Ford Australia confirms Edge SUV

Ford Australia has finally confirmed what's been widely expected for some time: that the large Edge SUV will effectively replace its homegrown Territory, which will be killed off along with the Falcon when Blue Oval production ceases Down Under on October 7.

However, in news that's likely to disappoint Ford dealers and customers alike, the Edge won't arrive here until 2018, leaving Ford showrooms without a large crossover SUV – one of Australia's most popular new vehicle types -- for all of next year.

The shock news was announced as promised this week – about two months before Ford Australia closes its factory doors and retires the nation's first and only locally-developed SUV.

Ford Australia CEO and president Graeme Whickman told journalists that the protracted local release timing for the second-generation, Mondeo-based Edge was "optimal" but would not say why because he could not discuss global launch programs.

"For us we'll get it about a year after we stop selling Territory and for us that was the most opportune to secure the vehicle and launch the vehicle," he said.

"We're part of a big global entity and therefore there are a lot of challenges in terms of where we source vehicles from, how we tool up and all manner of things, so for us that was the best time for us to launch the product – about a year after Territory sales.

"For us it's the right time. For us and the company in general 2018 is optimal."

Motoring.com.au understands that the unexpectedly late release of the Edge, which could be up to two years away from Australian shores, revolves around a major midlife facelift for the large SUV, which was released in the US in 2014 and in Europe earlier this year.

Asked if Ford Australia was waiting for a facelifted version of the Edge, Whickman said: "I can't be more specific because there's a bit of water to go under the bridge in terms of what's to come. It will be whatever the global vehicle is at the time.

"The motor vehicle industry as you know is a complex one, so knowing what we had to do we felt that was the best time to deliver that vehicle – about a year after Territory finishes."

Ford would not divulge any further details about the Edge, including where it will be built and in what specifications for Australia, but ruled out a local release for the Explorer, which is not produced in right-hand drive.

Currently, the RHD Edge is built only in Canada, which supplies the UK market with a five-seat diesel line-up, while a longer seven-seat petrol version is produced in China for domestic consumption.

Whickman indicated that Chinese imports are unlikely and, given that a seven-seat version is not expected to be produced for the RHD UK market, Australia appears likely to receive an updated version of the diesel-only five-seat models now on sale in Britain.

"We're not going to talk about anything today other than the fact that it's coming," said Whickman. "We have a view where it will be coming from, but we'll confirm that a little closer [to launch].

"As it stands at the moment I would suggest that it's not coming from China."

The decision means that unlike key rivals like the Toyota Kluger or the Territory itself, for which Ford now says the Edge is not a direct replacement, the new SUV will not be available with seven seats or a petrol engine.

To partially fill the void created by the Territory's departure in October, Ford will release a cheaper mid-spec rear-wheel drive Everest Trend in September, followed in the second quarter of next year by the first five-seat Everest.

The five-seat Everest will be offered in base Ambiente form in both 4WD and RWD form, potentially lowering its admission price to below $50,000.

Before then in early 2017, Ford Australia will release the facelifted Kuga already on sale in Europe.

Together, Ford believes these SUVs will fulfil the role currently played by the Territory, which is priced in line with its large crossover rivals from under $40,000.

"Territory has been a fantastic vehicle for us over many years and it's a proud outcome for our design and engineering team," said Whickman.

"But the reality is it's 7000 units... it's one of many important nameplates we have and that's before we proliferate the Everest range. Probably 15 to 20 per cent of our Everest sales are coming from a Territory type customer.

"Territory as a segment hasn't really been moving – it's around five to six per cent of the market. We plan to fill that at the appropriate time."

Whickman wouldn't say where the Edge will be positioned within Ford's SUV range, but conceded it will compete with Australia's top-selling large crossover, the Kluger.

"I wouldn’t comment about where it will be positioned relative to Everest. I think it has a number of competitors out there – that [Kluger] might be one of them."

Ford also remains silent about the Australian name of the Edge, which was also expected to be announced this week.

