The American car manufacturer Ford will lower the price of its electric Mustang Mach-E by an average of $ 4,500 (about 4,140 euros). The company thus responds to a price reduction previously announced by Tesla. Other Ford models are also becoming cheaper in the US.
It is not yet known whether Ford will also reduce its prices in Europe. Tesla did that worldwide, including in the Netherlands. Elon Musk, the company’s chief executive, acknowledged last year that prices had become “embarrassingly high” and could hurt demand. According to him, demand has increased sharply in recent weeks by reducing prices.
The cheapest Mustang Mach-E will now be on sale from $45,995 (42,221 euros), down from $900 (826 euros). The biggest price drop occurs with the GT Extended Range, which is $ 5,900 (5,418 euros) cheaper and can now be purchased from $ 63,995 (58,776 euros).
The price war in the electric vehicle market is thus further intensified. Tesla had already decided earlier this month to implement price reductions of up to 20 percent.
“Our competitors are also adjusting their prices,” said Marin Gjaja, commercial director of Ford’s electric vehicle division. “If we want to stay competitive in the market, we have to react.”
Scaling up
Chief Financial Officer John Lawler had reported in June that profits on the Mach-E had been “wiped out” by rising commodity prices. Gjaja emphasizes that Ford is working on improving margins on the Mach-E, but he cannot say whether the model has become profitable. Among other things, scale is being targeted to reduce costs: production of the Mach-E will be increased by 67 percent this year, from 78,000 to 130,000 cars.
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