Lack of XR8, Wagon and LPG hurt Falcon - Graziano

[Brazen]

http://www.caradvice.com.au/149799/2...-sales-spiral/

Ford Australia won’t guarantee a halt to sliding Falcon sales in 2012 despite the introduction next year of a model range update and a new, more fuel efficient four-cylinder engine.



This year will go down as one of the worst in the Falcon’s 51-year history. After four consistent sales years between 2007 and 2010 where the Falcon – despite losing ground each year – remained between 33,941 and 29,516 units, this year it is on track to plummet by around 10,000 sales, falling below 20,000 units for the first time in recent history.

The year-on-year decline is the Falcon’s worst result since 2005-2006 when sales fell from 53,080 to 42,390 – although this year’s drop, likely to be in the region of 35 per cent, is far worse in terms of percentages. The glory days of 2003, when the Falcon achieved its best ever yearly sales result of 73,220 vehicles, is now a very distant memory.

Ford Australia president and CEO Bob Graziano is upbeat about the coming 12 months, but stopped short of guaranteeing annual Falcon sales would increase for the first time since 2003. “We now have the freshening out, we will have EcoBoost out early next year along with EcoLPi, so I’m looking for a good year in 2012,” he said.



Graziano attributes the disappointing 2011 result to three factors: the lack of an LPG-powered car for the majority of the year (production of the previous model ended in September 2010, while the replacement EcoLPi started rolling out in July 2011), the lack of a Falcon wagon (production ended in June 2010), and the decline of the large-car segment. Ford also stopped building the XR8 in January 2010.

Ford is already starting to take care of the first one. In its first two months on sale, the brand’s new EcoLPi LPG system accounted for around 17 per cent of Falcon and Falcon Ute sales, pushing back towards the 20-25 per cent share enjoyed by the old gas models.

The Falcon wagon isn’t coming back, but a strong year from the Territory – buoyed by the launch of the heavily revised SZ model and the diesel engine – has helped offset some of the losses. Ford Australia is on track to deliver around 12,900 for the year, which would be the medium SUVs best result since 2007.



The third problem is undoubtedly the biggest one, although the decline of the large-car segment is exacerbated by the poor performance of the Falcon. The large segment has fallen 21.1 per cent this year. The Falcon has fallen 37.0 per cent this year, while the Holden Commodore is down just 10.4 per cent. If you remove the Falcon, the large-car segment is down just 13.6 per cent, which means the Falcon has actually performed almost three times worse than the average large car this year.

Graziano says the Falcon’s performance in 2012 will largely be dictated by the direction of the market, but remains optimistic with the launch of the cheaper, better equipped FG MkII range, and, crucially, the addition of the EcoBoost engine to the line-up early next year. “It’s really going to be dependent on whether the market segment continues to decline … but I really feel that we’ve got a strong opportunity to continue to grow on the successes that we’ve had this year with all the new technologies that we’ve got.

“There isn’t one single thing that you’ll look at and say, ‘that’s what’s going to restore Falcon volumes to where they used to be’. I think it’s a combination of everything we have to offer as people begin to realise that the Falcon brand is not only an iconic brand but it’s got absolutely outstanding technologies and terrific driving dynamics that I think Australia consumers appreciate when they get behind the wheel.”



Production of the FG MkII has already begun and vehicles will arrive in showrooms later this month and early in January, while the Falcon EcoBoost – to be available in XT, G6 and G6E variants – will go on sale early in the second quarter of 2012. With a fresh and diverse product offering, there should be few excuses for the Falcon to perform in 2012.

[R-Design]

Originally Posted by Brazen

http://www.caradvice.com.au/149799/2...-sales-spiral/

Don't think Graziano included the XR8 in his discussion unfortunately, CA added that off their own bat.

There is nothing earthshattering in his comments.

[Spanrz]

I find it funny that a boss would say something about "niche" markets, and that they dictated sales.. (i.e Wagon)
There you go, the Wagon component of the Falcon, DOES dictate a sales market, which does hurt the bottom line.

