GCIF impetus for diesel Territory
Ford reveals that government funds helped the business case for the turbodiesel variant of its locally-built SUVCan we thank the Rudd government's environmental largesse for the upcoming Territory diesel? With at least a portion of the development cost of the long-awaited vehicle stumped up by Canberra, the answer seems yes... Or at least maybe...
The one question repeatedly asked by journalists during Ford's recent announcement of its 'green powertrain strategy' was this: 'What's taken so long to bring the diesel Territory to market?'
It's been known for some time that Territory mules have been circulating at Ford's You Yangs proving ground, powered by the same 2.7-litre twin-turbo V6 diesel (pictured) that is available in Land Rover's Discovery III and two superseded Jaguar models, the S-Type and the recently upgraded XF.
It was, in fact, the migration of the XF to a new, high-tech 3.0-litre version of this engine that prompted the Carsales Network to enquire of Ford's Communications Manager, Sinead McAlary, whether that was the 'tipping point' for the diesel Territory. Specifically, with the development and launch of the new engine in the XF, did the engine's joint-venture partners (Ford, Jaguar Land Rover and PSA Peugeot Citroen), lower the price of supplying the older 2.7-litre version to Ford Australia for use in the Territory?
The short answer was "No" from McAlary.
"We've been working on it for a while," she continued, before explicitly stating that the decision to go ahead with the diesel Territory wasn't contingent on the recent introduction of the new engine in the Jaguar XF.
"The tipping point for us was the investment required... and Green Car Fund access as part of that."
According to McAlary, the announcement of the diesel Territory was carefully stage-managed to coincide with the announcements of the EcoBoost Falcon and the liquid-injection LPG fuel system.
"We wanted to do it altogether, to present a complete strategy..." she told the Carsales Network.
Before the announcement could be delivered, Ford first tied up support from the federal government -- through the Green Car Innovation Fund (GCIF) -- for the three-pronged strategy (EcoBoost Falcon, diesel Territory and liquid-injection LPG).
"The announcement that we made, that the Green Car Fund was contributing towards EcoBoost; some of that was also going to [the diesel Territory project]... So [Jaguar] going to the other [3.0-litre turbodiesel] engine didn't really affect that decision," McAlary said.
Asked for a breakdown of the GCIF funding for Territory alone, McAlary would only say that it was a relatively small component of the money extended to Ford by the federal government for these three projects.
"I wouldn't get down to that level of detail," she said. "The Federal Government has given us $42 million -- that is primarily for EcoBoost, but part of it is for the Territory."
Does this then mean that the business case for the diesel Territory is rather slim? Or did the business case for diesel Territory change from red to black only once the GCIF came to the party?
The answer to those questions are unlikely to be contained in any missive from Campbellfield in the near future. Indeed, the real answer may only come well down the track -- after the 2011 launch of the diesel Territory and in the shape of Ford Australia's balance sheet in years to come.
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