Ford Australia post $87.2m loss for 2007
May 9, 2008 by George Skentzos
Ford Australia has today released its financial results for the 2007 fiscal year and has outlined an impressive strategy to improve the brands profitability in 2008.
In 2007, Ford Motor Company of Australia Limited posted a net after-tax loss of $87.2 million from net sales revenue of $3.3 billion representing 108,071 total vehicle sales.
Overall market share was down to 10.3 percent in 2007 from 11.9 percent the previous year, the result of a year-on-year decline in sales of 6,894 units.
“Ford Australia experienced a challenging year in 2007, with the ongoing transition of our product mix contributing to lower sales volume and market share,” said Ford Australia President, Bill Osborne.
Rather than making excuses, Ford Australia is making progress in 2008 with the addition of the new Mondeo and the all-new FG Falcon range to its line-up which is now on sale as of May.
Ford Australia also announced it would begin producing the range of Focus small cars locally from 2011 following significant investment in world-class research and development facilities in Geelong and at the company’s Proving Ground in Lara.
“We continued to make significant investments in our facilities that will help secure the long-term future of Ford in Australia. 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,” said Mr Osborne.
The aging BF Falcon managed second in the large vehicle segment for 2007 while the Territory maintained its position as the most popular SUV with sales of 17,290 units, equating to a 23.2 per cent share of the segment.
“The enhancement of the Ford portfolio through the arrival of Ranger, Fiesta XR4, Focus turbo-diesel, Mondeo and Focus Coupe-Cabriolet has created the most impressive Ford line-up in recent history,” said Mr Osborne.
This is the second consecutive year Ford has posted a loss, finishing 2006 $40.3m in the red. However this followed four years of profitability between 2002 and 2005 where it posted profits as high as $192.3 million.
Print it: 
Well fingers crossed the FG will bail them out from this hole their in,
It would be a shame too Ford fall into the same fate as mitsubishi.
I know send the Ford Bosses to Korea and they can get some ideas from Hyundai on how to run a car company,global car sales increasing at a fast rate,just reported a nice profit they pay their staff well and after 3 years your ford willnot be looking like a peice of crap because it is falling apart.Sorry some wont understand this 80% of the Australian population are braindead and/or rednecks when it comes to cars.
Ford needs to change things up a bit. They have some good cars. As god if not better than Holden and Toyota. Bringing the new model Focus from Europe and start pushing the Mondeo harder would help Ford. Also put the FGs 4L six on the back burner and start pushing the proposed 2.7 Diesel.
Big deal. Up until 2 years ago Toyota AUS was in the red for long period.
Profits for car makers in Australia are cyclic.
The only people who think/believe that the Federal Government should stop subsidising/protecting the Australian Automotive Industry are those narrow minded imbiciles who think that because they work in another industry other than the automotive industry – they will still have a job and be able to maintain the same standard of living etc as they do at the moment. They don;t seem to realise the negative impact the loss of such a mjor industry would have on the economy.
If Ford Holden and the other mob were to close and pull out of Oz; it would mean the [direct] loss of approximately 20-40000 jobs.. then therse the loss of jobs in other areas of the auto industry such as Parts suppliers and repairers etc.
which would mnean these former auto workers wouldn’t:
have any money in their bank accounts with which to repay mortgages; or be able to go on holidays; go to restaurants; buy new electrical equipment or furniture; buy or build a home; buy a new car
Which means there would also be a downturn in the activity in other industries including building; retail; banking; hospitality/tourism which would mean significant job losses in those industries as well.
Not only that because of so many widespread job losses there would be more people dependent on social security which would mean the govt would have to increase centrelinks budget inorder to cope with demand. This would then mean they would have to increase income tax and other charges on those who are lucky enough to still have a job so it would still have an effect on their standard of living too
Hahahaha, sucks 2 be FORD!!!!
Hehe, Holden’s will be worst. Polites (god rest his soul) saw the oil crisis coming (he supposedly gave a green light on a diesel Falcon, which was cancelled by Gorman), and was prepared. Ford is able to keep the losses minimized – these deficits are nowhere near as bad as what Holden’s will be. With Holden continuing to make these ~$150 mil losses, don’t be suprised if the Commodore is built in the US within 10 years if the G8 is popular and the US dollar stays at rock bottom – GM bosses are thinking “Why export from another country with minimal profit (possibly deficit) when you can export it there with a HUGE profit?”. Ironically, seeing that Ford doesn’t make exports to the US, limiting itself to it’s own country could be a smart move, at least for the Australian operations.
Hahahah , sucks to be FORD!!
u are right wheelnut. We are a developed country should be encouraging high tech manufacturing.
Point well made Wheelnut but remember in the 70’s the UK government propped up the ailing motor industry. I failed to work and cost the tax payer millions. Subsequently the manufacturers were forced to go it alone. It hurt for a bit but now The UK has many foreign car owned manufacturing faciliities providing much employment. Honda, Toyota, Nissan, Peugeot, amongst many prop up what is now big business. Although European subsidies encouraged these companies here they only got initial funding and now stand on their own feet. Nissan for example are know to produce better built vehcles than the originators in Japan.
So why should the tax payer continually prop up the motor inductry.
But it isn’t just the motor industry.
Its wines, paper mills, mining and exploration, whitegoods (no not the toyota type), glass products etc etc etc ad infin-bluddy-nitum.
Bret,
ive tried that line before too.
isnt it sad that we are in the minority that is up with reality in this world?
the reason we should be prepared to prop up the automotive industry is simple..
Because its less of a cost to have 10-15 million [working] taxpayers contributing towards the payments made by the gummint to keep the car industry here and maintain jobs.. than it would be to have 4-9 million people contributing towards the same amount if not more because approx 6 million people lost their jobs due to the flow on effect should we lose such a major industry.
I agree with you there starky – in a couple of years I expect that GM will decide to build LHD Holdens/Pontiacs in Canada whilst RHD Holdens will continue to be built in Elizabeth.
This will then free up some space on the line which will enable Holden to build other new cars such as the Sandman and Torana [which I think will be renamed the Commodore when it is finally released in a couple of years]