Sales of the Falcon have been sliding, admits Ford Australia, but the carmaker remains optimistic that the setbacks of the past few quarters will be reversed by the entry of its newly overhauled flagship sedan.

Renamed as the FG Falcon MkII, the re-engineered Ford Falcon is set to hit Australian roads by the early months of 2012 and will be powered by a four-cylinder engine designed for optimum power and fuel efficiency.

The new Falcon's EcoBoost engine, Ford said, uses the Mondeo powerplant that has made its mark in the European circuits with its high-energy turbo features. But this time around, the new motor iteration will be characterised by sheer power but a smaller carbon footprints.

"The improvements we're making to the award-winning Falcon range with the introduction of FG Falcon MkII will make a great Australian car even better," Ford Australia president and chief executive Bob Graziano told The Daily Telegraph on Thursday.

The release will come as Ford was being hammered by dipping sales for the Falcon, with its nearest rival, Holden's Commodore, capturing the distinction as the best-selling locally assembled car in August.

Sales numbers in the month showed Holden leading on the back of 3,682 Commodores rolled out of dealers' stations while the Falcon sold a measly 1,665 units in the same period.

Furthermore, industry observers have expressed doubts that even a revitalised Falcon would successfully halt the continuing slide of Ford in Australia as Graziano himself hinted that the company' operation in the country is clouded by uncertainty in the years ahead.

"Ford refuses to confirm the Falcon's future as a locally produced car beyond 2015," the company CEO was quoted by The Telegraph as saying.