Ford is no longer making a profit on the Mustang Mach-E due to rising levels of inflation.
Ford’s Chief Financial Officer John Lawler revealed the surprising news at a Deutsche Bank conference on Wednesday, saying the main reason behind the company making no profit is higher battery material costs.
When the Mach-E launched in late 2020, the automaker was making a profit on each unit sold. Prices raised price last year to help offset increasing costs due to inflation, but that buffer has now been wiped out, according to Lawler. (via CNBC)
Despite the increased prices, Lawler says Ford is not seeing demand for their first electric vehicle (EV) slow down, although there financial services division says they are seeing an increase in delinquencies, when customers aren’t making their payments, or making them late.
Ford reported they sold more Mach-Es in May than ever before, selling 5,179 units during the month, an increase of 166.3% compared to May 2021.
Ford announced this week the Mach-E suffers from a potential problem where the vehicle may lose power. The automaker notified its dealer network to stop selling the Mach-E and issued a recall for almost 50,000 units to correct the issue, which is expected next month.
The recall follows another last month for unintended acceleration in 464 Mach-Es.
