Ford Australia Reports Profit for 2009

[uranium_death]

Great result by Ford Australia.
For all those clowns wanting XR wagons, coupes, flying-SUVs and time-travelling FPVs, THIS is why you will NOT be getting them.
Ford making smart decisions and knowing their own limits, but working sensibly within them.
With fewer sales than Holden, Ford has posted a better 2009 result. What does that tell you?
It tells you that if you are not satisfied with Ford's result or their range, then feel free to visit the Lion and buy one of their failed projects. Heaven knows they need it.

[FlipXW]

Originally Posted by 4Vman

Frighneningly quiet thread for what is one of the most significant good news stories for Ford in a long time...

Had it been a loss posted im sure we'd be up to 5 pages by now.. not 1...

The usual nay sayers are nowhere to be seen, hence no arguments .

Congratulations Ford. Hopefully this is just the first step of recovery and we continue to see profits and more importantly aussie built fords in years to come.

[My poor XF]

Top news, further proof that selling the most cars in the country doesn't mean much if you don't turn a profit.

[ieatsports_cars]

That Is Awesome News Ford !! Keep It Up

[Falc'man]

I don't understand this, it's too confusing. Shouldn't they be, like, closing down due to poor sales?

[barra240t]

Awesome effort by not just one person, but the whole staff of FOA and their dealers.

[barra240t]

Originally Posted by uranium_death

Great result by Ford Australia.
For all those clowns wanting XR wagons, coupes, flying-SUVs and time-travelling FPVs, THIS is why you will NOT be getting them.
Ford making smart decisions and knowing their own limits, but working sensibly within them.
With fewer sales than Holden, Ford has posted a better 2009 result. What does that tell you?
It tells you that if you are not satisfied with Ford's result or their range, then feel free to visit the Lion and buy one of their failed projects. Heaven knows they need it.

That is so spot on! Well said.

[dannyhilton]

Originally Posted by 4Vman

Frighteningly quiet thread for what is one of the most significant good news stories for Ford in a long time. Had it been a loss posted im sure we'd be up to 5 pages by now.. not 1...

I'm a blue blood Ford guy, but even I can acknoledge most of us like to have a good winge! Seems to be what seperstes us from the dark side, we're hard to please, have high standards and are always wanting Ford to work harder. Most Holden fans have wet dreams over SIDI and couldn't accept their old four speed auto and origional AlloyTech engine combo was shocking.

Give them a Daewoo replacement to their Barina, which was inferior to its Opel based product, and they rejoice. Give us the fantastic Euro based MK7 Fiesta, and we winge about how the boot doesn't have carpet on the back of the seats! HAHA.

[G6E Turbo 2]

I am loving this

Can't wait till my son in law visits with his Calais next time
Thats if it is not back at Holden being fixed under warranty again

Bring on the 5.0 V8 , I might just trade my G6ET on one

I know it would not be healthy for the industry but geeeeeez i would
love to see Holden go bankrupt, I hate their smug buisness model
for of claims that treat thier customers like the half wits they are !!!!

[phillyc]

Originally Posted by Falc'man

I don't understand this, it's too confusing. Shouldn't they be, like, closing down due to poor sales?

There has been plenty of conjecture about Ford not chasing enough sales and how could they possibly be making money on 56,000 units being made at Broady when 7 years ago they made 100,000 etc. Well, it is time to own up people! Time for the media too. Ford made a profit in an incredibly tough year

This year will likely see a rise in production of 15% which is what i expected at the beginning of the year and confirmed by Burela last month. Incidentally, whilst he announced the canning of the Falcon wagon. But, it is precisley these hard and sometimes unpopular decisions which have enable Ford to make a profit.

They are now at the point that when the wagon goes in September 2010 that it will free up the stamping plant complexity and allow for a faster build rate at the plant. Probably to the tune of 5% extra vehicles a day. So, they've given up 200-250 wagons / month sold for probably $30k each and will be able to build an extra 500 FG or Terri which they can sell for $35k plus. That is just smart business. It's also an extra million / month to add to the bottom line at a minimum.

