Ford's big-six thrown five-year lifeline

Drive - Barry Park
May 5, 2011

Federal Government says Falcon and Territory's locally built six-cylinder engine has a few more years in it yet.

"Barra", the locally made engine that has faithfully powered generations of Australian-built Ford cars, will be around for at least the next five years, the federal government has confirmed.

According to Federal Industry Minister Kim Carr, the engine — made at Ford's Geelong-based casting plant — is likely to be a member of Ford's powertrain arsenal until at least 2016, after which its future is uncertain.

''For the foreseeable future, Geelong will be supplying engines to Ford,'' Senator Carr said today.

''Remember ... if it wasn't for the actions of this government, Geelong would have closed three years ago. So my expectation is that we will be providing engines out of Geelong for the current line-up of vehicles as an option for consumers through until at least 2016.''

Ford Australia is expected to switch to a mix of engine choices for its future Falcon and Territory line-up, including an imported V6 ''Duratec'' engine that potentially lacks the same low-down pulling power as the Barra, but improves fuel economy, and an even more economical turbocharged 2.0-litre four-cylinder ''EcoBoost'' engine that will power versions of the Falcon from next year.

The car maker has also recently launched the Territory with a 2.7-litre turbocharged V6 engine in an attempt to sway buyers back to the vehicle that may have been put off by the high fuel-use figures of the petrol version — although it commands a $3000-plus premium.

The diesel engine has replaced the petrol version as the default powertrain on the more expensive, all-wheel-drive versions of the Territory in a move that Ford says reflects a ''strong customer preference for a [diesel] powertrain combination with the AWD capability''.

The company has already struggled to keep the Barra up with increasingly strict emissions laws, with turbocharged versions of the Territory last year failing to meet a July 1 deadline to clean up the engine's exhaust gases.

The turbo variant joined the Territory range in 2006, two years after the model first launched, surprising an industry that was expecting the more fuel-efficient, diesel version that was only launched this year.

According to Senator Carr, problems with the roll-out of the dedicated LPG version of the Falcon — changes to the way the system feeds the fuel into the engine are expected to provide power and fuel economy figures that shadow the petrol version — have hurt the car's sales.

According to Ford, the decision to stop making the dedicated LPG version of the Falcon in September last year has eroded the car maker's sales since its demise, with gas-powered models at one time accounting for almost one in four Ford sales in Australia.

However, Senator Carr's reference to future generations of the Barra engine as an ''option'' for buyers suggests it won't be the showroom staple that we've come to expect.

Ford Australia spokeswoman Sinead McAlary said the company did not have an ''end date'' for its Geelong-made engine or the plant that builds it.

''We're continuing to invest in our local line-up, including all the new technologies we're launching this year,'' she said.

''The in-line six-cylinder engine remains the standard engine for Falcon but will be supplemented later this year with the addition of the new liquid-injection LPG system and the introduction next year of the EcoBoost four-cylinder engine.

''Neither of those will be standard fitment, however. They'll both be optional on various vehicles within the range,'' McAlary said.

Ford plant to stay, Carr assures

Geelong Advertiser - Peter Begg | May 6th, 2011

FORD'S engine plant will remain in Geelong until at least 2016, Federal Industry Minister Kim Carr says, despite the firm posting another flagging sales result.

Mr Carr yesterday said he expected the Norlane works to continue manufacturing engines for the locally produced Falcon and Territory for another five years at least.

The call follows the Blue Oval's announcement last month of a decision to cut 240 jobs from the Norlane and Broadmeadows plants, although the split between the two plants would remain unknown until voluntary redundancies and acceptance numbers were in.

Falcon sales nosedived during last month, down 47 per cent on last April.

Yearly sales in the flagship model are down 41 per cent on the same time last year, again putting pressure on the local car producer.

Territory sales, long the brand's saving grace, are also down dramatically in the past month. Territory sales in April were down 44 per cent compared to April last year.

However, Federal Chamber of Automotive Industries CEO Andrew McKellar said a longer than usual Easter had not helped sales.

Chamber figures showed overall vehicle sales last month were down 8.8 per cent on last April.

Ford's planned job cuts would reduce production from 260 to 209 vehicles a day from July. Ford is currently making cars only three days a week.

There has been speculation that after 2016 the Falcon will be replaced by an all-wheel drive platform, possibly based on the US Taurus.

Ford spokeswoman Sinead McAlary has said the latest slump was largely due to the current lack of an LPG Falcon.

