Slow Ford Mustang Mach-E Sales in China Spur Changes

[ice-capades]

Slow Ford Mustang Mach-E Sales in China Spur Changes

https://fordauthority.com/2023/06/slow-ford-mustang-mach-e-sales-in-china-spur-changes/

 

 

In the U.S., the Ford Mustang Mach-E has been a solid seller for The Blue Oval, quickly rising up the sales charts ahead of all of its rivals, save for the Tesla Model Y. However, it’s been a different story altogether in China, where the Mach-E has faced a tremendous amount of competition in an EV-hungry market ever since the first example of that crossover rolled off the assembly line in Chongqing back in 2021. As a result, FoMoCo has slashed Ford Mustang Mach-E prices on multiple occasions recently in an effort to make it more competitive, but it seems as if the automaker has even more changes in store, according to Yicai.

 

The first notable change involves moving some members of the Ford Electric Mach Technologies (FMeT) sales staff to the automaker’s Changan Ford Automobile joint venture, while others may either be asked to voluntarily resign or risk not having their contracts renewed. The idea is to consolidate sales channels, though Changan reportedly rejected the notion of taking on all of Ford Electric Mach Technologies workers, which just launched last September as an independent entity that’s focused solely on the development of all-electric vehicles.

 

FoMoCo will also utilize Changan’s new energy vehicle technologies to aid in the product development cycle, but it has no plans to shut FMeT down entirely. “We don’t have any plan to terminate FMet’s business operations,” Ford China said in a statement. “We will steadfastly continue to accelerate electrification in China.” Rather, the company will explore ways to consolidate and expand its sales channels in the country.

 

Ford has invested big in the Mach-E in China, even building dedicated stores across the country as it aims to secure share in the highly competitive market. However, the automaker has reportedly only sold a few hundred units of its EV crossover per month since its launch, dipping down to just 33 total in the month of April.

 

 

Edited June 12, 2023 by ice-capades
Additional Content

[Oac98]

2 hours ago, ice-capades said:

Slow Ford Mustang Mach-E Sales in China Spur Changes

https://fordauthority.com/2023/06/slow-ford-mustang-mach-e-sales-in-china-spur-changes/

 

 

In the U.S., the Ford Mustang Mach-E has been a solid seller for The Blue Oval, quickly rising up the sales charts ahead of all of its rivals, save for the Tesla Model Y. However, it’s been a different story altogether in China, where the Mach-E has faced a tremendous amount of competition in an EV-hungry market ever since the first example of that crossover rolled off the assembly line in Chongqing back in 2021. As a result, FoMoCo has slashed Ford Mustang Mach-E prices on multiple occasions recently in an effort to make it more competitive, but it seems as if the automaker has even more changes in store, according to Yicai.

 

The first notable change involves moving some members of the Ford Electric Mach Technologies (FMeT) sales staff to the automaker’s Changan Ford Automobile joint venture, while others may either be asked to voluntarily resign or risk not having their contracts renewed. The idea is to consolidate sales channels, though Changan reportedly rejected the notion of taking on all of Ford Electric Mach Technologies workers, which just launched last September as an independent entity that’s focused solely on the development of all-electric vehicles.

 

FoMoCo will also utilize Changan’s new energy vehicle technologies to aid in the product development cycle, but it has no plans to shut FMeT down entirely. “We don’t have any plan to terminate FMet’s business operations,” Ford China said in a statement. “We will steadfastly continue to accelerate electrification in China.” Rather, the company will explore ways to consolidate and expand its sales channels in the country.

 

Ford has invested big in the Mach-E in China, even building dedicated stores across the country as it aims to secure share in the highly competitive market. However, the automaker has reportedly only sold a few hundred units of its EV crossover per month since its launch, dipping down to just 33 total in the month of April.

 

 

Sounds like a disaster to me!

[akirby]

Mustang styling is probably not popular there.  Gotta know the market.

[Rick73]

I wonder if tensions between China and U.S. have not made matters worse.

[jasonj80]

11 minutes ago, akirby said:

Mustang styling is probably not popular there.  Gotta know the market.

Exactly, the Chinese would not like the style of the Mach-E.  

