Falcon’s last flight
Dr Zareh Ghazarian
By Zareh Ghazarian
The demise of Ford’s production of vehicles in Australia marks the end of an era that began in 1925 when Ford started making cars in this country.
The first Falcon arrived in 1960 as a large four door sedan and proved to be popular with Australians. The car changed, but the essential formula remained unchanged for more than 50 years, making the nameplate the longest serving in local automotive history. Its list of competitors in the early years included the EJ Holden and Chrysler’s Valiant.
Throughout the 1980s and 1990s the Falcon, along with the Holden Commodore, became the default choice of Australian motorists. Despite being challenged by other four-door sedans like the Mitsubishi Magna and Toyota Camry, Ford and Holden dominated the sales charts.
Part of the appeal of the Falcon and Commodore was that they were perceived to be local cars designed for local conditions. Their combination of size, power and the vast dealer network that supported them also attracted fleet and private customers. While much engineering occurred in Australia, both firms borrowed significant technology from their US parent companies.
In 1992 a basic version of the car cost $23,000. In the same year, a Toyota Corolla cost around $19,000. The Falcon was considered better value and buyers voted with their cheque books, making it the top selling car in Australia.
Since then, the Falcon has had to compete in a tougher market. Not only did government policy open up greater competition, but consumer tastes began to change. Issues concerning fuel efficiency, packaging and aesthetics became even more important factors for consumers. Australian buyers no longer simply identified themselves as either a Ford or Holden devotee and were lured by other marques and other vehicles.
Small cars began to dominate the sales charts, despite many being similar in size to earlier model Commodores. Their price gave buyers a greater sense of value.
Today, for example, a Toyota Corolla is listed at $21,000 compared to the Falcon’s price of $37,000.
Compounding the problem faced by the Falcon sedan was the fact that buyers who weren’t interested in smaller cars, were becoming enamoured with larger ones, namely sports utility vehicles (SUVs), which projected an image of adventure while offering a more versatile cabin arrangement. The SUV segment is growing to the detriment of large sedans even though in many cases they consume more fuel and cost more to service and maintain.
The Australian government sought to assist the local operations of Ford, but clearly the tide was against the Falcon. In recent years, sales have slumped as the car’s value has diminished in the eyes of consumers.
By announcing its intention to close in 2016, Ford has opened opportunities for its workforce to try to manage transition to other employment.
Ford’s decision, however, may also have a domino effect on component manufacturers who depend on economies of scale to remain viable. They will no doubt look to the Australian government for policies that will assist them in the medium term.
Australia will lose an automotive and cultural icon when the last Falcon rolls off the assembly line in 2016.
Dr Zareh Ghazarian is a lecturer within the School of Political and Social Inquiry at Monash University.