Ford Australia post $87.2m loss for 2007

Ford Australia has today released its financial results for the 2007 fiscal yearand has outlined an impressive strategy to improve the brands profitability in 2008.
Ford Australia post $87.2m loss in 2007
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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.