Ford Australia’s engineering hub faces potential job cuts as the company seeks government support.

The facility employs around 1400 engineers, one of the country’s largest automotive design teams, which helped develop the Ranger and Everest and has contributed to vehicles for both domestic and international markets.

Ford CEO Jim Farley recently highlighted challenges posed by the 2025 New Vehicle Emissions Standard (NVES), which penalises manufacturers for high CO₂ emissions, saying the regulations make the local operation “not sustainable”.

Farley warned the Australian government it faces a choice. “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,” he said. “And 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?”

“They need to decide if they want to help us equalise the cost differential, because this is among the most expensive places to have engineers on the planet,” he added. “It can’t sit on the sidelines and pretend like that’s not a choice. It’s a choice because that engineering can be done in a lot of other places cheaper and faster.”

Ford has previously reduced staff, including 400 redundancies in 2023, and now aims to preserve 1500 Australian jobs if government intervention is provided. Talks with officials are planned this weekend. The outcome could affect future Ranger and Everest development, vehicles that are central to Ford’s global 4×4 line-up.

The New Vehicle Emissions Standard, introduced in 2025, is designed to push car makers toward more fuel-efficient vehicles, including EVs and plug-in hybrids. Manufacturers face financial penalties if a significant portion of their new vehicles exceed CO₂ thresholds.

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