The Ford Territory has had many problems across its lifespan, one of these issues includes those that affect its ball joints. This affects the front suspension’s ability to keep the wheel properly located—so when ball joints wear prematurely, owners can experience clunks, vague steering, uneven tyre wear, and in the worst cases, major suspension failure.
Before we dive in, one important note: “Ford Territory” can mean two very different vehicles, depending on your country.
- Ford Territory (Australia, 2004–2016): the well-known locally-developed SUV sold mainly in Australia/NZ (and some other markets). Most of the classic “Territory problems” people talk about relate to this model.
- Ford Territory (newer, China-built, sold in parts of Asia/Middle East, etc.): a different vehicle that shares the name but not the same mechanical history.
This guide covers both, with the bulk focused on the 2004–2016 Australian Territory, because that’s where the ball joint and ZF “milkshake” issues are most documented.
1) Front lower ball joints & suspension wear (big one)
Multiple reports over the years linked the Territory to front ball joint wear/failure, sometimes at relatively low kilometres. CarsGuide reported numerous owner complaints about ball joints failing or wearing quickly and needing replacement.
What you’ll notice
- Clunking/knocking over bumps
- Steering that feels vague or wanders
- Uneven front tyre wear
- Steering wheel shake under braking (sometimes compounded by other worn front-end parts)
What to check before buying
- Drive over speed bumps slowly with the radio off
- Get the front end inspected for play (ball joints, control arm bushes, tie rods)
- Check tyres for uneven wear patterns
2) Front brake hose leak recall (don’t ignore this)
Ford issued a major recall for SX and SY Territory models where front brake hoses could develop a brake fluid leak under certain operating conditions.
Why it matters
A brake fluid leak can reduce braking performance and can be dangerous.
What to do
- If you own one, confirm the recall repair was completed.
- If you’re buying used, ask for paperwork or check recall status using official tools.
3) Automatic transmission “milkshake” (coolant + ATF mixing)
One of the most infamous Ford Territory problems is the automatic transmission oil cooler failure, where coolant mixes with transmission fluid—often called the “milkshake” issue. CarsGuide warns this failure can cause major transmission damage and, in severe cases, loss of drive.
For SZ Territory (2011–2016), a detailed explanation notes the ZF 6-speed used an external heat exchanger and deterioration inside the cooler can allow coolant and ATF to mix, damaging friction linings and the mechatronic unit.
Symptoms
- “Milky” fluid in the coolant reservoir
- Harsh shifting, slipping, delayed engagement
- Transmission fault messages / limp mode
- Overheating-related behavior
What to check before buying
- Open the coolant reservoir: any milky or creamy appearance is a red flag
- Ensure the gearbox shifts cleanly hot and cold
- Check service history (fluid/cooler work matters a lot here)
4) Ignition/engine stall recall (warning: don’t adjust steering column until fixed)
There’s an official recall advising owners not to adjust the steering column tilt/reach until the recall service is completed, because it could reduce engagement of an electrical connector—potentially leading to an engine stall.
Why it matters
An engine stall can disable key electrical functions and create a crash hazard.
What to do
- If your Territory falls in the affected build range, confirm the recall was done via dealer records or recall lookup.
Official Australian recall notice:
5) Unintended downshift into first gear recall (output shaft speed sensor)
Another serious one: a Vehicle Recalls notice states an intermittent output shaft speed sensor failure could result in an unintended downshift into first gear, causing abrupt wheel speed reduction and possible loss of control.
Buyer move
If you’re looking at an SZ Territory, this recall is worth checking immediately by VIN.
6) Accelerator pedal interference recall (driver footwell trim)
A smaller but important safety recall: a Vehicle Recalls notice states incorrect fitment of the driver’s side footwell trim panel may interfere with accelerator pedal travel, potentially preventing the engine from returning to idle.
Even if it sounds minor, pedal interference is a “fix it, don’t debate it” issue.
7) Fuel return pipe separation (potential fire hazard recall)
For Ford SZ Territory (2011), an official recall notice warns the fuel return pipe could separate and allow fuel to leak under the vehicle—listed as a potential fire hazard.
What to check
- Confirm recall completion (paperwork or dealer confirmation)
- Be alert for fuel smells, especially after driving
8) Cooling system leaks (radiator, heater hoses, welch plug, water pump seal)
Cooling issues can become expensive quickly if ignored. CarsGuide notes several common coolant leak points on the Territory, including heater hoses, a corroded welch plug, radiator, and the O-ring seal at the back of the water pump—with head gasket listed as a worst-case possibility.
