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You are here: Home / Retro Stories: David Burrell / 1976 XC Falcon: How to gain market leadership

1976 XC Falcon: How to gain market leadership

Shamus Toomey · Oct 16, 2026 ·

by David Burrell – – –

In July 1976, Ford unveiled its XC Falcon range. And it was a masterclass in how to succeed when others only saw problems.

The new models coincided with the introduction of Australian Design Rule 27A. The regulation’s purpose was to force car makers to reduce exhaust emissions. The way to do this was to reduce compression and add power-sapping plumbing to the engines.

Emboldened by the challenge, Ford’s engineers leant right into the task. They designed new crossflow cylinder heads for its six-cylinder engines, which ensured the Falcon’s power was minimally impacted. The V8s got four-barrel carburettors. This allowed Ford to continue to boast about its performance advantages over Holden, which had done the minimal required and seen its engines robbed of power.

When it came to exterior sheet metal. Ford’s design team ensured the XC looked very different to its predecessors. They flattened the belt line which gave the XC a new profile. Upfront, there were new bumpers and a bolder, more rectangular grille. The upmarket Fairmont was given rectangular headlights, while the other models made do with round ones.

Inside, the wrap around dashboard of the XA and XB models was replaced by a full width facia, mounted lower to enhance forward visibility.

On the downside, the XC was the first Falon in a decade not to offer a GT. It was replaced, sort of, by a “luxury/sports” Fairmont GXL.

Making a final appearance was the Falcon coupe. Like Chrysler and GMH, Ford had seen sales of the big two door models decline rapidly. Everyone who wanted one had bought one. Used Monaros, Chargers and Falcon coupes were now selling at low prices.

Mind you, the XC coupe went out on a high note. For it was in 1977 that Alan Moffat and Colin Bond achieved their 1-2 finish at Bathurst. Ford made the most of the situation by releasing the limited-edition Cobra, which used up the last 400 hardtop bodyshells.

The lesson of the XC is simple. Ford saw the restrictive ARD27A regulations as an opportunity for improvement. They worked the problems, invested significant money and came away with engines that consolidated Ford’s hard-won performance reputation as the “Great Australian Road Car”. It pushed the Falcon to #1 in 1977.

By the early 1980s, those same engines, refined further, would allow the bigger Falcon to almost match the smaller, narrower, lighter Holden Commodore for fuel economy. Those engines underpinned Ford’s climb to number one.

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