U.S. carmaker Ford Motor Co said on Monday it was cutting retail prices for the Mustang Mach-E electric model by up to $5,900 per vehicle, weeks after rival Tesla Inc decided to cut global prices for its electric vehicles by up to 20%, informs Reuters, quoted by Agerpres.
Ford also announced on Monday that it will “significantly” increase production of the Mustang Mach-E electric crossover. Last year, Ford sold 39,458 Mustang Mach-E cars in the US, up from 27,140 units in 2021.
These price cuts are being introduced to a model that Ford already describes as unprofitable, but for which it hopes to improve its margins by increasing production. The cheapest Mustang Mach-E will now cost $45,995, while the more expensive GT Extended Range version will cost $63,995.
In a message on Twitter, Ford CEO Jim Farley says that “increased production will lead to shorter customer wait times. And with higher production, we also reduce costs, which allows us to share these savings with our customers.”
Ford specified that those customers who have ordered a Mustang Mach-E and are awaiting delivery of the vehicle will automatically benefit from the price reduction.
“Ford has cut prices for the Mustang EV in response to Tesla’s decision. A mini-price war is looming in the US electric vehicle market,” says Dan Ives, analyst at Wedbush Securities.
