Why was the Ford Falcon discontinued?
The Falcon was discontinued in Australia in 2016 as Ford ended local production of passenger cars, driven by a shrinking market for large sedans and the high cost of manufacturing domestically, while the company redirected its resources toward SUVs and pickups.
The Ford Falcon, a staple of Australian motoring since the 1960s, faced a changing market and rising production costs in the 2010s. This article explains the key factors behind Ford Australia's decision to retire the Falcon and what followed for the brand and industry.
The context: the Falcon’s late years in Australia
To understand the decision, it helps to know the Falcon’s arc in Australia. The car family dominated Australian roads for decades, evolving through numerous generations before the mid-2010s. By the time Ford announced the end of Falcon production, consumer preferences had shifted away from traditional large sedans toward SUVs, crossovers, and light commercial vehicles, while local manufacturing faced mounting costs and market pressures.
Key turning points
In the years leading up to the shutdown, Ford Australia grappled with declining sales of large sedans, rising costs to meet safety and emissions standards, and a broader corporate push to prioritize other vehicle types in Ford’s global lineup. These dynamics culminated in a strategic decision to cease Falcon production rather than invest in a next-generation model under the existing Australian manufacturing framework.
Why Ford discontinued the Falcon
Several interrelated factors explained the decision. The following list outlines the main drivers behind ending Falcon production in Australia.
- Market shift away from large family sedans: Australian buyers increasingly preferred SUVs and utes, reducing demand for traditional Falcons.
- Rising production and compliance costs: Maintaining and updating a dedicated Australian passenger-car platform became financially challenging.
- Strategic pivot by Ford: Ford globally prioritized SUVs, pickups, and crossovers, directing investment away from local passenger-car programs.
- Competitive and supply dynamics: Imported vehicles and alternative models eroded Falcon’s market share, making local production less viable.
- Economic factors and policy environment: Labor costs, exchange rates, and the overall economics of domestic manufacturing weighed heavily on the decision.
Ultimately, the combination of shrinking demand for Falcons, the cost of keeping a traditional sedan program viable, and Ford’s global strategy led to the decision to discontinue the model and shift resources toward more profitable segments.
What happened after the discontinuation
The end of Falcon production marked a broader restructuring of Ford Australia’s lineup and manufacturing strategy. The company moved to prioritize SUVs and light-duty vehicles, while importing models like the Ford Mustang to maintain a performance-oriented option in the market. The final Falcon rolled off the line in 2016, signaling the end of an era in Australian automotive manufacturing and prompting changes for workers and suppliers tied to Falcon production.
Legacy and cultural impact
Beyond the factory floor, the Falcon’s retirement resonated with Australian car enthusiasts and the public, who had long associated the name with family, cruising, and local automotive identity. While Ford’s global emphasis on SUVs helped keep the brand relevant in Australia, many remember the Falcon as a flagship model that defined an era of Australian motoring.
Summary
In short, the Ford Falcon was discontinued due to a decline in demand for large sedans in Australia, combined with rising production costs and a strategic shift by Ford toward more profitable vehicle categories like SUVs and trucks. The move reflected broader industry trends in Australia and Ford’s global prioritization, ending Falcon production while shaping the brand’s future in the Australian market.
Summary of the main reasons: shrinking sedan demand, cost pressures of local manufacturing, and Ford’s pivot to higher-margin vehicle segments.
