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

American automaker Ford (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 affordable vehicles and drive stronger profit growth for the company. Currently, the average cost of new cars in the U.S. has surpassed $50,000. From a potential growth perspective, as Ford adopts a cautious investment strategy in the global electrification process and emphasizes its traditional strengths—hybrid and pickup trucks—reclaiming a leading position in performance growth, the affordability theme is reopening Ford’s potential market share expansion.

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

Ford’s move comes amid a “affordability crisis” in the North American auto industry, as middle- and low-income groups are increasingly cutting back spending. This crisis is pushing long-time mainstream buyers out of the new car market and may force them to extend car loan terms to seven years or longer.

According to data from Cox Automotive, the average transaction price for new cars in the U.S. hit a record $50,326 in December 2025. Edmunds.com reports that Ford’s average transaction price in December was $55,596. Ford’s sales structure has traditionally focused on high-priced pickups and SUVs.

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

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. The midpoint of Ford’s outlook slightly exceeds the average Wall Street analyst estimate of $8.86 billion.

Investors generally expect Ford’s profits to further rebound, mainly because the company 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 emission standards, which is expected to save Ford billions of dollars. This regulatory leniency effectively allows automakers to produce and sell more high-profit, low-mileage SUVs and pickups.

Although Ford ultimately recorded a hefty $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.

Ford and General Motors initially made heavy 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 is particularly confident that it has the right production mix: an upcoming, more affordable GM electric vehicle platform and a new automotive software architecture. This way, even if EV sales rebound, the company won’t be caught off guard. Ford’s new EV strategy, renewed focus on hybrids, and manufacturing popular gasoline and pickup trucks and hybrids in the U.S. are seen by Bill Ford as key to Ford’s next phase of success.