[ice-capades]

11 minutes ago, akirby said:

Mustang styling is probably not popular there.  Gotta know the market.

 

Except for the taillights, I'd hardly think of anything else on the Mach-E resembling a Mustang. 

[Hugh]

I wouldn't be surprised the reason for poor sales is a little bit of everything discussed. I'm not crazy about the styling although I feel it looks better in person. It looks dated to me even on release. Trying to out-Tesla, Tesla methinks.

[akirby]

27 minutes ago, ice-capades said:

 

Except for the taillights, I'd hardly think of anything else on the Mach-E resembling a Mustang. 

While not an exact copy the front end styling is very similar in overall shape.  
 

And nobody freak out and start saying this line is different or the grill is taller, etc - I’m just saying there is a strong resemblance.

[silvrsvt]

36 minutes ago, akirby said:

While not an exact copy the front end styling is very similar in overall shape.  
 

And nobody freak out and start saying this line is different or the grill is taller, etc - I’m just saying there is a strong resemblance.

 

Or another way to put it like the Maverick having F-150 styling cues...they aren't copies of the F-150, but you can see the design language there....the Mach E is the same deal. 

 

[mackinaw]

Three little letters why the Mach-E (and others) are struggling.......BYD.

 

https://www.reuters.com/business/autos-transportation/chinas-electric-car-drive-led-by-byd-leaves-global-brands-behind-2023-04-17/

[Rick73]

Reuters article makes Mach-E sound expensive compared to entry level options.

[rperez817]

3 hours ago, mackinaw said:

Three little letters why the Mach-E (and others) are struggling.......BYD.

 

https://www.reuters.com/business/autos-transportation/chinas-electric-car-drive-led-by-byd-leaves-global-brands-behind-2023-04-17/

 

That's correct mackinaw. Jim Farley recognizes the major competitive threat BYD Auto presents to Ford (and to other non-Chinese automakers) in China. He said the following a few weeks ago. Ford CEO Farley: Chinese automakers such as BYD are biggest EV rivals (cnbc.com)

 

“We see the Chinese as the main competitor, not GM or Toyota,” Jim Farley said during the Morgan Stanley Sustainable Finance Summit.

He used BYD as the prime example of a Chinese automaker that has successfully developed and sold EVs, first in China, and now Europe.

“I like BYD. Totally vertically integrated, aggressive … very, very impressive company. And they were always committed to electric,” Farley said when asked which company is doing EVs right.

 

[bzcat]

Mach E is having the same problem the rest of the Ford brand is facing in China... it is not on the mind of consumers. Ford squandered its market lead with MK2 Focus and the initial launch of Kuga and let its product age beyond reason in a market where 3 year model cycle is the norm. Chinese EV buyers are not thinking Ford... they barely know it exists since Ford's market share and presence has fallen so much in the last decade.

[jpd80]

19 hours ago, bzcat said:

Mach E is having the same problem the rest of the Ford brand is facing in China... it is not on the mind of consumers. Ford squandered its market lead with MK2 Focus and the initial launch of Kuga and let its product age beyond reason in a market where 3 year model cycle is the norm. Chinese EV buyers are not thinking Ford... they barely know it exists since Ford's market share and presence has fallen so much in the last decade.

Never a truer word said.

Regardless of whether battery supply was a mistake by Ford or suppliers, Ford absolutely butchered all chances for Mach E in China, people there ordering a vehicle have limited time to register their vehicles with local authorities and if they are going to miss that deadline, it’s better to cancel and get something else.

 

You’re absolutely right about Mach E being off Chinese buyers’ radar, it’s just too easy to go get a Tesla or a BYD and avoid all the flubbing. Mach E is now a mistake upon a mistake and doubling down on it is not a good look when buyers are ignoring it, that‘s embarrassing.

 

When RHD Edge failed in Europe, that production was redirected to Australia and New Zealand to recoup development costs, I can see the same thing happening with Mach E, coming here in Q4.

 

Edited June 16, 2023 by jpd80

[rperez817]

28 minutes ago, jpd80 said:

You’re absolutely right about Mach E being off Chinese buyers’ radar, it’s just too easy to go get a Tesla or a BYD and avoid all the flubbing. 

