Ford Motor Co. is slashing the price of its electric Mustang Mach-E by an average of US$4,500 following Tesla Inc.’s own recent cuts, stepping up the price wars in a slowing EV market.
“Our competitors are also adjusting their prices,” Marin Gjaja, chief customer officer for Model e, Ford’s EV unit, told reporters. “As we look and want to stay competitive in the marketplace, we’re having to respond.”Chief Financial Officer John Lawler said in June that profits on the Mach-E had been “wiped out” by rising commodity costs. The automaker responded then by raising prices on the Mach-E to reduce losses, Lawler said.
“We absolutely want to make money,” Gjaja said. “We are re-engineering the vehicle on a perpetual basis to try to get cost out.”The Mach-E’s business case also will improve by boosting production this year to 130,000 models from 78,000 last year, Gjaja said. The Mach-E factory in Cuautitlan, Mexico, is idled currently as the automaker retools it to expand capacity. It will come back online in February, Gjaja said.
No material change in Ford's sp so far.