Ford CEO Jim Farley Announces New Affordable Models Under $40,000 to Combat Rising Car Prices

Ford CEO Prioritizes Affordability with New Sub-$40,000 Models

Ford CEO Jim Farley has acknowledged the growing affordability crisis for new vehicles, announcing plans to introduce more models priced at or below $40,000.

This strategic shift comes as the average new car price in the U.S. has surged to nearly $50,000, a 30% increase since 2019, according to Kelley Blue Book (KBB). The rising costs have made vehicle ownership unattainable for many Americans, prompting Ford to take action.

Electric Pickup and More Affordable Options

Ford’s most anticipated affordable model is its long-awaited electric pickup, expected to start at around $30,000. The automaker is also preparing additional sub-$40,000 offerings, including a small crossover built on the same Universal EV platform.

Farley emphasized the importance of affordability in a recent interview with CBS News, stating,

"We need to do a great job as a brand, and as an industry, to make our vehicles more affordable. I think you’re certainly going to see that at Ford over the next couple of years. Most of our new models are going to be more affordable versions."

Strategies to Lower Costs and Expand Accessibility

Farley outlined Ford’s approach to achieving affordability, noting,

"We are going to offer more choice in those kind of price points, around $40,000, less than $40,000. The trick is to make them in America. And to do that we need, you know, affordable parts from around the world."

While specific details about the full range of affordable models remain undisclosed, Ford is also developing:

• An all-new gas-powered pickup slated for 2029 production.
• A new van available with both combustion and hybrid powertrains.

Farley’s comments suggest that many of Ford’s sub-$40,000 models may not be entirely new vehicles but rather stripped-down, decontented variants of existing models. This approach would allow Ford to reduce average transaction prices without waiting for new tooling.

Current Affordability Initiatives

Ford is already taking steps to improve affordability, including:

• A brand-wide employee-pricing promotion running through July 4.
• Lease deals ranging from $399 to $499 per month.
• More affordable trims of existing models like the F-150 and Explorer.

These efforts reflect Ford’s commitment to making new vehicles more accessible to a broader range of buyers in a market where affordability has become a growing concern.