 

Interestingly, even Tesla executives are concerned about the competitive threat that Chinese automakers especially BYD represent. Elon Musk said the following.

We have a lot of respect for the car companies in China. They work the hardest and they work the smartest.

 

Tesla's CFO Zachary Kirkhorn was very terse and blunt about the situation.

The Chinese are scary

[jpd80]

2 hours ago, rperez817 said:

 

Interestingly, even Tesla executives are concerned about the competitive threat that Chinese automakers especially BYD represent. Elon Musk said the following.

 

 

 

Tesla's CFO Zachary Kirkhorn was very terse and blunt about the situation.

 

 

I heard that last month, China’s BEV sales figures seem to have stalled, I wonder if that’s across all brands or mostly the smaller Chinese brands struggling…

 

While Tesla has a healthy respect for Chinese competition, I think it should be confident, especially if the costs and production improvement coming from the “Tesla 2” are to be believed. I think the Chinese will be closely copying Tesla’s technical evolutions more than overtaking them. It will be interesting to see if Tesla’s predictions about the 2’s sales volume hold up across China and Europe or whether something unforeseen intervenes to mess things up….

Edited June 17, 2023 by jpd80

[Rick73]

1 hour ago, jpd80 said:

It will be interesting to see if Tesla’s predictions about the 2’s sales volume hold up across China and Europe or whether something unforeseen intervenes to mess things up….

Im not at all familiar with China’s auto market, but the little I know of Europe’s market suggest to me that buyers there are more willing to embrace smaller vehicles like upcoming Tesla Model 2 (whatever it ends up being named).  Consensus (speculation and guesses) seems to be that it will likely be a mini Model Y, and have just over 250 miles of range with 53 kWh battery, making it more affordable than competition.  Europeans should love a smaller and lower-cost Tesla.
 

Though not unforeseen, Model 2 could face competition from Tesla’s own updated Model 3 and Y.  Updated Model 3 is reported to be out over next couple of months, and Y in 2024.  I’m personally curious regarding Model 2’s potential and how it may define BEV affordability.  I hope the new compact Tesla platform is significantly smaller than Model 3/Y, and that it is very successful so that other manufacturers will copy.

[AM222]

On 6/13/2023 at 1:44 AM, Rick73 said:

I wonder if tensions between China and U.S. have not made matters worse.

Other American brands outsell Ford by a wide margin in China. 

The history and brand value the Blue Oval carries in the US and some other markets are non-existent in China.

Another thing, Ford has always had an incomplete lineup in China and their pricing has traditionally been uncompetitive. Even if they slash Mach E prices to undercut its Tesla rival, I guess the poor image of the brand is still there.

The Mach E will always be the "other" American EV in China. I think Ford needs to fight with good value for money products. 

Edited June 19, 2023 by AM222

[Rick73]

3 hours ago, AM222 said:

Another thing, Ford has always had an incomplete lineup in China and their pricing has traditionally been uncompetitive. Even if they slash Mach E prices to undercut its Tesla rival, I guess the poor image of the brand is still there.

Good point, difference in sales versus Tesla Y is huge, so not likely caused by political tension.  You’re probably correct that it’s more about cost and or perceived value.  From an earlier Reuters report:
 

“However, Mach-E sales last year in China, the world's largest auto market, were minimal - just 7,782 units. Tesla sold 455,091 Model Ys in China in the same year, according to data from China Association of Automobile Manufacturers (CAAM).”

 

https://www.reuters.com/business/autos-transportation/ford-offers-discounts-mustang-mach-e-electric-suvs-china-2023-03-08/

[jpd80]

4 hours ago, Rick73 said:

Good point, difference in sales versus Tesla Y is huge, so not likely caused by political tension.  You’re probably correct that it’s more about cost and or perceived value.  From an earlier Reuters report:
 

“However, Mach-E sales last year in China, the world's largest auto market, were minimal - just 7,782 units. Tesla sold 455,091 Model Ys in China in the same year, according to data from China Association of Automobile Manufacturers (CAAM).”

