Where to for Ford Territory?

Once there were many, soon there will be just two. Ford Australia will chain the gates for good at its Broadmeadows and Geelong facilities at the end of 2016, forever ending production of the venerable Aussie Falcon and Territory.

In less than three and a half years Ford will join marques such as Mitsubishi, Volvo, Volkswagen, Jeep, Chrysler, Nissan, Leyland and Rover as those who tried, leaving just two car-makers in Australia -- Toyota and Holden.

Of course Ford considered alternatives to closing its factory doors here. One possible solution was to add Focus production to Broadmeadows with exports to Asia-Pacific. Instead, Ford decided to build the current Focus in Thailand, where it also builds the Fiesta and Ranger for export to Australia.

With annual declines in domestic large-car sales, and without a profitable export program for either of its homegrown nameplates, Ford as an Australian manufacturer faced the inevitable spectre of export or perish.

It’s not that Falcon and Territory aren’t good vehicles. Both are arguably the best large-platform vehicles Ford manufacturers anywhere in the world. If you don’t appreciate the excellent dynamics of a Falcon XR, drive a Mustang and you soon will.

Falcon and Territory design character and practicality reflect the clever thinking that underlines Australia in general. Is there a better SUV than the diesel Territory? Not for the money. But as good as they are, Ford’s decision to cease production in Australia is based on quantity not quality.

So where does Ford Australia look to find replacements for the Falcon and Territory?

The Blue Oval has stated it will continue to field players in the large sedan and SUV segments here, but has confirmed the Falcon nameplate – which will be 66 years old when it’s retired but is already the oldest surviving model name in the Ford world – will be killed off when Victorian production ceases in October 2016.

However, it has left the door open for the popular Territory badge, which will celebrate its 10th anniversary next June, to continue – almost certainly on a large SUV imported from North America.

But for that to happen, Ford Australia will need to persuade the Blue Oval to make an exception to its global naming policy, which sees the same vehicle wear the same nameplate in every country in which it’s sold, with one of the few exceptions being the  Kuga/Escape.

As has been long speculated, the most logical scenario is for the US-built Taurus to replace the Falcon, and for North America’s Explorer, which is built on the same monocoque platform, to replace Ford’s locally built Territory.

The Taurus and Explorer, both of have been previously available in Australia, have long been touted by media as the most obvious eventual replacements for the Falcon and Territory and current versions of both models have been spotted testing in various locations around Australia.

Ford North America builds the Taurus and Explorer at its Chicago plant, with the two vehicles sharing drivetrain layouts as well as many component sets. It is fair to say the Explorer is a taller-riding seven-seat wagon derivative of the Taurus.

Of course, the latest Explorer isn’t the same model that made headlines in the early 2000s and led to the termination of Australian Jac Nasser as President of Ford Motor Company. Unlike the rugged 4WD it replaced, the current Explorer took a radical new path when it emerged in 2010 as a crossover with a transverse engine, meaning it’s basically front-wheel drive. AWD is available for both the Explorer ad Taurus in the US.

Ford has obviously worked hard to improve interior layout. There’s order and balance to the design and a new-found logic in the interaction between man and machine. Think Volvo XC90 and you’re on target. The interior seating follows many of the Volvo’s tricks, including flat-folding third-row seats that are more generous than many in this segment.

Other key interior features such as the AWD controls are recognisably Land Rover. A single dial allows the driver to select between four terrain settings in addition to Hill Descent Control, but this SUV definitely isn’t Land Rover-tough. Sand and perhaps a little snow is about as much adventure as this Explorer can handle.

Three engines are available Stateside but only two make sense for Australia, including a version of the Falcon’s 179kW/353Nm 2.0-litre turbocharged four-cylinder petrol engine. The other is a 3.5-litre turbocharged V6 developing 272kW and 475Nm. Both petrol engines are matched with a six-speed automatic transmission.

Which brings us to the two critical issues that could prevent the Explorer and Taurus replacing Territory and Falcon. A diesel engine is not offered in either model and nor has Ford North America engineered the existing Explorer/Taurus platform for right-hand drive.

Ford exports about 24,000 Explorers from the US annually – all powered by petrol engines and all in left-hand drive.

That’s not good news for Ford Australia as a vehicle importer looking to US-built products, although the situation could change for the next generation of both models due before 2016, by which time Ford’s Australian-designed Ranger-based seven-seat off-road diesel SUV will be on sale here.

Aside from the Falcon and Territory, Ford Australia’s present passenger model range is European designed and engineered, with diesel available in each nameplate from Fiesta to Focus and Kuga to Mondeo.

If one existed, a Mondeo-based SUV would make perfect sense, preferably with a 2.3- to 2.5-litre diesel and six-speed PowerShift double-clutch transmission. You know, a larger version of the Kuga and a hard-fisted competitor to large soft-roaders like the Toyota Kluger, Holden Captiva, Mazda CX-9, Hyundai Santa Fe and Kia Sorento.

By the end of this year Ford’s all-new Fiesta-based EcoSport will be imported to Australia from India, giving wider coverage of the local SUV landscape than ever with a 1.0-litre three-cylinder turbo-petrol engine and a starting price of around $20,000.

The full-chassis Ranger-based ‘Everest’ or ‘Endeavour’ will also bring new customers to Ford at the other end of the SUV scale, but sourcing a large seven-seat SUV to sell in the booming large crossover segment in Australia could prove more difficult.

Apart from the Explorer, there are two other possible replacements for the Territory – Edge and Flex. The same issues exist: no diesel and no RHD, but both models are unique SUVs with features that may translate well to Australian buyers.

Admittedly, the Flex is more wagon than SUV. Longer than the Explorer overall, but narrower and squatty, the Flex’s funky proportions and design cues decorate a big box designed to carry people with a lot of stuff.

The stubby overall height makes loading kayaks, skis and gear on the roof a bit easier and the second- and third-row seats fold flat to yield a lot of open space. The seats and basic interior architecture are shared with Explorer, so too the AWD system and 3.5-litre turbo-petrol V6.

Are Australian’s ready for American funk? That’s the Flex question.

On the other hand, mentally picturing the Edge alongside the Kuga in Australian showrooms takes little imagination. Beautifully proportioned with excellent design details, the Edge has a Euro look.

The Edge’s design is believed to have been guided by Englishman Peter Horbury, whose pen reshaped Volvo from square to sleek and stylish. The design definitely hides its surprisingly large dimensions, wide proportions and ample shoulder and leg room.

Powering the Edge are naturally aspirated 3.5- and 3.7-litre petrol V6s and the same AWD system as seen in the Explorer and Flex, so it also has the same off-road limitations.

In the end, the Territory will prove hard to replace. Ford North America is rich with large SUVs but the current lack of RHD production and diesel power present significant shortcomings for the Explorer, Flex and Edge in Australia.

Europe has the same diesel dilemma, so don’t discount the idea of Ford developing an all-new large SUV from the mid-size Mondeo platform, which could be positioned above the Focus-based Kuga -- just like the Territory.

-- With staff

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