The AU Falcon was developed after considering proposals to replace the Falcon platform with one derived from an overseas model, such as the American Ford Taurus, European Ford Scorpio, or the Japanese Mazda 929. These were eliminated in favour of a substantial redesign of the Australian platform, due to concerns about towing, interior size, and local employment. Design started in 1994 and the program cost 700 million Australian Dollars before product launch.[3] It was launched under the slogan "You've come a long way baby".[4] The AU featured Ford's New Edge design style, and an optional IRS, for the first time on a Falcon. The IRS was a double wishbone design on an isolated subframe, standard fitment on the XR6 VCT, XR8 and Fairmont Ghia, and was an option on most other sedan models (although not with limited slip differential - this combination was reserved for IRS XR models).

The Ford BA Falcon is a full-size car, produced by the Ford Motor Company of Australia between September 2002 and October 2005. The exterior styling of the BA was a substantial revision of that used for the preceding AU model. A new independent rear suspension setup was fitted to all sedan derivatives, and the engine and transmission received further upgrades. In late 2004, Ford introduced a Mark II update, bringing subtle styling and mechanical changes,[1] and twelve months after that, replaced the BA with the BF. The model's market share briefly topped that of its chief competitor, the Holden Commodore on two occasions, but have failed to match those of the record-breaking EL Falcon.[2][3] In the final months of 2002, the BA model received the influential Wheels Car of the Year award,[4] breaking a 36-year drought.[5] The BA also won four consecutive Australia's Best Cars awards, spanning three years.