Detroit — ford motor is ramping up production and slashing prices for its Mustang Mach E electric crossover, just weeks after industry leaders. Tesla has announced similar EV plans.
The Detroit automaker said Monday, Mach EDepending on the model, this averages around $4,500 for a Tesla Model Y. The price cuts range from $600 to $5,900, compared with Tesla slashing prices by up to $13,000 on his Model Y in early January.
Wall Street analysts and investors hailed Tesla’s price cuts as a way to spur demand and boost sales. Analysts expected Tesla’s price cuts to put pressure on other automakers to cut their own prices.
For Ford, the price cut means that not all trim-based Mach-E models will be profitable on a unit-by-unit basis, said Marin Gjaja, chief customer officer of Ford’s electric vehicle business. I’m here. He said Mach-E production is expected to grow from 78,000 to 130,000 per year.
“We are responding to market changes,” Gjaja said at a media briefing, referring to new federal EV incentives and Tesla price cuts. so we need to respond.”
Gjaja said Ford expects cost improvements from additional production and lower costs of some goods to offset some of the shrinking profit. Starting prices for the Mach-E currently range from around $46,000 to he’s $64,000. Tesla’s Model Y starts at around $53,500 to $57,000 without options.
Mach-E made Ford the second-best-selling automaker in terms of EV sales in the U.S. last year, well behind Tesla. Ford last year in the US he sold more than 65,000 EVs. Motor Intelligence estimates that Tesla, which doesn’t report sales by region, sold more than 522,000 EVs in the US in 2022.
Ford said existing Mustang Mach-E customers awaiting vehicle delivery will automatically receive the adjusted price. Ford will offer a “private offer” to customers who have purchased one of the vehicles after January 1 and have already received his Mustang Mach E, the company said.
In addition to adjusted pricing, Mustang Mach E vehicles ordered between January 30th and April 3rd are eligible for a special rate of Ford Credit (up to 5.34%).
Ford declined to comment on which Mach-E trims and models will be profitable after the price cut.The company plans to begin reporting separate financial results for its electric vehicle business, known as the Model e, later this year. .
“We want to make money. Don’t get me wrong, we absolutely want to make money,” Gjaja said. “Trust me, we know we need to work to make more profit because we are publicly accountable for that number.”
To ramp up Mach-E production, Ford is upgrading the Mexican plant that makes the vehicle. Ford said it will be back online next month.
