Ford CEO Mark Fields says he will build two smaller vehicles in Australia in a move that he says will help his company compete against Japanese automakers.
The CEO says he is aiming to bring in 20% of his global sales from small cars.
“Our business model is to build and sell a small car, and I’m not going to build a larger car if it’s not competitive with the Japanese,” Mr Fields told The Daily Telegraph in an interview on Wednesday.
“We have a great deal of confidence that we will be able to do it in a very small footprint, so I think that’s what we need to do.”
Mr Fields said the move was a response to concerns about the viability of his company’s Australian sales and that the company was aiming to build 20% more vehicles from small and mid-sized vehicles in the next four years.
Mr Field said his decision was motivated by the concerns about his company not being able to compete with Japanese manufacturers.
The CEO said Ford would build around 50,000 small vehicles by 2020.
He said he expected to make around $100m a year from the Australian sales.
It will be an effort to diversify our business model and to diversification the revenue stream and I think we’re going to be very successful in the process,” he said.
Ford has been hit with a series of problems, including an expensive recall of about 10,000 vehicles in 2018 and an expensive labour and human costs scandal in which more than 30,000 employees have been implicated.
A major recall of 10,200 Ford Fusion midsize sedans, including a number of hatchbacks, will be conducted by the end of 2020 and more than 3,000 affected vehicles will be returned to the market.
This will be followed by a planned recall of 4,800 other vehicles from 2019.
In addition to the fuel-efficiency issues, the recall of around 3,500 Ford Fusion sedans last year also resulted in a major recall.
While Mr Fields acknowledged that the recall costs were significant, he said it would have been a major cost to the company if the issue had not been brought to light.
During the interview with The Daily Mail, he was also asked about a proposal by former Prime Minister Julia Gillard to introduce an excise tax on petrol.
When asked if she had made the proposal, Mr Fields said: “No, but I think it’s a very reasonable proposal.”
The Australian Tax Office said it had been contacted by the Ford CEO, and Mr Fields would provide further details of the proposal to the tax office.
But the Australian Tax Department also said it was not yet aware of the proposed tax, and said it does not consider the proposal in isolation.
What is the tax on fuel?
The tax on the value of petrol is the same as for diesel fuel.
For most vehicles, the tax will be based on the amount of fuel used.
Under the Australian Fuel Tax (AFLT), a tax is paid on the actual cost of the fuel.
If the tax is too high, a levy is levied on the vehicle.
However, in some cases, the AFT does not apply.
An Australian Government study last year found that the levy on diesel fuel was more than $6,000 per vehicle, while a diesel fuel tax rate of 2.5 cents per litre was only 2 cents per kilometre.
Taxes for petrol vary according to the value in a vehicle, but the levy is usually around 10 cents per kilogram.
Is the tax effective?
According to the Australian Competition and Consumer Commission (ACCC), the ATS is “effective on fuel”, but only if the vehicle is used on more than one occasion, and the vehicle’s fuel economy is not less than 85 kilometres per hour (about 55 miles per hour).
However Mr Fields disputed this.
According the ACCC’s figures, about 9,000 of the vehicles used in Australia were used on at least one occasion to fuel the vehicle, or to be refueled for the vehicle at least once.
To be effective, the vehicle must meet all the following criteria: It must have been used on a fuel-efficient basis (including both electric and petrol-electric vehicles) It must be in a fuel economy of 85 kilometres (43 miles) per hour or more It can be used on public transport or other modes of transport that are not restricted to public transport, and that have an average fuel consumption of at least 80 kilometres per day or more.
If it meets all these criteria, it is considered to be fuel-effective.
How much is the levy?
An excise levy is charged on the price of a litre of petrol or diesel fuel (or the price charged by the fuel supplier for an equivalent fuel). In