 

https://www.reuters.com/business/autos-transportation/ford-offers-discounts-mustang-mach-e-electric-suvs-china-2023-03-08/

The other part of car sales in China is the owner gets an allotted time period where the vehicle has to be registered. If Ford fails to supply the vehicle in time, the buyer has no choice but cancel the order as the vehicle cannot be registered.

 

So an easy choice, guess when Ford will deliver your vehicle or go buy Tesla or BYD or some other brand…

Edited June 19, 2023 by jpd80

[AM222]

On 6/17/2023 at 7:22 AM, rperez817 said:

 

Interestingly, even Tesla executives are concerned about the competitive threat that Chinese automakers especially BYD represent. Elon Musk said the following.

 

 

 

Tesla's CFO Zachary Kirkhorn was very terse and blunt about the situation.

 

 

A smart thing BYD is doing is they are making (affordable) EV alternatives to normal cars that people usually drive, including city cars and subcompacts. 

I'm sure by now Ford has realized that small EVs weigh less and require smaller batteries (lower price). 
 

Edited June 20, 2023 by AM222

[Rick73]

5 hours ago, AM222 said:

A smart thing BYD is doing is they are making (affordable) EV alternatives to normal cars that people usually drive, including city cars and subcompacts. 

I'm sure by now Ford has realized that small EVs weigh less and require smaller batteries (lower price). 
 

Europeans appear to have more interest in smaller BEVs, many having battery capacity in the 40 kWh range, or even lower.  The article below shows some of the electric vehicles available from manufacturers like BMW, Honda, Fiat, etc.  Most of the examples would make great city cars but I’m not sure they would do well on longer highway trips if driven at higher speeds.

 

Their light weight (BMW around 2,800 pounds) and lower energy consumption makes them better for the environment, but from a cost standpoint I’m concerned that cheaper cost of batteries will promote inefficiency and waste.  As example, adding an extra 20 kWh of battery capacity may soon only add $4,000~$6,000 to a vehicle, which could make it difficult for buyers to resist.  It could easily snowball from there.  Cheaper batteries will likely lead to larger vehicles and greater inefficiencies.

 

 

https://www.topgear.com/car-news/electric/here-are-10-best-small-electric-cars-buy

 

[tbone]

57 minutes ago, Rick73 said:

 Cheaper batteries will likely lead to larger vehicles and greater inefficiencies.

 

What are you inferring with this statement?  

[Rick73]

29 minutes ago, tbone said:

What are you inferring with this statement?  

That if (or when) batteries become lower in price, they will have a lower impact on total vehicle cost, making it easier to justify larger and heavier electric vehicles.  I expect that it’s not much different than with gas prices; when gas is really high buyers go for smaller and more fuel efficient vehicles, RV sales go down the toilet, etc.  The second part should be obvious, in that larger and heavier BEVs require more energy per mile, hence more charging, more power plants, etc.  If conversion to BEVs (electrification) is being done to save the planet from CO2 emissions, then I feel that in that context a smaller and lighter BEV is better (more efficient) than a larger one, everything else being equal.  Everything else is rarely 100% equal, so topic becomes more subjective, but in general, small, light, and energy efficient is better towards reducing greenhouse gases. 

 

 

[AM222]

16 hours ago, Rick73 said:

Europeans appear to have more interest in smaller BEVs, many having battery capacity in the 40 kWh range, or even lower.  The article below shows some of the electric vehicles available from manufacturers like BMW, Honda, Fiat, etc.  Most of the examples would make great city cars but I’m not sure they would do well on longer highway trips if driven at higher speeds.

 

Their light weight (BMW around 2,800 pounds) and lower energy consumption makes them better for the environment, but from a cost standpoint I’m concerned that cheaper cost of batteries will promote inefficiency and waste.  As example, adding an extra 20 kWh of battery capacity may soon only add $4,000~$6,000 to a vehicle, which could make it difficult for buyers to resist.  It could easily snowball from there.  Cheaper batteries will likely lead to larger vehicles and greater inefficiencies.

 

 

https://www.topgear.com/car-news/electric/here-are-10-best-small-electric-cars-buy

 

I hope Ford brings back the Fiesta or Ka/Figo in EV form for markets that need it. A subcompact hatch with a base 45-50kWh LFP battery would be popular, well, at least outside the USA.