The price of the Ford Mustang Mach-E electric car will be reduced by an average of 5.85%, depending on the configuration. Discounts ranged from $600 to $5,900, according to Marin Gjaja, chief account manager for Ford Model e. However, the company also said it is expanding production capacity for the Mach-E. In 2023, Ford increased its production plan for customers in North America and Europe from 78,000 to 130,000 electric vehicles.
Image Source: Ford
Ford has held down electric car prices longer than many automakers. Tesla started a price war in 2023, cutting the prices of the Model 3 and Model Y by as much as 20%, but then the price of the Model Y adjusted slightly. “We respond to changes in the market, Gyaja said, citing the Inflation Reduction Act’s eligibility requirements for buyers of electric vehicles to receive a $7,500 tax deduction. — We want to remain competitive in the market.”
Currently, only two versions of the Mach-E are eligible for the tax deduction, the Select RWD and eAWD Standard Range trims, with an MSRP of up to $55,000 for the non-SUV or crossover class. The fact is that the US Internal Revenue Service does not recognize the Mach-E as a crossover, despite the fact that Ford classifies it as such. SUVs and pickups have a higher price cap of $80,000.
Buyers of electric vehicles are feeling like they are on a roller coaster with all the changes they have had to endure over the past few months. Last August alone, Ford raised prices for the Mach-E by as much as $10,000 in some trim levels, citing increased material costs and supply chain restrictions. Now the price is dropping, right after a significant price cut from Tesla.
Gyaja denied that the Mach-E price cut was in response to the Tesla Model Y price cut, which is its biggest competitor. “We have a different product, we have different customers, – he said. “We’re trying to make an offer that we think is better than Tesla’s, and then we’re trying to set the price according to what we think is appropriate in the market.”
The Mustang Mach-E is currently the third most sold electric vehicle in the US behind the Tesla Model 3 and Model Y. However, by cutting prices, Ford is drastically reducing the profitability of the Mach-E. As early as last year, the company’s chief financial officer said that rising commodity prices as a result of inflation had practically zeroed out margins. Answering him, Gyaja stated that “price position” Mach-E is improving as a result of increased production and a corresponding reduction in component prices.
If you notice an error, select it with the mouse and press CTRL + ENTER.
