a great help to Ford Australia but i would be greeedy
and want two, My picks would be 5-door and S/W Mondeos as well as Escape.

[4stanger]

Originally Posted by XRtowcar

Right hook Mustang?

+1, for here and other export markets that need RHD!

[Nikked]

It would have been good to gain focus Assembly/production...but FoA chose to consentrate on the Falcon.

Hopefully it will pay off.

[EB#]

Yep...... Anything will do !
Nothing wrong with more local jobs !!

[Bossxr8]

A 20% smaller Territory to slot into the small SUV segment Vs Rav4 etc.

But I guess thats what the new Escape/Kuga will do.

As mentioned Ranger SUV would be a good fit.

[JG34JA]

They should use the space to make a really big crash-testing track, and strap the AUD into a shell and ram it into a wall at 200km/h, thereby crashing the currency.

That would help manufacturing at Broadmeadows more than almost anything else.

[FalconXV]

Premium compact RWD sedan with Barra .Just dreamin'...
Also, premium small SUV would be a profitable sector to enter into, next Escuga will probably be lower end....

[Pepscobra]

RHD Mustang assembly would be ideal!

[IDT]

Either proper luxury or sports/track car would suit. Ideal factory size not to have to do huge production runs. $120,000-$170,000 target market.

[FPV GTHO]

Originally Posted by Road_Warrior

The thing is this: the Broadmeadows assembly plant has a capacity of 120,000 units per annum, so even if the new car does sell well (as does it's Territory cousin, whatever that may be in the future), there is still a lot of unused capacity in the assembly plant.

That is only the capacity of the current single shift. If they had the production to add a 2nd or 3rd shift and kept the plant efficiency, then those 120K units are only 1/3 capacity.

[Linkachu]

Mustang at a decent price would be sick.

[Brazen]

Interesting Holden research on locally built cars:

http://www.caradvice.com.au/144771/h...-hatch-review/

The company’s research data shows that 92 per cent of owners who have bought a locally produced Cruze sedan knew it was Australian-made and 75 per cent of those said they were more likely to buy a Cruze over its competitors because it’s made locally.

I also think Ranger would be a good locally built option. Imagine all the government, fleets, mining companies, grey nomads builders and tradies having the choice between an Aussie designed and built 4wd ute or something made in Thailand. Goodnight Hilux, Colorado, Triton and Navara. I think locally built Ranger could be one of the biggest selling vehicles in the country.

[Road_Warrior]

Originally Posted by Brazen

Interesting Holden research on locally built cars:

http://www.caradvice.com.au/144771/h...-hatch-review/



I also think Ranger would be a good locally built option. Imagine all the government, fleets, mining companies, grey nomads builders and tradies having the choice between an Aussie designed and built 4wd ute or something made in Thailand. Goodnight Hilux, Colorado, Triton and Navara. I think locally built Ranger could be one of the biggest selling vehicles in the country.

There could be a bit more flexibility with powertrains too if it was made locally. Imagine a dual cab Ranger with the ZF and a tweaked version of the TD from the Territory...

[blk6t]

I think it's a no brainer, Ford Oz need a car to compete with the Cruze. The execs at Holden are no idiots, what they have done with the Cruze is outstanding (I can't stand the car to be honest), the sales numbers tell the story.

I think the Mondeo in my opinion just doesn't cut it in Australia (my opinion), Ford Oz should start building a Cruze sized Falcon to sell locally and look to export where possible. Even look at the Focus, it's not selling too well and there is BIG market out there of people wanting medium sized cars.

This smaller Falcon should be in my opinion RWD or worst case FWD with a AWD sports version, an advantage over the Cruze. Ford could run the turbo 4 cyl motors in the range and put a small capacity V8 in a sports version and possibly LPG/Diesel options. The car should be produced in hatch and sedan form just like the Cruze.

Ford could then wind down production of the Falcon to satisfy the large car niche and that's it. Ford could keep the interior very similar to the Falcon to keep parts interchangable and costs down.

I think the Cruze looks cheap, and is a boring drive, Ford Oz have the means to produce a similar sized car that would be sooo much better looking and much more fun to drive.

How many here would buy a Cruze sized Falcon with a smaller capacity NA V8 or buy a turbo 4 for a run around??? I would any day of the week!!!!!

[Road_Warrior]

Originally Posted by blk6t

I think it's a no brainer, Ford Oz need a car to compete with the Cruze. The execs at Holden are no idiots, what they have done with the Cruze is outstanding (I can't stand the car to be honest), the sales numbers tell the story.

I think the Mondeo in my opinion just doesn't cut it in Australia (my opinion), Ford Oz should start building a Cruze sized Falcon to sell locally and look to export where possible. Even look at the Focus, it's not selling too well and there is BIG market out there of people wanting medium sized cars.

This smaller Falcon should be in my opinion RWD or worst case FWD with a AWD sports version, an advantage over the Cruze. Ford could run the turbo 4 cyl motors in the range and put a small capacity V8 in a sports version and possibly LPG/Diesel options. The car should be produced in hatch and sedan form just like the Cruze.

Ford could then wind down production of the Falcon to satisfy the large car niche and that's it. Ford could keep the interior very similar to the Falcon to keep parts interchangable and costs down.

I think the Cruze looks cheap, and is a boring drive, Ford Oz have the means to produce a similar sized car that would be sooo much better looking and much more fun to drive.

How many here would buy a Cruze sized Falcon with a smaller capacity NA V8 or buy a turbo 4 for a run around??? I would any day of the week!!!!!

And without government subsidies, the Cruze would be going nowhere. Holden even said so themselves. Any new vehicle made by Ford needs to stand on its own and not be reliant on government props to make it viable. The Kuga or the Ranger would be a win here, because they are vehicles in demand that command substantial profits and makes a return on investment much more certain.

[dimka100]

It’s interesting that most people are asking for additional manufacturing in Australia, however most forget that business wise it’s the last thing any company will try to do these days:

As per another thread that’s already running on this forum, manufacturing in Australia is simply not viable any more – unless its government subsidised:

1. We have a very expensive workforce here
2. We have very high company taxes
3. We have far more OH&S laws, fair workplace laws, unions governance that any developing country
4. We are very far away while our local market is tiny

All these issues make manufacturing in Australia astronomically more expensive than say countries like China or India or many other developing countries of this world …

We do however have one strength over many developing countries and that is engineers and experience in designing things … that is exactly what every manufacturer out there needs to take advantage of … Hence for companies like Ford, the best business case is to outsource manufacturing lines to developing countries (China, India, Thailand …) while reinvesting the savings gained into more engineering/design/development/testing activities in Australia. This in return will make cars like the Falcon a lot cheaper to build, while the savings could be reinvested into development to keep improving the product in order to keep up with the rest of the worlds manufacturers …

I know that a lot of people get sad when they see labour jobs slowly diapering from this country … but the reality is such and its only a matter of time before it happens in every industry … people they need to adapt and start getting a higher education so they can remain competitive against the much much cheaper workforce of the developing countries … our government can only keep subsidising so much, and even the labour government is slowly starting to realise it’s not a sustainable way of going about things.