Ford(F.US) releases 5 new models priced below $40,000, focusing on the growth theme of "affordability"

The Wall Street Journal reports that American legacy automaker Ford Motor Company (F.US) plans to launch five relatively affordable new models priced below $40,000 by the end of this decade (before 2030), aiming to offer more accessible vehicles and drive a stronger profit growth trajectory; in comparison, the current average cost of new cars in the U.S. has already surpassed $50,000. From a potential incremental growth perspective, as Ford adopts a slowdown strategy in its global electrification investments while promoting its traditional strengths—hybrid and pickup trucks—back to the forefront of performance growth, the affordability theme is reopening Ford’s potential market share expansion.

It is understood that Ford’s CFO Sherry House stated at a conference hosted by Wall Street investment firm Wolfe Research on Wednesday that these lower-priced models will start with a four-door electric pickup, which Ford plans to launch in 2027, followed by the gradual introduction of gasoline and pure electric variants. Currently, Ford offers two models priced below $40,000: the Maverick pickup and the Bronco Sport SUV.

This move comes as the North American auto industry faces an “affordability crisis,” driven by middle- and low-income groups cutting back on spending. This crisis is pushing long-time mainstream buyers out of the new car market and may force them to extend their car loan terms to seven years or longer.

According to data from research firm Cox Automotive, the average transaction price for new cars in the U.S. hit a record $50,326 in December 2025. Data from automotive research firm Edmunds.com shows that Ford’s average transaction price in December was $55,596; Ford’s sales structure has long been centered on high-priced pickups and SUVs.

House also indicated that Ford will introduce an additional high-value electric vehicle based on the same mechanical platform as the upcoming pickup truck, priced below $40,000. She further stated that the automaker will also launch an economical gasoline pickup within the same price range, which will be produced starting in 2029 at a new Ford assembly plant in Stanton, Tennessee.

Ford CEO Jim Farley told analysts during the Q4 earnings call on February 10, “We also plan to expand our market coverage with more affordable trucks and SUVs. We will achieve this through a broad powertrain lineup—battery electric, gasoline, various types of hybrids, and pure electric. Customers want more choices.”

Ford’s latest earnings outlook shows the company expects an adjusted EBIT of $8 billion to $10 billion in 2026, up from $6.8 billion in 2025, with the midpoint slightly above the average Wall Street analyst estimate of $8.86 billion. Investors generally anticipate further profit recovery, mainly because Ford plans to produce more high-margin SUVs and pickups. Previously, a policy action led by Republicans canceled cash penalties for failing to meet fuel economy and emissions standards, which is expected to save Ford billions of dollars. This regulatory leniency effectively allows automakers to produce and sell more high-profit, low-mpg SUVs and pickups.

Although Ford ultimately recorded a substantial $19.5 billion charge related to its electric vehicle business and shifted its focus from EVs to traditional gasoline vehicles, pickups, and hybrids—areas where Ford has long been strong—the company remains committed to its core strengths.

Ford and General Motors previously made significant bets on electric vehicles but are now pulling back some of those bets and refocusing on manufacturing more gasoline cars, pickups, and hybrids. While both companies still produce EVs, Ford particularly believes it has the right production mix: an upcoming, more affordable GM electric vehicle platform and a new automotive software architecture are in development, ensuring that even if EV sales rebound, the company will not be caught off guard. Ford’s new EV strategy, renewed focus on hybrids, and manufacturing popular gasoline and pickup trucks in the U.S. are seen by Bill Ford as key to the company’s next phase of success.