WASHINGTON – Ford Motor has reduced prices of its Mustang Mach-E electric vehicle (EV) and is reopening orders. This is the second time it has given discounts this year after a series of price cuts by rival Tesla.
Ford, the No. 2 US automaker, said on Tuesday that it was also increasing the range for its standard-range battery models as it increases production of the electric crossover sport utility vehicle in the second half of 2023.
Prices for most Mach-E models were cut by US$3,000 (S$4,000) or US$4,000 depending on the version, or by as much as 7.8 per cent, Ford said. The price of the Mustang Mach-E Premium rear-wheel drive version dropped from US$50,995 to US$46,995.
Ford chief executive Jim Farley told analysts that Ford did not intend to pursue EV sales volume “at any cost”, saying: “We are not going to price just to gain market share.”
His stance contrasts with that of Tesla CEO Elon Musk, who said in April that Tesla could cut profit margins on vehicle sales to zero and make up the difference through sales of software-enabled services.
Ford shares closed down 2.2 per cent at US$11.80 on Tuesday and fell 1.5 per cent in after-hours trading after it reported first-quarter earnings.
In April, the federal EV tax credit for the Mustang Mach-E fell by half to US$3,750 from US$7,500 after new battery sourcing rules took effect.
Mustang Mach-E US sales fell 20 per cent in the first three months of 2023. Ford said on Tuesday that shipments of the EV were limited in the first three months of the year in order for Ford to make industrial changes that would nearly double manufacturing capacity.
In January, Ford cut prices of the Mustang Mach-E by as much as US$5,900 per vehicle after hiking prices in August by US$3,000 to about US$8,000, citing supply chain issues and higher material costs.
Ford said all standard-range models would now be powered by lithium iron phosphate batteries, which allow vehicles to gain an additional 45 units of horsepower and improve the targeted range estimates by the Environmental Protection Agency.
On Monday, Tesla raised prices by up to US$290 in Canada, China, Japan and the US after it had slashed prices on its top-selling vehicles since the start of the year.
The hike was Tesla’s first on its two top-selling models at the same time in multiple markets, although prices across its line-up are much lower than in January after a round of discounts. REUTERS
