As it reopens its order bank for the first time in months, Ford also has lowered the price of its Mustang Mach-E by as much as $4,000 — meaning it’s now less expensive than many versions of its chief rival, the Tesla Model Y.
The Detroit automaker also announced an increase in range for its standard-range models as it switches them to lithium-iron phosphate batters. Depending upon the trim package, those versions will muster up to 250 miles between charges, according to EPA estimates.
The price cuts come at a point when Ford is preparing to ramp up production of the Mach-E to meet stronger-than-expected demand. In January, the second-largest domestic automaker said it would begin boosting output “significantly.” At that time, it also announced a first price cut on the electric SUV, a senior official declaring Ford wouldn’t “cede ground” as more competitors in the growing EV space come to market.
Improving the value of the Mach-E
Along with the price cuts and range enhancements announced Tuesday, Ford said it was upgrading the technology on the Mustang Mach-E. That includes the hands-free BlueCruise system which will add new functionality.
“We continue to find ways to improve the value of the Mustang Mach-E,” said Marin Gjaja, chief customer officer for Ford Model e, the EV side of the company. “Upgraded BlueCruise rolling out for new and existing Mustang Mach-E owners, increased range and faster DC charging times on standard range models show how we are relentlessly improving our products for our customers.”
In January, Ford announced it would cut prices of the Mustang Mach-E by anywhere from $500 to $6,900, depending upon the trim package.
Now, it’s trimming prices again. Most of the latest reductions focus on standard-range packages and mean a savings of $3,000 to $4,000. But two extended-range models are also included. The California Route 1 AWD package drops in price by $1,000, while the GT AWD package gets a $4,000 reduction.
Getting a leg up on Tesla
The adjustments could help Ford gain momentum, according to several analysts, as a number of versions of the Mustang Mach-E are now less expensive than comparable Tesla Model Y packages.
Tesla touched off something of a price war when it announced the first in a series of discounts in January. But it has also raised prices on some models — the latest such move also announced Tuesday. It’s adding $250 to the cost of both its Model Y SUV and Model 3 sedan. As a result, In its dual-motor configuration, the Tesla utility vehicle now starts at $47,240. The comparable Ford Mach-E Select AWD package starts at $45,595, down $3,000.
But because of the rule changes in the new Inflation Reduction Act, the Ford Mustang Mach-E is only eligible for $3,750 in federal incentives. Depending upon the version, the Tesla qualifies for up to $7,500.
New battery technology
Notably, Ford said it was switching the battery technology for its standard-range models from lithium-cobalt-manganese to lithium-iron phosphate. More commonly known as LFP batteries, they are cheaper to produce than standard lithium-ion cells, something that helps Ford justify the latest price reductions.
Ford in February announced plans to partner with China’s CATL to set up an LFP plant in Marshall, Michigan. That has generated some controversy over the involvement of a Chinese company, though Ford promises CATL will have a minimal role in the plant’s operation.
Updated BlueCruise
The updated version 1.2 of Ford’s BlueCruise will now be offered with a “try, then buy” option. All Mach-E models will contain the necessary hardware for the hands-free system. But motorists will have the choice of a 90-day free trial after which they can decide whether to activate the necessary software.
Ford will continue to offer Mach-E customers the opportunity to sign on for a 3-year BlueCruise subscription at the time of purchase, if they prefer.
BlueCruise can be updated using smartphone-style over-the-air updates. OTA technology is also adding new features to the Mach-E’s Sync infotainment system, Ford said, including news and video apps.