Are Sedans The Solution To Ford's Affordablity Problem?

Rising vehicle prices are kicking off a shift in buyer priorities, subsequently forcing automakers to rethink product decisions. For Ford, that might include a return to a segment it kicked to the curb in North America several years ago: the sedan.

Ford has focused exclusively on trucks and SUVs since ending Taurus production in 2019. At the time, the move was positioned as a profitability play rather than a lack of demand. But speaking at the Detroit Auto Show, Ford CEO Jim Farley hinted that the door is not permanently closed.

Asked by Automotive News whether a Ford sedan could return, Farley said, “Never say never. The sedan market is very vibrant. It’s not that there isn’t a market there. It’s just that we couldn’t find a way to compete and be profitable. Well, we may find a way to do that.”

Farley admitted that Ford struggled to profitably compete against brands like Toyota and Hyundai in compact segments, which ultimately led to the demise of the Focus and the Fiesta.

Average transaction prices in the U.S. passed $50,000 by late 2025, while average monthly payments now hover close to $800, and in some cases regularly cross the $1,000 mark. Those numbers are increasingly at odds with what many buyers can afford or even want to spend.

Farley has pointed to the Maverick as evidence that buyers are responding to simpler, lower-cost transportation, saying customers are actively asking for more affordable options. Ford has already begun retooling plants to support that shift, including preparing for a $30,000 electric pickup scheduled to arrive in 2027.

While there is no confirmation that a new Ford sedan is in development for North America, the brand does have relevant products elsewhere. The Taurus nameplate lives on in the Middle East, while a modern Mondeo sedan continues to be sold in China after debuting in 2022 and receiving a recent update.

Ford Executive Chairman Bill Ford has said the company needs to engineer vehicles that are fundamentally lower in cost to build. “Can you engineer vehicles that are fundamentally lower-cost so that you can pass that on to the consumer? That’s what we’re working on.”

OUR TAKE: It would be nice to see more bodystyle variety out there, and the change in regulations under this current administration may well help introduce that. What's worrying, though, is the lead time to get a product to market. By the time any potential sedan or small hatchback is ready to roll onto dealer lots, the regulatory and political climate might be totally different.

At one point, the Ford Fusion enjoyed 200,000 to 300,000 annual sales. They were built and Mexico and for some reason, Ford still couldn't find enough profit from them. It's going to cost an absolute fortune to re-establish a presence in those abandoned segments.

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