Ms McAlary said Ford stopped producing LPG Falcons last September, but a new gas system was due in the middle of the year, as well as a new EcoBoost four-cylinder coming in the latter half of this year.

Ford Australia to decide on inline-six engine future within eight weeks

Go Auto News 17/6/09

FORD Australia will determine the future of its locally produced six-cylinder engine within two months.

While the company has already confirmed it will continue building the inline sixcylinder
engine past the Euro IV emissions deadline of July 1, 2010, after initially deciding to switch to a US-built V6, it is now deciding on the longer-term future of the venerable powerplant.
Ford Australia president Marin Burela said last week that a fi nal decision would be
locked in during the next eight weeks. “We will get to a powertrain decision,” he
said. “It has to be done by the end of July – July is the cut-off.
“If we go beyond that we will not be able to get the powertrain strategy deployed in time to meet the requirements that we know we need to meet internally as well as what we need to satisfy the Australian market.”
Mr Burela said the company was close to making a decision, and that key Ford personnel in Detroit were involved.
“We are 99 per cent there. There is some more fi netuning to be done to make sure that
we need to ensure that we get absolutely right,” he said. “The level of intensity that has been applied to that is beyond comprehension, even to the extent that my friend and colleague Derrick Kuzak, who is the global head of PD (product development) for Ford Motor Company, is personally involved.
“He is working with us to help us get to the best solution. That shows you the level of focus that Ford Motor Company is applying to making sure we get this right.”
Mr Burela indicated the I6 was a part of Ford Australia’s plans, but did not give anything away when it came to how long the Geelong-built engine might be around.
He suggested the I6 could at least continue until the Euro V emission standard was introduced, with the Australian government yet to indicate when that might be.
“Certainly the I6 is part of our plan,” he said. “As I have indicated, until we get an understanding on what the next generation of fuel emission standards will be in Australia, and we don’t expect that to be clear for some time, we think the engine is very effi cient, very viable and we can continue to work on it.
“How far we can take it remains to be seen, but there are other options. We will continue to look at our stable of powertrains around the world. “We are looking at a whole range of things.”
Mr Burela said that, for now, the I6 engine was the best solution.
“We decided not to go down the V6 path, because at the time it just didn’t make economic sense. We knew that we could deliver the same fuel economy with a much more effi cient engine using the existing assets that we have invested in, not go out there and ask anyone for support to what we are doing in any tangible way.”
The Blue Oval chief indicated Ford Australia was looking at all kinds of different technologies when it came to the Falcon’s powerplant future. These are understood to include advancements of the existing petrol I6 as well as the option of a diesel and a turbocharged four-cylinder engine
that would bring the Falcon into line with the Ford Motor Co’s EcoBoost program of switching to smaller, forced-induction engines.
Asked if a four-cylinder turbo engine could work in the Falcon, Mr Burela indicated it might not sit well with large-car customers.
“It is hard to say because once again you have the ratio of engine capability for the size of the vehicle and also how are you going to communicate the capability? It is really interesting because in Australia, people are very focused on the size of engines, the cubes ... whereas in other parts of the world there has been a change there. “Whatever we decide to do, we just need to make sure we can communicate that credibility.”
Mr Burela also indicated Ford Australia would not follow Holden, which is planning to use aluminium panels to reduce the weight of its Commodore, suggesting such a move would not be worthwhile considering the cost of aluminium.
If Ford Australia decides to further develop the existing I6 engine, it will likely qualify for subsidies under the Green Car Innovation Fund (GCIF), with the Australian government
covering one quarter of the cost.
Ford Australia is yet to secure funding under the GCIF, and Mr Burela agreed with the view that the company had been quiet in that regard.
“The reason we have been very quiet is that we take the view that I do not want to go to government every five minutes asking for their support or engagement on what we are not ready to make a statement on,” he said.
“I want to make sure that once we are ready to come forward with a strategy that it is a cohesive, comprehensive and a very thought-out plan, and how we engage government in terms of the green car fund I think will be an important part of that overall strategic direction of the discussion.”
Mr Burela said Ford Australia was taking into account how the development funding could help it with powertrain projects.
“We’ve looked at what that means and how the green car fund can support future development, but we’ve also taken a view that once we have taken a decision on what we are going to do, it needs to give everyone – government, consumers and Ford Motor Company – the right answer,” he said. “If it doesn’t give us the right answer for the medium to long term, then all we are doing is taking money to stay afl oat while the industry is going through a very diffi cult time.”
Under the direction of Mr Burela, whose first task as president was to reverse the decision
to switch to the imported V6, Ford Australia is ramping up the promotion of Falcon I6’s fuel economy after the offi cial combined fuel economy on non-turbo cars with the six-speed ZF automatic was reduced to 9.9L/100km.
New Ford print advertisements state that Toyota should be worried given the petrol I6 Falcon uses the same amount of fuel as a four-cylinder automatic Camry and that the E-Gas Falcon I6 is cheaper to run than a Toyota Corolla.
Mr Burela, who is keen on direct, no-nonsense advertising messages rather than the vague ‘feel-good’ ads that accompanied the launch of the FG Falcon range before his arrival, said the new advertising campaign sent a powerful message.
He said a strong response from journalists and some potential customers, who were not aware of the engine’s efficiency, showed the ad campaign was working.
“Australians didn’t know this,” he said. “I wanted to make sure that Australians really
understood the fuel economy story.”
Meanwhile, Ford Australia is close to sewing up a deal for its I6 engine to be sold to a company for a non-automotive application.
“Interestingly, we are getting enquiries from different sectors about the applications, not necessarily automotive,” Mr Burela said, indicating that a fi nal deal was not far away.
“We’re close in terms of coming to some level of understanding the how, what, where and how many, and conservatively it is another three months to tie up things,” he said.
It would not be the first time Ford Australia has produced the I6 engine for nonautomotive
purposes. It built an industrial version of the 4.1-litre six-cylinder before the company switched to the 3.9-litre OHC engine for the EA Falcon in 1988.
Mr Burela said the current proposal for engine supply was not the only one the company was looking at.
“There are different things that people out there are talking to us about and the level of
interest has been really exciting,” he said.
Ford Australia was approached by overseas car-makers, including some in India and China, who were interested in taking over the Geelong I6 plant if it was closed, but it is not clear if the parties are still interested in taking engines from Ford Australia.

