Ford announced plans to add at least five new models priced under $40,000, including a midsize electric pickup, to boost affordability and retain customers. Learn more now.
During a briefing on the sidelines of the NADA Show, Ford executives reassured U.S. dealers that the company is fast‑tracking a series of low‑priced vehicles to address growing cost concerns among consumers and retailers.
Five New Models Priced Below $40,000
Ford said it will introduce at least five brand‑new models priced at $40,000 or less before the decade ends. The first of the group will be a midsize electric pickup set to launch in 2025.
Diverse Powertrain Options
According to Andrew Frick, president of Ford Blue and Model e, the upcoming models will span internal‑combustion engines, hybrids and fully electric drives. “We want to give buyers a full spectrum of choices while we continue to shift toward electrification,” Frick explained.
Whole‑Vehicle‑Line Coverage
The affordable lineup will not be limited to a single segment. It will cover sedans, trucks, SUVs and vans, all built on entirely new platforms rather than simply refreshed versions of existing models. This approach aims to refresh Ford’s portfolio and attract new customers without cannibalising current sales.
Strategic Pricing Moves After the Escape Exit
The timing of the initiative is crucial. Ford will cease production of the mainstream Escape crossover in December 2025, a model that has traditionally served as an entry‑level vehicle for many American families. Losing that foothold has heightened the need for competitively priced alternatives.
In response, Ford is increasing the proportion of standard‑trim, low‑priced variants of popular models such as the Explorer and Bronco. The automaker is also expanding its Certified Pre‑Owned (CPO) program, offering longer‑term financing, first‑time‑buyer incentives, and special loyalty deals for current Escape owners.
Dealer Support and Revenue Goals
Ford outlined roughly ten tactical measures designed to improve affordability for shoppers. Dealers expect to retain about 70% of Edge and Escape customers, while the CPO program—branded Ford Blue Advantage—is projected to boost sales by up to 30% this year.
Steve Blasing, chairman of the National Ford Dealer Council, praised the plan, saying, “I’m genuinely pleased with the direction Ford is taking. It gives us the tools we need to keep our lots full and our customers happy.”
Financial Outlook for 2026
The “Blue Oval” brand signaled confidence in continued growth, targeting a stronger performance in 2026 after a solid 2025 that saw a 6% rise in sales and a 0.6‑point gain in market share. Frick noted that Ford’s dealer profit margins grew 8% through October of last year—an indicator that the company’s profit picture remains healthy despite broader industry headwinds.
All Ford lines except the Escape posted higher market‑share numbers in 2025, reinforcing the potential for profit growth even as the Escape winds down.
Profitability Targets for Dealers
Ford aims for an average dealer profit‑to‑revenue ratio of about 3% across the United States, with executive bonuses tied directly to achieving this benchmark.
Overall, the strategy combines new, affordable product introductions with targeted financial incentives and a reinforced CPO offering, positioning Ford to stay competitive in a price‑sensitive market while still pushing toward an electrified future.