It’s no secret that the average price of a new vehicle has skyrocketed over the past few years, a trend that’s been fueled by a global supply chain disaster, low inventory, high demand, and various other macroeconomic factors. Average transaction prices declined slightly in Q1 of 2023, but there still aren’t that many new vehicles out there that most would consider to be “affordable.” However, it seems as if more affordable Ford vehicles are at least under consideration, according to Jim Baumbick, the automaker’s vice president of product development, operations, and quality.
“Yeah, I do think there’s an opportunity to have additional affordable offerings,” Baumbick said while speaking at the recent Bank of America Global Automotive Summit. “We’re constantly looking at it. We’re very focused on it. In our current situation, we’re trying to add capacity of what we actually have at the moment, because we have such strong demand. So that’s kind of the short term focus. But as we think about the future plan, that is a very clear focus of ours.”
The concept of more affordable Ford vehicles has been batted around a bit over the past couple of years, dating back to 2021, when then-president of the Americas and International Markets Group, Kumar Galhotra, said that the automaker’s ultimate goal was to make and sell a $20k all-electric vehicle at some point in the future. However, roughly a year later, Galhotra also said that the automaker’s certified pre-owned lineup had essentially taken the place of the new, entry-level vehicle.
Regardless, there won’t be any entry-level EVs in Ford’s European lineup anytime soon, according to Martin Sander, Ford’s head of electric vehicles in that region. But with average new vehicle transaction prices continuing to fall and The Blue Oval ramping up production of its more popular models, those vehicles should at least be less expensive to purchase in the short term.
We’ll have more on Ford’s future strategy soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.
Comments
I’ll believe it when I never see it.
Just look at a Mavrick. You can see it.
Not really! The dealerships boost the price 10,000 .
Dealers are separate entities from the Company. Dealers are franchises. If customer pays over MSRP that’s on them.
That may be true, but there seems to be an (illegal, anti-trust) agreement that they will be adding $7,500 on F-SuperDuty trucks and $10,000 on F-150’s except for the Lightning Series where the “Additional Vehicle Market Price Adjustment” or a.k.a. “ADM” [Which is the euphemism for “Additional Dealer Markup”, or “Additional Dealer Profit” a.k.a. “ADP” because the dealers lack the “big-boy hang down parts to tell the buyer the truth]. Forget about, Fleet, Corporate, etc. discounts off of M.S.R.P. for any of their trucks, including the one that you are willing to put down a deposit and wait 10-14 weeks for it to show up. Only if you are exceptionally lucky to find a special order truck where the buyer’s credit rating tanked and he forfeited his deposit since he could no longer finance, or even lease the truck he ordered, AND it is such a specific truck with specific options that are not the most popular, hence it will be sitting on the dealer’s lot, eating up his floor plan, in which case if it is what you want you may save some money, but beware, you may still be paying for options you don’t want but are willing to take to make a deal work. Dealers have been digging deeper into our pockets since the big dealership consolidations of the 2010 era, which reduce competition, or the “I can go down the road to a different dealership” negotiation. The only good news is that dealers are paying more for trade-ins, so if you have a popular Ford vehicle, or the dealership is a member of a group, or knows a wholesaler who has a need, any other brand, you may come out OK in the “wash” (net difference).
Easy solution: Bring back either the Focus Hatchback, Fusion, or both.
Believe when I see it…
Most of Ford’s SUVs are now uncompetitive when benchmarked against the competition…sales numbers show that across the board and I find it ridiculous the way they’ve been approaching their pricing strategy. I’ve had Fords for decades but bought my first Toyota in 2020 and just bought my first Genesis this year…a few years ago these would have been all Ford – so clearly they don’t give a damn about me as a customer….
I predict Ford will eventually become a niche player if they don’t quickly shake up their pricing strategy, vehicle quality and reliability – competition is eating them alive in many segments.
Ford is mostly living off overpriced F150s, Mavericks and Bronco.
Bring Back Bumpers, A Decent Gasoline Engine, Rear Wheel Drive & Bench Seats & Take your Tech out.
With the $22,000 price point ( don’t boor me with dealer mark ups as that has no bearing on Fords cost to produce, or the profit it makes on each) I don’t understand how that can’t be translated to other vehicle lines. $22,000 Fusions would kill Accord and Camry.
The last Fusion I bought in 2017 stickered for $31k. I paid $27k. There is no such things as a $22k Fusion and won’t be. My 2009 Fusion was over $20k. But then you can’t buy an Accord or Camry for $22k either. Accord STARTS at over $28k.
You Gotta get out more…
Fusion Sport Active. No news is good news?
I agree that having done away with sedans ford will be less of a brand to own. They’re trying to move all their loyal customers into suv’s. I worked for Ford for over 40yrs. and If they continue down this road I’ll be looking to the Asian brands….and so will others.
If Ford made a ’24 trax with a bigger engine, they would dominate
Ever since Farley took over he’s been canceling “commodity” vehicles with low profit margins. Now his own people are starting to push back? Interesting!!
Not everyone wants or need all this ridiculous technology. There are many if us that are capable of backing up a trl with just mirrors. I can even use a blind spot mirror, which for some reason my 2023 f150 didnt come with??,instead i hav a light on mirrors.
And still dont understand why i hav push button start instead of putting key in ignition which i never had any trouble doing.
Also trying to figure out simple things like setting radio station you havto literally stop and search for how to do it.
Is it true that am radio is going to be discontinued?
If you ever were at a busy boat launch and when u get out to unstrap boat and stupid horn beep’s because your keys r in your pocket instead of in ignition where they belong and everyone around is wondering whi the hell is beeping!!
And i have had two f150s now equipped with sport mode and manual shift. Useless and never use.
BRING BACK THE CARS . IVE HAD 4 TAURUSES . LOVED EVERYONE OF THEM. MY DAD WORKED AT FORD FOR OVER 40 YRS. ALWAYS BUY A FORD.
ALSO THERE ARE PROPLE WHO DONT LIKE SUV..I CANT GET IN AN OUT OF THEM DUE 2 BACK ISSUES. IN 89 THEY HAD THE PROBES LOVED MINE. ALSO LINCOLN MKZ. THE FOCUS AN FUSHION ALSO . BRING THEM BACK OR PEOPLE WILL BY FOREIGN CARS. LIKE HYNDI AN KIA WHICHBI DESPICE
What is the future of the edge love this suv perfect size for small family heard they were discontinuing this vehicle worked& retired from Ford love this vehicle need med size Zumba escape too small