Hailstorm batters Ford Falcon sales

By Tim Beissmann
February 03rd, 2012

FIND DEALS

The Ford Falcon endured its worst sales month in more than half a century in January, with the Australian-made family sedan hampered by slowing large-car sales and low fleet activity, and literally hit hard by a freak summer hailstorm.

Falcon sales staggered to just 931 for the first month of the year – the first time on record sales of the large car have fallen below 1000 units. Rubbing salt into the wound, the Falcon slipped to third in the large-car segment behind the Holden Commodore (2170 sales) and the Toyota Aurion (989).

Ford Australia’s Sinead Phipps confirmed more than 1000 Falcon and Territory vehicles were damaged by the hailstorms that hit Melbourne on Christmas Day and could not be delivered to customers last month. Phipps said all of those vehicles – roughly a 50/50 split between the two models – would have otherwise contributed to the January result, potentially taking Falcon to 1400 units and Territory from 804 to around 1300.

Phipps said January was historically a smaller volume month for cars like the Falcon as fleet buyers were not as active as in other months of the year.

The dismal result eclipses the previous record low set in the corresponding month of last year, when Ford delivered 1157 Falcon sedans. The slow start set the tone for a horror 12 months for the Falcon, which slumped 36.5 per cent from the previous year – down from 29,516 to 18,741 – setting a record low for the Falcon in a calendar year.

Ford Australia hopes it can avoid the same trend this year. Sales figures should get a boost in February when the repaired hail-damaged cars are delivered to showrooms. The true test will come in April when Ford Australia’s great white hope, the fuel-efficient four-cylinder Falcon EcoBoost, hits the market.

Phipps said Ford expected January would be the Falcon’s worst sales month for 2012, pending any similar natural disasters or factors out of its control.

January’s sales figures made it clear Australian consumers are moving away from traditional large family cars.

The Holden Cruze outsold the Commodore for the first time in history, with the locally made small car achieving 2445 sales compared to the large car’s 2170.

The large-car segment as a whole shrunk 6.8 per cent compared to January 2011, down from 5056 units to 4713. It has now been overtaken by the medium segment (which includes cars like the Toyota Camry, Subaru Liberty and the Mercedes-Benz C-Class), which increased 35 per cent from 4707 vehicles in January 2011 to 6356 in January 2012.

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Troll No. 47

Bugger. And the assembly plant was closed for 2 weeks over this period as well.
http://www.facebook.com/antmindel Anthony Mindel

Interesting how medium cars are now outselling large cars,but with such good medium cars,why would anyone want to even buy a large car,unless they really need the extra space,or to tow…
- Oosh
  
  People who want the extra space or to tow are buying SUVs etc.
  The Aussie large cars are jack of all trades master of none and hence why they are missing out and will continue to do so.
- Andrew
  
  Medium cars are not that much smaller than “large cars”, the Mondeo is roughly 4.7m vs the Falcon at 4.9m, again roughly.
  
  Even small cars by today’s standards are much larger than the small cars of a decade or two ago.
  
  I think buyers are more pursuaded by lifestyle and cost, the RWD dynamics of a Falcon appears to not influence buyers (excluding the niche performance market), yet no one wants to see the Falcon go FWD….
  
  I buy Falcons for the V8, the sweet glorious 5.0 S/C V8 and it’s RWD dynamics. It’s a much more fun car the the BMW 3 series I owned before.
  - Oosh
    
    As a FWD 5-door hatch the Mondeo uses its space FAR more efficiently than any RWD 4-door 3-box sedan ever could.
Symo

Yes, large cars are the problem, not the fuel use associated with them. Many medium segment cars use just as much. Apart from towing, and with no wagon why buy a Falcon?
Oosh

The time is fast approaching the local large cars will be greeted with the same bemused expressions most people reserve today for the gargantuan yank tanks of yesteryear.
- Trouble
  
  I LOVE the gargantuan yank tanks of yesteryear!
  - Pookle
    
    you may well – you’re nearly alone though
Dave S

only way is up now. lets hope they reconsider a wagon and start working on a V8
- Oosh
  
  Neither make ANY sense, the V8 is already in the niche it belongs at FPV, and the wagon is superfluous while they make the Territory locally.
  - http://twitter.com/jackkl Jack
    
    True, but I don’t see too many Territory’s being used as taxi’s. I would say the Falcon Wagon is more practical - especially when many fares are a single passenger; but obviously, if its not sustainable as a niche, then its not going to happen.
  - Dan B
    
