YOU'RE looking at Ford Australia's all-wheel drive future. That's right, this is the 2004 Ford Territory, unveiled by Ford Oz president Geoff Polites during this morning's Melbourne motor show opening.
Codenamed E265, the Blue Oval's $500 million homegrown cross-over - and its new name - was presented in near-production form a little over 12 months before the ground breaking new Falcon derivative goes on sale.
And the good news is you may well spot one out on the road, as Territory is now undergoing field validation testing. Ford says the ability to do that with undisguised vehicles is simply invaluable.
Territory is expected to be positioned between the large local sedan and traditional four-wheel drive price points with an entry price likely to be in the low $40,000s.
"Today is a huge milestone in the 77-year history of Ford in this country," said Mr Polites. "Territory will redefine the local automotive market.
"It represents an exciting new phase of our development as a vehicle designer and manufacturer. And it continues a tradition that began for us with the launch of the world's first coupe utility in 1934 and the introduction of the long-wheelbase concept in 1967," he said.
Though the car shown in Melbourne is only 90 per cent tooled - and therefore 90 per cent production-ready - the finalised Territory is not expected to change much from the confirmation prototype revealed today, which itself differs from the original R7 concept only in details areas such as mirrors, wheels and a different dual-opening front grille.
The finishing touches on the car shown in Melbourne are those of Ford Australia design director Simon Butterworth, who took up where predecessor Scott Strong left off.
Conceived and designed Down Under, Territory will offer the choice of 4.0-litre inline six-cylinder or 5.4-litre V8 engines, along with Control Blade independent rear suspension, a redesigned front suspension to handle drive to the front wheels, and a unique full-time four-wheel drivetrain.
Expect sedan-like handling dynamics with full-time four-wheel drive, increased ground clearance and longer suspension travel capable of light-duty off-road work - but no low-range.
Ford says Territory is not simply an all-wheel drive Falcon-based wagon - nor even a wagon - although Territory starts life on the short-wheelbase BA Falcon's platform, uses a number of BA components and will be built on the same assembly line.
However, with shorter overhangs at both ends it's actually shorter than a Falcon sedan overall.
And sports fans won't be ignored, because you can expect a more highly tuned example of the Territory to appear further down the track, courtesy of Ford Performance Vehicles.
The Territory is the product of four years and $2 million worth of market research that began in 1998, 18 months prior to approval for the BA Falcon was received.
It's believed a large part of Ford's customer research centred on how car-like or truck-like Territory's dynamics should be, with the emphasis eventually being "city friendliness for weekday use with enough off-road ability to facilitate an active lifestyle on weekends".
Focus groups were shown the Lexus RX300, the only large cross-over available (outside Australia) at the time, although Honda's forthcoming MDX is also cited as being similar in concept to Territory.
Ford also claims it will be the first to market with a locally developed "large soft off-roader" when it releases Territory in the second quarter of next year, however, Holden is expected to steal some of the Blue Oval's thunder by offering a similar product - the all-wheel drive Commodore-based wagon - in the second half of 2003.
Though the five-door Territory's interior remains under wraps for competitive reasons, it's said to offer "innovative and exciting" solutions to cargo storage, including a rear window that opens independently of the tailgate, a cockpit-style driving environment instead of walk-through capability, seating for five plus an optional two-seat third row, bringing seating capacity to seven.
"We talked to large car owners, owners of large 4WDs and owners of people movers and we found that although each of these owners was reasonably happy with their current vehicles, they could all identify areas where their vehicle didn't match their needs and wants," said Mr Polites.
"Large car buyers liked their car's performance and handling, but wished it could do more in terms of adapting to their lifestyle.
"4WD owners loved the command driving position and the versatility but wished it handled like a car. They also admitted that they didn't need the full-scale off-road ability and weren't happy with the upfront and operating costs.
"And some told us that while they enjoyed the freedom and ruggedness of their 4WD, they didn't enjoy driving it to work in traffic every day.
"People mover drivers grudgingly admitted that their car was very practical, but they hated being the bus driver.
"So there was basically an unmet need out there for something that offered the handling and style of a car with the versatility of a 4WD or people mover," he said.
"And importantly for Australia, we estimate that 60 per cent of Territory sales will substitute for current imports. So even without an export program, this vehicle will produce trade and balance of payments benefits for Australia," Mr Polites said.
Falcon vehicle line director Russell Christophers, who until October last year was chief program manager for E265, said research had shown both the medium and large passenger car segments were shrinking while sales of off-roaders - especially compacts - were increasing.
Mr Christophers predicted the off-road segment would grow to the point that it became one of the three major vehicle categories, along with small and large cars. And what he calls the large soft off-roader segment would rapidly become Australia's largest off-roader sub-segment.
"We saw a business opportunity to protect a profit base, one that could be produced on the Falcon line using some Falcon components. It was a dream to find an unfilled consumer need that fits our business so well," said Mr Christophers.
Though Ford is loathe to talk about projected sales volumes, Mr Polites has always stressed the success or failure of E265 did not depend on export success, saying it was calculated to make money on purely domestic sales.
Figures issued at the November 2001 announcement of the vehicle's go-ahead said E265 production was targeted to reach a substantial 32,000 by 2007.
"We're not going to spend half a billion dollars if there's no volume," said Mr Christophers of Ford's sales ambitions for Territory.
"It has to represent good value compared to a four-wheel drive," said Mr Christophers, who added Territory would target young, affluent private customers wanting traditional purchase and ownership costs. He said towing ability, luggage space and equipment are also among Territory customers' demands.