Ford Slashing Prices And Increasing Incentives On Electric Mach-E, F-150 Lightning
It's not just Tesla...the increasing saturation of the electric vehicle market continues driving down prices as manufacturers strive to remain competitive.
At the same, manufacturers are starting to realize that hybrids present a more cost-effective option than battery electric vehicles due to lower initial purchase prices and the ability to save on fuel without being wholly dependent on charging infrastructure.
Maybe that's why, shortly after reducing the prices of its 2023 Mustang Mach-E in Canada, Ford has cut the MSRP across all trims in the U.S. to respond to softer EV demand, offering additional lease discounts and introducing new incentives for the F-150 Lightning, according to Electrek.
The Mustang Mach-E, an all-electric SUV that debuted over four years ago, has become highly popular, ranking as the second-best-selling electric SUV in the U.S. in 2023. Following a pause in orders last year, Ford resumed sales in May with reduced prices, starting at $42,995. This move came right before the company announced a similar price reduction in Canada, marking a continuous effort to make the Mach-E more accessible.
A spokesperson for Ford said:
The Mustang Mach-E is America’s No.2 EV SUV in 2023 and Ford is America’s No.2 EV brand. We are adjusting pricing for MY23 models as we continue to adapt to the market to achieve the optimal mix of sales growth and customer value.
Ford also highlighted that lessees of the 2023 Mustang Mach-E through Ford Credit qualify for a $7,500 cash incentive, which complements the $7,500 federal tax credit for EV leases that Ford extends to its clients. This means that U.S. customers could see discounts up to $15,000 off the MSRP when leasing a Mach-E. Additionally, eligible purchasers have the option of 0% financing for a period of 72 months.
The move away from EV investment and price cuts marks a sea change in attitude for EVs. As we noted earlier this month, the latest example of this was General Motors, who posted better than expected earnings earlier this month but also said that it plans on changing its product lineup to include more hybrid vehicles, drifting away from pure electric vehicles.
CEO Mary Barra said on the earnings call: “Let me be clear, GM remains committed to eliminating tailpipe emissions from our light-duty vehicles by 2035, but, in the interim, deploying plug-in technology in strategic segments will deliver some of the environment or environmental benefits of EVs as the nation continues to build this charging infrastructure.”
Recall, a report from Consumer Reports last year found that electric vehicles have almost 80% more problems and are "generally less reliable" than conventional internal combustion engine cars.