[ad_1]

Ford is moving inventory after slashing prices by up to $8,100 on its best-selling electric SUV, the Mustang Mach-E, last month. A recent Cloud Theory report reveals that the price cuts are working as buyers look for more affordable EVs.

Good news: Ford Mustang Mach-E price cuts are working

Ford cut Mustang Mach-E prices by up to $8,100 in February with new finance and lease incentives. New data shows sales are up while inventory is finally dwindling.

The move came after Mach-E sales fell over 50% in January, with only 1,295 units handed over. In February, sales of the electric SUV surged 64% year over year. However, Mach-E sales were down 20% through the first half of 2023 as Ford retooled its plant in Mexico, where the vehicle is assembled.

According to a recent report from data analytics firm Cloud Theory, the price reductions are working.

Ford Mustang Mach-E movement has been “dramatic and immediate,” according to the data analytics company. The weekly movement rose from around 300 to over 1,000, even reaching over 1,800 in early March.

Ford-Mach-E
Ford Mustang Mach-E (Source: Ford)

Nearly a month after the price cuts took effect, Mach-E tripled its vehicle-movement share in the EV market, hitting 13.3% from 5.2%.

Cloud Theory highlights that despite reports of cooling demand, EVs are still sought after for the right price.

Ford-mach-e-price-cut
2023 Ford Mustang Mach-E (Source: Ford)

The bad news

Although the lower prices are working to move inventory, can Ford afford to keep prices lower?

Ford’s Model e electric vehicle unit lost $4.7 billion last year. The company said the rising losses were due to “extremely competitive pricing” and new EV investments.

EV volume was up 20% last year, but it was mainly driven by the F-150 Lightning. Ford is now trimming its workforce by one-third at its Rouge EV plant, where the electric pickup is built, citing slower-than-expected demand.

Ford-Lightning
Ford F-150 Lightning production (Source: Ford)

Despite rising Mach-E sales, Rick Wainschel, vice president of data and analytics at Cloud Theory, told Automotive News there are some “dark clouds” lingering.

Ford’s Mach-E turn rate continues to trail behind the industry average. Even with the price cuts, the Mach-E’s turn rate reached 33%. Although that’s up from 7% before the reductions, it’s still behind the average of 45%.

According to its data, Ford had around 18,000 Mach-E’s in inventory at the end of March. “It’s better, and it’s climbing closer to a more normal rate, but it’s still below the total,” Wainschel explained.

Ford-Mach-E-price-cuts
Ford Mustang Mach-E (Source: Ford)

At least one dealer is seeing the results. Doug North, who owns North Brothers Ford in Westland, Michigan, said customers who previously saw EVs as unaffordable are “now coming in and looking at them — and buying.”

Although North considered slowing Mach-E allocation, the price cuts “really changed it quickly.” North explained, “It’s working very well.”

Shifting to more affordable EVs

Meanwhile, Ford is shifting plans from large to smaller, more affordable EVs. CEO Jim Farley said the automaker is developing a low-cost EV platform to keep up with Tesla and low-cost Chinese automakers.

Farley said the company assembled a “skunk works” team with some of the best EV engineers. The team is led by Alan Clarke, a top engineer on Tesla’s Model Y and Model 3.

CFO John Lawler reaffirmed these plans at the BofA Auto Summit last week, saying, “The game will not be fought and won with larger vehicles,” smaller, low-cost ones will win in the end.

Ford-Explorer-EV
All-electric Ford Explorer (Source: Ford)

According to Lawler, the new platform will have several “top hats” for new, low-cost electric SUVs, trucks, sedans, and vans.

A recent Bloomberg Businessweek report revealed the first models to launch on the platform are expected to be a smaller, cheaper, pickup and SUV. The first model is expected to begin rolling out in 2026 with a starting price of around $25,000.

2023 Ford Mustang Mach-E Trim Previous MSRP New Starting price Difference
Select RWD $42,995 $39,895 -$3,100
Select AWD $45,995 $42,895 -$3,100
Premium RWD $46,995 $42,895 -$4,100
Premium AWD $49,995 $45,895 -$4,100
Premium RWD (Extended Range) $53,995 $45,895 -$8,100
Premium AWD (Extended Range) $56,995 $48,895 -$8,100
California Route 1 AWD $56,995 $48,895 -$8,100
GT $59,995 $52,395 -$7,600
GT (Performance Edition) $64,995 $57,395 -$7,600
2023 Ford Mustang Mach-E prices (Not including $1,800 destination fee)

Ford’s low-cost EV platform is designed to rival Tesla and low-cost Chinese automakers like BYD. Farley called BYD’s new Seagull, starting at $9,700 (69,800 yuan), “pretty damn good,” as he warned industry peers.

If you’re looking to get a steal on the 2023 Ford Mustang Mach-E while it’s still in stock, we can help you get started today. You can use our link to find deals on the Ford Mustang Mach-E at a dealer near you.

FTC: We use income earning auto affiliate links. More.

[ad_2]

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here