Ford has announced plans to introduce five new models priced under $40,000 to the U.S. market by the end of the decade. The move comes as average new car prices remain historically high, reaching a peak of $50,326 in December 2023, according to Cox Automotive. This decision marks a significant shift for the automaker, which has largely focused on trucks and SUVs in recent years.
Addressing a Growing Market Need
The average price of a new vehicle has risen sharply, creating a gap in the market for affordable options. Ford recognizes this need and intends to fill it with a diverse lineup including a car, truck, SUV, and van. All models will feature “multi-energy” powertrains, encompassing combustion engines, hybrids, and electric vehicles.
A Long-Awaited Return to Cars
For years, Ford has lacked a dedicated car offering in the U.S., with the Mustang being its only non-truck/SUV model. The discontinuation of popular vehicles like the Fiesta, Focus, Fusion, and Taurus was driven by profitability concerns, as previously stated by CEO Jim Farley. The new car, the first of its kind in years for Ford in the U.S., will be a fresh design, not a redesign of an existing model.
Electric and Global Expansion
Beyond the U.S., Ford is expanding its electric vehicle (EV) lineup through a partnership with Renault. The two companies will jointly develop two new models built on Renault’s Ampere EV platform, set to launch in Europe by 2028. These vehicles could include hatchbacks or crossovers, expanding Ford’s offerings in key international markets.
The Takeaway
Ford’s commitment to more affordable models is a strategic response to market demand. By re-entering the car segment and embracing electrified powertrains, the automaker aims to regain a foothold in a segment it previously abandoned due to financial constraints. This shift suggests Ford is adapting to evolving consumer preferences and seeking sustainable growth in a changing automotive landscape.
