End of the road for Ford Falcon and Holden Commodore in 2016
Joshua Dowling
16 January 2013
www.dailytelegraph.com.au
The clash of the titans is over. Ford's Falcon and Holden's Commodore will likely be phased out within months of each other in 2016.
Ford has said for some time the future of the Falcon and its Broadmeadows manufacturing facility are not guaranteed beyond the end of 2016. Overnight at the Detroit motor show, Holden inadvertently confirmed the Commodore's run is due to come to an end about the same time.
The moves will mark the end of an iconic battle that has lasted more than half a century
The revelation comes a day after Holden admitted that the jobs of the 320 workers at its Port Melbourne V6 engine plant are in jeopardy beyond the end of 2016 as car buyers around the world shift to four-cylinder cars.
In an interview with Australian journalists the boss of Holden Mike Devereux said: "VF (Commodore) will run through to the end of 2016. We have a current plan to put a second (vehicle type) into the plant before 2017."
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A race to the finish for Ford and Holden?
Paul Pottinger
16 January 2013
www.thepunch.com.au
Mark Twain had the bizarre pleasure of reading his own obituary. It would be a salutary experience.
The obit for Australian car manufacturing, however, has the aspect of a soap opera. It’s been running for years with the same grinding inevitability and fading stars.
Rumours that the death have of those one-time Strayan icons – Ford’s Falcon and Holden’s Commodore – have not in fact been exaggerated were confirmed today at the Detroit motor show. Once the champions in the two-horse race that was the local new car stakes, both nameplates will be sent to the knackery in 2016 (or at best be assigned to imported American models).
In the case of the Falcon particularly, the announcement is in the manner of a mercy killing. Though heavily subsidised and discounted it sputtered to a miserable 14,000 sales in 2012. The single best-selling model of the year, the ubiquitous Mazda3 small car, did more than 44,000.
Perhaps more tellingly, the fallen local hero was left behind by the Thai-made Ford Focus, an excellent small car festooned with clever equipment, imported under the free trade agreement.
Adieu too to the Territory SUV that is based on and built alongside the Falcon. Just as the Falcon is displaced by the Yank made Taurus, the only home-made SUV is deleted for the Explorer as Ford becomes a full importer.
It’s only slightly less surprising that the writing for the Commodore has moved from the wall to the tombstone.
The Commodore lost 25 per cent of its sales last year, slumping to a historic low of 30,000. This, coming barely after Holden said 320 jobs are in jeopardy at its V6 engine making plant, is hardly an auspicious introduction to next month’s new, more upmarket VF Commodore.
There is a sense of relief that the pretence is finally over. Certainly American auto executives won’t miss their annual Detroit hazing by Australian journalists determined to extract some crumb as to the future of cars assembled in Melbourne and Adelaide.
The question is, while this marks the end of something, does it signify the beginning of something else?
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SUV firms as Holden's second local model
16 January 2013
www.carsales.com.au
Booming sales prompt Holden to consider rewriting deal with government.
The odds that a small SUV will be the second volume model line built at Holden’s Elizabeth assembly plant from 2017 are shortening dramatically as Commodore sales spiral.
But at the same time, there is a chance the VF Commodore could also continue to be built as a third model line to service the US police car market and the domestic ute market.
Both scenarios came into clearer focus today at the Detroit motor show, as Holden Managing Director Mike Devereux sought to clarify apparently contradictory statements to the media about future Holden’s manufacturing plans.
While General Motors International Operations chief Tim Lee told Australian media that only one of two post-2017 global architectures had been chosen, current GM North American boss – and former Holden chief – Mark Reuss said that both lines had been finalised.
As Mr Devereux explained it, both men were right; Holden has signed a co-investment scheme with the federal and South Australian governments to build cars based on two global architectures, but the boom in SUV sales is prompting a review of one of those choices.
Still certain to go ahead in 2015 is the second-generation Cruze small car based on the updated Delta II architecture. But the second line, thought to be a mid-sized car based on the Epsilon architecture, may now be replaced.
“We have a plan that we signed with the government of Australia that does define two architectures,” Mr Devereux confirmed.
“Could we change the second one if things continue to change? Yes we could.”
“We are evaluating … what is exactly the right thing to do on that second architecture. We have a mainstream plan that’s in a government document, in that contract, and that’s the current plan we are following.”
Mr Devereux said whichever way Holden opted to go, the decision would have to be made soon: “As far out as you have to plan this stuff at what point do you say ‘that’s our plan and even if get new information we can’t change’. We are right in that timeframe.”
SUV sales grew 25 per cent in Australia in 2012, while passenger car sales grew only 3.1 per cent.
To viably manufacture in Australia Mr Devereux has insisted Holden has to build two top-10 sellers. While no SUV currently fills that bill, their rate of sales growth suggests that will happen by the second half of this decade or sooner.
“(Holden is) forecasting out into the next decade, which makes the growth of SUVs in the last year quite an important data point to consider,” he said.
“We have pretty dynamic projections for what this market looks like and they look a little different to what they did 12 months ago. I don’t know if you predicted 27 (sic) per cent SUV growth, we didn’t.”
Mr Devereux spoke enthusiastically about the sales potential of small SUVs, citing the potential of the Barina-based Trax which Holden will import from Korea this year.
“I think the market is just going to explode for that,” he said.
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