Ford Australia reports $267 million loss

Ford Australia has posted a $267 million loss for the 2013 financial year, its second worst result ever after its 2011 losses of $290 million.

The negative balance sheet follows Holden's $553 million loss in 2013.

Despite the losses, Ford was the beneficiary of government support to the tune of $72 million in the 2013 calendar year.

Ford's Communications and Public Affairs Director, Wes Sherwood, told motoring.com.au the losses featured a significant "one-time" write-down, as part of the company's transition from manufacturer to full-line importer.

The $267 million deficit, $23m less than it reported for 2011, is due to the writing-down of Ford's car manufacturing
facilities.

Around $242 million is being attributed to
manufacturing plant write-downs, ahead of a complete closure of the
facilities in October 2016, when the supply of Australian-made Falcon
large cars and Territory SUVs will cease.

"The encouraging thing here is the new products coming and the transformation of the company," said Sherwood.

"The Ford Ranger is now the second-best selling light commercial vehicle behind the Toyota HiLux, so we're seeing momentum. Our plan is starting to work and we've got an onslaught of new models coming which will further that," he said.

Nevertheless, annual sales of Ford vehicles have fallen consecutively for the past nine years, with 2005's sales of 129,140 vehicles in stark contrast to 2013's tally of 87,236.

Around 80 per cent of all Ford vehicles sold in Australia are now imported, and so far in 2014 sales of the Territory, Falcon sedan and ute have fallen by 36, 28 and 34 per cent respectively.

Sherwood says that by 2017, "the rest of the business will begin picking up the slack," referring to the brand's rejuvenated model range. He noted Ford's range will increase by 30 per cent with the addition of new models.

Updated versions of the Falcon and Territory -- the last of their kind -- are expected to launch in August and September 2014.