Ford Motor Co. announced Tuesday its plan to cut prices (again) on the Mustang Mach-E SUV just as rival Tesla increased prices while the companies fight for market share in the rapidly growing electric vehicle market.
The news from Dearborn came on the eve of the automaker’s reopening Mach-E order banks after a massive factory overhaul to dramatically increase production and do so while containing costs, the company told the Detroit Free Press. The Ford plant in Mexico had been down for an extended period during the first quarter to implement plant changes and improvements.
Ford dropped the price of the Mach-E standard range by $3,000 to $42,995, California Route 1 by $1,000 to $56,995, the Premium standard range by $4,000 to $46,995 and the GT extended range by $4,000 to $59,995.
Meanwhile, Tesla has increased its prices on the Model Y, a Mach-E competitor by $250, according to its website. The Model Y standard rose to $47,240, the Model Y Long Range to $50,240, the Model Y Performance to $54,240.
Posted prices for Ford don’t include the standard $1,800 in delivery fees and charges. The Tesla destination fee is an additional $1,390, according to its website.
Dan Levy, senior research analyst at Barclays, told the Detroit Free Press on Tuesday, “We’re in the midst of a price war right now.”
Ford announced an increased range for standard range battery models to a targeted EPA-estimated range of 250 miles for its rear-wheel drive and 226 miles for its all-wheel drive.
In addition, Ford is offering a “try, then buy” experience with BlueCruise hands-free highway driving with a complimentary 90-day connected service plan, noting that Consumer Reports rated the active driving assistance system the best in the industry.
“We continue to find ways to improve the value of the Mustang Mach-E,” Marin Gjaja, chief customer officer, Ford Model e, said in a news release. “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.”
All standard range models will now be powered by lithium iron phosphate batteries, according to Ford.
The Mustang Mach-E qualifies for potential Inflation Reduction Act federal tax credits in 2023 of$3,750.
Vehicles ordered in May will begin delivery as soon as July, Ford spokesman Martin Gunsberg said.
In February, Ford dropped the price of the 2023 Mustang Mach-E SUV by $600 to $5,900, depending on the model, which now can range from $46,000 to $64,000. Its average transaction price from October through December 2022 was $59,431, according to Cox Automotive.
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Contact Phoebe Wall Howard: 313-618-1034 or phoward@freepress.com. Follow her on Twitter @phoebesaid