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Ford to invest Tata’s money : Car Advice | News Blog

Ford to invest Tata’s money

March 20, 2008 by Alborz Fallah  




Ford LogoWith Tata expected to pay around $3 billion USD for Ford’s luxury brands Jaguar and Land Rover, the blue oval’s CEO, Alan Mulally, has said the money will be spent on future products.

Although many might have expected Ford to pay off its enormous debts, the company believes that investment in future models is more beneficial in the long run.

“The proceeds will be invested on our quality and productivity and new product development – for Ford,” Mulally said.

Ford is expected to renew almost 70% of its range in the next few years, thanks primarily to the cash raised from the sale.

The company also plans to follow in the footsteps of Japanese and European manufacturers by cutting down on platforms and cross-sharing existing ones globally, a good sign for Ford Australia.

2008 Ford Falcon XR8 images

Whether or not the new Falcon will make it to the U.S. is still uncertain (rumours still suggesting there is a possibility), but if Ford plans to platform share, Ford Australia’s RWD platform is one of the best out there.

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Comments

28 Responses to “Ford to invest Tata’s money”
  1. rocket_v6 says:

    when will they sell volvo and their 31% share in mazda….hope not to another indian or chinese company.

  2. Oz. says:

    It would be great for Ford to use the money to make some decent vehicles in North America and use the “eco boost”. They should of course develop a LHD FG Falcon here to export over there. If it can help the American sales, Ford would be a winner.

    Not just the Falcon being exported, but hopefully the interceptor(”Ford 300c”) will go into production on a Falcon platform.

  3. Minnow says:

    Atleast now we are seeing some form of direction from ford. Things are looking up. They should chuck a billion Australia’s way, that will help. Maybe now we will start seeing some confirmation of future plans and some awesome concept cars.

  4. o says:

    yes maybe they will finally get rid of that american crap 3 ba theme and jsut import ewuro worldwide i sawa a ford cougra the other day next to a AU falcon and actuaqlly rellay liked it looked like the cuope version but the styling was also much better executed

  5. Andrew M says:

    well im not surprised.
    this has been coming for a long while and the movement started with the ceasing of the I6 motor.

    global platforms are the go for operating such a corporation just like the japs have been doing.

    im not sure that we will seem ford export the falcon from OZ. i think they would be better off manufacturing the falcon in the same economic climate as they sell them. for eg the US falcon should be made in the US and the australian falcon should be made in australia.

    ford US just simply cant take on a full order of imported large cars as they also have to ensure US jobs are preserved. with that and the even bigger problem of the US dollar, i cant see exports going from OZ

  6. Reckless1 says:

    Ford is incapable of handling books that are in the black.

    Here’s yet another example – $3 billion coming in the door, a headache removed (the attempted conversion of Jaguar to a common brand) and all they can do is think about investing in themselves.

    They should retire some of their massive debt.

    And what’s with these numnuts waxing on about exporting the Falcon to the US. Clearly they can’t read and comprehend, for this subject has been done to death repeatedly, and the answer is always the same – it won’t ever happen.

  7. Frugal One says:

    3 billion

    Ford will burn that up in no time.

    They are doing a PanAm, soon enough they will run out off things/brands to sell off.

    I see they are still paying top management multi million dollars per year, and the fleet of exec. jets is still around.

    NOT a serious company in USA [Ok in Oz]

    Cheers

    F-0

  8. TERRY says:

    Have some faith Reckless, look at Holden they are exporting a four recalled and many warranty claims Holden Commondore, the New Falcon will be miles ahead, also GM has a bigger debt to pay back do you think GM can manage money…

  9. Andrew M says:

    Reckless1,
    mate perhaps you need to learn to read.
    where are all of these “numnuts” waxing on about exporting the Falcon?
    you saw one comment suggesting the idea. what about the other comments that say it wont happen?

  10. Chopstar87 says:

    they are not going to sell Mazda and Volvo… not a while any ways…. Why because these companies actual make some good money!!!!! so they can use these shares as capital and use the money that they make as well….

    Plus there is a big advantage having volvo and mazda as they has Tech that is used in Mass Produced cars – AKA the T5 engine which is in the XR5 Turbo and also all the safty features that they can get from volvo, and Ford and Mazda share platforms – eg New Mazda 6 & mondeo. also they can get the cheap but effective Tech from Mazda.

    Once the Falcon gets the Offical Safty Test Done….and hope fully gets the 5 stars..(bloody hope so) they can claim offically that the have the Saftest australia built car!!!! and the Australian ute that is built for work not all show…

    and they new Typhoon which is claim to do 13 FLAT over the Quarter!!!

    saying this i can wait to the new falcon in 2012-13 when it hopefully will has under pinnings done by ford Australia and the Big Powerful Ford America Engines…. saying this ford australia will get the 5.8,6.2,(V8s) and Twin Turbo V6 in 2010. also the FORD FOCUS RS should be here by 2010… the future is looking good for FoMoCo

  11. Oz. says:

    Reckless1, Where did you read Falcon exports won’t happen? If a VE Commodore can be exported, why not a Falcon?

    Chopstar87, I agree. I also hope the FG does receive a 5-star ANCAP and in the future of the performance models would be good of FoA if the Boss(Hurricane) comes out.

