5. Ending local manufacturing saved Ford

Ford Australia’s decision to end local vehicle manufacturing remains one of the most consequential moments in the country’s automotive history. The closure of the Broadmeadows facility on 7 October 2016 brought 91 years of continuous production to an end, beginning with the Model T in 1925 and concluding with a blue FGX Falcon XR6.

Ford was the first of Australia’s remaining major manufacturers to announce the end of local production, making it an easy target for criticism when Holden and Toyota subsequently followed. Yet the economics of building cars locally had become increasingly difficult. Tariff protection had been reduced, imported vehicles were improving, and Australian-made models struggled to compete on price, efficiency and reliability while buyer preferences were shifting away from large sedans.

The final years of local manufacturing showed that the industry was still capable of innovation. Ford introduced LPG technology and turbocharged engines for the Falcon, while the Territory eventually gained a diesel option. Toyota produced hybrid Camrys locally, and Holden developed lighter and more technically advanced versions of the Commodore. These efforts, however, could not overcome the broader market changes that were reducing demand for locally built large cars.

Ford’s most important strategic decision was to move away from the proposed local production of a global small car and instead secure the Australian design and engineering role for the T6 light-truck project. That work produced the 2011 Ranger and later the Everest SUV. Developed by the same Australian engineering culture that had supported Falcon and Territory programs, the Ranger became a global vehicle sold in more than 190 markets and transformed Ford Australia’s position within the company.

The Ranger’s success helped Ford retain strong relevance in Australia after manufacturing ended. It eventually became the brand’s best-selling vehicle locally and overtook the Toyota HiLux to become Australia’s leading vehicle in 2023. The Ranger also provided the foundation for collaboration with Volkswagen on the second-generation Amarok, reinforcing the international standing of Ford’s Australian-developed ute program.

There are risks in relying heavily on one model family. The Ranger and Everest together account for more than 90 per cent of Ford Australia’s volume in 2026, leaving the business exposed to changing buyer preferences, stricter efficiency standards and increasingly competitive electrified utes from China. Diesel dependence is becoming a larger disadvantage as fuel prices, emissions requirements and plug-in hybrid technology reshape the market.

Ford’s next response is expected to involve vehicles developed with Chinese partner Jiangling, including the Bronco Basecamp plug-in hybrid SUV. Such products could give Ford a stronger presence in the expanding electrified market while combining new technology with the familiarity of an established brand. Whether these vehicles retain enough of Ford’s character to satisfy traditional buyers remains an open question.

The end of Australian manufacturing was painful for the industry and for the communities connected to it, and the Falcon and Territory remain important parts of the country’s automotive identity. However, Ford’s early commitment to the Ranger gave it a path forward that Holden did not find after local production ceased. The company’s future will depend on whether it can repeat that successful transition as electrification and new international competition redefine the market.