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News - FordAustralia key to China fight: FarleyFord CEO Jim Farley says Australia is ground zero in fight with Chinese car-makers9 Mar 2026 By TOBY HAGON FORD Motor Company chief executive Jim Farley says Australia has become the frontline in the global automotive battle with Chinese manufacturers, describing the local market as a critical testing ground for how legacy brands can fight back against rapidly expanding rivals.
It comes as he says the long-term future of Ford’s 2000-strong design and engineering facility in Melbourne could hinge on crucial government meetings planned for this week.
Speaking during his multi-state visit to Australia, Mr Farley’s trip was focused not just on boardroom meetings but on soaking up local car culture – from visits to suburban shopping centres to a stop at hardware giant Bunnings.
Mr Farley said the visit was about shaping Ford’s global strategy in the face of China’s fast-growing automotive ambitions; it comes off the back of Chinese-sourced cars overtaking those from Japan in the Australian sales race.
“It’s disproportionately one of the most important markets in the world because there’s no tariffs and your government gave up on local manufacturing of automobiles several years ago,” said Mr Farley.
“So for Ford’s bet on Pro or the pressures of electrification and work this is ground zero actually.”
Australia’s open automotive market – one of the few major developed markets without tariffs or strong local industry protections – has become a magnet for new Chinese entrants eager to expand beyond their troubled domestic market.
Brands such as Chery, BYD, GWM, MG and LDV have moved aggressively into Australia in recent years, with more following as Chinese manufacturers increasingly look at export markets for growth.
For Ford, that presents both a threat and an opportunity.
“They are the new movers and shakers who are going to disrupt Ford’s acceleration in South-East Asia, not just here,” Mr Farley said.
“They are far from perfect … but they’re very ambitious and they’re very good at engineering partially electric vehicles.”
The Ford CEO made clear that the Chinese push into Australia – and particularly into the ute and commercial vehicle sectors – is something the company is watching closely.
“All the Chinese and South Koreans are all coming with utes and pick-up trucks,” he said.
“And because there’s no tariffs … there’s a completely open market.”
That is particularly significant for Ford because the Ranger ute and Everest SUV – both developed largely by Ford’s Melbourne-based engineering team – sit at the core of the brand’s global commercial vehicle strategy.
Australia’s heavy reliance on utes for work and recreation makes it an unusually useful proving ground.
“People use their vehicles here in Australia like they use them in the US,” Mr Farley said.
“You go to South Africa or you go to Thailand or you go to the US or Canada, people drive long distances, they use pickup trucks.”
“That makes this market very important.”
Despite the influx of Chinese competitors, Mr Farley insists Ford has significant advantages, particularly when it comes to building vehicles designed for heavy-duty work.
“When it comes to real-world work vehicles and off-road vehicles, they (the Chinese brands) are a long way from being competitive yet,” he said.
But he also acknowledges Chinese manufacturers have major structural advantages, particularly around cost.
“Their advantage is cost,” Mr Farley said bluntly. “We have to catch them on cost, which is not easy.”
He said Chinese manufacturers benefit from enormous scale, vertically integrated supply chains and strong expertise in battery technology.
“They have such large scale. They have such great IP with the iron phosphate batteries that they have a big advantage on scale,” he said.
“They can bring that scale to a place like Australia and for Ford that’s a big deal.”
Ford is already learning from the Chinese playbook. The company’s Territory SUV – engineered and built in China – has become a significant contributor to Ford’s growth in emerging markets.
“We have to order from China and it’s a very successful well accepted high-volume vehicle,” Mr Farley said.
But while the company is studying the Chinese playbook, Mr Farley says Ford is determined not to repeat the mistakes made by Western manufacturers during previous industry upheavals.
“I don’t want to be a victim,” he said. “We missed the South Koreans. We can’t afford to miss this one.”
Asked if it was already too late, he was adamant: “No.”
Central to Ford’s response is doubling down on the areas where it believes it can differentiate itself.
That includes a growing focus on enthusiast off-road vehicles, something Mr Farley believes can elevate the brand in much the same way Porsche has built its reputation around high-performance sportscars.
“There is no Porsche of off-road here in Australia,” he said. “If we want to be the Porsche of off-road you’ve got to sell the 911.”
He sees the American-market Bronco – itself based on the Ranger/Everest T6 architecture – as the brand’s off-road hero and a crucial model that should also be sold in Australia.
The strategy would see Ford expand its portfolio of rugged enthusiast vehicles, building on products such as Ranger Raptor and Everest Tremor.
“Ranger with Raptor has done a great job, but we can do a lot more,” he said.
However, Mr Farley’s visit to Australia was not solely focused on product strategy.
The Ford chief also plans to raise concerns with government about Australia’s New Vehicle Efficiency Standards (NVES), which limits the average CO2 emissions of a brand’s vehicle fleet.
Mr Farley argues the regulations risk moving faster than consumers can afford.
“Ford is totally committed to CO2 reduction, but we should do it at the pace that customers are willing to afford it,” he said.
“At this point in time, I don’t think there’s an alignment in Australia between customer affordability and the requirements.”
He warned that pushing electrification too aggressively could have unintended consequences for consumers.
“The customers are going to… they’re not going to be able to afford it,” he said.
“So either you write a big cheque or it’s not going to happen as fast as you think.”
Mr Farley also confirmed he had planned meetings with politicians to raise the future of Ford’s 2000-strong Australian engineering operations.
Ford has the largest automotive engineering base in the country, responsible for developing the global Ranger and Everest programs – which Mr Farley says have been extremely successful.
But he made clear the long-term future of that workforce cannot be taken for granted.
“Do you want core engineering for an industrial company like Ford here in this country or not?” he said.
“Do you want to outsource it like you’ve outsourced a lot or do you want to keep it in this country?”
Mr Farley confirmed he would be asking for support from the government to maintain an engineering team in Australia – and that its future would rely on some form of support.
“I have a lot of confidence in my Aussie team and they have a bright future, but we have to work with the government to be fully competitive,” he said, suggesting countries such as China and Vietnam could provide a lower labour cost base.
“Any engineering organisation, especially in a high-cost place like Australia, they have to think deeply about how to be competitive with the same activity around the globe. I'm hopeful that by working with your government, we can solve that problem.”  Read more4th of March 2026  VFACTS: Chinese cars top February salesChina overtakes Japan as Australia’s preferred source of new vehicles, breaking a 28-year record10th of February 2026  Ford eyes Geely partnership to dodge tariffsTechnology, platform, and production site sharing under discussion, say those close to deal20th of January 2026  Chinese Ford ‘Bronco’ a possibility for AusAn electrified RHD Ford ‘Bronco’ is a strong maybe for Australia – via China |
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