Falcon four; no local Focus

Ford Australia today announced that it will produce a four-cylinder Falcon. The surprise move was revealed in a press conference at the Broadmeadows production facility just after noon today.

The decision means Ford has scrapped plans to build a version of the next-generation Focus Down Under.

The Carsales Network will publish more details on the announcement and the implications for local manufacturing later today. In the meantime, here's an edited version of Ford Australia's official statement.

Ford Australia announced today it is investing $230 million to improve the fuel efficiency and environmental impact of its Australian-made models, including the first global application of Ford's advanced 2.0-litre 4-cylinder EcoBoost engine in a rear-wheel drive vehicle, the Ford Falcon.

This continues the global roll-out of EcoBoost, the new technology from Ford that provides consumers with an affordable engine that delivers up to 20 per cent better fuel economy and 15 per cent fewer CO2 emissions.

Ford Australia is taking two other steps, in addition to EcoBoost, to offer consumers more choices for vehicles with better fuel economy and lower CO2 emissions:

In 2010, Ford will introduce an advanced liquid-injection LPG system for the Ford Falcon, providing customers with the most advanced LPG technology on the market and making the Falcon even more attractive to private, taxi and fleet markets. 

The Ford Territory, the only Australian-made SUV, will receive a clean diesel version of Ford's 2.7-litre turbocharged V6 engine, giving buyers the choice of an engine which improves fuel economy and reduces greenhouse gases.

Today's announcement is supported by assistance from the Australian Government's Green Car Innovation Fund and the Victorian State Government. It is in addition to Ford's previous investment to engineer the company's locally manufactured I6 engine for compliance with Euro IV emission standards.

Starting in 2011, the iconic Falcon... will become one of the greenest family cars in Australia with EcoBoost. Slated for a range of global vehicles -- from small cars to large trucks -- EcoBoost uses petrol turbocharged direct-injection technology to deliver improved fuel efficiency, emissions and driving performance versus larger displacement engines.

As the first rear-wheel drive car from Ford to receive the 2.0-litre, 4-cylinder EcoBoost, Falcon is benefiting from the One Ford strategy of accelerating products that customers want and value -- and then making those products available on a global basis.

"Today's announcements put Ford Australia in a strong position for profitable growth in today's auto industry," said Marin Burela, President & CEO of Ford Australia. "We are ensuring our core Falcon and Territory vehicles will have the most advanced, high-tech and cleanest engines possible. At the same time, this represents the biggest environmental transformation in the fifty-year history of Ford Falcon by giving buyers the newest engine in the Ford Motor Company stable.

"Falcon customers will now have the choice of either the continually popular I6 engine, which will be Euro IV compliant, or one of the first global applications of Ford's EcoBoost, 2.0-litre 4-cylinder engines, while in a similar timeframe Territory customers will be able to access Ford's world-class clean diesel engine technology," Burela continued.

Ford Australia also announced that as a result of changing global economic conditions, the company has ended plans to manufacture the Ford Focus in Australia. After assessing the global requirements and costs of producing the next Focus in Australia, Ford determined that the changing economic conditions meant it could not make a business case for profitably manufacturing the car at its operations outside of Melbourne.

Ford's new strategy allows the company to economically source small cars for the Australian market from overseas locations, while investing in leading-edge technologies to serve its core Falcon and Territory customers. The decision to not make the Focus in Australia will not result in any job losses.

"Although difficult, this is the right decision for Ford Australia," said Burela. "Ford Australia has a strong commitment to manufacturing in this country built on ongoing support from employees, customers, dealers, suppliers and government. Our investments today demonstrate not only our commitment to address climate change -- but to bringing leading edge technologies to the Australian market.

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