Ford hits struggle street

[DanielXR8]

Taken from www.gotauto.com.au

Ford hits struggle street

Blue: Ford's current-generation has entered its final year of production.

Ford remains confident as the Blue Oval's family car hits a low point in sales

By NEIL McDONALD 23 February 2007


DESPITE the Falcon large car taking a king hit in last month’s VFACTS sales data – selling an unsustainable 1974 units – Ford Australia president Tom Gorman remains confident the company can push through the year.

With the Mazda3 and Toyota Corolla outselling the Falcon last month, Mr Gorman admitted that the small- and light-car segments had become the dominant players.

However, he ruled out slash-and-burn sales strategies or wholesale price cuts to improve Falcon sales. Instead, as it claimed to have done throughout last year, the company plans to implement positive sales, marketing and promotion actions for the remainder of 2007.

Mr Gorman admitted that last month’s Falcon sales figures were perhaps the "low point number" for the year. However, the Falcon is not alone as VE Commodore and Toyota Aurion sales have failed to ignite the large six-cylinder segment as expected.

"January is always a soft month but we did not expect to be under 2000," Mr Gorman said. "We were planning a low number by historical standards but not that low."

The Ford chief insisted marketing funds would not be swung away from Falcon to the booming small- and light-car segment offerings like Focus and Fiesta.

"On the one hand we’re clearly recognising structural changes in the market," he said. "It’s more of a small-car market so we do put resources there. But at the same time, it is in its last year of its cycle, so Falcon is the one that needs attention paid to it."

He admitted that gaining ground in the large-car segment was "going to be the challenge for us".

"Let’s put the cards on the table," he said. "It is challenging because of all the newer product that’s in that segment."

Ford aims to think creatively to get the message out about Falcon and do some hard selling. "It’s going to come down to a lot of strong tactical marketing actions and great support from our dealer body," Mr Gorman said. "It’s a combination of all things. It’s basic marketing stuff, it’s communications, it’s promotion, it’s product.

"There are different ways that we work to motivate the dealers to focus on one vehicle line versus another and we’ll continue to do that. I guess it’s working harder ... just focusing on the basics of marketing."


Left: Ford Australia president Tom Gorman.

With the new Falcon – codenamed Orion – not due until March 2008, Ford must soldier through the year with little in the way of changes to the current model. Mr Gorman confirmed that the latest BF MkII update would be the last of the generational changes to the vehicle.

The current model can trace its roots back to 1998 when the original AU was launched. After the poor market reception of the AU, Ford rushed out the vastly revamped BA range in 2002.

Ford had foreseen its slowing Falcon fortunes last year, moving late last year to take out 20 per cent of its overall production capacity at its Broadmeadows plant.

"This is going to be one of those years where you keep a close eye on production every day," Mr Gorman said.

However, despite Falcon’s woes, Mr Gorman said there were opportunities with the Broadmeadows-built Territory SUV.

"It isn’t just about the Falcon sedan," he said. "It’s Falcon sedan, ute and Territory and we think there’s opportunity for Territory in that mix. We think that it needs to be looked after. We know that it reacts well to aggressive marketing campaigns.

"But there is no question it’s going to be a very, very challenging year for us in the large-car segment."

Apart from its large cars, Ford also has some hero models arriving this year to keep the Blue Oval flag flying.

The Focus Cabrio joins the line-up in the second half of the year and there is also talk of a wagon and turbo-diesel variant for the Focus range. The much-rumoured Mondeo question also remains in play.

Mr Gorman has admitted he would like to see the Mondeo in the Ford line-up to extend the brand but no decision had yet been made on its likely arrival. The perennial question surrounding a Territory turbo-diesel remains, but it is not expected this year.

[Fordman1]

Originally Posted by DanielXR8

Taken from www.gotauto.com.au

Ford hits struggle street

Blue: Ford's current-generation has entered its final year of production.

Ford remains confident as the Blue Oval's family car hits a low point in sales

By NEIL McDONALD 23 February 2007


DESPITE the Falcon large car taking a king hit in last month’s VFACTS sales data – selling an unsustainable 1974 units – Ford Australia president Tom Gorman remains confident the company can push through the year.

With the Mazda3 and Toyota Corolla outselling the Falcon last month, Mr Gorman admitted that the small- and light-car segments had become the dominant players.

