The next-generation Ford Ranger is already being developed in Australia and is due by 2030, but the project’s future Down Under could depend on the cost of engineering operations. Ford CEO Jim Farley has openly questioned the financial viability of developing vehicles in Australia, raising the possibility that Ranger development could eventually move elsewhere.
Ford Ranger Development Is Underway in Australia
Around 1,500 engineers are working on the Ford Ranger, which is one of the best-selling models in the region. Ford’s Australian engineering team is currently leading development of the next-generation Ranger and Everest.
Speaking to Drive, Fadi Mawal said, “our plan is to continue lead development of Ranger and Everest in the future.” He added, “We’re working on that right now, and so we’ll continue to work on that until someone says otherwise.”
However, that future is not guaranteed. Farley has reportedly considered shutting down Ford’s Australian design and engineering operations because of the cost of hiring engineers in the country.
Ford Questions the Cost of Engineering in Australia
Ford could potentially move development spending elsewhere if the Australian government does not act. High wages and a cost differential that Ford considers unsustainable could mean the next-generation Ranger begins development in Australia but eventually moves to another location.
Despite those concerns, Ford’s Australian engineering team remains hopeful about its future. Mawal told Drive, “Our team here is recognized as a world-class team; we’re delivering best-in-class products; we’re doing it better than many others around the world, so we hope to continue to do that.”
Ford Could Look to China, Vietnam or Elsewhere
Farley told the source that Ford needs to work with the Australian government to remain competitive on both speed and cost compared with China, Vietnam and other locations.
“We have to work with your government, because we have to be competitive on speed and cost here in Australia versus China or Vietnam or other places,” Farley said.
Farley also said Ford is willing to pay a premium for innovation but argued that the Australian government must decide whether it wants engineers working in the country. He said, “There is a premium for innovation, so we’re willing to pay, but your government has to decide if they want engineers in your country, or do you want to be a country of hairdressers and bankers?”
Farley added, “They need to decide if they want to help us equalize the cost differential, because this is among the most expensive places to have engineers on the planet.”
Chinese Vehicles Add Pressure in Australia
Ford is already facing strong competition in Australia, with Chinese vehicles taking a significant share of the market at price points that several brands are finding difficult to match.
The rising cost of engineering is therefore a major consideration for Ford. The more it costs to develop a vehicle, the more buyers would have to pay at dealerships for the company to make a profit.
China is already the number-one source of vehicles in Australia, adding another factor to Ford’s decision over where future engineering work should take place.
Where Will the Next Ford Ranger Be Developed?
For now, the next-generation Ford Ranger is being developed in Australia and remains due by 2030. Whether the Australian team will continue the project through to completion remains uncertain.
If Ford ultimately moves Ranger development elsewhere, Farley has identified China, Vietnam and other locations as possible alternatives. The future of the project could therefore depend on whether the cost differential in Australia changes.
