FORD Motor Company announced today that it will cease manufacturing vehicles in Australia and become a full-line importer from October 2016. This means that the updated Falcon sedan, Falcon ute, and Territory due for release in 2014 will be the last domestic Fords built in Australia.
Besides the death of the iconic Falcon nameplate, the plant closures will also see a total of almost 1200 jobs lost – 650 in Broadmeadows and 510 in Geelong. But that figure is certain to multiply as suppliers of parts for these models throughout Australia also feel the effect of Ford’s decision.
According to Ford Australia CEO Bob Graziano, the decision was finally made on the evening of Tuesday May 22, after an after-tax operating loss of $141 million in 2012, culminating in losses of around $600 million over the last five years for the local operations. “Manufacturing is not viable for Ford, in Australia, in the long term,” said Graziano.
However, Ford’s design and engineering facilities in Broadmeadows and Geelong will continue to operate beyond 2016, as will the You Yangs vehicle proving ground near Lara.
Despite the sad news, Ford has announced it will increase the size of its product line-up by 30 percent in the lead up to 2016’s withdrawal from local manufacturing.
This suggests that the next-generation Taurus, currently under development in America, will finally replace the Falcon as the company’s large-car contender from 2017, though Ford remains tight-lipped on future model details.
Similarly, the fate of the Territory nameplate is also up in the air, although there’s a chance it may continue as a future iteration of the US Explorer, also due in the latter half of this decade.
But the fate of the famous Falcon ute is likely to follow the 64-year-old nameplate into history, as Australians continue to buy one-tonne trucks like the locally developed Ranger pick-up in ever-increasing numbers.
The future of the FPV Ford Performance Vehicle sub-brand will almost certainly cease as well, as the existing Falcon range are the only cars using it.
Following the 2016 closure, Ford Australia’s presence “will remain significant”, with 1500 personnel and over 200 dealerships throughout the country supporting future Blue Oval models.
“We will continue to deliver the refreshed Falcon and Territory in 2014 as we have previously announced,” Graziano told a packed media conference at Ford Australia’s HQ in Broadmeadows this morning.
“The decision we have announced today was not made lightly. We understand the very real impact this will have.
“We came to this conclusion only after thoroughly reviewing our business and only after exhausting all other alternatives.
“But despite [efforts to match production with demand], our locally made products continue to not be profitable while our imported products are profitable.
“And we’re still faced with the fact that our cost structure in Australia remains uncompetitive… they are double that of Europe and nearly four times that of Asia.”
Ford began manufacturing the Model T in Geelong in 1925, and the US-derived Fairlane at an all-new facility in Broadmeadows in 1959. The original XK Falcon replaced the locally-made British Zephyr in 1960.
Shock! Ford Australia will close its Australian factories.
After years of dwindling sales, and with no immediate sign of recovery, Ford Australia has decided to abandon manufacturing in Australia.
In a shock announcement to be made at 10:45am, Ford is expected to declare it will be closing its Australian plants and will become an import-only brand.
That means it will cease manufacture of the locally-built Falcon sedan and utility and the Territory SUV in Broadmeadows, as well as the 4.0-litre in-line six cylinder engine built at its historic engine plant in Geelong.
Wheels understands sources from inside Ford have reached a decision that local production is no longer financially viable.
The announcement has been delayed until 10:45am, as Ford wants to alert its 3500-strong workforce before making the decision public.
There is no word yet as to what the closure means for Ford’s employees, or when the shutdown will happen, but there is expected to be drastic redundancies.
Sales of the iconic Ford Falcon, which was Australia’s best-selling car throughout the 1980s and early-‘90s, fell to less than 20,000 last year, from a high of 93,432 only 10 years ago.
So far this year, sales of both the Falcon sedan and Falcon utility are down more than 20 percent on 2012’s disastrous numbers.
Stay tuned for more throughout the day, or head to Wheels’ Facebook page to join the debate.
As you may, or may not, know, Microsoft launched its new Xbox One this morning.
It’s said to be bristling with new technology, but the only thing petrol heads care about it is: how does it play racing games?
Pretty well apparently, with Forza Motorsport launching its new game alongside the new Xbox.
