Ford Motor Co. (NYSE:F) CEO Jim Farley says making vehicles more affordable must become a priority for the auto industry, arguing that Ford is already preparing lower-priced models as new-car costs strain U.S. households.
Farley Says Ford Must Lower Prices
In a CBS News interview on Friday, Farley was asked whether Americans can afford new cars today. "Some Americans can," he said. "But 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."
Farley said Ford wants to offer more new models at about $40,000 or less. "Most of our new models are going to be more affordable versions," he said, adding that Ford will offer more choices, "around $40,000, less than $40,000." He said the challenge is building them in America while sourcing affordable parts globally.
Ford Plans Cheaper Electric Vehicle Lineup
The affordability push follows Farley's recent comments that Ford will build an all-electric, affordable vehicle to compete with Tesla Inc.’s (NASDAQ:TSLA) Model Y and Model 3. Ford has not given a firm timeline for that model, but the company is expected to first launch a roughly $30,000 midsize electric pickup on its new platform in 2027, with other affordable EVs likely to follow.
Farley also said policymakers should focus less on Europe and more on China's fast-growing auto sector, where lower-priced vehicles have become a global threat. He said last month that Chinese EV makers have become the industry's toughest benchmark and that Tesla no longer sets the pace in some key segments.
High Prices And EV Losses Remain Pressure
Kelley Blue Book data showed the average new-car price is near $50,000, about 30% higher than in 2019, while drivers are also facing sharply higher fuel costs.
Ford's latest results gave the company room to invest, but also showed the challenge. Ford reported adjusted earnings of 66 cents per share, beating the 19-cent consensus estimate, while revenue reached $39.82 billion, above expectations of $38.91 billion. Its Model e unit still posted a first-quarter EBIT loss of $777 million.
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