Ford’s recent price reduction on the Mustang Mach-E has led to a surge in sales, after the Detroit-based automaker offered significant discounts on its 2023 model year inventory to clear out older models.
The price cuts were initiated in response to the Mach-E’s slow sales at the beginning of the year and the model’s loss of eligibility for a $3,750 federal tax credit, which made it more expensive for consumers. By lowering prices as much as $8,100 and offering enticing financing options, Ford managed to significantly increase sales, as high as 64% in the month of February, according to data from Cloud Theory (via Automotive News).
While sales have increased, the Mach-E still lags behind the industry average in terms of the speed at which it moves off dealer lots, taking on average six months for the EV to sell.
Ford’s pricing strategy comes at a time when the company is focusing on making its electric division profitable on its own, despite the high costs associated with producing EVs. This move is part of a broader industry trend toward making EVs more affordable, as evidenced by Ford’s announcement of plans to introduce a budget-friendly electric pickup and SUV by 2026, targeting a price point of just US$25,000.