[Bossxr8]

Originally Posted by Boss315

Don't think Graziano included the XR8 in his discussion unfortunately, CA added that off their own bat.

There is nothing earthshattering in his comments.

They have not done anything with the XR8 since the development program was stopped early this year. It looks like its been stopped indefinately, with it unlikely to return.

[swanee]

I think lack of marketing and promotion is hurting Falcon and Ford more in general.

When was the last time Ford had an "exciting" Falcon commercial?

[FPV8U]

BA - "Cant get enough of this" was the last time a Ford add made me dream of owning one.

[jixel 78]

Nothing earthshattering about losing XR8 either. The Falcon is on life support, and all people talk is `low cost V8`. Seriously.

[Smoke Pursuit]

They have had alot against them with some silly moves over the last 5 years... Things like killing the Turbo Diesel Territory program then going back to it, then gearing up for a V6 Falcon, then pulling that, then killing the XR8 after already spending money on it... Then putting the diesel in the Territory and making an LPG Falcon, instead of just going with diesel for both? Why waste resources on things if you are not going to go through with them, it seems to me that their forward planning is shitful and could potentially be the demise of FMCA.

The BA Falcon was the best thing Ford ever did, sadly they couldnt support it with decent build quality / after sales service. The amount of people I know that had BA Falcons and vowed never to buy a Ford product again is concerning.

I still think they could have kept the wagon in BFIII guise and sold 5000 atleast a year... Theres heaps of companies that have gone out and bought Mondeos now coming back and saying they are sagging in the rear (due to too much weight) therefore we cannot use them... The Falcon wagon was a work tool, it did not need to be pretty to do the job it was doing (e.g. crown victoria). The cost of doing a gearbox / euro 4 update to it would have been recovered quite easily but Ford are too concerned about other things like Imports, some of which they make alot less $$$ out of compared to locally built products.

Same goes for ute, they killed TWO of the most popular models (RTV & XR8), now wonder why they only sell 500 utes a month instead of a 1,000. Not everyone is buying dual cab utes, Holden still sells plenty of 4x2 commodore utes.

[Brazen]

Originally Posted by DASH GT

I still think they could have kept the wagon in BFIII guise and sold 5000 atleast a year... Theres heaps of companies that have gone out and bought Mondeos now coming back and saying they are sagging in the rear (due to too much weight) therefore we cannot use them... The Falcon wagon was a work tool, it did not need to be pretty to do the job it was doing (e.g. crown victoria). The cost of doing a gearbox / euro 4 update to it would have been recovered quite easily.

Another quality Burela move?

5000 Falcon wagons a year would be great, it would also help amortise EcoLPI over a greater number of cars, and it also helps diversify your product a bit in case the bum falls out of large sedans sales (which it has).

Funny you mention the sagging rear Mondeo wagon as the latest Telstra Sportwagons have jacked up suspensions - Holden must be making Country Pack suspension standard on some fleet cars as to alleviate some of the concerns from coil springs.

[JG34JA]

In the wagon sector, Ford had an excellent product without competitors (big, roomy, strong leaf springs, dedicated LPG economy) which was largely paid for and yes, it's costing them Falcon sales in discontinuing it. Good to hear the MD put this into words, actually.

[mr smith]

Originally Posted by Bossxr8

They have not done anything with the XR8 since the development program was stopped early this year. It looks like its been stopped indefinately, with it unlikely to return.

XR8 kaput.

[Smoke Pursuit]

Originally Posted by Brazen

Another quality Burela move?

5000 Falcon wagons a year would be great, it would also help amortise EcoLPI over a greater number of cars, and it also helps diversify your product a bit in case the bum falls out of large sedans sales (which it has).

Funny you mention the sagging rear Mondeo wagon as the latest Telstra Sportwagons have jacked up suspensions - Holden must be making Country Pack suspension standard on some fleet cars as to alleviate some of the concerns from coil springs.