[bmorris]

Good news Hopefully the good work keeps up (IE dealers get their act together)

[WOTDAH]

This announcement is perfect timing for the maintenance crew who are striking on Monday due to EBA negotiations.

[morak001]

I'm curious in regards to the profit split between imported vehicle operations and the manufacturing plant.

[XRFutura]

Its great to see good news for Ford, I just hope this can continue and put all the nay says to bed.

[GavL]

It's great to see news like this!

In drive they also mentioned something quite pleasing to see too

He said the company had also used its cash to pay down debt and grow its cash reserves.

Not only are they investing in R&D, but also reducing the debts which they have as well.

[vztrt]

Originally Posted by Falc'man

I don't understand this, it's too confusing. Shouldn't they be, like, closing down due to poor sales?

Or bad marketing, no models people wanna buy, poor customer service. Or no V12TT Ho....etc etc.

[Swordsman88]

Great result FoA! While not totally unexpected that they have greatly improved from the previous year (one of costs and FG development hangover) this is still good to see. So it wasn't a huge profit...but in the conditions it was a major achievement.

Its not clear if toyota's local operations are even in the black with their 'one size fits all' export program so no shock holden has bled badly in this area. Its the down days and concern over the lack of 'right sizing' (things ford have avoided with their restructuring) that people need to look at it. If holden says it woudl have made a profit of $12m last year without export problems, then they are buggered this year because that slim profit will be obliterate with the further cuts on the already ridiculous 'half shift' setup they are using. Can't imagine GM will help them none niether. R&D must be under extreme pressure at GMH right now.....right when Ford is set to launch a host of new and updated models...many of them locally built.

I think its highy unlikely Ford will ever take down Holden in overall sales (save for localy built sales total), but it will build cars profitably. And, most importantly, even for the imported cars, it will sell SUPERIOR product. This builds the brand WHILE making a profit. Good business sense.....as opposed to Holden's modus operandi....

[The Snout]

What's very encouraging about the result is Fiesta,Focus and Mondeo haven't really been performing as well as hoped, yet Ford still turn a profit.

If only those vehicles an get a bigger slice, then the bottom line would be very healthy.

Also, no better way to keep Falcon alive than by making a profit.

[Chilliman]

Good work Ford - Every dollar of profit (both here and globally) brings us closer to GRWD

[ZA-289]

Great news, its sad that everybody just wants to see the Falcon as the top selling car every month. Who cares!

[stang65]

Go Well Go Ford, The reason there aren`t so many posts is because its all been said.
Ford know what there doing and there doing it well.

[EDManual]

Ford is a quality product, locally made, and imported.

Holden is not as good locally made, probably close though to Ford, however the imports are second rate.

Like comparing VW with Daewoo.

On another note, Toyota camry/aurion outsold the falcon... but if theres not profit it doesnt matter either.

[anto]

Originally Posted by 4Vman

Frighteningly quiet thread for what is one of the most significant good news stories for Ford in a long time...

28 posts in 6 hours? Come on guys, surely we're not just interested in bad news and controversy..

Had it been a loss posted im sure we'd be up to 5 pages by now.. not 1...

so true !!

what can I say Ford are awesome !!! I glad Im on the right team

[Blue_XR]

This is fantastic news.....A very positive thing for all of Ford arms around the world starting to turn around and the products are just getting better

[Quicksand]

Originally Posted by phillyc

Don't know of too many other companies in Australia investing $305million a year in R&D.

You need to spend money (wisely) to make money. Short term pain, long term gain. <Enter another cliche here>.

Originally Posted by 4Vman

Frighteningly quiet thread for what is one of the most significant good news stories for Ford in a long time...

28 posts in 6 hours? Come on guys, surely we're not just interested in bad news and controversy..

Had it been a loss posted im sure we'd be up to 5 pages by now.. not 1...

It's human nature...we are (sadly) drawn more towards conflict...indeed we seem to thrive on it.

Originally Posted by PhilXY

The usual nay sayers are nowhere to be seen, hence no arguments .

