Ford dumps small-car plan in Australia for fuel-efficient Falcon

Ford has abandoned plans to build a new small car in Australia in favor of producing more fuel-efficient versions of its locally built Falcon sedan and Territory off-roader from 2011. The car maker will spend A$230 million (US$201.99 million) shoehorning three new lower-emission engines into its local range. The Falcon will get a four-cylinder turbocharged petrol engine and a new high-tech LPG unit, and the Territory will get a V6 diesel engine. The Federal government will contribute A$42 million (US$36.88 million) to the program through its Green Car Innovation Fund. An undisclosed contribution has also been made by the Victoria government. Ford planned to build 40,000 Focus small cars a year in Australia, with 15,000 earmarked for export. But Company President Marin Burela said an Australian-built small car could not compete with models built in low-cost plants overseas. (July 25, 2009)