Against tightening emissions regulations and a global move towards electrified vehicles, Ford Australia says it’s ultimately the customer who decides what it’ll sell.
From July 1, carmakers in Australia will start to be penalised if they don’t meet certain emissions targets under the New Vehicle Efficiency Standard (NVES), which incentivises low- or zero-tailpipe emission cars, utes and SUVs.
Speaking to Australian media at the reveal of the Ranger Super Duty, Ford Australia and New Zealand CEO Andrew Birkic said the Blue Oval brand will continue to keep customers in mind amid growing regulatory pressures.
“We’ll continue to offer ICE (internal combustion engines). There’s no doubt about that. Because that’s what customers want,” Mr Birkic said.
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When asked whether he believed this would be a problem, given such vehicles are more likely to be penalised under the NVES regulations, Mr Birkic said Ford was unfazed.
“I don’t know about a problem. I think all OEMs are in this boat – whether it’s Australia or globally – everyone’s trying to work through that transition,” Mr Birkic said.
“What we’ve seen is there was a lot of investment in BEVs (battery-electric vehicles), and we’ve had to pivot a little bit to PHEVs (plug-in hybrids) for things like Transit [Custom PHEV].
“We have to be agile, because that’s what business is about – not only being able to interpret where the market is going, but be able to pivot and shift when you believe that the customer’s tastes or regulatory change is upon us.
Touching on the Transit Custom – which was meant to be available in Australia in turbo-diesel and electric E-Transit Custom guise before the PHEV was announced to join the lineup – Mr Birkic said Ford’s global standing helps the local division adjust to changing demands.
“We always had it [Transit Custom] there, and I’m lucky enough to work for a global company that has wonderful product development cycles and amazing engineers.
“Transit does really well for us, and we have learnt some lessons – most of the OEMs have learnt with electrification that you have to pivot, so we’ll continue to do that, and it has to be driven by what the customers want, and I think they’re looking for flexibility.
Mr Birkic was also asked about the importance of the upcoming Ranger PHEV (plug-in hybrid) in the brand’s NVES approach, with the executive saying a balance needs to be offered between what consumers and regulators want.
“As we know, from July 1, things change a little bit, so it’s a very important part of our mix,” he said.
“I believe with electrification, what you need is that balance. Obviously there’s a compliance element, but it’s got to be customer-driven.
“It has to be customer-driven because that’s what will drive your sales, and that’s why what we’ve done is build a vehicle that’s the best of both worlds, whether it’s towing or carrying or off-road capability, that’s what the PHEV does and that’s what separates it.”