Yes well apparently a large lease company in QLD had some Mondeos given back to them due to sagging in the rear... The company said they were a workplace health and safety risk and that Ford should not be selling them as a direct falcon replacement. Apparently the road manners of the cars changed drastically with a load in the rear.

That company has now moved to sports wagons apparently, we will see how they go!

[glavas]

i done my bit. i bought a fg xr6t ute with lux pack and hard lid. who else on FF has done there bit? and im a holden man aswell.

[Windsor220]

Originally Posted by DASH GT

Yes well apparently a large lease company in QLD had some Mondeos given back to them due to sagging in the rear... The company said they were a workplace health and safety risk and that Ford should not be selling them as a direct falcon replacement. Apparently the road manners of the cars changed drastically with a load in the rear.

That company has now moved to sports wagons apparently, we will see how they go!

You wonder how much weight they are putting in there to cause that. They may be better off with a ute or van.

[vztrt]

Originally Posted by Windsor220

You wonder how much weight they are putting in there to cause that. They may be better off with a ute or van.

The Falcon wagon was fantastic for Telstra. It showed up any other wagon. IT was a crude product (when you look at it) but it filled a market segment that no one could really touch (the Commodore couldn't carry the load of the Falcon).

Don't really see why the sportshatch would really do well with Telstra, guess they have no choice.

[blownv8au]

For me it goes back to the release of the fg. if i wasn't a ford nut i would never had known about it. i saw no adds in the paper or on tv till 2 months after the release and even then they were few and far between. preety crap i thought and it still hasen't changed. you have to addvatise your product if people are going to compare it to what else is on offer. . just my view but they always did well pre fg.

[Smoke Pursuit]

Originally Posted by vztrt

The Falcon wagon was fantastic for Telstra. It showed up any other wagon. IT was a crude product (when you look at it) but it filled a market segment that no one could really touch (the Commodore couldn't carry the load of the Falcon).

Don't really see why the sportshatch would really do well with Telstra, guess they have no choice.

They have no choice...

The last lot of Wagons are gone (they must have had them on order or went out and bought some runout ones even though they typically only buy factory ordered cars).

The wagon had such a big market... Every funeral company up here has atleast 2 of them as body transport cars, they cant fit bodies in Sportswagons.... Not sure if they can in Mondeo either.

[jpd80]

Originally Posted by Bossxr8

They have not done anything with the XR8 since the development program was stopped early this year. It looks like its been stopped indefinately, with it unlikely to return.

Perhaps one of the reasons why the new FPV GS echoes the styling of the vacant XR8 model?

[OffRoadFalcon]

If Ford brought back the wagons, full size, but good looking, I'd buy one. If they don't, I'll probably buy the family AUII Futura wagon off the parents.

[The Yeti]

Originally Posted by swanee

I think lack of marketing and promotion is hurting Falcon and Ford more in general.

When was the last time Ford had an "exciting" Falcon commercial?

the size it up campain for XB

after that I cant think of a good let alown exciting falcon marketing campain

[Falc'man]

Originally Posted by JG34JA

In the wagon sector, Ford had an excellent product without competitors (big, roomy, strong leaf springs, dedicated LPG economy) which was largely paid for and yes, it's costing them Falcon sales in discontinuing it. Good to hear the MD put this into words, actually.

You're right, it's a rare thing but maybe he's leading onto something.
Okay, I'll start the rumour - Falcon wagon will return.

[Bossxr8]

You can't be serious?

[JG34JA]

Boss XR8, you heard it first in the forums!

[BFZ Wagon]

I personally think the decline in large car sales is due to the stupid Govco and private fleet managers being dictated to and told they HAVE to have a vehicle that runs on fairy dust and doesn't hurt the air it pushes through.
Combine that with the media spin that the big car is bad bad bad and small car is good doesn't help either.
But.... People still choose to buy those 'thirsty as hell' SUV's. Go figure..

