Another automaker is following in the footsteps of Tesla, with Ford announcing price cuts to its Mustang Mach-E on Monday in Canada and the US. But while Tesla was able to maintain its margins above 20%, Ford says some variants of the Mach-E will not be profitable.
Tesla slashed prices as much as 20% earlier this month, sending shockwaves through the automotive industry. Ford has now followed suit, although their price cuts are not quite as drastic, ranging from $4,750 to $8,500 in Canada, and as little as $600 up to $5,900 in the US.
In Canada the entry-level Mach-E Select trim saw no price change and still starts at $56,995, remaining under the price limit for the federal iZEV incentive. The biggest price drop belongs to the Premium eAWD Standard Range variant, which dropped $8,500 from $75,425 to $67,425. The Premium RWD Standard Range dropped $7,000 from $71,995 to $64,995, while the most expensive GT Performance Edition Extended Range is now down $5,000 to $92,745.
For US Mach-E buyers, the biggest price drop is on the GT Extended Range variant, which dropped $5,900 to $63,995. The smallest price drop was just $600 on the Select eAWD Standard Range variant, now starting at $48,995. With the price cuts four Mach-E models now qualify for the $7,500 US tax credit.
While Tesla was able to slash their prices by more than double what Ford did with the Mach-E, they were still able to maintain their margins above 20%. Ford on the other said these price cuts make some variants not profitable on a per unit basis, according to Marin Gjaja, chief customer officer of Ford’s electric vehicle business. Gjaja did not specify which or how many variants are no longer profitable, but it echoes similar statements last year that the Mach-E was not profitable.
The automaker is hoping to recoup some of those losses through increased production from 78,000 units to 130,000 units in 2023 in a bid to lower customer wait times. Ford says they have secured the battery and raw materials needed to do this.
At @Ford, we want to make EVs more accessible, so we’re increasing #MustangMachE production & reducing prices across the Mach-E lineup. Scaling will shorten customer wait times. And with higher production, we’re reducing costs, which allows us share these savings with customers.
— Jim Farley (@jimfarley98) January 30, 2023
