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Ford to cease Australian automaking operations after 90 years

Ford began manufacturing cars in Australia in 1925 with the Model T. In 2016, Ford will stop manufacturing cars Down Under, including the Falcon and the Territory SUV. Ford Australia CEO Bob Graziano has reportedly confirmed the closure of the company's Broadmeadows assembly plant and the Geelong engine plant, both in the state of Victoria. There will be 650 jobs lost at Broadmeadows, 510 sacrificed at Geelong. Of the roughly 3,000 workers the Blue Oval has in Australia, it's said it will try to retain about 1,000 of them at its R&D and product development facilities.
The writing hasn't just been on the wall, it's been a regular item in all the papers and on Ford's bottom line for years. As recently as 2003, Ford sold nearly 75,000 Falcons, but over the next four years, annual sales dropped by something like 10,000 units, and over the last two years, it has sold less than 20,000 per year. It isn't only Ford that has suffered - sales of the other large, locally produced sedan, the Holden Commodore, have also gone over the precipice, triggering the same kind of angst about Holden's continued existence. Ford is the smallest of Australia's local automakers, Holden and Toyota the others, and has posted losses of $AUD141 million last year ($136M US) and $AUD600 million ($580M US) in the past five years. Graziano said the cost of manufacturing is simply too expensive in the country, twice as high as Europe and three times as high as Asia, and there no way to make a business case for staying in the country.
In January 2012, Ford Australia announced it would stay in the country until at least 2016, but by July of the same year, most outside observers were quietly declaring that 2016 would be the last year of Ford Down Under, and even the speculation was making other observers nervous. Ford received money from the Victorian government last year to aid its refresh of the Falcon and Territory, which will continue on schedule for the 2014 model year. A front- and all-wheel-drive sedan on a global platform is predicted to replace the Falcon, with some other SUV expected to replace the Territory. The company says it still intends to expand its lineup in the country.

EPA says fuel economy test for hybrids is accurate

The EPA says it stands behind its fuel economy test for hybrid vehicles following controversy about the testing process after Ford C-Max Hybrid customers and automotive journalists alike struggled to achieve 47 miles per gallon, the advertised mpg number, Automotive News reports. Ford responded to the issue almost two weeks ago by claiming that a 1970s-era EPA general label rule was responsible for the inaccurate mileage numbers, rerating the C-Max Hybrid's mpg numbers and offering customers rebates. Ford later said it didn't overstate the C-Max Hybrid's fuel economy and that it was surprised by the low numbers.
Ford technically didn't do anything wrong because it was following the general label rule, but agency regulator Christopher Grundler says the automaker was exploiting a loophole when it came up with the hybrid C-Max numbers, and that the testing process remains accurate. The general label rule allows vehicles that use the same engine and transmission and are in the same weight class to share fuel economy numbers, but it doesn't take into account other factors such as aerodynamic efficiency, which affects hybrids more drastically than non-hybrid vehicles. Ford originally used the Fusion Hybrid economy figures for the C-Max Hybrid and claimed the engineers didn't realize that its aerodynamic efficiency would affect fuel economy as much as it did.

Ford Fiesta becomes UK all-time best seller

We may regard Ford as an American automaker, but ask a Brit and they may tell you otherwise. The Blue Oval has, after all, been selling cars in the UK since 1903, and started manufacturing there as far back as 1911 when it began local production of the Model T in Manchester. Last year Ford ended 100 years of vehicle manufacturing in the UK when the last Transit van rolled off the assembly line in Southampton, but it's still the biggest-selling automotive marque in Britain.
Ford has led the British market for 34 out of the past 45 years, selling more Fiestas than any other company sells any other car in the UK since 2009... when it overtook the Focus. In fact the Fiesta has now become the best-selling car in British history, topping 4,115,000 units since its introduction in 1976. The previous record was held by - you guessed it - another Ford: the Escort sold 4,105,961 units over the course of its 32 years on the British market.
Although the Fiesta is no longer manufactured in the UK (previous versions having been built at Dagenham until 2002), engines are: the EcoBoost line was developed at the company's R&D center in Essex and are built at the factory in Dunton, while its diesel engines were developed at Dagenham in East London. Even the 1.6-liter EcoBoost engine in the Fiesta ST is built in South Wales.