Bruce Newton•2 Dec 2014
NEWS
Ford explains: V8s axed for Mustang
... and Everest. 'We can't race and market all these new cars too', insists FordFord is hoping upset V8 Supercars fans will be more sympathetic to the company's pull-out from the category once they see new generation cars such as the Everest SUV and Mustang sports car rolling into showrooms.
The Blue Oval yesterday announced it would cease all involvement in Australia's number one motorsport category at the end of 2015, raising the distinct possibility no Falcon would be on the grid in 2016 for the first time since 1992.
The decision has been publicly presented as a reallocation of marketing budget to support the introduction of a stream of new cars as well as a program to enhance what the company calls the "customer experience" – essentially the touchy-feely stuff car buyers go through before, during and after the purchase period.
But Ford Australia marketing chief David Katic acknowledged the V8 pull-out would trigger criticism from fans who feel betrayed by the decision.
"We understand there are some passionate Ford fans out there who really love V8 Supercars and everything it can bring," Katic told motoring.com.au in an exclusive interview.
"The only thing I would ask if I spoke to one of those fans is to also... consider that our goal is to make Ford stronger and we think the best way we can do that is expand that product range, give them far more choice and also deliver an outstanding customer experience.
"So while there is disappointment for those passionate fans in one regard, we hope when they look at a Mustang coming to market, those fans will look at that and say 'wow that is pretty good' and when they see an Everest coming to market they will say 'wow that is pretty good'," Katic stated.
Incredibly, despite the pull-out, Katic insisted V8 Supercars was still relevant to Ford and that the decision was no reflection on factory-backed Ford Performance Racing, or privateer Dick Johnson Racing, which transforms into DJR Team Penske for 2015.
Both teams have indicated they are looking for manufacturer backing in 2016, meaning the potential end of Ford's presence on the grid. As we have already reported, Ford's farewell FG X could last longer on the road than it does on the racetrack.
"We are going through a business transition and if the world was perfect and we had endless resources then we might be having a different discussion," Katic said.
"It's just a case of when you have a certain budget you have to spend it where you think it is most relevant for the consumer.
"We think V8 Supercars has got a place. We think teams like FPR and DJR are great operators... This is not about them and their capability or what they bring to the table. This is more about we have certain funds and where can we allocate that and we are choosing to allocate that into the products and the customer experience first before anything else."
Katic made it clear there was no plan to move out of V8 Supercars into any other form of motorsport, nor was it a smokescreen for a move of its corporate backing from FPR to US motorsport mogul Roger Penske, with whom Ford has strong commercial and racing links.
"There is no truth to that. None at all," declared Katic.
"We really have a great relationship with FPR. They are first class people to work with and we would just not behave like that. That is not us. There is nothing at all in that story at all," he said.
He also downplayed any prospect of the new Gen2 Supercar – due to be unveiled tomorrow – tempting Ford back into the category from 2017 when engines other than V8s and coupes will become legal.
"Regardless of where it evolves to, we have a finite resource and where do you invest it? And right now that means products and customer experience," he said.
"Our shift to be more consumer-focussed and expand our product range is permanent... For me, we would want to absolutely convince ourselves we are expanding our range, we are communicating and launching those products really, really well and we have got an outstanding customer experience and that's when you would pull back and go 'right what else do we need to do to further build our brand?'.
Katic also cast serious doubt over FPR's hopes of maintaining its Ford links via a dealer team, despite the team claiming it has ongoing negotiations with Ford's national dealer council.
"There were lots of alternatives that you consider, but at the end of the day we couldn't make it work so that wasn't a path that was available," he said.
"It's just a matter of can they generate the funding to do that and it just wasn't possible at the end."
Ford's 'transition' is being driven by the end of local manufacturing no later than October 2016, which signals the death of Falcon and the end of the locally-built Territory. It means Ford simply becomes one of more than 60 importers fighting for sales share in one of the world's most competitive markets.
Ford has not managed to grow Australian sales in the last 10 years and it is down 6.2 per cent in 2014.
Over the next 12-18 months it is endeavouring to spread its vehicle range with the addition of the Everest and Mustang, as well as a new generation Mondeo and updates to Kuga, Focus and Ranger.
A cornerstone of its future strategy is to become more focussed on retail customers, whereas fleet and rental sales have accounted for a large percentage of sales in the past.
"Thirty or 40 years ago, when the only products you sold were a Falcon or Falcon ute, your marketing was pretty simple. Now we sell a range of products – B-cars, C-cars; SUVs is now Ecosport, Kuga, Territory and an Everest," Katic commented.
"So the range is diversifying as consumer taste diversifies and that takes a lot of resource. We need to make sure we can bring those products in and market them appropriately with the resources they deserve," he said.
Pictured: Mark 'Frosty' Winterbottom with FG Falcon in race livery
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Ford
Falcon
Mustang
Everest
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Written byBruce Newton
Our team of independent expert car reviewers and journalists
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