Unfortunately, Ford lost its way many years ago and it's no wonder people go to other companies when they can't get what they want or they choose to buy an older model that has all the stuff in it they need.

Anyway, just my view.

[aussie muscle]

which means the Falcon has actually performed almost three times worse than the average large car this year.

not helped by the media predicting the car's demise every week.

[Brazen]

Originally Posted by aussie muscle

not helped by the media predicting the car's demise every week.

No, its not helped by constant stupid decisions by Ford and deliberate vague comments from Ford about the Falcon's future.

The real problem is that Ford keeps trying to pitch the Falcon at the 'head' instead of the 'heart'. This is never going to work as the Falcon is a pointless vehicle. It is a sedan which takes up as much space on the road as a 100series Landcruiser yet offers no utility or lifestyle freedom at all.

Sure, some may say its practical, its a large sedan which can seat 5 adults and it can tow 2.3 tonne right?? People used to use Falcons for everything, towing, camping, exploring, whats changed? Well they now build them 12mm off the road meaning people dont think of them as a suitable tow or touring vehicle. They might be good at these things, but they dont APPEAR to be. Plus most SUVs can do these things anyway.

What about fuel use? SUVs still sell well, why doesnt Falcon? Because those vehicles go for the heart - they offer freedom, getting away from it all, utility and romance. Yes, these cars are romantic, when I bought the Sportwagon in my head I imagined the dog in the back on country drives, going antiquing with the Mrs and coming across a coffee table which I put in the back, and even being parked at a beach on a sunny day laying back in the boot with the tailgate open eating fish and chips with the wife. Are these things lame, hell yeah! But thats the point - at not one point did I mention the Sportwagon was fuel efficent, good to drive etc. People like to fantasise.

1446 sales after months of pent up LPG demand is pathetic especially considering the prices you can pay - they almost throw in a free Falcon when you buy a Fiesta. The problem is not confined to Ford the most successful car company in Australia's history can barely move 600 Aurions sedans a month and even Commodore sedan is down (although the VE is approaching 6 years old and would be down regardless). Having a preimum priced 4 cylinder is pointless too, no-one spends 40 grand on a car to save $5 a week. If you cared that much about fuel costs, buy a $20,000 Corolla or a Hybrid Camry.

What to do? Ford should look at a complete V8 range, XR8, XR8 Premium and G8E. As I said they are not going to win the 'head' race (if Toyota cant do it, no-one can) so go for the heart - these sales are profitable and lucrative. Engineer a full-sized lifestyle wagon with a full range of variants including EcoLPI and V8. Sure the usual suspects on this forum will blah blah about profits or spending money etc. But honestly, if Ford Australia does not want to spend money, they are in the wrong business.

If Ford are not going to spend money on the Falcon then the marketing has to change. Go for the jugular of Australian romance - associate Falcon with rural and outback Australia. Show a story, show a man in his late 30s who has had enough of his 9-5 rat race, he is sitting in traffic on a grey Monday morning in a silver G6E and decideds on a whim (maybe have a flashback of him with a young lady) to visit his long lost love from when he grew up in a country town 20 years ago. Show the journey: crossing creeks, driving alongside bounding kangaroos on long dirt roads, overtaking B-Doubles, helping tow a large horsefloat for someone who has broken down to the next town, asking for directions from some old guy in an Akurba Finally end it with the dirty, soiled, mud-stained Falcon G6E pulling up to a county homestead, a vague sillouette of a women in a summer dress comes to the door, with the last scene being the driver with a smile on his face.

[Smoke Pursuit]

Originally Posted by Brazen

No, its not helped by constant stupid decisions by Ford and deliberate vague comments from Ford about the Falcon's future.

The real problem is that Ford keeps trying to pitch the Falcon at the 'head' instead of the 'heart'. This is never going to work as the Falcon is a pointless vehicle. It is a sedan which takes up as much space on the road as a 100series Landcruiser yet offers no utility or lifestyle freedom at all.

