Ford Aust relys on European models as car tastes shift

Bud Bud · 10-04-2007, 10:03 AM

Hi guys just got this, this morning. Actually it is an interesting read, I am not sure I like Tom Gorman's comment "The market has changed fundamentally and in our view it has changed permanently" Wow strong view!

The story is heavily biased toward euro imports (good thing) but with comments from the top like that, it could also put some long term pressure on the performance (especially the V8's) arm at Ford as well, as that market is shrinking and Ford has now shifting its position with it.

Quote:

10/04/2007 - Ford Australia plans to bring in more new models from Europe, as larger and more powerful fuel-guzzling cars fall out of favour with local motorists.

Ford Australia's chief executive Tom Gorman, who took the role in 2004, says the future will still hold challenges here for the automotive maker, which last year laid off 650 staff and cut 20 per cent of its production capacity.

"Specifically within Ford Australia it is going to be very challenging, but I think there are lot of opportunities with those challenges," Gorman told Sky News.

"We are still doing a lot of very exciting things on the product side and we think there is in fact a lot of upside to our business."

Gorman said he has seen a fundamental shift in the landscape of the automotive market in Australia, with larger, more powerful vehicles losing favour.

"The market has changed fundamentally and in our view it has changed permanently," he said.

"We're actively pursuing bringing more important products into this country and really being in the segments where our customers want us to be and that's the simple reason we think that we can turn around our share decline and grow our business profitably into the future."

Ford Australia had sales of around 76,000 last year and Gorman believes this year's numbers will be similar, although a lot of growth will come in the second half of the year.

"We have an all new Focus coming out in the middle of this year... we're bringing in an all new Mondeo," he explained.

"We do see a lot of growth coming, particularly in the second half of this year."

He also said there is an all-new Falcon planned for next year, despite some pressure on the model.

"The Australian consumer is benefiting from a vast array of new products coming into this country and when you put that with the very strong Australian dollar it makes it attractive for all exporters to export into this country," he said.

"We are taking advantage of that to some degree, bringing in a lot of new products, particularly from Europe, and that is putting some challenges in front of the Falcon, but we are still committed to that segment.

"We're very, very excited about the future for that segment, even though it's quite a bit smaller than it was just two years ago."

Gorman said the decision to cut 20 per cent of production capacity and 650 jobs last year was the right one, but tough.

"That was a very difficult decision for us to make at that time, but I think it was the right decision and we have clearly put ourselves in a better position to be successful going forward," he said.

But he indicated that further job or production cuts are unlikely.

"We think we've made the cuts that are necessary to be competitive at this point in time."

Source: AAP NewsWire

Nashy86 · 10-04-2007, 10:52 AM

Good to see he's not hinting an further job cuts, thats a positive sign that the recovery plan is well thought out and working nicely, unlike some other local manufacturers who have cut hundreds of jobs on multiple occasions recently, looks like Ford did a good job of working out how many they needed to get rid of and made their move decisively.

Also good to see the product line expanding, all we need now is an export deal to replace the sales that Falcon has lost due to the shrinking Large Car market and keep the brand manufacturing here is Aus, even if they are importing many more models

Thanks for posting this up!

csv8 · 10-04-2007, 02:20 PM

At least they aren't rebadged DAEWOO'S!!!
Euro Fords are brilliant.!!!
Keep the septic Fords out. Unless its the Lincoln MKZ or the Mustang.

AussieJason · 10-04-2007, 02:33 PM

No hints about this being the last Falcon is also a positive.

Dave_au · 10-04-2007, 02:39 PM

Euro Fords wont have the same profit margins or the same consumer appeal as the Korean Holdens will. That's why Holden has shifted it's focus of the Opel/Vauxhaul line up of a few years ago to Korea.

Ford is gambling on the Euro cars having some extra appeal, some extra "goodwill" over the korean equivalents. This goodwill being driving dynamics, passive safety systems, arguable build quality.

