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Carsales Staff23 May 2013
NEWS

The road to ruin for Falcon

Demise of locally-built large car was a long time in the making

Ford's Falcon was once Australia's most popular car. But its reign ended around the time Holden introduced the VT Commodore in 1997.

That was the beginning of the end for Ford's locally-manufactured sedan – and all its derivative models, including the Territory SUV. Even now, though, total Ford production for the domestic market during the first four months of this year is 9398 units, according to VFACTS. Territory numbers exceeded Falcon and Ute sales combined, but all three are built on the same production line and based on that figure an annualised production rate would be around 28,000 units – a good, strong number, but not enough to support local production of unique, indigenous designs.

How did Ford reach this point? The chart here is based on VFACTS figures for locally-produced Fords since 1996, which is the year the EL Falcon was introduced. Based on the EA model from 1988, the EL was the last series introduced prior to Holden's VT Commodore in 1997 and the disastrous AU Falcon in 1998. Disastrous as the AU was, both in hindsight and at the time, its figures were still better than the current FG model's, introduced 10 years later. In 1996 total production of 91,218 units for the year placed Ford's locally-manufactured models just 5000 units behind Holden's VS Commodore, Ute and Statesman.

Intriguingly, for the first four months of 2013, rear-drive products manufactured in Australia by Ford outnumbered their Holden counterparts, with domestic sales of Commodore, Caprice and Ute totalling just 8583 units. Holden at least has export markets to bolster the viability of its production plant at Elizabeth in South Australia – plus nearly 8000 units of Cruze production during the same period. The Cruze is small apples where profitability is concerned, however. It was the small-car's lower-than-expected sales performance behind Holden's decision to shed staff earlier this year.

Holden will have fingers crossed the VF Commodore can achieve the requisite level of popularity both here and abroad, lest the GM brand follow Ford down the same path.

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Written byCarsales Staff
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