Sure, some may say its practical, its a large sedan which can seat 5 adults and it can tow 2.3 tonne right?? People used to use Falcons for everything, towing, camping, exploring, whats changed? Well they now build them 12mm off the road meaning people dont think of them as a suitable tow or touring vehicle. They might be good at these things, but they dont APPEAR to be. Plus most SUVs can do these things anyway.

What about fuel use? SUVs still sell well, why doesnt Falcon? Because those vehicles go for the heart - they offer freedom, getting away from it all, utility and romance. Yes, these cars are romantic, when I bought the Sportwagon in my head I imagined the dog in the back on country drives, going antiquing with the Mrs and coming across a coffee table which I put in the back, and even being parked at a beach on a sunny day laying back in the boot with the tailgate open eating fish and chips with the wife. Are these things lame, hell yeah! But thats the point - at not one point did I mention the Sportwagon was fuel efficent, good to drive etc. People like to fantasise.

1446 sales after months of pent up LPG demand is pathetic especially considering the prices you can pay - they almost throw in a free Falcon when you buy a Fiesta. The problem is not confined to Ford the most successful car company in Australia's history can barely move 600 Aurions sedans a month and even Commodore sedan is down (although the VE is approaching 6 years old and would be down regardless). Having a preimum priced 4 cylinder is pointless too, no-one spends 40 grand on a car to save $5 a week. If you cared that much about fuel costs, buy a $20,000 Corolla or a Hybrid Camry.

What to do? Ford should look at a complete V8 range, XR8, XR8 Premium and G8E. As I said they are not going to win the 'head' race (if Toyota cant do it, no-one can) so go for the heart - these sales are profitable and lucrative. Engineer a full-sized lifestyle wagon with a full range of variants including EcoLPI and V8. Sure the usual suspects on this forum will blah blah about profits or spending money etc. But honestly, if Ford Australia does not want to spend money, they are in the wrong business.

If Ford are not going to spend money on the Falcon then the marketing has to change. Go for the jugular of Australian romance - associate Falcon with rural and outback Australia. Show a story, show a man in his late 30s who has had enough of his 9-5 rat race, he is sitting in traffic on a grey Monday morning in a silver G6E and decideds on a whim (maybe have a flashback of him with a young lady) to visit his long lost love from when he grew up in a country town 20 years ago. Show the journey: crossing creeks, driving alongside bounding kangaroos on long dirt roads, overtaking B-Doubles, helping tow a large horsefloat for someone who has broken down to the next town, asking for directions from some old guy in an Akurba Finally end it with the dirty, soiled, mud-stained Falcon G6E pulling up to a county homestead, a vague sillouette of a women in a summer dress comes to the door, with the last scene being the driver with a smile on his face.

If only Ford would market the car to start with...

They need to go back to the old days!! Some of the adds from the 70's were great and depict some of which you speak of. People in the country still love Commodores & Falcons... Go to any country town and you will see how many are floating around, they don't like SUV's or big heavy 4x4's.

[Brazen]

Originally Posted by DASH GT

If only Ford would market the car to start with...

They need to go back to the old days!! Some of the adds from the 70's were great and depict some of which you speak of. People in the country still love Commodores & Falcons... Go to any country town and you will see how many are floating around, they don't like SUV's or big heavy 4x4's.

You're right and when you pitch the car at the rural buyer, this appeals to the city buyer. Crazily many people who live in the city have this romantic notion of being able to jump in the car and head out in the outback. People with mortgages and gridlock want something which reminds them of rural Australia, a place which in many peoples' minds is relaxed, honest, beautiful and full of character. When Ford is selling the Falcon they should be selling rural Australia and they should be selling freedom.

[Mr Hardware]

people in the country don't like 4x4's?
not sure if joking.....

[Falc'man]

I find it interesting that right after the media's story about the Commodore's shaky future it's sales have dropped.

Originally Posted by Bossxr8

You can't be serious?

I wasn't, but hey, if it ever does happen I can say I told you so