Holden on the other hand is gambling on the public not caring for the extra appeal, rather that the consumer just wants a reasonable point a to point b car. Holden is looking at selling more models at lower costs. Seems to be working for the Korean Barina.

**Full Noise** · 10-04-2007, 03:35 PM

This will be great for the trade deficit, Peter Costello will be pleased.

Tom Gorman might say that consumers want more European models, however, will they be prepared to fork out the obscene prices for repairs and spare parts when these piles of junk are a few years old?

Also factor in the high price of insurance because rest assured, the insurance industry isn’t going lose out when these things cost a small fortune to repair after a minor bingle.

csv8 · 10-04-2007, 03:48 PM

Quote:

Originally Posted by Full Noise

This will be great for the trade deficit, Peter Costello will be pleased.

Tom Gorman might say that consumers want more European models, however, will they be prepared to fork out the obscene prices for repairs and spare parts when these piles of junk are a few years old?

Also factor in the high price of insurance because rest assured, the insurance industry isn’t going lose out when these things cost a small fortune to repair after a minor bingle.

My Fiesta cost $830 to have its front Bumper replaced, when an idiot reversed into it.
Check out SUBARU spare parts prices, worse than BMW.
Euro Ford cars will last longer than Korean Holdens, before needing parts.
My Fiesta isn't expensive to insure, ALLIANZ 60% NCB, $25 a month.

**Full Noise** · 10-04-2007, 03:59 PM

Quote:

Originally Posted by csv8

Euro Ford cars will last longer than Korean Holdens, before needing parts.

They may well last longer than Holden/Daewoos, but if you cop a rock in your Mondeo headlight or break a side mirror off, speak to your bank manager before you ring Ford spare parts for a replacement.

b2tf · 10-04-2007, 04:01 PM

Quote:

Originally Posted by Full Noise

They may well last longer than Holden/Daewoos, but if you cop a rock in your Mondeo headlight or break a side mirror off, speak to your bank manager before you ring Ford spare parts for a replacement.

agreed, alternator in my old Focus cost me $500.

uranium_death · 10-04-2007, 04:04 PM

People are too superficial for me. That's why I prefer Donkeys.

What is wrong with an Australian built Falcon. Sure...there's no European **** and the badge isn't as impressive but for the price you pay, you get a good vehicle.

We're falling for the stupid "European" crap when frankly, they're almost too refined for me. I like guzzlers.

sprjenkins · 10-04-2007, 04:16 PM

Quote:

Originally Posted by uranium_death

People are too superficial for me. That's why I prefer Donkeys.

What is wrong with an Australian built Falcon. Sure...there's no European **** and the badge isn't as impressive but for the price you pay, you get a good vehicle.

We're falling for the stupid "European" crap when frankly, they're almost too refined for me. I like guzzlers.

HMMM, anyway the euro fords are nice but hopefully we will still have at least some bigger engined cars around in Aus. Maybe put the turbo six in a different ford product. XR Mazda six turbo anyone. That would fly, 4wd, 270kw, leather seats hmm nice.

**Full Noise** · 10-04-2007, 04:25 PM

Quote:

Originally Posted by b2tf

agreed, alternator in my old Focus cost me $500.

Geeeez. I did an alternator in the T 904 that I used to drive and that was a Leece Neville 165 amp unit fitted to a 550 HP Cat and that only cost $620 and these are good for around 400,000 kms.

Poetic Justice · 10-04-2007, 05:22 PM

Quote:

Originally Posted by sprjenkins

Maybe put the turbo six in a different ford product. XR Mazda six turbo anyone. That would fly, 4wd, 270kw, leather seats hmm nice.

Or stick with Ford Mondeo?

csv8 · 10-04-2007, 05:47 PM

Quote:

Originally Posted by blackout

Or stick with Ford Mondeo?

Mondeo ST 220 has 300hp !!!!!!!!!!!!!!!!!!!!!!

Wally · 10-04-2007, 05:48 PM

Quote:

Originally Posted by Dave_au

Euro Fords wont have the same profit margins or the same consumer appeal as the Korean Holdens will. That's why Holden has shifted it's focus of the Opel/Vauxhaul line up of a few years ago to Korea.

