While the United States is widely known for its affinity for muscle cars, Australia has always had a soft spot for them, too. In the late 1970s, Ford Australia found itself with an issue with its muscle-bound Falcon CX hardtops. Some body shells were left over, and the XC was due for a generational refresh. Instead of scrapping the surplus units, Ford created 400 limited-edition Falcon XC Cobras.
Edsel Ford II championed the project, and those 400 got a Shelby-inspired makeover with white paint and, of course, blue stripes. These 400 examples weren’t just glitzed-up appearance-wise because every single one received a V8 engine, too. Plus, 30 of the 400 cars also received a special package which turned them into genuine racers for the road.
The Cobra Was A Happy Solution To A Depressing Problem
1978 Ford Falcon XC Cobra finished in white with blue stripes with black and blue interiorBring A Trailer
By 1977, Ford Australia had already made up its mind that the XC Falcon was out, and the XD iteration was slated to replace it. The issue was that Ford Australia’s Broadmeadows Assembly Plant in Campbellfield, Victoria, still had leftover body shells it needed to do something with, as supply had slightly outweighed demand. Ever the company man, Edsel Ford II advocated for turning the 400-or-so leftover shells into something cool, rather than simply leaving them to rot.
Around the same time, Ford Australia secured a 1-2 Bathurst victory in 1977 with a pair of Falcon XC hardtops, and Edsel bet on an increase in the Falcon’s desirability because of it. The Cobra name itself was already famous in the US, as Carroll Shelby had become a superstar in the muscle car scene there throughout the 1960s and early 1970s.
1978 Ford Falcon XC Cobra finished in white with blue stripes with black and blue interiorBring A Trailer
Being an Australian model, the XC Falcon Cobra’s initial production was a bit upside-down. For instance, although its paint scheme was mostly white, the entire car was painted Bold Blue first, then Sno-White was painted over it. Ford built the rest of the machine like most other Shelbys of the period: plucking a standard model off the line and giving it a thorough mechanical overhaul.
One thing needs to be kept clear: The XC Falcon Cobra wasn’t some sort of Ford Mustang with an Australian accent. In fact, the two models had completely different underpinnings. Instead, the XC Falcon was a fully Aussie creation, led solely by Ford Australia. This let the model showcase both the best of Australian muscle culture and Shelby’s heritage, honed and refined in the United States over the past couple of decades.
Its V8 Made It A Legitimate Muscle Car
1978 Ford Falcon XC Cobra finished in white with blue stripes with black and blue interiorBring A Trailer
Of the 400 XC Falcon Cobras produced, roughly 200 received a 302 cubic-inch (4.9-liter) Cleveland V8 producing around 202 horsepower. Keep in mind, the 4.9L Cleveland wasn’t offered in the US, despite sharing the same cubic-inch displacement as the 302 CID Windsor V8. That said, the other 200 or so Cobras received a 217-hp 351-cubic-inch (5.8L) Cleveland V8.
However, exact engine production figures and precisely how many of each engine were installed in these cars remain unclear. Broadly, the first 200 examples got 351s, and the last 200 got 302s. While sources are murky at best, other info suggests chassis #351 had a 351 engine, and chassis #001 reportedly got a 302 CID mill.
1978 Ford Falcon XC Cobra finished in white with blue stripes with black and blue interiorBring A Trailer
The entire car weighed just 3,285 pounds, more than 200 pounds lighter than some standard XC Falcon coupes, depending on selected equipment. The vehicles also received four-wheel power disc brakes and a mechanical limited-slip differential (LSD). The Shelby package included a free-flowing dual exhaust system, plus a front and rear suspension spring upgrade that stiffened things up considerably and was tuned for radial tires.
All of that’s to say, the XC Falcon Cobra wasn’t just a standard Cobra in a fancy shirt. It was a genuine, purpose-built performance machine aimed squarely at getting the most out of the outgoing XC Falcon as possible. Its V8 engine option — namely the 351 flavor — provided an excellent basis for its suspension, brake, and driveline upgrades.
30 Cobras Became Something Much Rarer Than The Standard Model
1978 Ford Falcon XC Cobra finished in white with blue stripes with black and blue interiorBring A Trailer
Hidden beneath the skin of just 30 of the 400 cars, however, is a much more serious track monster. If you find an XC Falcon Cobra with chassis numbers between #002 and #031, you’re in for a treat. Those models feature a special package coined “Option 97.” The 30 anointed were built as homologation models, produced to satisfy Bathurst competition rules and regulations regarding how many road-going examples of the cars entered into the actual race were needed.
More racing-inspired upgrades were funneled into the Option 97 cars. They all received a special, rear-facing hood scoop that forced cooler air down to the engine’s carburetor. They also got additional transmission coolers and extra suspension bracing. These upgrades set the cars up to better withstand hours of wide-open throttle and hard cornering, with a reduced risk of failure.
1978 Ford Falcon XC Cobra finished in white with blue stripes with black and blue interiorBring A Trailer
For the right collector, finding an Option 97 car is like finding a needle in a haystack, and the needle happens to be made of gold. The remaining 370 XC Cobra models were still impressive in their own right, but because they lacked the purpose-built racing hardware the Option 97 cars got, they couldn’t hold a candle to them around a track. Because Bathurst is arguably the most popular Aussie motorsport race, the Option 97 models also carry a good bit of national pride.
We also can’t forget about the Mad Max connection here. The XB and XC Ford Falcon were featured heavily in the movies. Because the XC Falcon Cobra represents the final iteration of the XC generation before transitioning to the XD — which looked much different and less athletic — these carry a lot of nostalgic value for many gearheads. Combine that with Option 97’s homologation upgrades and the XC Falcon’s importance in Bathurst history, and you have a rolling billboard advertising many of Australia’s great automotive aspects in one 15-foot-long car.
America’s Shelby Collectors Can Legally Own A Ford Cobra Most Have Never Heard Of
1978 Ford Falcon XC Cobra finished in white with blue stripes with black and blue interiorBring A Trailer
For many foreign-market car enthusiasts, the 25-Year Rule can be a depressing blow. Since 1978 is well over 25 years ago, anyone can legally import an XC Falcon Cobra into the US. You’re likely going to need deep pockets to get into one, though. Recently, chassis #349 sold in the US for $89,000 on Bring A Trailer. The result shows that even Americans appreciate these XC Falcon Cobras, so you’ll likely face fierce competition if you’re bidding on one for yourself.
Should you win the bidding war, you’re also going to have to pay for its importation, assuming you bought it from Australia. A lot of fees are involved in importing a car, such as Customs Duty, Ocean Freight, Inland Transport (if you’re not picking it up from the dock), Maritime Insurance, brokerage fees, DOT and EPA bonds, a potential gas-guzzler tax, and your specific state’s title and registration fees. Let’s say you pay $89,000 for your XC Falcon Cobra. In reality, your best bet is to have a bit over $100,000 saved for the whole endeavor.
If you’re only interested in Option 97 models, the amount of money you’ll need on hand increases a lot. One example that was listed for sale in Australia carried a $600,000 AUD ($426,712 USD) price. Some folks could afford a standard XC Falcon Cobra, but only a select few can pony up for an Option 97 iteration.
If you do manage to get your hands on one, you’re going to be one of the lucky few. Shelby collectors are everywhere, and most models built for the US market are well known. Showing up to the car show with a ’78 Ford XC Falcon Cobra, whether it’s an Option 97, would shock everyone there.
Sources: WhichCar, TheAutopian, CarScoops.
