Ford counts $87.2m loss

Martin Watters
13May08

Car manufacturer vows to continue investment in Geelong plant despite poor financial result.

FORD Australia has announced its worst annual result in more than 15 years posting an $87.2 million loss.

But the car manufacturer's boss has committed to Geelong's operations.

Ford revealed net sales revenue of $3.3 billion from selling 108,071 vehicles in the 2007 fiscal year, with its market share dropping from 11.9 to 10.3 per cent.

The loss was the firm's worst result since 1991 and more than twice the $40-million loss it recorded in 2006.

Ford Australia president Bill Osborne wrote 2007 off as ``challenging'' and attributed ongoing company transitions for Ford selling almost 7000 fewer vehicles than the previous year.

These transitions included launching the new Falcon range, shifting production of its small Focus range to Australia by 2011 and putting its weight behind the new Mondeo, which has achieved success in Europe.

Mr Osborne also singled out Geelong's operations for ongoing investment, including the city's research and development centre and Lara's proving ground.
``We continued to make significant investments in our facilities that will help secure the long-term future of Ford in Australia,'' he said.

``These will further establish our business as a centre of automotive design and engineering excellence in the development of class-leading vehicles for Australia and overseas markets.''
The stalwart Falcon came second in the family car segment in the 2007 calendar year, while Ford's highly successful Territory remained top dog in the SUV stakes.

Almost one in four SUVs sold last year in Australia was a Territory.

Despite offering a wide range of vehicles, Mr Osborne said Ford was still looking to the once dominant Falcon to turn things around.

``The arrival of the all-new FG Falcon in May will further boost our showroom appeal,'' he said.

``Combined with the strategic decisions we are implementing to produce small cars in Australia and access to global engine technologies, our strong vehicle line-up sees Ford better positioned than ever before to maximise opportunities associated with changing consumer buying patterns.''