Ford Australia posts $274m loss
June 19, 2009 by David Twomey
Ford Australia has posted a substantial $274.4 million loss for last year but says much of that involves restructuring costs that will place it in a better position to move forward.
Restructuring charges cost it $162.2 million and came as sales revenue fell 7.4 per cent, lead by a declining interest in the Ford Falcon large car, which has been the company’s mainstay in the past.
In addition the collapse of the stock market meant the company had to contribute $151 million to prop up its employee superannuation scheme.
The losses reported by Ford Motor Company of Australia, which is wholly owned by Ford in the United States, have more than tripled from the $87.2 million reported in 2007.
However, the company said it had “proactively restructured its operations” in the past year and is in a strong position to deal with the future.
“This was a challenging year as the Australian market was affected by the global economic slowdown, but Ford Australia’s underlying business continued to improve with strong new vehicle launches and our continued progress in lowering costs and gaining efficiencies,” said Ford Australia President and CEO Marin Burela.
Net sales revenue for 2008 was $3.29 billion, down $168 million from one year ago. The results were based on total volumes of 108,564 units, including exports, down 5319 units from a year ago.
“We are continuing to improve our business fundamentals and implement our strategic plan as we move through 2009,” said Mr Burela.
Ford said the one-off $162.2m restructuring charge included write-downs on the value of some assets.
Ford said it had the continued support of its US parent company, which provides the Australian arm with a revolving $900 million loan.
“Our current cash flow forecasts indicate a return to positive operating cash flows in 2009,” the Australian company said.
“Furthermore, if required, we could receive additional support from Ford US to continue our operations.”
A $52.2 million impairment loss was largely attributable to “the downturn in the global economy and the deteriorated outlook for the automotive industry both in Australia and overseas markets”, Ford said in its annual report.
Print it: 
Somtimes you have to go backwards in order to be able to move forward.
Isn’t Holden on the verge of making a profit?
True that T/S.
The mighty Falcon will save the day because is and always will be The Great Australian Road Car!
Aren’t losses always expected after the release of a new car?
I wonder what the final end of year numbers are for the other 2??
So Ford Oz has posted a loss for five out of the last nine years, and three out of the last five.
At least it’s not as bad as Holden, five consecutive years of losses.
Does anyone see a pattern emerging here with our auto manufacturing industry?
A quick glance at the carpark in the photo shows not all Ford employees have confidence in the brand – like many ex customers.
Better fix the dealer network soon Marin or all your former employees will be driving imports and you will be off to “pursue a once in a lifetime opportunity” like your two predecessors decided to do.
You are doing a good job with the cars, but the dealer network is still a massive mess and will not return the brand to profitability without some smart lawyers, new franshise agreements and an advertising campaign to advise ex Ford customers there is now a reason to reconsider the brand, as Ford will now look after the customer.
i noticed that one employee in the last picture drives a commodore. thats gotta be a telling sign for ford fans.
That Commodore was one that was left there when the CEO of Holden came to see the new FG, but when he left to go back to Holden he drove out in a new FG!!!
Work that one out ay!!!
HAha,
If you look you will see not one, but two commodores left in the drop off lane ha ha ha
and the Holden factory carpark is full of other brands of cars as well…….
This is a real shame but its quite simple really. Ford europe makes great cars and ford australia makes cars for bogans.
Ben Richards…….just what do you mean by bogans?
Hmmm Seems really bad hey? $274.4 mil….. With having to use $162 to restructure operations and $151 to ensure employees are looked after due to outside influences (I make that at 313mil in extra aniuos outgoings over “Normal Operations”)….. So in a down market where everyone is reporting loses those figures show why the dealer group is upbeat about the comming 18 months…… Very Upbeat!!! Rest assured there are other Australian vehicle manufacturers who would like a score board like that to show the bean counters.
You also have too remember that each car maker in Oz last year received $122 million in goverment funding for the financial year. Ford lost almost $400 million for the year when you factor that money in. Holden is expected too lose around $6 million for the year so they actually lost $128 million for the financial year. Toyota has not released their figures yet!