I will admit to being one of those 'naysayers' at some point. Like many others though, my frustration wasn't surrounding Ford simply having more outright sales over its competitors.

For me, it was more the concern that in 'bumper' periods of the year, when other manufacturers exploded in sales, Ford never seemed to 'take off' like others did. Record months and record quarters seemed to have no discernible positive sales impact to Ford.

The concern here was when customers seemed to have money and raised buying confidence during these record periods, they weren't putting their money towards Ford. The concern then was whether this trend would continue when the growth started to be more consistent as opposed to sporadic bumper periods. i.e. the economy is currently on the rise but will Ford rise with it.

After all, why is not not possible for Ford to have higher sales than it's competitors AND make a profit? Is this not possible? Ford US is topping the charts in sales AND is making a profit.

But then in contrast, Ford didn't have the low's that those manufacturers did. Steady and strong seemed to be the order of the day for Ford.

In saying all of this, as a Ford enthusiast with blue blood, i will never be ashamed of being their biggest critic. It is my right as a Ford Fan and as a consumer. As a Ford Fan i am ecstatic at this positive news and feel more assured of Ford's future.

[Quicksand]

Originally Posted by morak001

I'm curious in regards to the profit split between imported vehicle operations and the manufacturing plant.

This is a pertinent question. It will be interesting to see whether the profit was due to the imported vehicles or the locally manufactured products or both (or neither?)

[Chopped]

Well done Ford Australia.

The biggest news this year will be when the Coyote helps Ford get the V8 crown back. That thought gets me charged(super) up!.

[4Vman]

Originally Posted by Inducted_Breeze

I will admit to being one of those 'naysayers' at some point. Like many others though, my frustration wasn't surrounding Ford simply having more outright sales over its competitors.

For me, it was more the concern that in 'bumper' periods of the year, when other manufacturers exploded in sales, Ford never seemed to 'take off' like others did. Record months and record quarters seemed to have no discernible positive sales impact to Ford.

The concern here was when customers seemed to have money and raised buying confidence during these record periods, they weren't putting their money towards Ford. The concern then was whether this trend would continue when the growth started to be more consistent as opposed to sporadic bumper periods. i.e. the economy is currently on the rise but will Ford rise with it.

After all, why is not not possible for Ford to have higher sales than it's competitors AND make a profit? Is this not possible? Ford US is topping the charts in sales AND is making a profit.

But then in contrast, Ford didn't have the low's that those manufacturers did. Steady and strong seemed to be the order of the day for Ford.

In saying all of this, as a Ford enthusiast with blue blood, i will never be ashamed of being their biggest critic. It is my right as a Ford Fan and as a consumer. As a Ford Fan i am ecstatic at this positive news and feel more assured of Ford's future.

Being profitable and leading the sales are 2 mutually exclusive situations, in many instances the cheaper your product the more you sell.
Its very likely that Holden out sell Ford simply because of price hence the contrasting profitability of both companies.

If both companies had adopted the others strategy there might also be a reversal in sales numbers too.

The encouraging thing is Ford have found a way to be profitable at their current production levels, what this means is they can steadily grow the brand and gain incremental business based on product quality, not price...

Holden have geared their business to NEED volume and can't turn the "sausage machine" off hence their pricing and lack of profitability......

Out of curiosity which of the 2 companies, (Ford and Holden) sold the most cars made in Australia last month???
Which one sold the most SEDANS last month?????

[JutroXR8]

It's great to see such a massive turn around. But we still need to urge on the side of caution. Because if you are only making $135 profit for every car you sell (say $30,000 average cost of vehicle), then you are only making about 0.4% profit on the $30,000 investment. I'd rather leave the money in the bank, talking from a purely investor perspective (where you get 6% interest [4% clear earnings after tax]).

However, that being said, if they can continue the turn around trend, then we are in for some good times. Lets hope that it does continue!!!! Awesome effort none the less.

PS don't start with this so called "name sayers" crap, just because someone has a different view/opinion.

[CFOUR]

Fantastic news. Hopefully they pump that profit into sv8 r&d. Opposed to kickbacks for managements.