However, he ruled out slash-and-burn sales strategies or wholesale price cuts to improve Falcon sales. Instead, as it claimed to have done throughout last year, the company plans to implement positive sales, marketing and promotion actions for the remainder of 2007.

Mr Gorman admitted that last month’s Falcon sales figures were perhaps the "low point number" for the year. However, the Falcon is not alone as VE Commodore and Toyota Aurion sales have failed to ignite the large six-cylinder segment as expected.

"January is always a soft month but we did not expect to be under 2000," Mr Gorman said. "We were planning a low number by historical standards but not that low."

The Ford chief insisted marketing funds would not be swung away from Falcon to the booming small- and light-car segment offerings like Focus and Fiesta.

"On the one hand we’re clearly recognising structural changes in the market," he said. "It’s more of a small-car market so we do put resources there. But at the same time, it is in its last year of its cycle, so Falcon is the one that needs attention paid to it."

He admitted that gaining ground in the large-car segment was "going to be the challenge for us".

"Let’s put the cards on the table," he said. "It is challenging because of all the newer product that’s in that segment."

Ford aims to think creatively to get the message out about Falcon and do some hard selling. "It’s going to come down to a lot of strong tactical marketing actions and great support from our dealer body," Mr Gorman said. "It’s a combination of all things. It’s basic marketing stuff, it’s communications, it’s promotion, it’s product.

"There are different ways that we work to motivate the dealers to focus on one vehicle line versus another and we’ll continue to do that. I guess it’s working harder ... just focusing on the basics of marketing."


Left: Ford Australia president Tom Gorman.

With the new Falcon – codenamed Orion – not due until March 2008, Ford must soldier through the year with little in the way of changes to the current model. Mr Gorman confirmed that the latest BF MkII update would be the last of the generational changes to the vehicle.

The current model can trace its roots back to 1998 when the original AU was launched. After the poor market reception of the AU, Ford rushed out the vastly revamped BA range in 2002.

Ford had foreseen its slowing Falcon fortunes last year, moving late last year to take out 20 per cent of its overall production capacity at its Broadmeadows plant.

"This is going to be one of those years where you keep a close eye on production every day," Mr Gorman said.

However, despite Falcon’s woes, Mr Gorman said there were opportunities with the Broadmeadows-built Territory SUV.

"It isn’t just about the Falcon sedan," he said. "It’s Falcon sedan, ute and Territory and we think there’s opportunity for Territory in that mix. We think that it needs to be looked after. We know that it reacts well to aggressive marketing campaigns.

"But there is no question it’s going to be a very, very challenging year for us in the large-car segment."

Apart from its large cars, Ford also has some hero models arriving this year to keep the Blue Oval flag flying.

The Focus Cabrio joins the line-up in the second half of the year and there is also talk of a wagon and turbo-diesel variant for the Focus range. The much-rumoured Mondeo question also remains in play.

Mr Gorman has admitted he would like to see the Mondeo in the Ford line-up to extend the brand but no decision had yet been made on its likely arrival. The perennial question surrounding a Territory turbo-diesel remains, but it is not expected this year.

Focus Turbo Diesel & Cabrio, as well as Mondeo, are fine but they don't help Australia's balance of payments, nor do they keep Australian's in jobs.

I think we'll be hearing of further production cuts in Falcon & Terra very shortly unfortunately. Bad news.

[RIPGMH]

This always happens when there is so much overlap between competing new model releases. People just see VE as the newer car, not particularly better just newer. At the end of the day Australia is a big country with a family average of over two children. So small cars whilst popular at the moment will never replace the Aussie 6/8 cyl. 4 door sedan.

[Lukeyson]

Originally Posted by DanielXR8

Mr Gorman confirmed that the latest BF MkII update would be the last of the generational changes to the vehicle.

Great, so BFII will run for nearly 2 years ?

[banarcus]

Originally Posted by XR8fella

Great, so BFII will run for nearly 2 years ?

Or Orion in late '07.

[bEAn86]

Originally Posted by DanielXR8

Taken from www.gotauto.com.au

Ford hits struggle street

Blue: Ford's current-generation has entered its final year of production.

Ford remains confident as the Blue Oval's family car hits a low point in sales

By NEIL McDONALD 23 February 2007


DESPITE the Falcon large car taking a king hit in last month’s VFACTS sales data – selling an unsustainable 1974 units – Ford Australia president Tom Gorman remains confident the company can push through the year.

