Ford Motor Co. on Wednesday will reopen order banks for the Mustang Mach-E — again lowering prices on the battery-electric crossover amid signals that an EV price war is brewing.
The Dearborn automaker is reducing pricing across the Mach-E lineup by as much as $4,000, bringing the lowest-priced model, the select rear-wheel-drive standard range, down to $42,995 from $45,995. The highest-priced model, the GT all-wheel-drive extended range, will drop to $59,995 from $63,995.
The move follows aggressive price cuts by EV market leader Tesla, which has sought to spur demand and increase its sales volumes while sacrificing some of its healthy profit margins. After Tesla slashed its pricing by as much as 20% in January, Ford followed shortly thereafter with reduced prices on the Mach-E, the inaugural offering in its first lineup of battery-electric vehicles, which competes directly with Tesla’s Model Y.
“Our competitors are also adjusting their prices,” Marin Gjaja, chief customer officer for Model e, Ford’s EV unit, said at the time, according to Bloomberg. “As we look and want to stay competitive in the marketplace, we’re having to respond.”
Tesla this week raised prices on some of its models, CNBC reported, but its prices remain lower than they were at the start of the year.
The previous reduction in Mach-E’s pricing was described by some capital markets analysts as necessary to remain competitive, while others have been skeptical given that Ford currently is losing money on its EV business. But Ford executives have said that boosting production volumes on the Mach-E is driving cost reductions, enabling the price cuts.
The plant in Mexico where the Mach-E is assembled recently went through a series of upgrades to support a production ramp-up in the second half of this year.
The boost in Mach-E production to 130,000 units this year from 78,000 last year comes as Ford aims to hit a global run rate of 600,000 EVs annually by the end of this year and 2 million by the end of 2026 as part of its $50 billion electrification strategy. The automaker currently offers two other battery-electric products: the E-Transit cargo van and the F-150 Lightning pickup truck, for which Ford has raised the price numerous times since launching last spring. The Dearborn automaker is developing its next generation of EVs.
Ford on Tuesday detailed some improvements to the Mach-E, including increased battery range for the standard-range models to a targeted EPA-estimated range of 250 miles for rear wheel drive and 226 miles for all wheel drive.
Standard-range models now will be powered by lithium iron phosphate batteries, a change Ford previously announced and which it said would result in a gain in horsepower for the eAWD configuration. And standard-range models now will be able to charge to 100% more frequently via AC home charging, while DC fast charging on the road will see a slight reduction in the time needed to reach 80% battery capacity.
The Mach-E now will come standard with the hardware necessary to activate BlueCruise, Ford’s hands-free highway driving system. Ford is offering a complimentary 90-day trial in addition to the existing option of paying for a three-year subscription as part of the vehicle purchase.
“We continue to find ways to improve the value of the Mustang Mach-E,” Gjaja said in a statement. “Upgraded BlueCruise rolling out for new and existing Mustang Mach-E owners, increased range and faster DC charging times on standard range models show how we are relentlessly improving our products for our customers.”
Ford has said that the Mach-E qualifies for potential Inflation Reduction Act tax credits this year of $3,750.
The new Mach-E prices, excluding destination/delivery fees, are:
• Select RWD standard range: $42,995 (down $3,000)
• Select AWD standard range: $45,995 (down $3,000)
• California Route 1 AWD extended range: $56,995 (down $1,000)
• Premium RWD standard range: $46,995 (down $4,000)
• Premium AWD standard range: $49,995 (down $4,000)
• GT AWD extended range: $59,995 (down $4,000)
jgrzelewski@detroitnews.com