Affordability as a Priority
The average price of a new car in the US reaches $50,000, which is too high a bar for many drivers. Because of this, some buyers turn to the used car market or to competing brands. Ford is trying to solve this problem by announcing a wave of five new models, the price of which will not exceed $40,000 by the end of the decade.
Company executives, during a meeting with dealers at the NADA show, announced that by the end of the decade, five new models under this price tag will appear in the lineup. We are talking not about one budget model, but about a whole series of affordable cars.
First Step — An Electric Pickup
The first sign will be a mid-size electric pickup, the launch of which is expected as early as next year. Dealers are already showing significant interest in it. According to preliminary data, its price may be around $30,000, which in today’s market conditions looks like an incredibly attractive offer.
A Wide Range of New Products
However, Ford’s plans are much broader than the release of one electric pickup. Andrew Frick, head of the Ford Blue and Model e divisions, stated that the new products will cover passenger cars, pickups, SUVs, and vans with various types of powertrains. These will be completely new models, not just cheap versions of existing ones.
This will touch our entire lineup of cars, pickups, SUVs, vans, and they will have different types of powertrains. This will start to fill the product side, but we still need to work on affordability in the short term more tactically.
However, dealers are already facing certain difficulties.
Temporary Gap in the Model Range
A significant problem is the discontinuation of the Escape crossover, which was an affordable option for many first-time buyers. Although dealers still have stocks of this model for sale, sooner or later this year they will face a gap in this segment.
We understand we will be selling Escape this year, but at some point, the inventory will run out. That doesn’t mean we can’t continue to deliver profitable growth with the models we have.
Dealers have clearly indicated that they would like to get a worthy replacement, and ideally — even an affordable sedan.
Measures to Support Affordability
For now, Ford plans to more actively offer base trims of models like the Explorer and Bronco, focus on certified pre-owned vehicles, and introduce long-term loans and programs for first-time buyers. According to Frick, about 10 separate initiatives aimed at increasing affordability are in motion.
This strategy demonstrates Ford’s deep understanding of market changes, where price affordability is becoming a key factor for millions of buyers. The transition to a more diverse portfolio, including both electric vehicles and ICE models, will allow the company to reach a wider audience without losing fans of traditional technologies. The success of this initiative will largely depend on how successfully the gap left by the Escape can be filled and whether the new models can combine an acceptable price with modern technology and quality.