Ford CEO warns Ranger engineering could leave Australia without changes to regulations

The Australian-led engineering base for theFord Ranger is under threat from rising costs from emissions laws and an ‘innovation premium’ of doing business in this country, according to Ford CEO Jim Farley.

Mr Farley, who is at the Australian Formula One Grand Prix in Melbourne to support the debut of Ford’s partnership with Red Bull, said the local engineering the Ranger is renowned for won’t last if the government’s emissions scheme isn’t tweaked.

“It’s a choice, because that engineering can be done in a lot of other places cheaper and faster,” Mr Farley told media, including CarExpert.

“Here in Australia, versus China or Vietnam or other places, there is a premium for innovation. So, we’re willing to pay, but your government has to decide if they want engineers in their country, or do you want a country of hairdressers and bankers?”

CarExpert can save you thousands on a new car. Click here to get a great deal.

“They need to decide if they want to help us equalise the cost differential, because this is among the most expensive places to have engineers on the planet.”

The current-generation Ranger’s engineering ‘homeroom’ – the engineering hub of its development – was at Broadmeadows in Melbourne, where local design and engineering teams produced the Ranger and its spin-offs, the Toyota LandCruiser Prado-rivalling Everest SUV and Ford Bronco (not sold here).

It also engineered the Ranger Raptor and its latest product is the Ranger Super Duty, a rival to the Toyota LandCruiser 70 Series.

The Australian-engineered Ranger saw the nameplate reintroduced in the United States in late 2018, with greater input from US teams given its role in North America.

The local engineering team has been shrinking over the last few years as the next-generation Ranger – believed to be due around 2027-2028 – nears its showroom arrival as an even more critical global model.

Also looming over Ford Australia is the New Vehicle Efficiency Standard (NVES), which enforces stricter CO₂ tailpipe emissions limits until 2029 – a scheme which has already seen showroom prices of some Ford Australia models rise.

The Ranger and Everest made up 88 per cent of Ford Australia’s sales in 2025, topping sales charts in their respective categories.

“I’ll be talking to the government during the weekend; any government has to be very sensitive around CO₂ guide path. We want to reduce our CO₂ footprint, but there’s a level that the customer cannot afford,” said Mr Farley.

“Not all duty cycles can be electrified. There’s a lot of electric vehicles out there that just don’t make sense if you’re a heavy tower, and I see more tow hitches here than anywhere other than the Netherlands.

“That duty cycle towing and pure electrification, right now, the technology doesn’t make that sensible – it has to be heavily subsidized by the OEM [vehicle manufacturer] to be compliant.”

Ford Australia introduced a plug-in hybrid (PHEV) version of the Ranger in 2025, while arch-rival Toyota will launch a battery-electric HiLux model here which it told CarExpert it expects to sell in only small numbers.

It comes as several Chinese brands enter the segment, led by models including the BYD Shark 6 PHEV and GWM Cannon Alpha PHEV.

Electric vehicles made a record 8.3 per cent of total vehicle sales in Australia in 2025, surpassing 100,000 sales for the first time with 103,269 reaching local buyers. PHEVs are now growing at a more rapid rate, but only reached 53,484 deliveries.

“In the last three or four years, globally, body-on-frame, medium pickup trucks are a global profit pool that every Chinese company is looking at, so we need our best and brightest,” said Mr Farley.

“The answer will come … but I’m very confident now. We have to work with the government because we have to be competitive on speed and cost.”

“From my standpoint, those are the two policy issues this country has to face. You want to priorities mining and extraction of raw materials – fine. But then, you’re going to have to make some tough choices: is the CO₂ roadmap sustainable for customers?”

“I think Australia is on the wrong side of that right now.”

The Ford chief’s comments come after automakers engaged with US President Donald Trump ahead of his administration’s weakening of emissions laws in North America, prolonging the life of internal combustion engines.

MORE: Explore the Ford Ranger showroom