FORD has switched tack from trying to beat the Holden Commodore on price to providing better value for money.
"The AU Falcon had a good price perception, but it did not have a good value perception," Ford's project manager for the AU II, Mr Tony Stokes, says.
The AU II Forte costs $1725 more than its predecessor at $32,415, but it gains about $2000 worth of extra features.
A passenger airbag, 16-inch wheels and 100-watt CD player are now included as standard features in the Forte, all firsts for a car in its segment.
But free scheduled servicing until 60,000km may be one of its biggest selling points, particularly among fleet buyers. It also gains complimentary roadside assistance for three years, bringing it in line with Holden's products.
A base model Holden Commodore Executive costs $29,760, but this rises to $33,190 when equipped with automatic transmission, air-conditioning and a CD player, all standard in the Forte.
A passenger airbag is available as a $990 option in the Commodore Executive but the extra outlay also brings side airbags.
Holden has said it will adopt a wait and see approach before responding to Ford's free servicing program. Daewoo is the only other affordable brand that offers free servicing at present.
Ford's research indicates the Falcon is currently a more popular choice than the Commodore among buyers over 45, but the opposite holds true for younger buyers.
The Blue Oval aims to increase its popularity among younger buyers by adding aspirational products such as the Mustang to its line-up within the next 12 months.
The European-styled Focus will also join the range next year.
Meanwhile, the AU II Falcon has gained a bit more youth appeal through the use of bigger wheels - and a rear spoiler on the Futura - while the revised XR models have a more discernible visual link with the Falcons in the V8 Supercar championship.
Nevertheless, it is the base model Forte that has received the most attention.
Ford's chief designer in product development, Mr Scott Strong, who has been involved with the Falcon for the past 12 months, says he is miffed by the fact the AU Falcon "was characterised as a bit of a loser in the market".
"The AU Falcon was a very strong design theme, but not beyond improvement," he says.
"Most of the criticism was aimed at the low-spec car. The Forte got beat up - it was not perceived as a genuine Falcon because it had been cheapened too much." Consequently, Mr Strong and his team opted to bring the "high series car downmarket".
The Forte now closely resembles its Futura and Fairmont siblings, which may leave the latter two open to criticism for not offering enough visual differentiation from the entry level model.
Pricing has gone up across the range (by between $725 and $2475) although spec for spec, most models still undercut their Commodore rivals.
Falcon pricing (old prices in brackets): *Forte sedan $32,415 ($30,690)
*Forte wagon $34,415 ($32,690)
*S $36,415 ($34,990)
*Futura sedan $36,640 ($34,990)
*Futura wagon $38,415 ($36,990)
*Fairmont sedan $39,915 ($38,490)
*Fairmont wagon $42,415 ($40,990)
*Fairmont Ghia $48,665 ($47,990)
*XR6 $39,715 ($38,990)
*XR6 VCT $44,715 ($43,990)
*XR8 $48,965 ($46,490)
Falcon range factory fit options *Cruise control $450
*Limited slip differential $500
*Anti-lock brakes $900
*Independent rear suspension (where ABS standard) $1400
*1600kg tow pack $275
*Rear spoiler (Forte) $350
*Dual fuel - sedan $2050
*Dual fuel - wagon $2370
*5.0-litre engine in place of 4.0 $3100
*5.0-litre engine in place of 4.0 VCT $2500
*Fairmont Ghia leather trim $775
*XR leather interior $1900
*Luxury Momo steering wheel $700
*Sports Momo steering wheel $630
*Sports Momo steering wheel & gear knob $770
*250W premium sound system (S/XR/Fairmont) $950
*Sports IRS $850
*Falcon S IRS/ABS/LSD Pack $2550
*Sedan body kit 2700
*XR body kit $1700
*S body kit $1900
*TVE Sports suspension (sed and wag) $850
*Tickford premium brake package (with 17-inch wheels) $3200
*Sunroof $1995