Ford’s CEO Wants New Affordable Models Under $40,000 In A $50,000 Market
Among the affordable new models from Ford could include a small electric crossover and an all-new pickup
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by Brad Anderson
Jim Farley admits not every American can afford a new Ford today.
Ford is targeting more new models priced at or under $40,000.
The average new car now costs nearly $50,000, up 30% from 2019.
While many Americans have grown accustomed to paying more for new cars, sky-high average transaction prices since the Covid-19 pandemic have pushed ownership out of reach for millions of buyers. Ford appears committed to doing its part to make new cars more affordable.
Average new car prices in the US have hovered near $50,000 over the past year, roughly 30% higher than in 2019 according to KBB. While Ford CEO Jim Farley says that “some Americans can” still afford a new vehicle, he’s well aware that plenty more cannot. That gap is why Ford is readying several models priced below $40,000, headlined by its long-awaited electric pickup, which is expected to start around $30,000.
Read: Ford Gives A Tiny Glimpse Of The $30K EV Truck Slate Should Be Worried About
“We need to do a great job as a brand, and as an industry, to make our vehicles more affordable,” Farley told CBS News. “I think you’re certainly going to see that at over the next couple of years. Most of our new models are going to be more affordable versions.”
Sub-$40,000 Targets
“We are going to offer more choice in those kind of price points, around $40,000, less than $40,000,” Farley added. “The trick is to make them in America. And to do that we need, you know, affordable parts from around the world.”
We don’t yet have concrete details about the full range of more affordable models that Ford is planning. . The Universal EV platform underpinning the new electric pickup will also spawn a small crossover, and Ford Authority reports the Blue Oval is developing an all-new gas-powered pickup for 2029 production, plus a new van offered with both combustion and hybrid powertrains.
The more revealing piece of Farley’s pitch is his line that “most of our new models are going to be more affordable versions.” That phrasing hints that a chunk of Ford’s sub-$40,000 push won’t come from clean-sheet vehicles at all but from stripped-down, decontented variants of cars already in showrooms. Ford hasn’t confirmed that approach, but it would be the fastest and cheapest way to get the average transaction price down without waiting on new tooling.
In the CBS interview Farley also pointed to the brand’s current employee-pricing promotion, which runs through July 4, along with lease deals ranging from $399 to $499 a month and cheaper trims of the F-150 and Explorer already on sale.