Things aren’t that bad for a company that is cashflow positive and an impairment loss of $162m out of the $274m loss. I think if Ford Australia continues to stay relevant in the auto industry, it won’t be long before they turn the corner. Hang in there..
They better start making a profit otherwise I think the Falcons days will be numbered and they will be importing the Taurus which I guess isn`t all bad. I know the base models will be FWD but seriously most people driving them wouldn`t know if they were driving FWD or RWD, but I think AWD on the premium models would be a great thing and a massive advantage over the opposition.
So according to all of the geniuses on caradvice that keep spouting off about Holden, Ford Aus days are numbered. Ford USA MUST be looking at selling the operation to the Chinesse, or Ford must be looking to make the Falcon oversease. Oh no wait! The Loacally built Focus will save the day! Focus? Focus? Hmmmmm Did they sell any last week? The saviour of Ford is selling so badly that even Ford admot to being disapointed. The Focus is so crap it makes the Cruze look brilliant.
Oh sorry not allowed to crtisise Ford on Caradvice. I mean according to you lot the Falcon is the best thing since I don’t know what. Its so good that most months its number 3 or 4 in sales. And Focus struggles to get into the top 20! LOL
Maybe they could halve the price of all cars,their sales would go through the roof,and then just post a bigger loss next year.
hey eh179 not bad for a company that aint gone bankrupt like your fave GM. Holden will be next if they dont do there homework properly. I like the look of Press line 21 down in the Stamping plant. Whole place has changed a lot now since i used to work at Ford in the 90s with all the restructuring happenening. Nice job Ford keep up the dominanace with the longest running car industry in aus.
Didn’t we have a lengthy discussion about Ford working on a Super Charged V8 GT, then I see this. Ford Australia makes cars for bogans, and bogans don’t have much money.
eh179driver……Ford are not bankrupt like GM. Holden have nothing to offer but a load of recycled Daewoos. Cruze aint half the car Focus is anyway and once they start building Cruze here it will inherit Holdens legendary poor build quality and atrocious reliability that is so common with Commode. It is Holdens days that are numbered not Fords.
How well are GM going at the moment?
The actual profit/loss for the year excluding one-off items was a reasonable $14m loss. Much better than the $99m loss the year before. Also much better than the losses sustained by GMH.
This year, with Falcon sales share and Ford in general on the way up i’d expect a reasonable profit.
2010 will be the year which really shows where they are at.
Elitist so Fords are for bogans are they? So which Ford do you drive then?
Limited Slip
to answer your question, a bogan is anybody who purchaes an australian ford/holden. And the classy bogans are those that believe a ford G6E is as good as a BMW for half the price.
Ah well, Holden are on the verge of being cash flow positive. If you read their financial statements for 2008 they were profitable each month until September when the financial crisis hit the entire world. Then the bottom fell out. You have to remeber that 4 years ago the spent a billion dollars on an entire line of new cars. Had the Commodore not been designed for LHD and certified for USA sales, the cost would have been less. This came on top of building a new engine plant. So its no surprise that they have made losses over the past couple of years. Ford on the other hand did a mild face lift of what is essentialy an 8 or 9 year old car. The engine has had mild upgrades over the past few years but not wholesale changes. They really should be making smaller losses than that. Yep the Focus is half decent but the public are not accepting it. Same with Mondeo. For seem to think the saviour will be the wagon. From what I read, they seem to indicate the sedan might be dropped. Hard to see te point of Mondeo here. Its to close in size to the Falcon and you can get a Falcon on gas and that is 10 times better than a Mondeo diesel. I just don’t get Fords crap marketing. It seems to have no cohesive policy and seems to lurch from one failure to another.
Eh179drivel. The FG is a new car. Did the chassis have to be comprehensively redesigned. No, it didn’t. Because it was already much more athletic and stronger than the powderpuff GMH C’dore. GMHolden had to spend a billion dollars on VE to catch up to Falcon.
The i6 was comprehensively updated for FG, despite the previous model being far superior to the c’dore rattletech v6.
The gearboxes are a step up in the Ford too. Both v8’s offer similar performance and economy. The turbo 6 has no equal.
Falcon sedan sales now equal C’dore sales. The wagon is the only difference. But, add in Territory, which has lifted since the refresh last month, the ute which leads the GMH equivalent for the year and Ford is selling more locally produced cars than ANYONE.
