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Ford lowers prices of Mustang Mach-E to boost EV sales

Ford

Ford Motor Co. announced on Tuesday that it has reduced the prices of all variants of its Mustang Mach-E electric SUV as the Detroit automaker faces lower demand for EVs amid inflationary pressures and higher borrowing costs.

Ford

Mustang Mach-E prices slashed by up to $8,100

The Mustang Mach-E, which competes directly with Tesla’s Model Y crossover, is now more affordable than ever, as Ford slashed the prices of all trims by $3,100 to $8,100, depending on the model. The base Select variant of Mach-E now carries a suggested retail price of $39,895, compared with its prior price of $42,995, while the higher-end Mach-E GT spec will cost about $7,600 less, at $52,395. The price cuts are effective immediately, according to a pricing chart the automaker sent to its dealer network.

Ford said the price adjustments are part of its strategy to adapt to the market and achieve the optimal mix of sales growth and customer value. The Mustang Mach-E is America’s No. 2 EV SUV in 2023, and Ford is America’s No. 2 EV brand, behind Tesla.

Ford offers incentives for EV leases and financing

In addition to the lower prices of the Mustang Mach-E, Ford also offers attractive incentives for customers who lease or finance the electric SUV through Ford Credit. Any 2023 Mustang Mach-E leased through Ford Credit is eligible for a $7,500 cash incentive, which is in addition to the $7,500 federal tax credit for EV leases that Ford passes on to its customers. This means that US buyers could lease a Mach-E for up to $13,000 off the MSRP. Qualified buyers can also take advantage of 0% financing for 72 months.

Ford also added new bonus cash incentives for certain trims of the 2023 F-150 Lightning, its electric pickup truck that is expected to launch later this year. The F-150 Lightning is already the most reserved electric vehicle in Ford’s history, with over 200,000 pre-orders.

Ford adapts to changing EV market conditions

Ford’s move to lower the price of its Mustang Mach-E comes at a time when the EV market is facing challenges due to inflationary headwinds and higher borrowing costs. Demand for EVs has deteriorated over the past year as buyers struggle to afford the higher upfront costs of electric vehicles. Ford and other legacy automakers have slowed their EV push to instead focus on their higher-margin hybrid and gas-powered models.

Tesla, the EV market leader, sparked a price war early last year in a bid to spur demand and grab more market share. Tesla has also been adjusting the prices of its vehicles frequently, depending on the supply-and-demand situation. Tesla’s Model Y crossover, which starts at $42,990 before federal tax credits, is still slightly more expensive than the base Mach-E but offers a longer range and faster acceleration.

Ford hopes that by making its Mustang Mach-E more competitive with Tesla, it can attract more customers to its electric vehicle lineup and achieve its goal of becoming carbon neutral by 2050.

Written by
Jennifer Dixon

Jennifer Dixon is a passionate and professional news writer with over 15 years of experience in the media industry. She has worked as a reporter, editor, and correspondent for various news agencies such as Reuters, CNN, and BBC. She has covered a wide range of topics, from politics and business to culture and entertainment. She has a keen eye for detail and a flair for storytelling. She is also an avid reader and learner, always curious about the world and its people. Jennifer holds a master's degree in journalism from Northwestern University and a bachelor's degree in English from Yale University. She is currently working as a freelance writer and consultant, helping clients with their news and content needs. In her spare time, she enjoys hiking, yoga, and photography.

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