Next-Generation Ford Ranger Is Already in Development

The Next-Generation Ute

The Blue Oval has confirmed that the new Ford Ranger is already being developed in Australia and is due by 2030. Engineers stationed at Ford’s Australian engineering headquarters are already working on the next-generation ute and may see the project through to the end if things go well.

However, it remains to be seen whether the Australian Ford engineers will be able to see their work through to the end, as Ford CEO Jim Farley has openly questioned the financial viability of developing vehicles in Australia.

A Half-Aussie Ford Ranger?

Around 1,500 engineers are on the case for the Ford Ranger, and being one of the best-selling models in the region, Fadi Mawal has gone on record with Drive, stating that “our plan is to continue lead development of Ranger and Everest in the future.” Mawal continued, “We’re working on that right now, and so we’ll continue to work on that until someone says otherwise.”

The thing is, someone may say otherwise. Jim Farley, Ford’s current CEO, has reportedly considered shutting down the Australian design and engineering operations due to the cost of hiring an engineer in the country. If the Australian government doesn’t act, Ford might have no choice but to take its development dollars elsewhere. High wages and a cost differential that makes it unsustainable: development for the Ford Ranger might have started in Australia, but it may end elsewhere if the landscape doesn’t change.

Still, the Aussie team remains hopeful. Speaking to Drive, Mawal said: “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.”

If Not Australia…

Farley managed to get a word in with the source, saying, “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.” This won’t be the first time that Ford has looked to the East either.

“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?” Finally, Farley said, “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.” Farley went on and on about the cost of doing engineering work in Australia in the Drive article; however, his statements are directed to a country that once had a thriving local Ford production with its own region-specific models, but no longer does.

Based on everything that’s been said, it appears that Ford’s giving an ultimatum. For now, the new Ford Ranger is already being developed in Australia, but whether it will continue to be developed down under remains to be seen. The bigger question will be: if not Australia, then where?

Chinese Vehicles Are Taking Over

Ford is already facing stiff competition in Australia. The problem is that Chinese vehicles are coming out of the woodwork and getting a huge amount of the pie at price points that several brands already find it hard to compete with.

The Blue Oval’s decision to take a good long look at its costs is completely justified. The more it costs to engineer the product, the more buyers will have to spend at dealerships in order to make a profit. The issue there is that China is already the number-one source of vehicles in Australia.

Now, Ford Australia is in a precarious spot. If something doesn’t change, we might be seeing a half-Aussie, half-wherever-else-developed Ford Ranger. You could say that the product will lose some essence, but Ford’s already on the back foot given the current economic landscape. It’s likely that Ford will turn to other teams to develop its midsize pickup truck if things don’t pan out; Farley mentioned China, Vietnam, or other places.