Ford is slashing prices on its all-electric Mustang Mach-E as it reopens orders

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By Webdesk

Ford slashed the price of its all-electric Mustang Mach-E by as much as $4,000 while adding range and other features — the latest step in an EV price war fueled by Tesla.

Ford said Tuesday it is reopening its order book and preparing to ramp up production of the vehicle in the second half of 2023, following factory upgrades. ford expects to produce 130,000 units at the plant by 2023. According to a spokesman, the annual production rate will exceed 200,000.

This is the second time since the start of the year that Ford has lowered the price of the Mustang Mach-E.

The cuts come as competition for electric vehicle buyers intensifies. It also follows a quarter of a drop in sales of the Mustang Mach-E, which fell 20% in the first quarter from the same period a year ago.

Ford reported Tuesday afternoon — hours after announcing the price cuts — that it earned $1.8 billion in net revenue in the first quarter, rebounding from the $3.1 billion loss in the year-ago quarter that was driven by sales. of its legacy F-Series pickups, premium models and fleet sales. Ford reaffirmed its guidance for full-year adjusted earnings of between $9 billion and $11 billion and approximately $6 billion in adjusted free cash flow.

The stock fell 2.16% in after-hours trading, despite the company’s positive quarterly earnings.

Ford cut the cost of its two cheapest models by $3,000. The standard rear-wheel drive Mustang Mach-E now starts at $42,995 and has an EPA estimated range of 250 miles. The all-wheel drive version, which starts at $45,995, has a range of 226 miles. The largest price reduction – about $4,000 or nearly 8% – was made for the premium standard range and extended-range all-wheel drive GT models.

Standard series Mustang models coming off the line will now be equipped with lithium iron phosphate (LFP) batteries, according to Ford. The models will also be able to fast-charge to 80% of 10% battery capacity in 33 minutes, a reduction of five minutes compared to previous standard-series models, Ford said.

The new models will also come with an upgraded version of the hands-free advanced driver assistance system known as BlueCruise. The 1.2 version of BlueCruise has the ability to change lanes hands-free when the driver taps the turn signal and will also move or push the vehicle away from larger vehicles while remaining in lane. Buyers get free access to BlueCruise technology for 90 days. Once the trial period is over, customers can activate the system through a subscription service.

Ford isn’t the only automaker lowering the prices of its EVs. Tesla started the EV price war last fall and has continued to make its models more affordable in the US, China and Europe.

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