Ford Announces Affordable New Car Under $40,000 for America

Ford has made a significant announcement regarding its commitment to creating affordable vehicles in the U.S. market. The automotive company plans to launch five new models priced under $40,000 by the end of this decade. These upcoming vehicles will include a range of types: a car, a truck, an SUV, and a van.

Ford’s Plans for Affordable Vehicles

The need for affordable cars in the United States has never been more pressing. Recent data from December revealed that the average transaction price for new cars reached a staggering $50,326. By 2025, the average manufacturer’s suggested retail price (MSRP) surpassed $50,000, underscoring a significant gap in the market for budget-friendly options.

New Lineup Details

Ford’s strategy seeks to address this void while introducing fresh offerings. The announcement was made during Ford’s NADA Show meeting in Las Vegas, where Andrew Frick, President of Ford Blue and Model e, shared insights into the new lineup. He emphasized that these five models will feature multi-energy powertrains. This means they will combine combustion engines, hybrids, and electric vehicles (EVs).

• New models will be priced below $40,000.
• A midsize electric pickup truck is expected to debut in 2027.
• Models will have unique names and will not be redesigns of existing vehicles.

Notably, one of these new models will return a traditional car option to Ford’s lineup, which has been largely dominated by trucks and SUVs in recent years. The company has seen the discontinuation of popular models such as the Fiesta, Focus, Fusion, and Taurus, leaving only the Mustang as a non-SUV/non-truck option.

Market Context

The disappearance of these sedans has largely been attributed to profitability challenges. As Ford CEO Jim Farley explained, maintaining the production of sedans became unsustainable due to financial constraints. Despite the loss of models loved by many consumers, Ford is now looking to reinvigorate its portfolio with these new vehicles.

International Ventures

The commitment to affordable vehicles extends beyond the U.S. Ford is also expanding its European market presence through a partnership with Renault. This collaboration will see the introduction of two new models developed and produced by the French automaker, set to launch in early 2028.

As Ford transitions back to offering cars alongside its suvs and trucks, anticipation grows over the upcoming models. The company aims to meet increasing consumer demand for reasonable-priced cars while navigating the complexities of the current automotive market.