But this got us thinking, what are the greatest car racing games, ever?
Well we’ve compiled a list of 10, in no particular order, to get the ball rolling.
It’s by no means definitive, but every game here has something special, and no doubt caused many of us to waste away countless hours in front of the TV.
So check it out and if we’ve left your favourite off, head to our Facebook page to tell us.
Toyota’s official performance subsidiary, TRD (Toyota Racing Development), has developed new suspension and aero upgrades for the just released, third-generation Lexus IS.
A full body kit for the compact sedan incorporates air deflectors in the front bumper, side skirts, a rear deck spoiler, under-rear bumper diffuser, and quad exhaust tips. All for 437,700 Yen (A$4350).
Suspension pieces include new dampers, springs, anti-roll bars and body braces at 288,6750 Yen $(A$2865), while a set of 19 inch alloy rims is priced at 527,625 Yen (A$5235). No word on Australian availability at this stage. For more details visit the TRD Parts website in Japan.
To coincide with upgrades across its 5 Series range, BMW has released a new ‘Competition Package’ for the powerhouse M5 sports sedan, and its M6 coupe/convertible sibling.
Recalibration of the 4.4-litre twin-turbo V8’s ECU results in a three percent power boost from an already mega 412 kW (560hp), to 423 kW (575hp). This runs in parallel with the newly developed M carbon ceramic brake package, made optionally available in March this year.
Cosmetically, the BMW M5 features new-design tail lights with thin LED light strips for higher contrast, redesigned steering wheel and interior storage areas, as well as new exterior colours. Timing for local availability and pricing of the new M5 and Competition Package are yet to be confirmed.
To coincide with upgrades across its 5 Series range, BMW has released a new ‘Competition Package’ for the powerhouse M5 sports sedan, and its M6 coupe/convertible sibling.
Recalibration of the 4.4-litre twin-turbo V8’s ECU results in a three percent power boost from an already mega 412 kW (560hp), to 423 kW (575hp). This runs in parallel with the newly developed M carbon ceramic brake package, made optionally available in March this year.
Cosmetically, the BMW M5 features new-design tail lights with thin LED light strips for higher contrast, redesigned steering wheel and interior storage areas, as well as new exterior colours. Timing for local availability and pricing of the new M5 and Competition Package are yet to be confirmed.
‘Sheepo’, also known as 27-year old engineering student, Fernando Benavides, makes amazing replica cars from Lego, from scratch, and his latest creation is possibly the best yet.
His take on the Caterham 7, a continuation of the ultra-lightweight Lotus 7, designed and first built by Lotus founder Colin Chapman in 1957, is a 1:7 scale masterpiece.
The car consists of 2500 pieces, and features a working five-speed gearbox, full suspension (double wishbone front, and de Dion live rear axle), disc brakes and full steering geometry … all remote-controlled.
Want to know the real reason David Beckham recently retired from football?
No it’s not because he’s old, or feels ‘the time is right’.
He simply wants to spend more time with his cars! And with a collection like his, we don’t blame him.
Becks has long held a passion for fast, and customised, exotic cars, making his garage one of the largest ‘footballer car’ collections on the planet.
Oh, and as for the real reason he retired? Who cares?
1.8 seconds!
That’s how long it takes Peugeot’s new 208 T16 Pikes Peak challenger to belt from a standing start to 100kmh.
True, the T16 is a fully-fledged racing car, but its rapid acceleration figure got us thinking…
What’s the fastest accelerating car you can buy for the road?
Well, with the T16’s 1.8-second dash in mind, we went looking.
Welcome everyone to the fastest cars in the world – The sub 3.0 second club.
It’s the Debbie Does Dallas of motorsport films, and now, Peugeot’s iconic Climb Dance has been remastered in high-definition.
Yep, car and motorsport fans can now watch Ari Vatanen and Peugeot’s 415 T16 Grand Raid belt up the Pikes Peak Hill Climb in crystal clear HD.
We have a sneaking suspicion the release of this remastered film has something to do with Peugeot’s return to Pikes Peak this year, but really, who cares?
Sit back, switch it into HD and break out the tissues.
It really is that good.