Ford is gambling on the Euro cars having some extra appeal, some extra "goodwill" over the korean equivalents. This goodwill being driving dynamics, passive safety systems, arguable build quality.

Holden on the other hand is gambling on the public not caring for the extra appeal, rather that the consumer just wants a reasonable point a to point b car. Holden is looking at selling more models at lower costs. Seems to be working for the Korean Barina.

My daughter recently went car hunting and settled on the Ford Fiesta. After sales people mucking around for days, she gave up on the Ford and went straight in and bought a Holden Barina 3 door.

So if Ford think they can increase volume by merely bringing new product and hoping it will sell itself, they are in for a shock. It's been said by many members here.... the sales and service side of Ford is the wooden spoon problem, not necessarily the product appeal.

In relation to the original post, if people are getting turned off by gas guzzlers, how come those godawful suburban tractors are so common?

ClevlndStemer · 10-04-2007, 05:52 PM

Quote:

Originally Posted by uranium_death

What is wrong with an Australian built Falcon. Sure...there's no European **** and the badge isn't as impressive but for the price you pay, you get a good vehicle.

People are prepared to pay the extra $$ for something decent. People i have talked to have been burnt too many times by Ford and Holden local products to want to go back. Many have forked out the extra moula and bought Subaru liberty's, BMW's and even Honda's and have never looked back at the stuff produced here. Ford seems to be noticing this change as well (as well as people going for the smaller cars) and are lookign to adapt. Next step, get the quality of the Falcon up to an acceptable standard and it should maintain some decent sales. On paper the product range Ford offer is excellent, a wide selection, but when it comes down to it, a lot of it just doesn't cut the mustard.

Ives · 10-04-2007, 08:36 PM

Quote:

Originally Posted by Wally

My daughter recently went car hunting and settled on the Ford Fiesta. After sales people mucking around for days, she gave up on the Ford and went straight in and bought a Holden Barina 3 door.

http://www.youtube.com/watch?v=uCAoeFgiiWE

irsa76 · 10-04-2007, 08:57 PM

What's the price difference between a Fiesta and Mazda 2? Or a Focus or Mazda 3?

Ives · 10-04-2007, 09:02 PM

Ford Fiesta Vs Mazda 2
http://www.mazda.com.au/mazda2/prices.aspx?id=66
http://www.ford.com.au/servlet/Conte...Page&c=DFYPage

Ford Focus Vs Mazda 3
http://www.ford.com.au/servlet/Conte...1024&c=DFYPage
http://www.mazda.com.au/mazda3/prices.aspx?id=73

Hope that helps...

AU-MUSTD · 10-04-2007, 10:11 PM

Quote:

Originally Posted by csv8

My Fiesta cost $830 to have its front Bumper replaced, when an idiot reversed into it.
Check out SUBARU spare parts prices, worse than BMW.
Euro Ford cars will last longer than Korean Holdens, before needing parts.
My Fiesta isn't expensive to insure, ALLIANZ 60% NCB, $25 a month.

My "daewoo" captiva has already out lasted my previuos 2 new fords and it's only 4 weeks old so your drum is getting a bit old and worn to still be beating it. Wife's subaru spares have been very resonably priced so bmw must be good also then.
Captiva is $35 a month insured for 100% buisness use so i'll give you a big tick on that point.

Outbackjack · 10-04-2007, 10:19 PM

Quote:

Originally Posted by Full Noise

They may well last longer than Holden/Daewoos, but if you cop a rock in your Mondeo headlight or break a side mirror off, speak to your bank manager before you ring Ford spare parts for a replacement.

That situation may well change if more and more of these cars hit the road.

**Polyal** · 11-04-2007, 09:43 AM

Well his not about to say that Holden have made the right move.

I still dont think they market it enough, not the cars so much but the fact that they are euro's.

I would LOVE to know the facts on people buying the Holden/Daewoo cars. Straight after the purchase an independent body should ask if they realise its what it is.

