Ford boss promises Falcon will continue in local production beyond 2016

[GTENVY]

Sorry if it's a repost. Good article.

http://www.goauto.com.au/mellor/mell...257750001FBFCD

FORD Australia president and CEO Marin Burela says he is confident the company’s Falcon range will continue to be made in Australia after the current seventh-generation car is retired in 2016.

Speaking at celebrations marking Ford Australia’s 85th anniversary and Falcon’s 50th, Mr Burela said Ford had no plans to change the company’s current operating structure and that head office in Detroit was delighted with the company’s current performance.

“We have invested hundreds of millions of dollars in our Australian facilities at Geelong and Broadmeadows, and our view on that is that those facilities are there, we have invested in them, they are state of the art, we’ve got a great workforce building wonderful cars with great quality. “We will continue to do so.”

As GoAuto has reported, Ford’s ‘One Ford’ global model strategy dictates that the current Falcon will be the last to be designed and engineered exclusively in and for Australia, which means the next all-new Falcon is likely to be based on Ford’s next-generation front/all-wheel-drive Taurus.

Federal industry minister Senator Kim Carr said today he was optimistic about the future for the Broadmeadows assembly plant.

“I believe there will be a Falcon made here after 2016,” he said. “The substantive issue will be how much of it is made locally, and that is what we are talking through.”

Senator Carr also indicated that Ford might be reconsidering its no-export policy (excepting New Zealand).

“We are working with all three companies to ensure that we have growth in the industry’s volumes, and the way to do that is to grow domestic demand and international demand through exports,” he said.

“We want all three companies to grow their export capacity, and the component manufacturers, too.”

Mr Burela said the Broadmeadows operations were working overtime to meet the rising demand for the Falcon sedan.

“The great news is the Falcon in the last few months has been travelling in uncharted waters,” he said.

“It is taking 41 per cent of the large sedan market. Only 18 months ago it was taking a 25 or 26 per cent share.

“We are regularly working overtime since June/July last year to meet demand. We are very happy with where we are and where we are going.”

Mr Burela confirmed that Ford would freshen the FG Falcon, but said that no final decision had been made about the eighth-generation Falcon due for 2016.

“2016 is the natural break point of this (model) cycle," he said.

"The work we are doing and the plan we are on says we don’t have to make a decision on all the aspects of the new Falcon until we get to the early part of 2012. So, we are in a good position.”

He dismissed a suggestion that Detroit wanted to close Broadmeadows and supply Australia with imported large cars.

“No. Head office is absolutely delighted for us and what we have achieved over many years,” he said.

“They were particularly delighted when we brought Ford Australia back to profit in 2009, and they know we are performing well in 2010.”

Back in May, Ford reported its first positive result since 2005, a breakeven profit of $13 million earned on revenues of $3.14 billion.

Asked if he saw a long-term future for Broadmeadows, Senator Carr said Ford in Detroit placed great value on its local operations.

“I was in Detroit in May, and Alan Mulally made it very clear the value to Ford company leadership places on Australia. Ford values Australia as much as Australia values Ford.”

He said both parties recognised the industry was going through a transition and this would involve the whole Australian automotive sector, assemblers and parts-makers.

“We are driving change in partnership with the companies, and I am absolutely confident Ford has a strong future in this country, as has the Australian automotive industry.”

Senator Carr said the fuel economy of large cars made here had improved 20 per cent in the past two and a half years.

“What we are seeing is the transformation of the Australian automotive industry,” he said.

These changes included new fuel systems, turbo-charging or, at Toyota, the introduction of Australian-made hybrid technology.

“We are in the business of making sure the Australian industry adapts to the new circumstances the industry finds itself in.”

Senator Carr said he believed Ford Australia would become more closely linked into the Ford group’s overseas production and supply network.

“All motor companies today make global platforms. The question is how much will be locally made and that is what we are talking through.”

Senator Carr dismissed a suggestion that the opening of a new Ford group plant in Thailand – on the same day Ford Australia was celebrating half a century of Falcon production – represented a threat to future Falcon production in Australia.

“We have rear- and all-wheel drive capability that few countries in the world can replicate. There is a particular part of the market for that product.

“Big cars are popular in Australia for a reason: people want them.

“The biggest seller for the last 12 years has been a large car. Ford has a very important role to play in that sector.”