Territory displaces Falcon

One of the truisms of Territory ownership is that you drive a Territory, not a Ford. That possibly explains why the popular, locally-built SUV retains a loyal following and the local manufacturing business case for it is rarely questioned, even though it stands or falls with the Falcon.

Territory is rarely seen in taxi livery and it doesn't compete in V8 Supercar races, so there are no downmarket associations with its name. It is occasionally seen in the role of transporting ambulance service paramedics — and that's a positive reflection of the vehicle's image. Since Ford introduced the SZ model with diesel power half-way through last year it has been selling strongly. In fact, year-on-year sales are running well ahead of the figures for the previous 12 months, whether based on the latter part of 2011 or the first quarter of 2012.

As a matter of fact, for the first quarter this year, it is narrowly ahead of Falcon sales (3539 for Territory, 3398 for the sedan). For the full year 2011, the Falcon outsold Territory by nearly 5000 units, but the 2.7-litre diesel V6 wasn't available in the SUV for the first six months. Could we see the Territory depose Falcon in sales for 2012?

Furthermore, is this a long-held expectation finally coming to fruition? SUVs have been taking sales from large cars for years, it's generally acknowledged, and with more makes and models on offer in the VFACTS SUV class more families are gravitating towards SUVs — now very much the family cars for the 21st Century.

Fuel costs, the bane of large-car owners in the past don't deter buyers of SUVs to the same extent, although sales of the Territory have definitely picked up since the release of the SZ model with diesel power. Territory's sales lead over Falcon for the first quarter of this year is unprecedented in the history of the two locally-built models.

Was this inevitable, in hindsight? Did the late Geoff Polites, former Ford Australia president, have this outcome in mind when he went to Dearborn and championed the Territory? Not likely, according to Ford's Public Affairs Director, Sinead Phipps. Polites personally flew to Ford's global headquarters to argue the case for Ford Australia to build the original SX Territory in 2004.

"I think that's probably too long ago to really say with any accuracy that anyone would have been able to look this far out and picture this," said Phipps to motoring.com.au. "When Geoff went to Dearborn to get the approval for Territory all the research showed that there was a market segment that wasn't being met— that people didn't even know that they really needed at that time. He and our product planners were proved right, but I think it's probably a little bit too simplified to say that this is what they thought.

"It was to give people an option — and that's what our strategy is: in as many segments as makes sense, to give people... a really good Ford vehicle to choose from."

But the prospect of Territory outselling Falcon this year raises an intriguing prospect. Might the Territory badge outlast Falcon?

One other interesting point thrown out by the VFACTS sales figures released for March: Focus is currently Ford Australia's most popular model. As of March last year, when the company was still selling the now superseded LV model, Falcon outsold it for the first quarter of 2011, 4448 units versus 3140. This year the small car (the new LW model) is the champion, by 4657 to 3398.

Was the decision to build the Focus in Australia — later rescinded — the right one, in fact? On one side there'll be those who argue that even running the Focus down the same vehicle assembly line as Falcon and Territory wouldn't have overcome the inherent economic shortcomings of such a strategy — and especially not when the value of the Australian dollar is as high as it is currently. But others will argue that Holden is proving it can be done, with Commodore and Cruze running off the same production line at the Elizabeth plant in SA.

It will probably be a few more years yet before Ford Australia's manufacturing history is definitively written.

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