Following a steep decline in sales in January, Ford Motor Company announced on Tuesday that it had slashed prices on its Mustang Mach-E electric SUV by up to $8,100.
Suggested retail price of the lowest-priced 2023 model year Mach E version from the nation’s top manufacturer is now $39,895, down from $42,995. The more expensive Mach-E GT variant will run you $52,395 less, or almost $7,600 less. The cost of other models, such as the premium version with an extended range, will decrease by $8,100 to $48,895.
The price reductions, according to Ford, are a result of the company’s ongoing efforts to “adapt to the market to achieve the optimal mix of sales growth and customer value.”
The company located in Dearborn, Michigan, said that sales of the Mach-E in the United States dropped by 51% to 1,295 in January.
New battery sourcing rules implemented by the U.S. Treasury Department on January 1st, with the goal of weaning the electric vehicle supply chain away from China, resulted in the Mach-E losing its eligibility for a $3,750 tax credit. Tax credits were also lost for many other models.
Treasury informed Reuters last week that, from the beginning of the year through February 6th, it has paid back car dealers around $135 million in advance point-of-sale consumer EV tax credit payments. More than 25,000 time of sale reports—of which more than 19,500 included requests for advance payment—have been submitted to the Internal Revenue Service.
Rivaling the Mach-E, Tesla’s Model Y crossover has a starting price of $42,990 before $7,500 in federal tax credits.
The EV manufacturer led by Elon Musk started a pricing battle at the beginning of the year in an effort to increase demand and gain market dominance.
Ford and other established automakers have reduced their emphasis on electric vehicles in favor of higher-profit hybrid and gas-powered vehicles.
Ford announced in January that it will be reducing the number of F-150 Lightning pickup trucks it produced. As of April 1, just one shift would be produced at the Michigan Rouge Electric Vehicle Center.