7 February 2005

Energy Efficiency Inquiry 					Fax (03) 9653 2405
Productivity Commission 
Locked Bag 2 
Collins Street East 
MELBOURNE  VIC  8003 

Dear Sir/Madam 

Subject:	ENERGY EFFICIENCY INQUIRY

We write in response to a recent invitation for comment on issues relating to energy efficiency which are currently under study by the Productivity Commission.  We apologise for the delay in forwarding these comments.

It is Ford Australia's view that competitive market pressures are driving significant reductions in the energy intensity of the automotive manufacturing industry.  A fundamental issue in the successful pursuit of these reductions is maximum operating flexibility. 

Ford Australia is a leading automotive company with extensive design, engineering and manufacturing facilities.  Its core products are the Ford Falcon and new all-wheel-drive Ford Territory.  These vehicle lines are complemented by a broad portfolio of imported products from Europe, Asia and North America including the Ford Focus, Ford Fiesta and Ford Courier.  Ford Australia employs more than 5600 people in Geelong and Broadmeadows, Victoria.  In 2004, Ford Australia sold 135,172 locally manufactured and imported vehicles with sales revenues from vehicle and parts sales of more than $4.0 billion.  Ford Australia is ultimately owned by the Ford Motor Company in Dearborn, Michigan.

Ford Australia's focus on energy efficiency is underpinned by business and environmental imperatives, and centres on the two key areas of its business activities; firstly the company's own manufacturing operations where electricity and gas are the main energy sources and secondly the motor vehicles produced by the company where petrol and liquefied petroleum gas are the main in-use energy sources.  In both cases, energy represents an operating cost which can be reduced through a mix of appropriate new technology investments and enhanced process or operating methodologies.

In recent years, Ford Australia has made significant investments in reducing 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Russell Scoular
Government Affairs Manager