At first glance, Ford doesn’t look like a brand desperate for new products. The automaker sold more than 2.2 million vehicles in the United States last year, marking a 6% increase, and its trucks and SUVs continue to anchor strong sales performance.
However, many Ford dealers believe there’s a clear weakness in the lineup: the absence of truly affordable options. Specifically, they see gaps where a budget-friendly sedan and a small crossover should be, segments where rival brands are still finding plenty of success.
Dealers argue that while Ford dominates in trucks, commercial vehicles, and larger SUVs, it’s leaving money on the table by ignoring entry-level buyers. Competing automakers are still moving significant volume with lower-priced cars, and Ford currently has no direct answers in those categories.
Although larger crossovers remain popular, the Ford Explorer, for example, was the best-selling three-row SUV in the U.S. last year, smaller cars and SUVs continue to post impressive numbers. Models like the Honda Civic, Toyota Corolla, Chevrolet Trax, and Subaru Crosstrek all ranked among the 20 best-selling vehicles in the country last year. Ford, notably, has nothing comparable on offer.
“As Ford dealers, we know that our truck lineup, our commercial vehicle lineup and our SUV lineup is the envy of the industry,” said Steve Blasing, chairman of the Ford National Dealer Council, in an interview. “Everybody would love to have that lineup. But with that said, all the dealers will love to see an affordable SUV and a sedan that competes with the imports. So actually two.”
Right now, Ford’s entry-level offerings are anything but inexpensive. Production of the Escape ended late last year, and the EcoSport disappeared years ago.
That leaves the Bronco Sport as Ford’s cheapest SUV, starting at $31,845, well above rivals like the Trax and Crosstrek. Ford also has no sedans in its lineup at all, though CEO Jim Farley recently acknowledged that rising vehicle prices mean the company isn’t ruling out a return to traditional three-box cars.
Recent launches like the Kia K4 and the updated Nissan Sentra further underline that demand for affordable small sedans hasn’t vanished.
Ford has already signaled that change is coming. Late last year, the company announced plans to introduce five affordable models by 2030. One of those is expected to be an electric pickup priced around $30,000, and Ford’s new Universal EV platform could underpin additional low-cost electric vehicles in different body styles. If five models are indeed on the way, it’s a safe bet that at least a couple will be SUVs.
Importantly, Ford isn’t placing all its bets on EVs. The automaker also plans to expand its hybrid offerings, an area where it currently lags behind Japanese and Korean competitors. At present, Ford has no answer for vehicles like the Civic Hybrid or Corolla Cross Hybrid, both of which are proving popular with cost-conscious buyers.
Affordability pressures are only intensifying. Toward the end of last year, the average transaction price of a new vehicle in the U.S. once again climbed above $50,000.
Buyers are increasingly relying on longer loan terms and coping with higher interest rates, while the number of new cars priced below $25,000 continues to shrink. The recent discontinuation of the Nissan Versa, the cheapest sedan in America, only highlights the problem.
High-priced, heavily optioned pickup trucks still sell in large volumes, pushing averages even higher. Some brands, however, are pushing back against the trend, as seen with Kia’s new K4 Hatchback, which starts below $25,000.
Ford’s brand strength remains undeniable, but introducing a new sedan and a small crossover priced under $30,000 could be crucial to keeping the Blue Oval competitive with buyers who simply can’t stretch to today’s inflated price tags.
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