With the Mazda3 and Toyota Corolla outselling the Falcon last month, Mr Gorman admitted that the small- and light-car segments had become the dominant players.

However, he ruled out slash-and-burn sales strategies or wholesale price cuts to improve Falcon sales. Instead, as it claimed to have done throughout last year, the company plans to implement positive sales, marketing and promotion actions for the remainder of 2007.

Mr Gorman admitted that last month’s Falcon sales figures were perhaps the "low point number" for the year. However, the Falcon is not alone as VE Commodore and Toyota Aurion sales have failed to ignite the large six-cylinder segment as expected.

"January is always a soft month but we did not expect to be under 2000," Mr Gorman said. "We were planning a low number by historical standards but not that low."

The Ford chief insisted marketing funds would not be swung away from Falcon to the booming small- and light-car segment offerings like Focus and Fiesta.

"On the one hand we’re clearly recognising structural changes in the market," he said. "It’s more of a small-car market so we do put resources there. But at the same time, it is in its last year of its cycle, so Falcon is the one that needs attention paid to it."

He admitted that gaining ground in the large-car segment was "going to be the challenge for us".

"Let’s put the cards on the table," he said. "It is challenging because of all the newer product that’s in that segment."

Ford aims to think creatively to get the message out about Falcon and do some hard selling. "It’s going to come down to a lot of strong tactical marketing actions and great support from our dealer body," Mr Gorman said. "It’s a combination of all things. It’s basic marketing stuff, it’s communications, it’s promotion, it’s product.

"There are different ways that we work to motivate the dealers to focus on one vehicle line versus another and we’ll continue to do that. I guess it’s working harder ... just focusing on the basics of marketing."


Left: Ford Australia president Tom Gorman.

With the new Falcon – codenamed Orion – not due until March 2008, Ford must soldier through the year with little in the way of changes to the current model. Mr Gorman confirmed that the latest BF MkII update would be the last of the generational changes to the vehicle.

The current model can trace its roots back to 1998 when the original AU was launched. After the poor market reception of the AU, Ford rushed out the vastly revamped BA range in 2002.

Ford had foreseen its slowing Falcon fortunes last year, moving late last year to take out 20 per cent of its overall production capacity at its Broadmeadows plant.

"This is going to be one of those years where you keep a close eye on production every day," Mr Gorman said.

However, despite Falcon’s woes, Mr Gorman said there were opportunities with the Broadmeadows-built Territory SUV.

"It isn’t just about the Falcon sedan," he said. "It’s Falcon sedan, ute and Territory and we think there’s opportunity for Territory in that mix. We think that it needs to be looked after. We know that it reacts well to aggressive marketing campaigns.

"But there is no question it’s going to be a very, very challenging year for us in the large-car segment."

Apart from its large cars, Ford also has some hero models arriving this year to keep the Blue Oval flag flying.

The Focus Cabrio joins the line-up in the second half of the year and there is also talk of a wagon and turbo-diesel variant for the Focus range. The much-rumoured Mondeo question also remains in play.

Mr Gorman has admitted he would like to see the Mondeo in the Ford line-up to extend the brand but no decision had yet been made on its likely arrival. The perennial question surrounding a Territory turbo-diesel remains, but it is not expected this year.

Yeah not good at all! P.S why do people quote such large posts when they reply especally when it is just above thier post. Oh well i just throught i should do it too

[Poetic Justice]

If Mondeo is a good car.. and what our market may need, and Ford AUS production being on the down with the Falcon, why couldn't FoMoCoAu start building something like the Mondeo here?

[Deadman]

Originally Posted by banarcus

Or Orion in late '07.

Highly doubtful Orion will be here before early - mid 2008.

Originally Posted by bEAn86

P.S why do people quote such large posts when they reply especally when it is just above thier post. Oh well i just throught i should do it too

It's very frustrating isn't it

[prydey]

the article says 'orion' due in march 08 but i was under the impression the new shape would be in for v8's next year, which gets underway in march. i doubt they would do a model change mid season but you never know. because its such an upgrade i thoought that nxt year we would see another aero redesign as both models would be new.

[elgt146]

Originally Posted by blackout

If Mondeo is a good car.. and what our market may need, and Ford AUS production being on the down with the Falcon, why couldn't FoMoCoAu start building something like the Mondeo here?