As we've reported, Toyota owns the rights to the Edge name in Australia and Ford has previously said the Territory name may live on with its imported replacement, but Whickman today indicated his preference to use the global Edge name in Australia.

"We're working through the naming strategy and when we get closer to it we'll chat to you about it. It's not finalised yet.

"Personally, I work for a global entity and part of that is global products and so my preference always would be to honour the global-ness of our organisation."

Whickman conceded that the Edge would go on sale in Australia up to two years after the UK despite having a larger SUV market, and indicated that the decision to release the model here had not been made in 2013 when Ford committed to releasing a "Territory replacement".

"When we first spoke to you in 2013 we spoke about a Territory replacement and that's changed," he said.

"What we were saying was there was going to be a vehicle to replace the Territory. It was a signal to our dealers and customers that in time we'd have a vehicle to replace the Territory.

"What I'm saying is that over that period of time we've seen the segment morph and that's why we're bringing in this vehicle to do the job. Like any global program we've got to make sure we've got a vehicle that's fit for purpose and generates the right demand in the market.

"We were looking at our options at that time, trying to make sure we understood the market, because at the end of the day you have to make sure you've got the right vehicle tailored to the market.

"There are a lot of different vehicles that actually have the potential to replace Territory customers' requirements... something who can accommodate somebody who's after a Territory-type vehicle."

Asked if the decision to delay the local Edge release until 2018 was made in Australia or the US, Whickman said: "At the end of the day we make the decision here based on what's available, what opportunity exists and what's best for the market.

"We knew that we'd progress through Territory sales and at that point ... When we looked at what was available, this was the best timing."

Whickman said Ford dealers, who were told of the Edge delay this week, supported the company's SUV strategy.

"The dealers understand our strategy around proliferating our range and building our model mix. They're on board with what we're trying to achieve and will probably see for the first time in a number of years year over year growth.

"They've seen us double our showroom in terms of numbers of SUVs in the last couple of years."

Ford expects SUVs to account for 40 per cent of all new vehicles sold – and overtake passenger car sales -- in Australia by 2018, by which time it says it will double the number of SUV derivatives it offers to about 20.

To June this year, 35.8 per cent of all Australian vehicle sales have been SUVs, increasing to 40.9 per cent among private buyers, led by millennials and baby boomers.

But while the Australian SUV market has grown more than 70 per cent over the past five years, when passenger car sales fell 12 per cent, Ford's SUV sales increased by less than 40 per cent since 2012, when it had half the number of SUVs on sale.

“Adding the Ford Edge and further expanding our SUV line-up comes as many of the 5.5 million millennials start having children and similar numbers of baby boomers continue to buy them after driving their early popularity," said Whickman.

But despite the focus on family-friendly SUVs and the fact the petrol-only Kluger (as well as the diesel-only Toyota Prado and Fortuner) comes standard with seven seats, the Edge appears unlikely to be offered here with more than five seats.

And Whickman said he was not concerned about the lack of a Ford crossover at all next year in Australia's second largest SUV segment after mid-size SUVs.

In the first half of this year, the Ranger ute-based Everest seven-seater was the second best selling 'proper 4x4' – behind the top-selling Prado -- in the large SUV sector, in which the Territory was the fifth most popular car-based model behind the dominant Kluger.

"Year-to-date we're growing," he said. "Having said that we'll look to proliferate our range during the same period of time [post-Territory]. That's why we wanted to put in front of you some of things we're putting in place at the same time.

"Rear-wheel drive Everest, five-passenger Everest, an extension of the Kuga – these are all things that sit around that segment. We've already seen Territory people migrate into some of our other vehicles as well.

"So this is not a Territory replacement. This is an all-new SUV that's been created for a new set of customer needs, so I think we'll continue to do pretty well in the SUV segment.

"We will I think continue to progress. I think that as our showroom continues to grow we'll capitalise on that."

SUVs coming from Ford:
EcoSport Shadow – August
Everest RWD – September
Everest five-seat – Q2 2017
Kuga facelift – Early 2017
Edge – 2018