    Oosh, you don’t have a clue mate. My company vehicle was a Falcon Wagon and it did the job well. I wanted another one when it was replaced. However some fool at Ford discontinued them sighting your argument. The Territory doesn’t have the space of the Falcon Wagon and neither does the Mondeo. I now have to drive a Hyundai iLoad and it does not have the range or the comfort of the Falcon Wagon I can tell you!!!
  - Anonymous
    
    Yep. And as for taxis (Jack, below), it needs to be a wagon just to make a half decent one. At least they can fill the back to the ceiling, making less of an issue of the vertically stacked spare. Once the luggage is dealt with, however, there’s the constant ducking in and out of the Falcon’s door apertures and their narrow opening angles. I feel for those guys, I really do.
    - Andrew M
      
      Golfie,
      I never found door openings an issue, but they have specificlly changed this with the FG
      - Anonymous
        
        I’m tall, Andrew M. Duck to get in, duck to get out, duck to see under the mirror, duck to see under the right hand windscreen edge, seat won’t go low enough…yes, I understand these things are fixed on FGs.
Laurie

My MA Mondeo has been nothing short of brilliant, purchased in 08 still has the looks even the new Fusion copies most of the current shape best car I ever had
- http://twitter.com/jackkl Jack
  
  The 08 Mondeo is still a hot looking car; more so than this new one anyway.
JD

price the falcon similar to the camry, and it will sell like hotcakes

the falcon is too expensive
- Phil
  
  The actual sale prices of Falcon pretty much is the same as Camry…..see the add on this page – XR6 with several extras, driveaway for $34,990……get a Camry Sportivo with some extras and driveaway pricing and you’d be paying about the same, possibly more!
- Ramjet
  
  If the 4 cyl Falcon is priced the same as a Camry it will sell more than the 6cyl.
Peanut

It is plain obvious that the styling of the Falcon is not setting the world on fire with the public.
The Commodore has more of that American look than the Falcon. How many Commodores do you see with the 20″+ wheels that people like to use to dress up their car that can be contained in the wheel arches.
The new front end design will do nothing to help sales.
The diesel Motor would have been better than the EcoBoost.
I have always wanted a new 2 Door Falcon but it will never happen
- F1o
  
  Yeah agree.. Make the SV6 cheaper and it will sell
  - http://twitter.com/jackkl Jack
    
    Will it, though? I’ve seen many a comment on CarAdvice saying that they got an SV6 new for $8k less than the sticker price. Besides, Holden would prefer to have a profit margin than number of sold.
    - Andrew M
      
      Holden would prefer numbers sold anyday of the week over profit per unit.
      
      Ford actuclly have a better profit per unit ratio than Holden.
      
      From my experience Ford and Holden mirror each other with prices.
      If you will get a Falcon 8K off, you will get a Commodore 8K off.
      
      3 and a bit years ago when I bought mine I went to Holden first and they tried to give me an SS cheaper than the SV6 and at a price I nearly couldnt resist.
      When I said I was going to check out the (at the time) new Falcon they said they would do a better deal than whatever Ford was offering.
      
      I ended up preferring the Falcon in the end, and got a similar deal
    - http://www.facebook.com/priusfreezone Matthew Werner
      
      If that was case they wouldn’t be making the Cruze then. Holden want units sold, not profit per unit
- Des
  
  “I have always wanted a new 2 Door Falcon but it will never happen”
  
  Yes it will. Next gen post 2016. It will however wear “Mustang” badges!
- Andrew M
  
  Diesel is dead, now I better explain myself before I get things thrown at me.
  
  engineering a diesel into the falcon wouldnt be worth it.
  People who imply they will suddenly pick up 2000 sales are kidding themselves.
  
  Ecoboost and LPI is a better option for emissions reasons.
  
  A diesel in the Falcon would return about 8L/100 AT BEST.
  The diesel version would be dearer to purchase and fuel versus the ecoboost and LPi.
  
  Diesel is also falling out of favour now they are starting to shine lights on their true emissions..
  
  If you look at what makes up the ratings, Lpi especially smashes smashes the emissions of say a diesel Mondeo, let alone if it was a diesel Falcon which would assumibly sip a bit more.
  
  Yes the Mondeo is a top looking car, but its ergonomics and comfort have nothing on the Falcon.
Lynchy

As a large car lover and current F6 owner it pains me to see and say that large cars in Australia are on the brink of extinction, I don’t think there’s a way back, after years of trying to stay positive, hoping that manufactureres and the buying public would reinvigorate the segment I’ve now lost hope.