Dave_au · 11-04-2007, 09:50 AM

Quote:

Originally Posted by Polyal

I would LOVE to know the facts on people buying the Holden/Daewoo cars. Straight after the purchase an independent body should ask if they realise its what it is.

Yeah but it's going to reach a point where Korea actually starts building half decent cars. Hyundai has had a few hit and misses along the way, providing they ever sort out their driving dynamics and slightly improve on build quality then they'll be getting close to the quality of cars we build here.

Korea now is what Japan was back in the 1970s.

**Polyal** · 11-04-2007, 09:55 AM

Quote:

Originally Posted by Dave_au

Yeah but it's going to reach a point where Korea actually starts building half decent cars. Hyundai has had a few hit and misses along the way, providing they ever sort out their driving dynamics and slightly improve on build quality then they'll be getting close to the quality of cars we build here.

Korea now is what Japan was back in the 1970s.

Yeah I agree with ya there, but right now is when Ford needs to hurt their reputation, start a smear campaign, whatever. Its a low move but this is Holden we are talking about, most managers there would sell their own mothers to get a sale.

I can think of a very easy add to make, say a mum or whatever talking about how she values safety, pulls out her Focus/Fiesta brochure and starts talking about her "x" star rating (I cant remember what it is).

Continues to crap on a bit, and brings up the crash tests, then looks over at her friend who has just brought a Barina; shes embarrassed with her record low (again, cant remember off the top of my head, it was crap though).

Something like that anyway...

xe351 · 11-04-2007, 02:46 PM

Quote:

Originally Posted by uranium_death

People are too superficial for me. That's why I prefer Donkeys.

What is wrong with an Australian built Falcon. Sure...there's no European **** and the badge isn't as impressive but for the price you pay, you get a good vehicle.

We're falling for the stupid "European" crap when frankly, they're almost too refined for me. I like guzzlers.

me too, euro cars are boring.

xe351 · 11-04-2007, 02:49 PM

Quote:

Originally Posted by AU-MUSTD

My "daewoo" captiva has already out lasted my previuos 2 new fords and it's only 4 weeks old so your drum is getting a bit old and worn to still be beating it. Wife's subaru spares have been very resonably priced so bmw must be good also then.
Captiva is $35 a month insured for 100% buisness use so i'll give you a big tick on that point.

it would be interesting to know in 10 years which will have been the most reliable car

chevypower · 11-04-2007, 03:07 PM

I haven't seen anything on the Aussie spec Focus TDCi (and would like to), and its due out soon. My impression is that its basically similar exterior and interior to the Zetec with the 2.0L diesel and 6 spd manual, and getting a combined hwy/city cycle of 5.5L/100 - but nothing official from Ford yet

DanielXR8 · 11-04-2007, 09:04 PM

Quote:

Originally Posted by ClevlndStemer

People are prepared to pay the extra $$ for something decent. People i have talked to have been burnt too many times by Ford and Holden local products to want to go back. Many have forked out the extra moula and bought Subaru liberty's, BMW's and even Honda's and have never looked back at the stuff produced here. Ford seems to be noticing this change as well (as well as people going for the smaller cars) and are lookign to adapt. Next step, get the quality of the Falcon up to an acceptable standard and it should maintain some decent sales. On paper the product range Ford offer is excellent, a wide selection, but when it comes down to it, a lot of it just doesn't cut the mustard.

You make some good points there. I traded in my GT Falcon a while ago because of the way Ford treat customers. I still have a Territory and wether the car that replaces it has a Ford badge, comes down to Fords attitude in the future to customers and not so much the car.

when Ford replace my local franshise holder with someone who knows about customer service, then I will know they are serious about wanting my business back. Until then Ford could bring out the car of the century and I wouldnt buy it. Customer service and dealers should be the number one issue with Tom Gorman. Even if he has to get a loan from the US to fight the dealers in the courts so he can tear up their existing agreements and start again.

They will let any good product down, just like they have in the past. yes I know there are exceptions, but they should be the rule.

Dan