Ford hits struggle street

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.