[2] Significant mechanical changes included revised six-cylinder engines with two-stage carburetors or optional electronic fuel injection, an optional five-speed manual transmission with overdrive, and the introduction of a new rear suspension system incorporating progressive rate coil springs, four trailing arms and Watt's linkage on all sedans.

[1] The six-cylinder engines, which had benefited from the fitting of alloy cylinder heads midway through the XD model run, were further updated for the XE.

Now dubbed Alloy Head II, the revised engines were fitted with a twin-venturi Weber 34 ADM carburetor, which gave improved performance,[3] and a viscous clutch fan, which reduced power losses.

[9] In the face of dwindling sales, Ford decided to end its local manufacturing of the 'Cleveland' V8 and market the Falcon range exclusively as six-cylinder cars.

Motoring journalists have suggested that Ford effectively handed the local performance market to rival Holden, which continued to offer V8-engined cars.

[4] Ford marketed the new EFI engine based on its strong torque characteristics,[13] declaring that it, "offered virtually the same performance as the 4.9 litre V8 but with substantial savings in fuel consumption".

[12] Promotional literature demonstrated how the long-wheelbase Fairlane variant equipped with the EFI engine was only 0.1 seconds slower than the previous 4.9 L model in accelerating to 60 km/h (37 mph) when carrying five passengers and towing a 1,590 kg (3,505 lb) trailer.

The only way to ascertain if a Fairmont Ghia is a genuine ESP is to contact Ford Australia with the compliance details and have the vehicles original purchase order examined for "option 54".

Ford had to remove the original wing and replaced it with the DJR racing rear air dam that created more drag to fit regulations.

[18] The XE Falcon / ZK Fairlane / FD LTD range of cars combined to become the first automobiles to receive a prestigious Australian Design Award.

[19] As the fuel crisis eased, Australians moved away from the smaller Holden Commodore and four-cylinder medium-sized cars back to the traditional full-size Falcon.

In 1982, for the first time in more than a decade, the Falcon eclipsed its Holden rival in terms of annual sales, and remained Australia's number one selling car until 1988.