Ford CFO Predicts New Vehicle Prices to Drop in 2024

During Ford’s Q4 2023 earnings call John Lawler announced that he expects prices to drop by roughly 2 percent this year.

There are two things that we can say with certainty. One is that we love the current range of Ford trucks. The other is that new trucks have gotten quite expensive. Sure, they offer more features and capabilities than ever before. But getting behind the wheel of a new Ford is getting more and more difficult for the average consumer. However, there seems to be sliver of good news as Ford CFO John Lawler predicts prices to drop in 2024. This lower price expectation was announced during the Ford Q4 2023 earnings call with investors last month. The expectations are for prices to drop by approximately 2 percent during 2024.

You might think that a 2 percent price drop is no big deal. And it is true that a decrease of that magnitude is not exactly like Ford is giving away Super Dutys. But on a $50,000 truck, a 2 percent price cut equals about $1,000. At least that is something. And it reverses the inflation-driven price trend of the last few years where everything has gotten substantially more expensive.

Q4 2023 Earnings Call

“Our 2024 outlook also assumes a flat-to-slightly higher SAAR in both the US and Europe, and our planning assumption for the US is 16 million to 16.5 million units, Non-recurrence of the UAW strike, full year of our all-new Super Duty driving both positive pricing and mix in Ford Pro, industry supply and demand normalizing. Now from a planning perspective, we are assuming lower industry pricing of roughly two percent driven by higher incentive spending as we move through the year. We expect this to be partially offset by top line growth from the launch of our new products,” said Lawler. He also touched on the fact that Ford is adjusting its EV strategy to meet current market conditions. They have already announced the delay of a second battery plant in Kentucky, reduced the size of the battery plant in Michigan, and cancelled plans for a battery plant in Turkey.

Consumer Impact

What does this all mean for consumers? Well, the obvious good news is that lower prices are expected. So, if you were planning on buying a new Ford this year and can be a bit patient you might want to hold off a bit to see if these price drops materialize. Also, we are seeing more vehicles on dealership lots than we have in several years. Increased supply puts more bargaining power in the pocket of the buyer. Also with higher interest rates, demand has cooled off a bit. This increased supply and reduced demand makes it much easier for buyers to get discounts on vehicles, the likes of which we have not seen in quite some time. Ford buyers are in a good position. The portfolio of vehicles is stronger than ever, and putting one in your driveway looks like it will get a bit easier.

Images: Ford

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Joe Kucinski

Joe has been obsessed with cars since he got his very first Matchbox toy in the ‘70s. In 2003, he found a new obsession in track days that led to obtaining his SCCA competition license in 2015. In 2019, he became a certified driving instructor for the National Auto Sport Association. His love for all things four wheels has never wavered, whether it's driving some of the best cars in the world on the racetrack, tackling 2,000-mile road trips in 2-seat sports cars or being winched off the side of a mountaintop in a Jeep. Writing for the suite of Internet Brands Auto Communities sites, including Rennlist.com, Ford Truck Enthusiasts, 6 Speed and more allows him to share that knowledge and passion with others.