Focus better than an each-way bet

Cementing its future and changing the face of local manufacturing, Ford Australia will manufacture, not assemble, the next generation Focus small car from 2011.

A $300m program, of which $180m will be spent locally, the Aussie Focus infrastructure will include a brand new body and assembly facility at Campbellfield and major modifications to the existing trim and final assembly line to handle both the new Focus and the 2010-onwards variants of Falcon and Territory.

The Carsales Network was wrong in predicting that the additional model for the local Ford plant would need to be rear-drive last week. However, we were absolutely correct in suggesting that the current facility was neither ready nor suited to front drive production and that it made no sense to assemble front-drive cars as a short term sideline.

What we didn't see coming was the closing down of Focus production in South Africa for the next generation of the popular small car. This will allow Ford Australia to evolve its Campbellfield facility into a dedicated manufacturing point for the full range of mainstream Focus front-drive models (and perhaps derivatives such as a small SUV) in addition to the Falcon/Territory rear-drive models.

The decision to build the front drive Focus on the same Campbellfield site as the Falcon marks a return to the strategy that delivered the front-wheel drive Capri soft-top in 1989. Although the Capri and the 2011 Focus will share similar local content, the Capri was built in a separate building now occupied by Ford's seat supplier.

A major proportion of the $300 million investment will therefore need to be spent on integrating the manufacture of the 2011 Focus with the local rear-wheel drive models within the current building.

Ford is now claiming that this latest move will make its local facility Australia's market leader in terms of responding to any future shifts in market preferences.

It says the changes to the plant will make it one of the few in the world that can respond equally to shifts in preferences between front-wheel drive small cars, rear-wheel drive large cars and rear/all-wheel drive SUVs, diesel or petrol.

Meantime Ford has also confirmed that a diesel Territory (with a Falcon to follow) will be launched prior to 2010 (ie: before the local Focus is launched) lending credence to the above claim.

If all goes to plan, by the end of 2011 Australian buyers will be able to choose a Focus hatch or sedan, in petrol or diesel, a Falcon family car with state of the art petrol or diesel engines and a Territory SUV with the same -- all manufactured locally.

The announcement also secures the future of the Geelong stamping plant as Focus panels will be manufactured there. On initial estimates, the new generation Focus should have as high Australian manufacturing content as the 2010 Falcon, current Holden Commodore V8, current Mitsubishi 380 and current Toyota Aurion V6. 

For fleet and government buyers who have been forced to buy imported small cars in the face of strong 'Buy Australia' policies, this is also welcome news. It is also a potential captive market for Ford -- an advantage previously enjoyed by Toyota with the Corolla which was built at Altona until 1999.

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