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Bruce Newton26 Mar 2015
NEWS

Ford will build Falcon until October 2016

New president 'categorically' rejects rumours of early plant closure

The president-elect of Ford Australia Graeme Whickman has “categorically” rejected the latest speculation the closure date of the company’s Australian plants is being brought forward.

Whickman takes over on April 1 from Bob Graziano.

Graziano announced 18 months ago he was extending his stay in the chair at Ford Australia until after the Broadmeadows assembly line and Geelong engine plant shut in October 2016, bringing an end to production of the Falcon and Territory. Now, the American's early departure into retirement and the sales rate of the new FG X (which is miniscule compared to the model’s heyday) have driven the expectation Ford will close its production facilities early, signalling the beginning of the end-game that will also see Holden and Toyota exit Australian manufacturing no later than the end of 2017.

But Whickman, who moves up from being Ford Australia’s marketing and sales director, says Graziano’s departure is based around personal reasons only and that Falcon sales – averaging 636 per month in 2015 – are hitting targets.

“Categorically not – completely unrelated,” said Whickman when asked about a linkage between Garziano’s departure and any possible closure date change.

“Our plan for the cessation of manufacturing remains as we committed,” Whickman told motoring.com.au.

“Nothing is sitting in the background that would prompt Bob to make a decision and move on.

“Our plan is the plan; we have a build and a sales rate that support our commitment. Our commitment remains the same,” he said.

UK-born Whickman's statement is backed up by independent sources among the union movement, supplier industry and Ford dealer body contacted by motoring.com.au, all of which indicated Ford was telling them October 2016 remained the shutter timing.

The decline and fall of Falcon has been startling in recent years, hitting an all-time low in 2014 with just 9134 sedans and utes registered. That drops below the model’s launch year in 1960 when 11,813 were sold. The Falcon line’s highpoint was 1995 when 95,639 examples of the sedan, station wagon, ute and long wheelbase Fairlane /LTD were sold.

So far in 2015 the new FG X’s sedan registration rate is off 12.7 per cent compared to the FG II’s in January-February 2014 and the ute 16.8 per cent. The latest Territory, also updated late in 2014, is only 3.3 per cent down on the same period in 2014.

“At the end of the day… I am hitting my targets,” Whickman said.

“So part of the plan is to ensure the build pattern is matching the demand. We can talk about year-over-year and that sort of thing… but our projections of what we would sell on a monthly basis and an annual basis all the way through to October 2016 is the commitment we have made and what we are delivering against.

“We will continue to target Falcon customers as we are at the moment – directly. We will continue to communicate in different ways with Territory customers and we will continue to maintain their expectations with no cause for concern.”

The collapse of Falcon has driven Ford registrations down overall, with the company’s 2014 result its worst since 1966. Overall registrations are off a further 20 per cent in the first two months of 2015 according to VFACTS.

“VFACTS is an interesting tool in aggregate and of course we measure ourselves with a different view and a different lens at times. The nature of the sales we have and the type of sales and who we sell them too are just as important to us as the total to some others," Whickman told motoring.com.au.

“The quality of our business and the richness of our business is the first port of call in terms of success.”

Ford launches a series of important new models in 2015, including an all-new Mondeo, the Prado-fighting Everest SUV and the Mustang, as well as updates to the popular Ranger and Focus small car. In total it plans to launch 20 new models by 2020.

It has also announced a major dealership upgrade and customer experience program.

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