Ford wants more customers to customize vehicles to boost profits
The company is expanding its accessories and parts business to boost profits and better tap into the $53 billion U.S. aftermarket industry. Matt Simpson, executive director of Ford Customization, said the automaker plans to increase its aftermarket offerings — from exterior details and wraps to performance parts and systems — and create more exclusive moments with new and special-edition models, likening it to “ “The vision is like Nike selling sneakers,” Simpson said at a promotional event at Michigan International Speedway. “We are significantly increasing our investment in this area to provide more choice and create deeper connections with customers after the sale. " Automakers have long used special editions and enhanced performance models to boost vehicle prices and profits, but Ford said it is taking methodical steps to increase customers' ability to customize vehicles at all price points. This includes expanding the accessory product line and devoting more resources to the Ford Custom Garage, which launched last year. The custom garage is a one-stop customization service platform owned by Ford. Ford's Custom Garage's first "sneaker-style vehicle sale" took place on Monday. It unveiled a sunrise-inspired Ford Bronco SUV that would look right out of place in the new Barbie movie — although company designers say it didn't develop the model with Mattel in mind. Ford says it will build 1,000 limited-edition Broncos equipped with the Desert Sunrise package as part of the new Bronco Horizon series from Ford's custom garage. The package costs $13,695, bringing the total vehicle price to $57,350. Other complete packages available at Ford's Custom Garage start in the thousands of dollars, with some Mustang performance packages going up to $16,000 to $18,000, while a package for a special performance version of the F-150 pickup is closer to $27,000. “This is a growth lever for us. This has been a good business for us. We thought it could grow significantly, so we made the investment,” Simpson said. The moves come as vehicles become increasingly complex, making it increasingly difficult for individual owners or shops not certified by the automaker to perform aftermarket repairs and modifications on them. Ford CEO Jim Farley came under fire last month after President Donald Trump said Ford and its crosstown rival Legislation is being backed to make it harder for car owners to repair their vehicles themselves. Farley later clarified that he believed customers should not repair vehicles under warranty themselves because new cars require specialized tools. He has been touting the automaker's aftermarket business as a major growth opportunity, including beefing up software services in addition to traditional parts and accessories. Ford said it aims to grow its high-margin software and physical services revenue, which includes its customization business, by 8% annually by the end of the decade, which currently stands at $15 billion. “Our Ford showrooms have never been better suited to do this business than they are today,” Simpson said. “Bronco, Mustang, Maverick, F-Series, this is the most exciting lineup of Ford vehicles ever. " Ford reports that 46% of its U.S. new-car buyers have customized their vehicles in some way, with Bronco buyers accounting for the most, followed by Bronco sports cars and pickup trucks. Simpson declined to reveal specific growth targets for the customization division, but said Ford's goal is to increase the number of buyers who choose these packages and how much they spend on them. “The more customers spend on our accessories, the more loyal they become,” Simpson said. The Specialty Equipment Market Association, the automotive aftermarket industry association, reports that U.S. consumers will spend $52.9 billion on vehicle accessories and modifications in 2025. Unlike customers who install parts or accessories into their cars after purchase, Ford includes modifications into the new car's warranty through its customization service. Buyers can also choose to roll the cost of additional accessories and kits into their monthly vehicle payments when purchasing or leasing a car, truck or SUV.
"Even with sales down and affordability being squeezed, a lot of these accessories, especially the basic ones, like I want to protect my vehicle, are an opportunity for dealers to increase their profits," Simpson said.
"Even with sales down and affordability being squeezed, a lot of these accessories, especially the basic ones, like I want to protect my vehicle, are an opportunity for dealers to increase their profits," Simpson said.