New car prices in the United States have climbed into uncharted territory. In December, the average transaction price crossed $50,000 for the first time, landing at $50,326. For much of 2025, the average MSRP stayed above that mark, according to a study by Cox Automotive. The message from consumers is clear: affordability is missing.
Ford thinks it has an answer.
At this week’s NADA Show in Las Vegas, the automaker confirmed plans to launch five new vehicles priced below $40,000, including something Ford has largely abandoned in the U.S.: a car.
Five New Models, All-New Nameplates
Ford executives say these won’t be warmed-over redesigns or budget trims of existing products. All five vehicles will debut with fresh nameplates and span multiple body styles, including cars, trucks, SUVs, and vans.
Speaking at the event, Ford Blue and Model e president Andrew Frick said the upcoming lineup will feature “multi-energy” powertrains. That means buyers can expect a mix of internal combustion engines, hybrids, and fully electric options, depending on the model.
Leading the rollout will be a midsize electric pickup truck, scheduled to arrive in 2027. One of the remaining vehicles, expected before the decade ends, will be a traditional car rather than another SUV or crossover.
A Big Shift After Years Without Sedans
If this plan sounds surprising, that’s because Ford hasn’t sold a conventional car in the U.S. since the Fusion was discontinued in 2020. Before that, the Taurus, Focus, and Fiesta were gradually phased out, leaving the Mustang as Ford’s only non-truck, non-SUV offering.
Ford CEO Jim Farley has been candid about why those models disappeared. Sedans, he explained, simply weren’t profitable enough to justify continued investment. Even well-loved models like the Fiesta and Focus couldn’t survive the company’s financial reality.
What’s changed is the market. With average prices pushing past $50,000, automakers are under pressure to rethink affordability, especially as first-time buyers and younger customers get priced out.
Global Strategy, Local Impact
Ford’s renewed interest in cars isn’t limited to North America. In Europe, the company recently struck a deal with Renault to launch two electric models built on Renault’s Ampere EV platform. The first is expected in early 2028.
While body styles haven’t been confirmed, Renault’s EV portfolio includes compact hatchbacks and midsize crossovers, leaving the door open for Ford-branded sedans or hatchbacks overseas.
What the New Car Could Be
Ford hasn’t shared details about the U.S.-bound car, but expectations are already forming. Given the promise of electrified powertrains, it’s unlikely to be a small, Fiesta-sized vehicle. Hybrid systems are difficult to package in very small cars, pointing instead to a compact or midsize model.
For a brand that’s leaned heavily on trucks and SUVs, the move feels significant. Ford isn’t just chasing affordability. It’s quietly admitting that the all-SUV strategy may have gone too far.
And for buyers tired of $50,000 price tags, that timing couldn’t be better.