  12. Andrew M says:

    Chopstar87,
    i agree,
    but the mondeo doesnt share the platform with the mazda 6 anymore

  13. Oz. says:

    Andrew.M’s shortest comment, LOL!!!! :D

  14. Chopstar87 says:

    i though that the mazda 6 was built off the modeo platform… but there ya go… thanks for the info champ. Mazda 6 has more aggressive exterior with a basic interior, for the mondeo has a classy Exterior and awesome interior!!!

    along as they make good amount of money ford will keep them,

  15. Reckless1 says:

    Jeesus – I mention the numnuts who think the Falcon can be exported (and it won’t because its RHD only, dickheads, and Ford has NO PLANS TO EXPORT TO RHD countries either)

    and they all come out of the woodwork and say “why not, if Holden can do it why can’t Ford”.

    The answer is, Holden has been doing it for years, is geared for it, has a RHD/LHD universal platform, has capable management. These things are all lacking from the Ford Falcon.

    SO BLOODY WELL STOP DREAMING THAT YOUR FOWLCAN WILL BE EXPORTED – IT WON’T. And please stop carrying on about how the new model will be better – that won’t be hard, but it still won’t go overseas. Remember, for every Falcon sold, Holden sells 3 Commodores, not counting the exported ones.

    As Gordon would say “Fark me, you are the dumbest people ever”

  16. Oz. says:

    Reckless1, I don’t understand why your ranting on about people thinking about Falcons being exported. Of course Ford has no plans of LHD exports, it’s just a suggestion, get over it.

    When you say the FG Falcon won’t be exported to RHD country’s, that means It won’t even go to NZ. I doubt it.

  17. Andrew M says:

    reckless,
    get off the drugs dude.

    there has only been one mention of “falcon exporting”
    and you apparently see a pile of them????

    slow down buddy

  18. Joober says:

    Ford was given had a only 2 options to go with the money they had, either to produce a LHD capabale platform for other markets (ability to go global) or to refine the engine (improve on the current local market), they chose the latter. They concentrated in appeasing the local market by trying to acheive a better performing and more economical version of the engine until the new v6 comes in.

    I believe it could be the right move anyway, as our dollar is too strong to make exporting that viable, and that the existing market needs to be taken back because everyone is trying to be greener.

  19. Andrew M says:

    Joober,
    partially right mate.

    it was either the export falcon program or make the focus here program.

    i dont know where refining the current donk fits into your equation

  20. Joober says:

    Read it on the a news editorial somewhere, they had money left over in the kitty, and this was coming from Russell Christophers the Director of Falcon program or something like that.

    Improving the donk was what the feedback was received by the consumers, they wanted more power and more effeciency. And Ford thought it was better spent than making a LHD capable Falcon for exporting.

    Theres no doubt if Falcon is a success, we’ll see 2010 with the new engine a LHD possibility would be there.

    I thought the Focus 2 be in Aus was already on the books already?

  21. Andrew M says:

    Joober,
    i think you have your wires slightly crossed.

    the money that was to be for the falcon export program was transferred to the Focus program.
    it is well documented as that was the case as there was a government grant involved.

    any money spent on refineing the I6 motor didnt come from the same pool of $’s
    i also doubt that a few consumers wanting a tiny bit more power is going to push a global program aside

  22. ds says:

    why do you have problem with Indian or chinese company, if they have money and power they ll buy it and if ford cant aford so they hv to sell,,,,,,,, MR. or miss. “ROCKET_V6″

  23. Joober says:

    Andrew,

    I think you are looking at a bigger picture of exporting, I was referring to engineering the Falcon to be capable of LHD that could be used for exporting programs, which undoubtly the choice to produce focus here provided the drive not to spend the money into LHD engineering, and this incapability of LHD means that there will definately be no exporting from this model of Falcon. I might has sounded vague previously in what i said, sorry.

    As for performance and efficiency, its attempting to appease the current market (Local Aus), because they are not going to export, they might as well spend to attempt to take to top spot in the current market, its not pushing the global thing aside but because Aus is their only market they might as well try their best to appease us.

  24. Just goes to show, the Falcon truely isn’t a world class car so stop talking it up. The Camry is a proven battler on all continents, is the Falocn – nope.

  25. FORD AC COBRA says:

    The Falcon is on a higher level of class than your cardigan no style Camry, so put your landcruising mining boots back on and get out of here..

  26. The quality of the Camry and Aurion is earth years beyond that of the Faloon so put on your slippers, go to bed and leave the real work, to us real men in real cars.

  27. Joober says:

    The new falcon should be a better car (possibly not the engine side of things, but thats debatable until we drive one) than the Aurion/Camry (comfort is one thing proven better after sitting in one in at the motorshow, thats a model with leather compared to my leather in the Aurion Zr6) and obviously the Commadore. Then that said the next time Toyota/Holden brings out a car they will assumingly be a better car that that falcon, its all a game of taking in turns producing better cars to appease the market.

    It’s clearly ridiculous to bring out a car inferior to your competitors if you want to stay in the game, unless you have a mindaltering super marketing team to create spin, but that only takes you so far to the point where test drives are concerned.

  28. AGM says:

    Why don’t Ford do a low-volume export of the Falcon to the UK? Only real competition would be the export Vauxhall Commodore…that would be a damned great comparo on Top Gear!

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