Ford upgrade wins a 400-job reprieve

November 20th, 2008 - Geelong Advertiser

BREAKING NEWS FORD will continue operating its Geelong engine plant, saving 1300 jobs – 400 at Ford and up to 900 among its suppliers.

"$21 million will be invested in plant and equipment and further investment will go towards engineering the inline-6 engine to meet the stringent Euro IV environmental standard,'' Federal Industry Minister Senator Kim Carr saiod this morning.

The inline-6 is a unique Australian engine that uses components from suppliers in Geelong and across the country. All three Australian-based motor vehicle producers will now be making engines to meet the new Euro IV standards when they are introduced into Australia in 2010,'' Senator Carr said.Ford will invest the $21 million continued use post-2010, as well as invest in considerable engineering development of the I6 engine to ensure compliance with stringent Euro IV emissions standards.

This adds to the $200 million that the company has previously invested in facilities and product development in Geelong since 2006 and will supplement the company's ongoing Geelong-based stamping, R&D and Proving Ground facilities, the company said in a statement just issued."This decision is good news, not only for our employees in Geelong, our suppliers and the surrounding community, but also for the many fans of our I6 engine, which will now be re-engineered to achieve Euro IV emissions standards," said Ford Australia president and CEO Marin Burela.

Ford said that in addition to direct employment benefits for the Geelong region, retaining the engine plant was expected to provide an on-flow of business to local service providers. Australian component suppliers would also benefit due to the continued requirement for a number of engine components, including intake manifolds, engine pistons, gaskets and bearings.

"This is the first step in a broad product investment strategy to reduce emissions and deliver improved fuel economy across our locally built vehicle line-up, including Falcon, Falcon Ute and Territory."Ford said it believed the Federal Government's new Green Car Innovation Fund provided a framework for the company to investigate an additional range of environmentally-oriented product investment initiatives which, when combined with emissions improvements to the popular I6 engine, would increase future competitiveness."Our I6 engine continues to receive rave reviews for its performance, fuel economy and quietness. Keeping this engine in our product line-up will allow us to maintain our competitive edge and provide a distinct advantage over our direct competition," said Mr Burela."

When added to our other proposed future product actions, we will offer consumers a range of choices that will allow them to continue enjoying all the benefits of Australia’s only locally manufactured vehicle to achieve a 5-star safety rating, along with continued fuel economy improvements and reduced emissions."Premier John Brumby welcomed the Ford announcement, calling it an "important move'' that would "secure jobs, provide a boost for local component manufacturers and further enhance Victoria’s automotive capabilities”.

“This is a big leap forward for the Victorian automotive industry and good news for those Australian component suppliers who will be called upon to continue providing parts for the I6 engine,” he said.

