Ford Slashes Prices on Mustang Mach-E Electric SUV by £7000

Ford has made a significant move in the electric vehicle market by slashing the price of its flagship Mustang Mach-E SUV by £7000. This price reduction aligns Ford with competitor Tesla and reverses previous increases that were implemented throughout 2022.

The entry-level Select version of the Mach-E now starts at £43,830, offering a range of up to 273 miles. This new price point undercuts the cheapest Tesla Model Y, which is priced at £44,900. The Mach-E Premium, equipped with a larger battery and a range of up to 372 miles, now costs £52,380. Additionally, the performance-focused GT model has been reduced to £67,540.

Ford refers to these price cuts as a “promotion price” rather than a permanent change. However, the company has not provided a specific date for when prices could be revised upward again. It’s worth noting that finance offers for the Mach-E are currently available until the end of December.

These price reductions effectively reverse the increases of up to £7700 that Ford implemented throughout 2022 due to rising raw material costs. According to Ford’s chief financial officer John Lawler, inflation had wiped out the profit on the car, leading to the need for these adjustments.

In terms of sales strategy, Ford has closely followed Tesla’s approach in developing and selling the Mach-E. Like Tesla, Ford offers the car on a direct sales basis, using dealers as “agents” who receive a flat fee. This direct sales approach gives Ford control over pricing and promotes greater pricing transparency with customers.

Ford CEO Jim Farley has emphasized the company’s efforts to reduce manufacturing costs in order to make the Mach-E more affordable. This move comes as Ford faces strong competition from the Model Y, which currently holds the title of the UK’s best-selling electric car.

Ford has also announced plans to introduce a Mach-E model with a cheaper lithium-iron-phosphate (LFP) battery pack to Europe this year. However, it remains unclear whether these price cuts reflect the introduction of the cheaper battery chemistry. Unlike Tesla, Ford does not disclose battery sizes or chemistries, only providing information on the model’s range.

The price reductions on the Mustang Mach-E are part of a larger trend among car manufacturers who are offering discounts and special offers for electric vehicles as retail demand slows. For example, Mercedes-Benz is currently offering 0% interest on EV finance and an £8600 discount on the EQC.

In conclusion, Ford’s decision to slash prices on the Mustang Mach-E electric SUV by £7000 is a strategic move to stay competitive in the growing electric vehicle market. By aligning with Tesla’s pricing and reversing previous increases, Ford aims to attract more customers and increase sales. As the demand for electric vehicles evolves, it will be interesting to see how other car manufacturers respond with their own pricing strategies and incentives.