Action follows Tesla’s price slashing
Ford Motor Co. says it is cutting the price of all trims of its popular Mustang Mach-E as it ramps up production, apparently in expectation of picking up a lot of business as many foreign-made EVs no longer will be eligible for federal tax credits under new rules imposed in the Inflation Reduction Act of 2022.
Ford built just under 80,000 Mach-Es for global distribution in 2021 and said it wants to boost production to 130,000 units for 2023. Economies of scale from the the increased production will lower the total cost per unit to Ford, said Jim Farley, the automaker’s chief executive.
The Mach-E price cuts will range from $900 to $5,900 and include a $1,600 reduction in the price of the long-range battery option available for most trims.
Ford’s action follow Tesla’s massive price reductions earlier in January. Tesla slashed prices on most models – by as much as $13,000 – in an effort to boost sales volume as its supply expands. The price cuts also brought some Tesla models down to or below the new tax credit MSRP caps of $55,000 for cars and $80,000 for SUVs, vans, trucks and crossovers.
The MSRP for the base Tesla Model Y crossover – a direct competitor to most Mustang Mach-E trims – dropped to $52,990 from $65,990.
On Ford’s part, the Mach-E cuts weren’t as severe, but keep its various models competitive with many Teslas:
|Mach-E Trim||Old MSRP||New MSRP||Change|
|Select rear-drive, standard range||$46,895||$45,995||$900|
|Select, all-wheel drive, standard range||$49,595||$48,995||$900|
|California Route 1||$63,575||$57,995||$5,580|
|Premium, rear-drive, standard range||$54,975||$50,995||$3,980|
|Premium, AWD, standard range||$57,675||$53,995||$3,680|
|GT, extended range||$69,895||$63,995||$5,900|
|Extended range battery option||$8,600||$7,000||$1,600|
In order to avoid angering recent Mach-E purchasers, Ford has said that customers with Mach-Es on order but not delivered when the reductions were announced will be granted the lower prices.
The automaker also said it would “reach out directly,” presumably with refund offers, to customers who ordered a new Mustang Mach-E after Jan. 1, 2023 and had taken delivery before the cuts were announced on Jan. 30.
Tesla angered many of its recent customers by making is price cuts available only to new buyers.
Ford didn’t cut proces on is other EV – the F-150 Lightning. Thfe all-electric pickups are selling faster than the company can make tem and while it has some competition from Rivian, electric pickups form dother automakers including Tesla, General Motor and Dodge, aren’t due til 2024 or later.