Ford CEO Jim Farley says making vehicles more affordable must be a priority for the industry, and he told CBS News in an exclusive interview Friday that his company is taking steps to do just that.
When asked whether Americans can afford the price of new cars today, Farley responded, “Some Americans can.”
“But we need to do a great job as a brand, and as an industry, to make our vehicles more affordable,” he continued. “I think you’re certainly going to see that at Ford over the next couple of years.”
According to data from Kelley Blue Book, the average price of a new car is nearly $50,000 — 30% higher than in 2019 — and consumers are also being hit by sharply higher fuel prices.
Farley says Ford’s goal is to offer some of its new models at prices of $40,000 or less.
“Most of our new models are going to be more affordable versions,” Farley said. “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.”
He also pointed to a new promotion in which Ford will sell nearly all its new vehicles through July 4 at employee pricing. He acknowledged that prices are a concern for many Americans.
“That is why we’re coming up with more affordable vehicles,” Farley said. “And that’s why we’re offering employee pricing, and $399 to $499 leases, and why we have more affordable versions of the F-150, and Explorer, our most popular models.”