Mondeo was a failure in Australia and it will　be again. It isn,t an identifiable car in Australia.

Australian Ford Owners love Aussie built cars. Look at the previous cars Ford put in their line up and have failed.

Mondeo, Taurus, Cougar, Explorer, Late　model Mustang and remember they already had a good market with Ford Fiesta but decided to can it.

Ford are in struggle town　and need to get orion on track hopefully to deliver something special. With the BA they should invest in some decent upspecced models and not stripes and trim. Put some more race spec versions out there to excite people. Bring back the Falcon Sundowner for the families too. haha

[RSgerry]

Originally Posted by elgt146

Australian Ford Owners love Aussie built cars. Look at the previous cars Ford put in their line up and have failed.

Mondeo, Taurus, Cougar, Explorer, Late　model Mustang and remember they already had a good market with Ford Fiesta but decided to can it.

I think Aussie car buyers are turning against the local product because of quality. How many threads are there on here from people who are disolusioned with their Falcon? I gave up my Falcon and will never buy another new Ford again as a result of build quality. It is sad, but unless Ford address some basic issues, then people will continue to leave in droves. Also, not many people need the large car any more. Most of the time, most cars are in the city and dont travel the sort of distances we used to. Technology has removed the need for someone to drive miles to talk to a client.

Most of Fords failures are down to Ford marketing, including declining sales of the current Falcon. Mondeo was a half decent car, but early ones had rear tyre noise like you wouldnt believe and the Taurus was just butt-ugly. The Laser and Telstar were hugely succesful for Ford in Oz, but in true Ford fashion, they let these products die. Now they are left with the ailing Falcon and two succesful small cars, which are not succesful due to Ford efforts, just because they are small (and possibyl good products).

I hate to say it, but if Ford dont pull their finger out, then the local product will die off completely.

[outback_ute]

Very good post RSgerry, I think you are spot on. The other thing that is driving people away from Falcons is the poor resale due to the huge numbers that go through fleets.

[uranium_death]

I said before, Australia needs to limit imports and place heavier tariffs on imports.

Secondly, support the companies who have a manufacturing plant in Australia.

Ford Australia also need to improve their marketing. The Barina is a piece of poo poo, smooshed all over the wall of your study with the gold-plated wallpaper...yet it outsells the Fiesta, despite it being completely inferior.

Why? Because people know about the Barina. They don't know the Fiesta. How many people still call it a "Festiva"?

Ford needs to get their cars out there.

[Wally]

I cringe a little when I see the advert involving a Falcon going over a bridge and the voiceover saying it has a European feel.... an obvious, but poor attempt to siphon the hype of the VE. The public will always associate the Falcon with the USA, that's just the way it is.

I remember a time when Ford had a captive market in the rural sector.... the cockies would buy them (especially Fairmonts) because they were rugged and had a superior seating comfort for long trips.

What we have is an ingrained legacy of the past generations:-

:- the Japs swamped the market with small engined, accessorised cars in the seventies that were great value for money, reliable and economical. While some of us were pulling out chokes on our un airconditioned local manufacture, others were enjoying turning the ignition to have the engine start first time, an electric aerial rise from the body and throwing their cigs into a centre consol. Now they swamp us with godaweful 4WD's, but it's Japanese so it must be good value and very economical considering the sheer weight


:- good European cars have a German provenance because they have a reputation for precision engineering, which must translate into their cars, even though most of the early cars fell to pieces on Australian roads and keeping trains running on time is not really a true indicator of product reliability.

:- an Italian car will rust away, because that's what they did in the seventies

:- Falcons are american because they are Fords. American cars are big unwieldy things that are embarrassingly so because Americans must have the biggest of everything to prove themselves worthwhile. Everyone knows that the reliable small cars were really Mazdas and being Japanese they must be great value for money, although Ford must also be getting a seller's premium, so why not just buy Mazda direct.

;_ Holden is Australia's car, because they invested in Australia in the fifties to build Australia's own car that had a remarkable resemblance to a Canadian car, just like the XK, XL and XM did, but without the internet who was to know.

[Danny]

If they put a Mazda badge on a new Mondeo it would sell. Thats all there is.

[majin_andrew]

Originally Posted by Danny

If they put a Mazda badge on a new Mondeo it would sell. Thats all there is.

This is true.

[Deadman]

Originally Posted by RSgerry

I hate to say it, but if Ford dont pull their finger out, then the local product will die off completely.