Mr Brumby said the government had worked closely with Ford to secure this outcome and would continue to work with the company to facilitate its development of clean and efficient technologies.

Ford jobs crisis climax today

Danny Lannen
November 13th, 2008

MARK McClure will go to work today expecting to learn if he needs to go there anymore.

The Ford worker of almost 23 years will be one of many employees filing through the gates today with hopeful or heavy hearts as the company prepares to mobilise its latest round of job cuts.

Staff are calling it D-Day, D for dilemma, D for decision, D for departure. Some, like Mr McClure, will be happy to take the money and go. ``I've put my hand up,'' Mr McClure said.
``It's hard. You've got to consider all of the options, but I just think the way everything's been going I think the damage has been done. ``I suppose at the end of the day you have to make a decision on do you want to change direction.''

Mr McClure, 39, is a toolmaker and Australian Manufacturing Workers Union metals deputy in Geelong's stamping operation.

He said the mood in the plant remained sombre, sometimes testy and sometimes emotional. ``You see people obviously pretty upset and they just don't know what to do,'' Mr McClure said. ``Some people are just prepared to hang on no matter what, and I suppose whatever they're dealt, they're dealt. ``I suppose in the back of people's minds they're waiting and some are probably getting a bit impatient wanting to know what to do once the decision is made. ``I guess some are thinking in the back of their minds, have I made the right decision or not?''

Mr McClure is a single dad with a son, 13, at home. He's not fretting about his financial situation but he doesn't have a new job to turn to and wonders about the future. He also despairs for loss of skills in the workforce as Ford employees turn to other endeavours.

Mr McClure believes the State Government should step in and help with re-training. ``We shouldn't be disadvantaged in access to training and should get access to government-funded training in these circumstances,'' Mr McClure said. ``They come out and say about skills for the future and redevelopment. Some very, very highly skilled people come out of the auto industry and it would be easier to teach now than losing it.''

He doubts the Federal Government's $6.2 billion auto industry rescue package will do much. ``I'm not convinced it's over yet,'' Mr McClure said.``I'm convinced the worst is still to come in the economy and the auto industry. ``The Government package sounds good but when you talk about the auto industry it chews money up like it's going out of fashion; $6 billion doesn't go far in that lot.''

Ford slammed

By Belinda Nolan, 21st October 2008 Independent

FORD workers have slammed management for the way it announced plans to slash jobs at its Broadmeadows plant.

The multinational car maker last Thursday confirmed rumours when it announced it will slash 450 jobs.

In addition to the cuts, company president Martin Burela revealed more down days in production meaning staff will only be working between two and three days a week until the end of the year.

The company’s Campbellfield head office has yet to confirm how many jobs will go from its plants at Broadmeadows and Geelong.

One worker, who did not wish to be named, criticised the way Ford had handled the situation.

“There has been very little communication. You hear more about it on the radio. You hear about it first in the media, then the next day they actually tell you,” he said.

The worker said the news had delivered a crushing blow to his workmates, many of whom were facing the prospect of Christmas unemployed.

“The morale here is very low at the moment,” he said.“All the down days are having an effect on people. It’s pretty depressing.”

The man said many workers feared not only for their jobs but the pressure it would put on their families.“

So far it hasn’t affected me but it probably will in the future.

You do have to worry about it, especially if you have a family.”Mr Burela defended the company’s decision, saying the current economic crisis had left Ford with little choice but to make the cuts to ensure it could continue to operate profitably into the future.

“This is a proactive step to position ourselves for strength,” Mr Burela said.“The reality is it’s something we need to do to move forward in the marketplace.“We don’t take these steps and these actions lightly but we are committed to working with our employees and our union partners to provide a smooth transition for our people as we move forward,” Mr Burela said.“However, we do need to take these steps. The steps are necessary actions to right-size the business to ensure that we can operate and operate effectively in a very dynamic and changing marketplace here in Australia.”

The new revelations came following an August announcement that the company would cull up to 350 jobs at its Broadmeadows and Geelong factories starting in November.

The announcement brings the total job cuts at Ford to 1400 over two years.

Australian Manufacturing Workers’ Union Victorian secretary Steve Dargavel said the news was disappointing.“This is a very sad day for manufacturing,” Mr Dargavel said.Mr Dargavel said the cuts, along with the down days, were a massive blow for the 4700 Victorian workers employed by Ford.

He said the union was working on an arrangement with the company, to allow workers to use their accrued leave to try to absorb some of the down days but the solution would not help everyone.