I think the biggest reason for the over the last decade is due to the massive leap small and medium size cars have taken over the last decade and the influx of affordable SUVs . Once upon time if you didn’t wan’t a small car like a Corolla or Laser (and they were small back then) you pretty much went down the Commodore/Falcon route and SUVs, forget about it, unless you were after a Patrol, Land Cruiser or Pajero (and they were big and expensive). Now even the small cars like Focus, Cruze and 3 can fit the average family in them, are cheap to run, offer good equipment levels and are far cheaper to purchase. Once upon a time small cars use to offer dismal performance, now they offer performance compareable to larger cars of 15 years ago, not with respect to towing caravans or trailers, but I think even the good old Aussie Caravan Holiday is something mainly reserved for retirees now with most young people opting to forgoe holidays or travelling overseas, making the most of our high dollar.

It’s sad for the local industry and I believe it’s possible that the Falcon and Commodore won’t make it to their respective Parent companies commitment of 2016 but it’s not the end of the world, and if your in the market for a new car the markets as exciting as it’s ever been.
Lynchy

As a large car lover and current F6 owner it pains me to see and say that large cars in Australia are on the brink of extinction, I don’t think there’s a way back, after years of trying to stay positive, hoping that manufactureres and the buying public would reinvigorate the segment I’ve now lost hope.

I think the biggest reason for the over the last decade is due to the massive leap small and medium size cars have taken over the last decade and the influx of affordable SUVs . Once upon time if you didn’t wan’t a small car like a Corolla or Laser (and they were small back then) you pretty much went down the Commodore/Falcon route and SUVs, forget about it, unless you were after a Patrol, Land Cruiser or Pajero (and they were big and expensive). Now even the small cars like Focus, Cruze and 3 can fit the average family in them, are cheap to run, offer good equipment levels and are far cheaper to purchase. Once upon a time small cars use to offer dismal performance, now they offer performance compareable to larger cars of 15 years ago, not with respect to towing caravans or trailers, but I think even the good old Aussie Caravan Holiday is something mainly reserved for retirees now with most young people opting to forgoe holidays or travelling overseas, making the most of our high dollar.

It’s sad for the local industry and I believe it’s possible that the Falcon and Commodore won’t make it to their respective Parent companies commitment of 2016 but it’s not the end of the world, and if your in the market for a new car the markets as exciting as it’s ever been.
- Anonymous
  
  Totally agree with you but where u mention forgoe i think you mean the opposite that younger gen do take the overseas option for holidays.
  
  Hyundai summed it the best in their elantra commercial “big car thinking in a small car” (i think thats how it went)
- Phil
  
  Once upon a time large cars offered dismal performance too:
  A VH Commodore from the 1980s – 1250KGS with73KW or 83KW 6ers is not faster than the smaller Nissan Bluebird/Mitsubishi Sigma which were 200kgs lighter and had 70-76KW from a smaller 4 cylinder.
  Likewise a E80 Corolla from the same era – 1040kgs and 58KW gives it basically the same power to weight as a 3.3 Commodore + that Corolla also offered a 86KW 16v engine. Shorter gearing in the 4 cylinders also helped against the tall ratios in the Aussie 6ers.
  Falcon (XE 3.3) was a little better with 90KW (or 98KW 4.1) and 1320kgs but was hardly any faster than many smaller 4 cylinders either.
- Birdlife
  
  I too loved my big Aussie cars. It’s the vibe your honour. I care nothing for so called “performance” – I just like relaxed motoring. I had 3 Kingswoods and a VS Commodore wagon. When it came time to replace my mighty VS wagon I was stuck.
  
  The next generation of Holden wagons were big barges by comparison so when the Sportswagon was announced i was very excited – until I drove it. The driveline was so dissapointing and the Alloytec motor a shocker. The vibe…..was gone. So what did i do? I looked for a reasonably fuel and space efficient car that would suit me and my family that didn’t make me pine for my trusty old cars.
  
  After lots of looking around I bought a second hand 2006 X Trail. It’s a basic comfy car with enough torque not to make me pine for my lovely old sixes. And there in – I think – for alot of everyday Aussie motorists lies the tale. These are now the kind of cars that best get the job done. Maybe it’s just that it’s time…maybe Ford and Holden could have done things differently.
  
  I do think that the race bred basis of cars like the VE missed the point to a degree. The classic Holdens were everyman [and woman] cars. They weren’t about being racer boy.They were utilitarian vehicles for a big brown land. The times they are a changin’.
http://pulse.yahoo.com/_PKOFCSTG5OM7C67IFTGF4T2HWU Peter Evans

The trends are not favouring Australian Car makers. China is set to make 20 million cars in 2012. How many are being made in Australia, about 200,000. Thus China has an economy of scale benefit of 100. Add to that lower labour costs and Chinese cars are much much cheaper.

