Ford Wants To Make Regular Cars Again

In a wide-ranging interview with Autocar, executive chairman Bill Ford Jr. acknowledged the automaker's current weakness in the segment after discontinuing the Fiesta, Focus, and Fusion. “We realize we’re not as robust as we need to be,” before hinting that new models are already in the works.

"We’re working on our future strategy right now. But I think you’ll be surprised—pleasantly surprised—by what’s coming.” Though he didn’t specify models, markets, or even potential launch timing.

The new play is a shift away from CEO Jim Farley’s earlier position that Ford was "getting out of the boring-car business and into the iconic-vehicle business." This has led the automaker to prioritize high-margin models like the F-Series, Bronco, and commercial vehicles—which is all well and good, but it ends up a dangerous game of diminishing returns.

With no casual entry-level models, prices rise because margins across the board need to climb higher and higher as the number of potential buyers shrinks due to price elasticity. This, in turn, moves prices even higher as the number of shoppers shrinks even further until you end up with $350,000 Mustangs. It's a classic economic question: higher sales volume vs. increased value per sale.

Ford's list of boring cars is made up of vehicles that even Farley admits are "loved by a lot of customers, but they could never justify more capital allocation—unlike commercial vehicles."

What Farley isn't saying is that the reason commercial vehicles are so lucrative is because of the software and subscription service revenue Ford is able to pull. Last year, Ford was making a 50% margin from subscribers to the Ford Pro Intelligence software platform, and a further 35% when selling parts.

Making 7% or less on a Fiesta just isn't as exciting.

Reports from Europe suggest Ford has already told dealers to expect new combustion-powered cars as the company backs away from its previous plan to go EV-only there by 2030. That pivot comes after slower-than-expected sales for EVs like the Explorer and Capri—both of which are Volkswagen products under the skin.

Rumors range from a possible four-door “Mach 4” Mustang to additional collaborations with Volkswagen, potentially sharing platforms for future cars—whether electric or gas-powered.

For now, Ford isn’t saying whether any of these new passenger vehicles will reach North America, but given the size of the segment and the brand’s domestic history, it seems likely Ford will deploy some of these products here.

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