This year, Ford will make a profit. 2010 and it will be better again.
Phil C, At least Holden don’t build death trap cars with brake hoses that fail, then refuse to acknowldege the fact despite widespread complaints until The Herald Sun force them to through weight of negative sentiment. AND still the refuse to recall the Territory with the same problem. How many Territory owners are STILL complaining about premiture uper ball joint wear and failures? How many Territory owners are finding rust in cars that are less than two years old, paint that is so thin that it can be polished off in no time. The comprehensive upgrade of the Falcon I6? What a joke. Speak to rental companies about oil leaks that are already evident with the NEW I6. Speak to taxi operators and ask about brake shudder at 15′000k’s. Comprehensive upgrade of the body? LOL. Mate you no nothing. Its the same floor, firewall, front doors frames at the AU from late decade. I love the fact that Fors are so deperate for any kind of sales success they are now trying to say that their heap of turd floss is outsold because of wagon. Well brng the wagon into this century elt alone decade and you might sell a few instead of giving them away to fleet operators. Next they will try to say oh we have the best selling 6 cylinder sedan on gas with a 4 speed auto and grey upholstry this month LOL. Wouldent put it past the fools at Ford marketing. Like the clowns that dropped 888 and DJR sponsorship. That was such a laugh. Where are FPR and SBR. Just making it into the top 10. Where is 888. Out in front by a mile. Typical Ford. Loosers!
eh179diver
Your speeeeling iz terrabable.
Anyway,calm down mate,after all they are cars we are talking about here,not new hearts and lungs.Carry on like that and you may find yourself in the sin bin.
At the end of the day the Oz built big guns are very similar,if you cant see that,well that’s your problem.
Why are you so passionate about who makes which lump of metal and rubber anyway ?
Do you think that the managers of the companies care about you ? Well son they dont,gone are the days of the good old reliable, simple machines like an EH.Nowadays they all engineer cars down to whatever they can get away with, everything is disposable these days mate, regardless of which badge you happen to go for.
Go and get passionate about something that really matters in life, Ford or Holden isn’t worth your devotion any more.
eh179driver………i woulld like to see you fit AU|BA doors on an FG !!!! The body shell and doors are TOTALLY DIFFERENT you idiot! Holden spent 1 Billion on a new body…………and they called it a new model when all the machanicals were the same as the previous model because they ran out of money !!!!
Holdens not death traps? Ask the cops what they call Commodores………they call them tree magnets because so many run off the road and hit trees !!!!!!!!
As for Holden quality……..the Commodore is the most re-called car in Australian history………read the facts.
Motor racing has nothing to do with sales of cars you idiot……..that went out the window in the 1970’s …………and how many teams did Holden cut from their sponsorship? Many………..
Holden actually have the worst car in each class they are in……… Commodore……worst
Captiva……worst Viva…….worst and Barina……..the less said about that peice of crap the better. Once Commodore stops being built in the near future Holden will become a dedicated DAEWOO importer……….well, they almost are now.
Oh by the way..what happened to the Adventra? What the hell was that heap of crap? Holden put ugly cheap plastic wheel flares on a Commodore wagon and called it a four wheel drive!!!!!! LMFAO You went over a few mild bumps and they fell off……….lol lol lol design talent is seriously lacking at Holden thats why they import Daewoos………..anyway………Holden will be gone soon once GM finish their bankruptcy proceedings………..the shit has yet to hit the fan……
oh yeah……seeing you bought up the car racing thing…………..which car won today?? First and second actually………FG Falcons. Which car has won the most races this year ? OH wait……..FG Falcon !! And all the Holden Teams can do is whinge about a bolt holding the front bar on the Falcons……..have a big sook……..
Not that I`m a fan of either but how many Commodores do you see as Taxis? not many and why? Well I asked a Taxi driver I know, why isn`t there many Commodores as taxis and he said the quality of everything was worst than the Falcons and he had an AU[lemon] at the time, LOL. He said they have there fair share of problems with the Falcon but guys he knew with Commodores had a hard time keeping them on the road.
eh179drivel.. Drive an FG XT and then drive a VE Executive back to back. That is all you need to do. VE feels a generation behind with a so called droney new engine (being outdone by a hi-tech grandpas axe of an engine!) and a 4 spd clunker of a gearbox.