Perhaps at teh moment China cant quite compete on quality and design, but they are getting better.

My understanding is that the subsidy (support) for each car in Australia is $10,000. In my humble opinion the subsidy for each car has to be a finite figure. It cant just increase and increase. Yes I would love Australia to have a great car industry, but if the high dollar and economics dont support it, how many more billions of dollars do we have to keep subsidising these foreign companies.

I think some support is warranted, but there has to be a finite cap on what figure that is. You cant force Australians to buy an Australian made car, no more than you can force Australians to buy an Australian made TV. We no longer make TVs, shoes, clothes in Australia, maybe cars is next. The sky did not fall down when we stopped making TVs, vaccuum cleaners and radios in Australia, and I dont think the sky will fall in if we stop making cars. I dont want this to happen, but that may be the price we pay for being one of the top dozen wealthiest countries in the world.
ABC

I saw how do they repair hail damaged cars at a panel beater. Fill the dents all over the roof with body filler putty. Sand it down and paint over it. I can’t imagine the repairs would last long before the putty start to crack, chip off, sheet metal rust or painting problems would start to show up. Factory paint is 6-10 coats with all forms of rust protection. After the sheet metal gets sanded down at the panel beater, it gets 2-3 coats (primer, paint and may be clear coat). Many of the panel beaters don’t even know how to paint plastic as evident with the paint on the plastic bumpers peeling off on repaired cars.
- partsguy
  
  The majority of hail damage is repairs using ‘paint-less dent removal’ techniques. No bog, no fill, no primer, no paint.
Phil

No mention of hail damange as a free extra on those 2011 plate XR6s that Ford has been advertising all through January and right up to this second (on this webpage right now!).
- partsguy
  
  The advertised XR6′s are Mk1 special value pack vehicles that were shipped to dealers before Christmas. Most of the hail damaged vehicles were Mk11 & Territory awaiting shipment.
Rick

The comments here astound me . The commodore and falcon are dearer than the mid sizers because they are better cars ,they have better space and in the real world are cheaper to run and are safer. But each to their own
Fringe Dweller

People don’t want big boofy cars any more. Good as the Falcon is… and it is a damn good car, the market has moved on. Ford is better off offering a wider range of Focus variants in Australia… not just the hatch and sedan, they also need to offer the 7 seater Grand C max, possibly the wagon and the new Kuga. The new Mondeo in sedan, hatch and wagon variants should take care of the Falcon market for private buyers.
- mick
  
  i’d rather a falcon over a mondeo anyday of the week.
Turbodewd1

Fringe Dweller, July 2011 VFACTS:

Top 10 sales by model:Holden Commodore – 3551
Mazda3 – 3290
Toyota HiLux – 3147
Holden Cruze – 3123
Toyota Corolla – 2502
Hyundai i30 – 2232
Ford Falcon – 1835Falcon comes in at number 7 – seems like a darn good ranking to me. Where is your evidence that people dont want big cars anymore? And what is ‘boofy’? Genuine 5-star safety, 270kW/533Nm and 10.4L/100kmh* – hmmm…boofy sounds great to me! (*The current readout on my XR6T)
ABC

Petrol at $1.50 a litre.
Peanut

I wonder about another 2 things.
Everyone knows about the fleet discounts on the Falcons. People have the perception that as a private buyer they are paying more for the car than they should, But as a group the public are the biggest buyer so why don’t they get the biggest discount.
Their back is to the wall ping off the inflated pricing and sell them for what they should be.
Also make it affordable to the average joe. 5 Year Finance with 3 years interest free or something like that. Become creative.
- Andrew M
  
  In all honesty making things “too affordable” to joe public is what started the whole “GFC” saga a few years back.
  
  In saying that Ford has now reduced their list pricing closer to what people actually pay.
  They used to have a higher list price so they could blurt out the saving in bold numbers cause people look more at what they are apparently actually saving more than what they are getting for the dollar.
  It will also help Fords resale values because it is calculated off of what a car trades in for versus the full list price not what people are actually walking out having paid.
  
  3 year interest free finance will only make the vehicle dearer. It will also lead to trading of debt because Ford wont hold the debt.
  Bottom line is you either can or cant afford the vehicle, and putting people on tilt for the sake of a new car or house or whatever it is should have been a hard lesson learnt back in 2008