I personally think that this is their fate no matter what they try and do. Their marketing sucks, and not enough people are interested any more. No matter how good the car is, I think Orion will be the last "all new" Falcon that we ever see. Don't get me wrong, I love the car - but the outlook doesn't look good. Unless they get some decent export volumes, there just isn't enough of a market anymore.

[Wally]

Ford needs to get out from behind the wall it's accountants and armchair managers have built to keep end users at arms length. It just needs to reinvent itself by adopting a desire to succeed, not simply tread water. Have yet to see a product that sells itself.

[Franky]

I think it all comes down to quality, finish and customer service. FFS I wish Ford would stop blaiming the age of the Falcon, the Corolla is older than the Falcon and it still sells. The new commodore looks new but am yet to meet any fans of the design.

Whenever I talk to people who have owned new Fords they are unhappy with little fiddily problems that for some reason Ford will not fix or they tried but failed. Their customer service is a joke and if you offend a customer they will not shop with you again.

I also have never ever met anyone who is not a car lover that knows what a Fiesta is or who makes it... I also believe the Mondeo looks great but like the Focus it will not be marketed well enough to make up enough sales.

[Jayden]

wow. I havnt seen one fuel comment yet. if fuel was 40c a litre, ford would be the god of sales.

They are highly desirable cars when you remove resale and running costs, but increasingly enthusiast machines i feel - is it just me or what?

do them a favour and sell your house for an orion GT : . I would if i had a house.

[AU-MUSTD]

[QUOTE=Franky]I think it all comes down to quality, finish and customer service. FFS I wish Ford would stop blaiming the age of the Falcon, the Corolla is older than the Falcon and it still sells. The new commodore looks new but am yet to meet any fans of the design.

Whenever I talk to people who have owned new Fords they are unhappy with little fiddily problems that for some reason Ford will not fix or they tried but failed. Their customer service is a joke and if you offend a customer they will not shop with you again.


Exactly!!! I've just ordered a new captiva with the lot. This would have been a territory but the way ford treated me with such poor regard when l owned my new ba has driven me away and sworn me off ford's product for life. I am only one man but l doubt l am alone. It's the dealers and then the customer relations line you complain to who just throw you away that ****ed me off no end.

[merlin]

Originally Posted by RSgerry

I think Aussie car buyers are turning against the local product because of quality. How many threads are there on here from people who are disolusioned with their Falcon? I gave up my Falcon and will never buy another new Ford again as a result of build quality. It is sad, but unless Ford address some basic issues, then people will continue to leave in droves. Also, not many people need the large car any more. Most of the time, most cars are in the city and dont travel the sort of distances we used to. Technology has removed the need for someone to drive miles to talk to a client.
.

Spot on, poor build quality followed up by very poor customer service and poor resale due to fleets (though I think the fleet percentage is changing at present) - this was my expereince with private BA's. I now drive a company BF and it has been good, but the company is considering other brands unfortuantly next time round due to the resale and quality issues. The only thing that will change their mind is the LPG running costs, which is an area I think Ford should spend on - get the power up there to match petrol and then saturation market it. You can have your cake (big car) and eat it too.

Also why not invest in a medium sized locally built sedan/hatch? No need to kill off Falcon (the same platform could be used) - clearly the market has dictated that it does not favour large cars anymore, so shift your product or die......thats just business for you and the unsuccessful company's always fail to react. A locally built medium sized car with good performance and a price that undercuts the Japanese could be hugley successful, but it is a risk and Ford seem to not like taking risks.

[freaky]

Originally Posted by Franky

Whenever I talk to people who have owned new Fords they are unhappy with little fiddily problems that for some reason Ford will not fix or they tried but failed. Their customer service is a joke and if you offend a customer they will not shop with you again.

Spot on, this has been my experience exactly in trying to have basic things fixed with the F6.

Not impressed...

[ClevlndStemer]

Originally Posted by uranium_death

I said before, Australia needs to limit imports and place heavier tariffs on imports.

How about Ford build a quality vehicle, something tells me a tightly screwed car combined with decent customer service might get them over the line.

[colossus]

Originally Posted by ClevlndStemer

How about Ford build a quality vehicle, something tells me a tightly screwed car combined with decent customer service might get them over the line.

Nah our tax dollars should be spent giving handouts to large corporations that arn't competitive [/sarcasm]