Why did they stop making Ford Falcons?
Ford ended Falcon production in Australia in 2016, driven by a shrinking market for large sedans, rising local manufacturing costs, and a strategic shift to SUVs and imported models. The move reflected broader global trends in the automotive industry and Ford’s own priorities at the time.
What led to the end of the Falcon
Several interrelated factors converged to make Falcon production untenable in the mid-2010s. The following overview highlights the main drivers behind Ford’s decision to wind down the model.
- Weak demand for large rear‑wheel‑drive sedans in Australia as buyers migrated toward SUVs and light commercial vehicles.
- Rising manufacturing costs in Australia, including labor, compliance, and local-content requirements, squeezing margins on a high‑volume family car.
- Increased competition from cheaper, globally sourced models imported under free-trade agreements and from other brands expanding in the Australian market.
- Ford’s global product strategy prioritizing high‑margin SUVs, pickups, and other platforms over maintaining a locally produced passenger car lineup.
- The broader trend of ending local car manufacturing in Australia, with Ford publicly confirming in the 2010s that it would exit local passenger-car production by 2016 in favor of imports and global platforms.
Taken together, these factors made the Falcon’s continued production financially untenable and prompted Ford to halt the model in 2016.
Timeline and key milestones
Understanding the sequence helps explain how Ford moved from announcement to execution, ending with the Falcon’s final shipment from Australian plants.
- 2013: Ford Australia confirms it will end local car manufacturing by 2016, shifting focus to global platforms and higher-demand vehicles such as SUVs and pickups.
- 2014: Ford formalizes the winding-down plan for passenger cars, including the Falcon/ Territory lineup, as part of the broader reorganization.
- 7 October 2016: The last Ford Falcon rolls off the production line at Ford’s Australian plants, marking the end of local Falcon production.
- Post-2016: Ford pivots to imported models and to globally popular SUVs/utes, notably the Ranger and Everest, with performance variants such as the Mustang continuing to be offered as an imported model from overseas.
The Falcon’s demise was part of a wider retreat of locally assembled passenger cars in Australia, as manufacturers shifted resources toward models with stronger global demand and better economies of scale.
Impact on the market and on Ford
The end of the Falcon reshaped Ford’s Australian lineup and reflected evolving consumer preferences. Large sedans gave way to SUVs and pickups, and Ford increasingly relied on imports to populate its showrooms. The shift also highlighted broader changes in Australia’s automotive sector, with several brands moving away from local production during the same period.
Effects on workers and communities
Plant closures and job losses associated with ending Falcon production affected manufacturing communities and the supply chain. Government agencies, industry bodies, and Ford worked on transition plans and retraining initiatives to mitigate the social impact as the company redirected its investment toward other models and imports.
Summary
The Ford Falcon’s halt in 2016 was the culmination of a perfect storm: a shrinking local market for large sedans, rising production costs in Australia, and Ford’s strategic choice to prioritize profitable global platforms and SUV/ute offerings over locally built passenger cars. While the Falcon remains a storied chapter in Australian motoring history, its end marked a shift toward a different era of vehicle choice and manufacturing in the country.
