Ford Australia needs to brand away from the Falcon

While Australians worry about the potential loss of the nation’s entire car-making industry, car aficionados in Australia and around the world are dismayed at the decision to retire the Falcon model.

“Ford has really trumpeted the Falcon as Australian-made, and they will have to redefine who they are here,” said a senior Australian creative who wished to remain anonymous. “It’s been a clear differentiator for them and they’ll really have a vacuum they have to replace.”

Ford Motors Australia launched the Falcon in 1960. The car went on to become a ‘national icon’ wrote the Sydney Morning Herald. The Ford brand has been present in Australia for 90 years.

Overall though, the source is confident that Ford will survive—if it imports great cars. “At their heart, no one really cares where cars are made," the source said. "‘Australian Made’ is talked about a lot, but it’s not where the consumer is at pocket-wise. The brand will just have to redefine what it is or it will continue to get hammered by the German, Korean and Japanese car brands.”

In response to calls for a consumer boycott, the source said, “There are consumer boycotts every week. People move on."

Recovering brand equity may be easier said than done, however. For example, Mitsubishi Motors Australia is still struggling three years after its manufacturing plants in Australia were shut down.

Ford Motors Australia announced yesterday that it was forced to close its two plants following losses over the past five years totaling US$600 million.

“All of us at Ford remain committed to our long history of serving Australian customers with the very best vehicles that deliver cutting-edge technology at an affordable cost,” said Bob Graziano, president and CEO of Ford Australia, in a statement. “Unfortunately, due to challenging market conditions we are unable to do that longer-term while continuing to manufacture locally.”

The brand decided to make the announcement of the closure three years in advance to give those affected, from employees to Australia’s car-making industry, time to transition, explained Martin Günsberg a brand communications associate in Ford’s public affairs department.

Between now and 2016, the Ford Falcon will have one final refresh, which the brand hopes will boost sales of the vehicle, he added.

Ford will continue to be “committed to Australia” said Günsberg. Its Australian operation is one of only four Ford centres for design and engineering excellence and employs 1,000 designers and engineers. In total, Ford will continue to employ 1,500 members of staff past 2016. The brand has also just signed a sponsorship deal with Australian Football League team the Geelong Cats, he added.

This commitment has to go further and deeper if Ford wants to save itself in Australia, commented Richard Curtis, managing director for Interbrand Sydney. Even prior to the plant closures, the brand hasn't been as committed to the market in recent years as it has been in the past, he said. 

"The fact that they run off a different manufacturing platform in Australia compared to other plants around the world suggests that they haven’t invested in Australia," Curtis said. "The brand's been around long enough and may have built up enough goodwill over the decades to sustain it, but it can't carry on doing what it's always done."

Ford needs to use this experience to turn around its fortunes. "Once they've managed with this unfortunate turn of events in the most appropriate and sensitive way, they need to put their focus on the customers and create an experience that delivers above and beyond the product," he said.