Ford (NYSE: F) is expanding its customization and aftermarket business to capture more of the $53 billion U.S. aftermarket, adding accessories, performance parts and exclusive limited-edition vehicle "drops." Ford Custom Garage debuted its first limited-edition "vehicle drop" on Monday, unveiling a desert sunrise-inspired Ford Bronco SUV with a bold pink-and-orange design.
"Think like a 'Nike dropping a sneaker' is the vision," Matt Simpson, Ford Customization's executive director, told CNBC during an event at the Michigan International Speedway racetrack promoting the company's efforts.
Ford plans to expand its lineup of aftermarket accessories and performance upgrades while introducing limited-edition vehicle releases modelled after exclusive "Nike shoe drops" of Nike Inc.(NYSE: NKE) to boost customer engagement.
The automaker would build 1,000 limited-edition Desert Rising Broncos under its new Bronco Horizon Series. The $13,695 package raises the SUV's starting price to $57,350, while other Ford Custom Garage packages range from several thousand dollars to nearly $27,000 for select Mustang and F-150 models.
Ford's Aftermarket Expansion
After facing criticism from President Donald Trump over right-to-repair issues, Ford CEO Jim Farley defended limiting owner repairs on vehicles under warranty and reaffirmed the company's focus on expanding its high-margin aftermarket, software, and customization business, targeting 8% annual revenue growth through 2030.
"It is a growth lever for us. It's been a good business for us. We think it can be significantly bigger, hence the investment," Simpson added on Monday.
The news comes on the heels of Ford hiring 350 veteran engineers after AI and automated quality systems fell short of delivering the vehicle quality it expected. The experienced hires are tasked with identifying design issues earlier, mentoring younger staff, and improving the AI tools the automaker still plans to use.
Last month, Ford announced plans in May to launch seven new vehicles in Europe by 2029 and expand into energy storage through its new Ford Energy unit, which analysts say could unlock significant long-term value.