The Australian-led design, engineering and development base for Ford Ranger is threatened by rising costs due to local emissions regulations and the “innovation premium” of doing business in this country, according to Ford CEO Jim Farley.
Mr Farley, who is in Melbourne this weekend for the Australian Grand Prix to support the debut of Ford’s partnership with Red Bull, said the local engineering for which the Ranger is known will not continue unless the federal government’s New Vehicle Efficiency Standard (NVES) is optimized.
“It’s a choice because this technique can be done cheaper and faster in many other places,” Mr Farley told the media Daily Sparkz.
“There is a premium for innovation here in Australia compared to China, Vietnam or elsewhere. So we are willing to pay, but your government has to decide whether they want engineers in their country, or do you want a country of hairdressers and bankers?”
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“They have to decide whether they want to help us make up the cost difference because this is one of the most expensive locations for engineers on the planet.”
The current generation Ranger’s technical “sitting room” – the technical center of its development – was at Broadmeadows in Melbourne, where local design and engineering teams produced the Ranger and its offshoots, the Toyota Prado-rivalling Everest large SUV Ford Bronco Off-roader (not sold here).
It also developed the Ranger Raptor and its latest product is the Ranger Super Duty, a rival to the Toyota LandCruiser 70 series.
The Australian-developed Ranger led to the nameplate being reintroduced in the United States in late 2018 after local teams played an important role given its important role in the competitive midsize pickup truck market in North America.
Ford’s Australian development team has shrunk in recent years as the next-generation Ranger – expected to be available between 2027 and 2028 – approaches showroom arrivals as an even more important global model.
Also on the horizon for Ford Australia is NVES, which will require increasingly lower CO2 emissions limits for new vehicles between 2025 and 2029 – a plan that has already led to an increase in showroom prices for some Ford Australia models.
The Ranger and Everest accounted for 88 per cent of Ford Australia’s sales in 2025 and topped the sales charts in their respective categories.
“I will be speaking to the government at the weekend; every government has to be very sensitive when it comes to the carbon pathway. We want to reduce our carbon footprint but there is a level that the customer cannot afford,” Mr Farley said.
“Not all commercial vehicles can be electrified. There are a lot of electric vehicles that just don’t make sense for a heavy tower, and I see more towbars here than anywhere else other than the Netherlands.”
“That duty cycle of towing and pure electrification… right now the technology doesn’t make sense of that – it has to be heavily subsidized by the OEM (vehicle manufacturer) to be compliant.”
Ford Australia introduced a plug-in hybrid version (PHEV) of the Ranger in 2025, while arch-rival Toyota will launch a battery-electric HiLux here Daily Sparkz It is expected to only be sold in small quantities.
Several Chinese brands have also entered the electric vehicle segment, most notably models such as the BYD Shark 6 PHEV and the GWM Cannon Alpha PHEV.
Electric vehicles accounted for a record 8.3 percent of total vehicle sales in Australia in 2025, surpassing 100,000 registrations for the first time, reaching 103,269 local buyers. PHEVs are now growing faster, but last year only reached 53,484 new homes.
“Over the last three or four years, medium-duty pickup trucks with construction around the world have become a global profit pool that every Chinese company has their eye on, so we need our best and brightest,” Mr. Farley said.
“The answer will come… but I’m very confident now. We need to work with the government because we need to be competitive in terms of speed and cost.
“From my perspective, those are the two political issues that this country has to deal with. You want to prioritize mining and resource extraction – fine. But then you have to make some difficult decisions.
“Is the carbon roadmap sustainable for customers? I think Australia is on the wrong side of it right now.”
The Ford chief’s comments came after major automakers worked with U.S. President Donald Trump ahead of his administration’s easing of emissions laws in North America to extend the life of internal combustion engines.
MORE: Explore the Ford Ranger showroom