Stick to your EH rubbish and the korean imports.
Proof second rate cars just arent profitable.
People, we should look beyond the who is better than who, who is making the profits, etc. We need to think of the industry. If either Ford or Holden do go under (does not matter which is first) the other will follow. Do you think the parent companies will care? NO, once one is gone, that’s it. Then there is also all the sub industries, rubber, plastics, etc, etc. They will all be gone too. Please stop & think before blabbing, A is better than B there is a lot at stake here.
Why is it a Ford or Holden after 8 years look like and feel like garbage?
But an 8 year old Euro car still feel well built?
Elitist -
Seeing older 1990’s BMWs, other Euros and the electronic nightmares they become tells me that this cuts both ways. Look at resale, and cost of replacement parts. Ugh! Look at how poorly they do at ‘classic’ ages in Australia…
(And here I will concede a great respect for older, simpler Mercs as an exception).
Whilst old Aussies may be rough at 8 years, I can vouch for the iron block Falcon drivetrain at this age to go on, and on, and on. And the Red Holden inline 6’s. On poor fuel, no need for premium fuel or premium oils either, and they can be cheaply serviced throughout our whole country, not just in urban specialist dealers. It’s that much maligned 1960’s, US inspired drivetrain philosophy – build it to run forever. Now with Dual VCT and DOHC.
I’ll be scouring the country roads for the current run-flat, fly-by-wire, electro-manic Euros in 15 years…
varaiable Cam Timing, I’m ROFLMAO, you are sooooooo funny. keep it up, its the best laugh I’ve had all day!!!! Good work.
I totally agree Elitist my 2001 VWBora 4motion with 140k on the clock is still a great car and people ask me if its a new car. It has certainly aged very,very well and it still blows stock Falcons and Commodores away.
Variable Cam Timing – I am a Police Officer with over 15 years including persuit driving here in Melbourne. I read your comment with a bit of a grin. I am not sure where you get your information from, but having done interstate assignments, I am confident in saying that I have never heard of Commodores being called \”tree magnets\”. The rate of accidents for Commodores is probably on par with the other makes we use if you average out the time in service and distance traveled. One of the other comments said we have more Commodores than other makes. That is quite true. We built up a good relationship with the make during the 80\’s and 90\’s when they were the only brand with V8 engines. Id also have to say some of the comments about quality are a bit wide of the mark though. We give the cars a hard time and neither Falcon nor Holden give many problems. I’m sure that is true of most regions. Anyway, meal break is over, back to work!
Webber Fan…….I am a police officer too !!!
eh179driver..you are a laugh ……..have u tried to fit FG doors to a BA\F or vise versa? lol That is the funniest thing I have heard on here…….shows you dont even look at cars you just sit there typing inane, stupid, ridiculous and very very uninformed and un-researched crap……
VCT, which state are your based? And so ends another long night while all you others get to sleep! Yawn.
If Falcons and Commodores are bogan cars,does that make European cars,wog cars?Calling some Australian people bogans,is no different then callling other Australian people Wogs.
Where is the Red Lion brand’s greatest support Wheelnut?
I can see 2 Commodore’s and 2 Nissan’s in the picture.
Thenameless, you obviously know noting!
Because it’s called the ‘Omega’ now since the launch of the VE. It’s not the ‘Executive’ anymore silly.
Have you been sitiing in a locked up room for about 3 years?
Charles, you are wrong. It’s got nothing to do with that. The taxi driver was obviously a ford man. It’s because Ford does better fleet prices for the taxi companies.
ComradeVodka Says:
June 20th, 2009 at 10:45 pm
‘Proof second rate cars just arent profitable.’
Mate why is it then that VW made a loss on all the Mk5 Golf’s they have been selling for the past few years then??
Is that a second rate car?
Mumble Duck – This site seems to have been invaded by propergander fairys lately,Charles is one.
lots of cops on this site. Dial 000 and wait 2 hours for the cops. Those commodores are so slow.