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FoMoCo Australia in the black after 2009…

May 8, 2010

On the back of announcing the new 50th Anniversary limited edition model Falcon’s, Ford has released the official (after tax) financial figures of 2009 – and they are exactly what we want to see… PROFITS!

2009 was a stellar year for the Australian arm of Ford. Solid sales of the Ford Falcon sedan, ute and wagon and the Falcon-based Territory SUV saw Ford run at full capacity all year with a new build-to-order regime, building 55,000 cars in the 12 months. Also consider there are no exports (apart from New Zealand) unlike the other two Australian automakers – Toyota Australia and GM Holden. Falcon/Territory sales were up last year over 2008, with the Falcon gaining 9% market share (now 34%) in the dwindling large-car segment.

Import sales were down 7%, though, to 99,000 sales.

For the 2010 calendar year, Ford expects a 15-20% increase in sales over 2009 as a result of increased import deliveries – of which the short supplies have been the biggest let down for Ford’s imported models like the Fiesta and Mondeo.

The Broadmeadows plant is also expected to stay at full capacity too, with the 4300 + staff working non-stop to keep up with the rising demand.

So how does Ford make a profit from less sales than anyone else?

Well it all comes down to not market share, but the type of buyers. You see, Ford seldom sell fleet cars compared to Holden and Toyota, but sells a higher amount of cars to private buyers – who pay more. Not is this only the case, but Ford is making and selling more top-of-the-range models than any other manufacturer in Australia – hence a greater profit margin on each sale.

The numbers speak for themselves. In 2008, Ford Australia had a deficit of $284 million AUD, but in one year made that money up plus an extra… wait for it… $13 million AUD! A gargantuan effort by any standards!

Stay tuned for more Ford news in the future!

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