Ford Motor Company plans to introduce five new, relatively affordable vehicle models priced below $40,000 by the end of this decade, aiming to strengthen its profit growth trajectory through more budget-friendly offerings. In contrast, the average cost of a new vehicle in the United States has now surpassed $50,000. This focus on affordability could unlock potential market share expansion for Ford, particularly as the company slows its global electrification investments and returns to its traditional strengths—hybrid and pickup truck models.
Ford's Chief Financial Officer, Sherry House, stated at a conference hosted by Wolfe Research that the rollout of these lower-priced models will begin with a four-door electric pickup truck scheduled for launch in 2027, followed by both internal combustion and fully electric models. Currently, Ford offers two vehicles under $40,000: the Maverick pickup and the Bronco Sport SUV.
The move comes as the North American auto industry faces an "affordability crisis," with middle- and lower-income households cutting back on spending. This trend is increasingly pushing long-time buyers out of the new vehicle market, potentially forcing them to extend auto loan terms to seven years or longer. According to Cox Automotive, the average transaction price for a new vehicle in the U.S. reached a record $50,326 in December. Data from Edmunds.com shows Ford's average transaction price in December was $55,596, reflecting its historical reliance on higher-priced trucks and SUVs.
House also indicated that Ford will launch an additional cost-effective electric model under $40,000, built on the same mechanical platform as the pickup slated for release next year. Additionally, the automaker plans to introduce an economical gasoline-powered pickup in the same price range, with production set to begin in 2029 at a new assembly plant in Stanton, Tennessee.
In Ford's fourth-quarter earnings call, CEO Jim Farley told analysts, "We also plan to expand our market coverage with more affordable trucks and SUVs. We will achieve this through a broad powertrain portfolio—battery-electric, gasoline, various hybrid types, and pure electric. Customers want more choices."
Ford's latest financial outlook projects adjusted EBIT of $8–10 billion in 2026, up from $6.8 billion in 2025. The midpoint of this guidance slightly exceeds Wall Street analysts' average estimate of $8.86 billion. Investors anticipate further profit recovery, driven by Ford's plans to produce more high-margin SUVs and pickup trucks.
A policy initiative led by Republicans has eliminated cash penalties for failing to meet fuel economy and emissions standards, which is expected to save Ford billions of dollars. This regulatory relief effectively allows automakers to produce and sell more high-profit, low-mileage SUVs and trucks.
Although Ford has recorded significant charges of up to $19.5 billion related to its electric vehicle business and shifted focus back to traditional strengths like internal combustion engines, pickups, and hybrids, the company remains prepared for a potential resurgence in EV demand. Ford and General Motors had previously made major bets on electric vehicles but are now scaling back some of those investments while refocusing on conventional and hybrid models.
Even as both companies continue producing EVs, Ford believes it has the right product mix—including an upcoming low-cost EV platform and new vehicle software architecture—to remain competitive if electric vehicle sales rebound. A renewed electric strategy, refocused hybrid efforts, and continued production of popular gasoline, pickup, and hybrid vehicles in the U.S. are seen as key to Ford's next phase of success.