Ford is responding to price reductions in the electric vehicle segment with cuts of its own. The Detroit automaker has lowered the price of its all-electric crossover, the Mustang Mach-E, by up to $8,100 for its best-selling trim.
However, the price reductions apply only to the 2023 model year vehicle, partly to clear the way for the 2024 model. The decrease will also help attract buyers, particularly after confirmation that the Mustang Mach-E does not qualify for any federal tax incentives in the U.S
Read: Lucid Slashes Air Prices By Up To $8,000 Joining EV Price War
The biggest discount will be for Premium trim models with the larger battery pack, reports the Detroit Free Press. The Mustang Mach-E Premium RWD and AWD have both had their priced reduced by $8,100, when they are equipped with the extended range option. The California Route 1 AWD trim has also had its price cut by the same amount.
2023 Ford Mustang Mach-E Pricing
Meanwhile, the base version of the Mustang Mach-E, called Select has had its price cut by $3,100, and will now start at $41,695 (all prices include $1,800 destination charge). Importantly, that means that when Ford excludes the destination charge, as it does when it advertises, it can say that the model starts $39,895
“We are adjusting pricing,” a Ford spokesperson told Freep. “As we continue to adapt to the market to achieve the optimal mix of sales growth and customer value.”
Furthermore, according to Ford spokesperson Marty Gunsberg, Ford is providing 0% financing for 72 months to eligible buyers. Additionally, leased vehicles qualify for a $7,500 cash incentive, which is applied to reduce the lease payment.
The price cuts also come after sales of the all-electric Mustang Mach-E fell by 51 percent in January, reports Reuters. Much of the industry is reeling after sales growth in the EV segment slowed late last year.
Ford is only the latest automaker to respond, following Tesla’s lead, which recently offered Model Y buyers a $1,000 discount on certain trim levels. Rivian has also joined in, offering a $3,100 reduction on certain vehicles, while Lucid is discounting specific examples of the Air by up to $8,000.
