Ford plans to bring affordable cars back to the US market
Ford CEO Jim Farley acknowledged that not every American can currently afford a new car of this brand. The company intends to rectify the situation by releasing more models priced at up to $40,000.
The average price of a new car in the US is now nearly $50,000, which is 30% higher than in 2019. This has made owning a new car unaffordable for millions of buyers. Ford appears determined to do its part in solving this problem.
New models priced at up to $40,000
According to Farley, the company is preparing several models whose cost will not exceed $40,000. The main novelty will be the long-awaited electric pickup truck, with a starting price expected to be around $30,000.
“We have to do a good job as a brand and as an industry to make our vehicles more affordable. I think you will definitely see this at Ford over the next few years. Most of our new models will be more affordable versions,” Jim Farley stated in an interview with CBS News.
Farley also added that the company will offer more choice in the price range of around $40,000 or less. He emphasized that the key task is to manufacture these cars in America, and for this, affordable parts from around the world are needed.
How Ford plans to lower prices
There are no specific details yet about the entire range of affordable models. It is known that the universal electric vehicle platform, which will underpin the new pickup truck, will also serve as the basis for a small crossover. Additionally, Ford is developing a new gasoline-powered pickup truck for production in 2029, as well as a new van with gasoline and hybrid engines.
Most indicative is Farley’s phrase that “most of the new models will be more affordable versions.” This hints that a significant portion of the cars priced under $40,000 will not be entirely new developments, but simplified and cheaper versions of already existing models. This approach will allow for a quick and cost-effective reduction in the average price without the need to wait for new equipment.
In the interview, Farley also mentioned the current employee pricing promotion running until July 4th, as well as lease offers from $399 to $499 per month and cheaper trims of the F-150 and Explorer that are already available for sale.
It is worth noting that the new car market in the US is undergoing a serious transformation. The growth of average prices by nearly a third over five years is forcing manufacturers to seek new strategies. Ford, by choosing the path of making existing models cheaper and releasing new affordable cars, is trying not to lose middle-income buyers. This is especially important amid growing competition from Chinese brands and other manufacturers that are actively offering budget electric vehicles. If Ford’s plan works, the company will be able not only to increase sales, but also to strengthen its position as a manufacturer of cars for the general population, and not just for the premium segment.