Ford speculation a media circus

Opinion

Many Australians anticipate Ford's local manufacturing program faces the axe at some point in the not too distant future. There's no doubt the blue oval and its fellow manufacturers, Holden and Toyota, are encountering a tough market environment. But the current debate concerning the viability of Ford's manufacturing in Australia has descended into farce, according to one of the regular readers of motoring.com.au. Here, reproduced below, is what Mr X — an industry insider — had to say about the most recent news from the general media.

The article in the Australian Financial Review on Monday 30 July 2012 referred to some sort of supposed supplier “insider information” about Ford's ongoing operations from 2016. Presumably, the person quoted in the article was speaking from the point of view of his experience working for an organisation that specialises in winding up automotive suppliers that have been placed in the hands of receivers.

This is all cute and convenient for this sort of speculation to come out a week after Ford entered a voluntary redundancy phase for 440 employees, but I would suggest that a company that deals with winding up parts suppliers is dealing with companies that are not privy to Ford's ongoing product development for a good reason...those companies are a liability that a car manufacturer cannot afford to expose itself to. I don’t think the industry needs to be reminded of the CMI debacle earlier this year. A painful lesson was learnt there. In a nutshell, Ford chooses not to inform or involve a company of future product, because it is not going to involve the said company in its future product. It is curious therefore that a person working for a company that specialises in receivership of auto parts suppliers would be talking up an idea that involves a major car maker closing its doors, and the obvious knock-on effect that would have with suppliers to Ford. There is a bit of a vested interest in making those sorts of comments, if I ever saw one.

Manufacturers like Ford, Holden and to a lesser extent Toyota are accustomed to changing suppliers on a contingency basis. They do it more often than people realise. In Ford's case, an increasing number of components are being sourced offshore through global parts supply contracts because a directive from head office means Broadmeadows has to dip into the Ford global parts bin even more. See those door mirrors on the FG Falcon? It's not a coincidence they look identical to those on a Volvo S40. Using global parts supply also helps in keeping costs under control; negates the need for spending on design; and integrates local products more with global platforms.

Recent implementation of a virtual build system at Ford Australia's product development office mean that, just like the head office in Dearborn, Michigan, FoA can now turn around an all-new car in less than four years, as you basically have two design offices in two different time zones working around the clock on the product. Therefore, combined with the fact that globalisation of parts supply is in operation and Ford is reluctant to expose itself to unsustainable parts suppliers locally, it is little wonder that so-called industry insiders haven’t yet heard anything about future product post-2016. Ford has made it clear, repeatedly, that it is committed to production of the current generation of Falcon and Territory until at least 2016. Consider that statement very carefully. Remember, it’s called Ford Motor Company, not Falcon Motor Company. The motoring media in this country seems to have a fixation on the Falcon being the be-all and end-all of Ford’s manufacturing operations in Australia, and don’t seem to be able to see past this magical, supposedly apocalyptic date of 2016.

Aside from the obvious issue of Ford failing to or refusing to advertise the Ecoboost Falcon (pictured) products for some reason, they have a fraction of built stock parked up in the grounds of the assembly plant compared to Holden's Elizabeth plant, and the down-balance will bring Falcon and Territory build numbers to parity which is where they should be, and the assembly plant can return to five-day weeks of production. This also means there will now be a more efficient use of the manufacturing asset. 

The last tidbit I will leave you with is that a recent system upgrade to Broadmeadows Assembly means that Ford Australia's development and manufacturing processes are now more closely aligned with Ford of Europe's plants. This is not an accidental occurrence...

— with staff

Got a point of view that needs a broader forum? Why not post your magnum opus to editor@motoring.com.au? We'll publish those that meet the required standard.

Read the latest news and reviews on your mobile, iPhone or PDA at carsales' mobile site...