The Falcon XM, released in 1964, is the first Falcon with an Australian-designed body; the rear taillights are raised for Australian conditions and the front end received a full-wrap chrome grill and surrounds. The steering linkage is upgraded with 9/16-inch tie rods instead of the 1/2-inch tie rods found in the US models. The suspension is also improved with the upper control arms lowered to reduce the notorious bump steer found in the North American Falcon, that this model is based on. A new two-door hardtop body style is offered for the first time, in both Falcon Deluxe and Falcon Futura trim levels.
The 1964 US Fairlane 500 sedan was assembled by Ford Australia from December 1963 as the FD model. It was introduced in April 1964, distinguished by a lack of tail fins and a new grille with seven vertical bars. A choice of two powertrains is offered in the new model, a 260-cubic-inch (4.3 L) Windsor V8 with Ford-O-Matic automatic transmission or a 289-cubic-inch (4.74 L) Windsor V8 with Cruis-O-Matic automatic transmission.