NewsBite

Troubled Ford seeks fresh Territory

THE new chief gave no commitments about the carmaker's Melbourne plant.

FORD hopes to put a disastrous 2010 behind it with a new chief executive and a string of fresh models, starting with a revised version of its locally built Territory SUV unveiled yesterday two months before it goes on sale.

Robert Graziano, who took over as chief of Ford Australia at the end of last year after the sudden exit of previous chief Marin Burela, said the Territory would help lift the brand's sales from last year's record lows.

Ford's share of the market dropped below 10 per cent for the first time last year, despite overall vehicle demand exceeding one million.

The slump was led by a 5 per cent drop in demand for the Falcon large sedan, which is built alongside the Territory at Ford's Melbourne factory, and meant production fell to just 50,000 -- half the level of six years ago.

Doubts about the future of the factory have haunted Ford Australia since Ford's global chief executive, Alan Mulally, refused to say whether it had a role in the company's One Ford strategy.

Mr Graziano said his focus was on immediate prospects for the upgraded Territory and a four-cylinder Falcon due later this year, which together cost $230 million and attracted $42m from the government's green car fund. The money helped pay for a diesel engine in the Territory and a long-overdue freshening up of its design.

But Mr Graziano refused to say whether the Melbourne plant had a future beyond the lifespans of the Territory and Falcon, which end in five years.

"The team has done a great job of restructuring the business over the last couple of years," he said.

"Our intent is to continue to ensure we're operating with the right business model here."

Mr Graziano, an American who was drafted to Australia after running operations in China, is Ford Australia's third chief executive in two years.

He said he was impressed by the calibre of the Australian team and planned to be here for the long haul.

His family joined him a month ago.

The competitiveness of the Australian market was a surprise, he said, but Ford would rebound with 85 per cent of its range renewed this year.

As well as the local models, Ford will import a new Focus small car, a Ranger workhorse and a new compact SUV.

Original URL: https://www.theaustralian.com.au/news/nation/troubled-ford-seeks-fresh-territory/news-story/288e238d14cfcde69afe2c89cd9bb264