Ford CEO Jim Farley has declared the company is shifting away from "boring-car business" to an "iconic-vehicle business," emphasizing higher-end markets. This strategy includes investing in brands like Mustang, which is the best-selling sports coupe globally, and expanding on the success of vehicles like the Raptor truck. The company's goal is to achieve an 8% profit margin by 2029, a move that prioritizing more expensive trucks and SUVs over less profitable sedans and economy cars.
Ford eliminated all sedans and hatchbacks from its U.S. lineup after 2019, a decision that Andrew Frick, head of Ford Blue and Model E business units, maintains was "absolutely" the right call. Frick noted that capital previously used to compete in less profitable sedan segments was redirected to develop products like the Bronco, Maverick, and Bronco Sport, and to expand the Raptor line. He highlighted that even in its best year (2014), the Ford Fusion's sales of 306,860 units were significantly lower than the Honda Accord and Toyota Camry, and only about half the F-Series pickup sales.
Despite the past elimination of sedans, there is an acknowledgment from Ford, and other Detroit automakers, that increasing new-car prices could limit sales, potentially requiring a return to sedans. Farley himself called the sedan market "very vibrant" at the 2026 Detroit Auto Show but stated that Ford couldn't find a way to compete profitably in it previously. Any potential new sedan would need to be "very cost-effective" and possibly emerge from an existing family, with the Mustang family being a consideration. The company is also working on a $30,000 electric pickup truck, aiming for a 2027 launch, which is being developed with a new manufacturing approach to reduce costs and parts.
This shift by Ford also includes a focus on more affordable, yet still profitable, vehicles like the Maverick pickup, which is an exception to the trend of prioritizing only the most expensive models. However, the overarching strategy suggests Ford is moving away from its roots as a mass-market automaker to cater to wealthier clientele, while trying to compete with Chinese EVs by not directly engaging in the low-cost market. The new $30,000 electric truck is a critical part of this strategy, aiming to be a "Model T moment" by rethinking manufacturing to compete in the EV space against the cost advantages of Chinese manufacturers.
