Strategy Simplified S21E28: Ford’s Surprise Comeback: Why $50K Cars Still Sold
Jan 7, 2026
In a surprising twist, Ford achieved its best U.S. sales since 2019, despite high car costs and economic challenges. The hosts explore how consumer behavior and innovative financing options contributed to this success. They discuss the shift towards hybrids and the importance of product mix in offsetting declining EV demand. Furthermore, they highlight future strategies for automakers, emphasizing the need to monetize post-purchase services and adapt as cars transform into platforms.
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Tariff Fears Overstated In 2025
- Tariffs and EV credit expirations were expected to crater automaker demand but largely didn’t materialize in 2025.
- Strong jobs and consumer spending kept auto purchases resilient despite macro uncertainty.
Personal Car-Buying Timeline Mirrors Trend
- Namaan last bought a personal car in 2022 and before that in 2011, illustrating lengthening replacement cycles.
- That personal pattern mirrors a broader trend of older cars remaining on the road longer.
2025 Looked Like A Return To Normal
- 2025 may have been the first 'normal' auto year since 2019 as interest rates eased and inventory returned.
- Consumers pulled forward purchases ahead of expected tariff-driven price increases.