Ford's powertrain decision by end of July

Ford Australia boss Marin Burela today drew a line in the sand for the future of the locally-manufactured inline six powering the Falcon and Territory. By implication, that will also have some bearing on the future of Ford's locally-manufactured rear- and all-wheel drive vehicles.

Ford is already committed to revising the six for Euro IV-compliance (more here) and the deadline for that standard (as Australian Design Rule 79/02) is July of next year. 

As it stands, Ford has been in the favourable position of delaying Euro IV compliance for the Falcon because the FG model was introduced to the market before the July 2008 cut-off date for newly-released vehicles. The Territory, powered by an older generation of the engine built in Geelong, is in the same situation.

From July 2010, both Falcon and Territory six-cylinder variants will have to move to Euro IV-compliant engines. Will Ford align the SUV and the sedan -- and for that matter, the aging BF III Falcon wagon as well? -- to share the new, greener engine?

As per our earlier report, Ford has already found the money to fund the Euro IV development, but meeting the emissions standard may not be enough to lend Falcon a marketing edge in emissions and fuel economy. Burela told journalists attending last week's sales briefing that the company was aware of the market and regulatory pressures on the Ford products -- and the manufacturer is tossing up the options.

"We are -- very actively -- currently studying which technologies will come to the forefront and that is so important for us now," he said.

"We have to make a decision on that within probably the next two months -- and that is the cut-off point."

The quandary for Ford is that Holden is rumoured to be developing a direct-injection 3.0-litre V6 to power a lean, clean and frugal Commodore for fleet buyers. Not only would such a car reduce running costs for the fleets, but it would produce fewer CO2 emissions and likely limbo under Falcon's current combined-cycle fuel consumption lead.

So not only must Ford develop a new engine that will comply with Euro IV, it must go further still and continue development of the six just to keep pace with or better Holden's efforts.

"It's very clear, certainly, that in fleets and government, that is a major 'want'," says Burela. "How you deliver that, there are multiple ways of doing that."

"We said we would deliver fuel economy [from the current iteration of the Falcon's six-cylinder engine], we told [the public] we would deliver fuel efficiency, and we've done that -- and we're not finished."

So far, Ford has chosen to keep the engine plant at Geelong open, it has committed to revising the inline six for Euro IV compliance and has promised to build the Focus small car on the production line at Broadmeadows -- all without any significant assistance from the federal government through its New Car Plan and the Green Car Innovation Fund (GCIF). Is Ford reluctant to put the hand out for government monies?

"The reason why we've been quiet [in approaching the GCIF] is that I... do not want to go to government every five minutes, asking for their support or their engagement on things that we're not ready to make a statement on," Burela answers.

"I want to make sure that once we're ready to move forward with our powertrain strategy, that it's a very cohesive, very comprehensive and a very thought-out plan. How we then engage government in terms of the Green Car Fund... will be an important part of that overall strategic direction and discussion."

Burela will only seek GCIF funding for technology that has long-term marketability. So the GCIF is in no way out of the picture where future engine development is concerned -- provided Ford has plans for the engine beyond 2010. With Euro IV development work for engine already funded, Ford may call in a marker with the GCIF, presuming the car company extends development of the engine.

"The I6 is part of our plans... until we get an understanding of what the next generation of fuel emissions standards will be in Australia," Burela continues. "We don't expect that to be clear for some time -- and we think that the engine is very efficient, very viable, and we can continue to work on it. How far we can take it remains to be seen."

"We will get to a powertrain decision by the end of July.

"If we go beyond that, we will not be able to get the powertrain strategy deployed in time to meet the requirements that we need know we need to meet internally -- as well as what we need to meet, to satisfy the Australian market."

Burela, without giving away much, says that Ford Australia has been approached as a potential supplier of the engine for non-automotive applications. The Carsales Network has reported on one such application previously (more here), but what Burela says next really piques the interest.

"My friend and colleague, Derrick Kuzak, who is the global PD [Product Development] head for Ford Motor Company is personally involved in working with us to help us to get to the best solution. Now that shows you the level of focus the Ford Motor Company is applying to get this right."

Indeed it does. Kuzak is the architect of 'One Ford' and that strategy will play a part in the future of both the locally-manufactured cars and the engines built at the Geelong plant. Presumably, Kuzak's deliberations may be influenced by the option of funding from the GCIF.

Support from the GCIF would possibly/probably -- take your pick -- spell the continuation of the inline six and perhaps introduce alternative fuel strategies such as direct injection, auto-stop/start, liquid LPG delivery... etc.

That would keep the Geelong plant open and, the inference to be drawn from that would be a relatively secure future for a locally-manufactured rear-wheel drive large car.

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