Symptoms
- Coolant smell, visible dripping
- Overheating or temperature gauge movement
- Needing frequent coolant top-ups
Buying tip
A pressure test and a look for dried coolant residue (pink/white crust) can save you from a bad purchase.
9) AWD drivetrain: backlash, shudder, transfer case/diff suspects
AWD Territories can develop drivetrain clunks/backlash on take-off or shuddering when turning, and diagnosis often points toward transfer case/CV joints/diff components. CarsGuide’s expert response on a 2005 AWD Ghia says it could be transfer case, CV joints, or a diff and recommends specialist inspection.
What to test on a drive
- Full-lock turns at low speed (listen/feel for binding or shudder)
- Quick take-off from a stop (listen for clunk/backlash)
- Smooth highway cruising (vibration = another red flag)
10) Diesel Territory: torque converter complaints (anecdotal but common)
For the V6 diesel Territory, CarsGuide notes that after reviewing owner forum chatter, a commonly reported anecdotal issue is occasional failure of the ZF-sourced six-speed torque converter auto.
This doesn’t mean every diesel Territory will fail—but it does mean you should:
- verify service history,
- test drive thoroughly when warm,
- and budget for drivetrain work on high-km examples.
11) Newer “Territory” (China-built) steering column bracket recall (some markets)
In 2023, government recall notices in GCC markets described a defect where a steering column bracket may detach due to an incorrectly welded joint, potentially resulting in loss of steering control.
If you’re shopping the newer Territory (not the Australian one), this is the type of market-specific safety campaign you must check locally by VIN.
Used Ford Territory Buying Checklist (Quick & Practical)
Step 1: Verify recalls by VIN
If you’re in Australia, you can use the national Vehicle Recalls site; manufacturers also provide VIN tools.
Key Territory-related recalls to ask about include:
- Front brake hose leak (SX/SY)
- Ignition/engine stall warning (tilt/reach steering column)
- Output shaft speed sensor unintended downshift (SZ Territory)
- Accelerator pedal interference (footwell trim)
- Fuel return pipe separation (SZ 2011)
Step 2: Do a “coolant + transmission” check
- Coolant should be clean (not milky)
- Gearbox should shift smoothly, hot and cold
Step 3: Front end & road test
- Listen for suspension knocks (ball joints/control arms)
- Test braking feel and inspect brake hoses if history is unclear
- For AWD: test full-lock turns + take-off clunks
FAQ
Are Ford Territory problems expensive?
Some are cheap wear items (suspension bushes), but several Territory issues can be costly—especially major transmission damage from coolant/ATF mixing.
What’s the #1 “must check” item?
If it’s the Australian Territory: front suspension condition (ball joints) and transmission/coolant contamination signs are top priorities.
How do I know if my Territory has an open recall?
Use your local official recall checker (e.g., Australia’s Vehicle Recalls site) and/or Ford’s VIN recall lookup for your country.
Source links
https://www.carsguide.com.au/car-news/getting-into-bad-territorys-16652
https://www.carsguide.com.au/ford/territory/problems/transmission
Recalls & faults: Ford SZ Territory (2011-16)
https://www.carsguide.com.au/ford/territory/problems/engine
https://www.carsguide.com.au/car-advice/q-and-a/what-is-causing-the-drivetrain-to-backlash-in-my-05-ford-territory-59870
https://www.vehiclerecalls.gov.au/recalls/rec-003194
https://www.vehiclerecalls.gov.au/recalls/rec-003450
https://www.vehiclerecalls.gov.au/recalls/rec-000300
https://www.vehiclerecalls.gov.au/recalls/rec-001572
https://www.vehiclerecalls.gov.au/recalls/rec-001562
https://www.vehiclerecalls.gov.au/
https://www.infrastructure.gov.au/infrastructure-transport-vehicles/vehicles/vehicle-recalls
https://www.ford.com.au/support/recalls/
https://www.moet.gov.ae/en/w/ford-33
https://mc.gov.sa/en/mediacenter/News/Pages/11-05-23-01.aspx
https://www.carsguide.com.au/car-advice/ford-territory-diesel-engine-problems-towing