ice-capades Posted March 19 Share Posted March 19 (edited) REPORT: Ford Mustang Mach-E Demand Jumped After Price Cuts https://fordauthority.com/2024/03/ford-mustang-mach-e-demand-jumped-after-price-cuts-report/ Aside from launching a new EV referral program in select markets recently, The Blue Oval also slashed Ford Mustang Mach-E prices dramatically back in February as inventory piled up. The EV crossover is also available with a variety of other incentives, including discounts of up to $3,000, special financing rates, and lease deals that make it as cheap to procure as its chief rival, the Tesla Model Y. It seems as if all of these incentives have paid off as well, as they helped spur a surge in customer demand for the Ford Mustang Mach-E over the past few weeks, according to a new report from Cloud Theory. Following Ford’s decision to slash Mach-E prices in late February, weekly sales increased dramatically, going from around 300 units per week up to 1,000 and even as high as 1,800, in fact, as of last week. Over the past 30 days, Ford Mustang Mach-E share in the EV segment nearly tripled as well, going from 5.2 percent all the way up to 13.3 percent. This sharp uptick in Mach-E sales proves a generally held notion that many consumers aren’t necessarily opposed to owning an all-electric vehicle – at the right price, anyway. Historically speaking, the price disparity between traditional ICE vehicles and EVs has proven to be one of the biggest obstacles standing in the way of EV adoption, and this change proves that consumers are willing to buy them if they’re cheap enough for it to make sense. Of course, there’s just one problem with this trend – Ford, and many other automakers, are still working to make EVs profitable at lower costs. The Blue Oval expects its second-generation models to turn a profit within 12 months of launch, but for now at least, its all-electric Model e division continues to post losses in that regard. Edited March 19 by ice-capades Additional Content Quote Link to comment Share on other sites More sharing options...
rmc523 Posted March 19 Share Posted March 19 Who'd have thought that lowering the price would spur sales? Lol. 1 6 Quote Link to comment Share on other sites More sharing options...
akirby Posted March 19 Share Posted March 19 31 minutes ago, rmc523 said: Who'd have thought that lowering the price would spur sales? Lol. I know, right? I can’t wait to post this in the EV haters forums where they’ve declared that nobody is buying EVs any more. Quote Link to comment Share on other sites More sharing options...
rmc523 Posted March 19 Share Posted March 19 1) Price 2) Charging Those are the biggest limitations to EVs. Figure out #1 and people will figure out #2 if price is close enough, and infrastructure will get better. Quote Link to comment Share on other sites More sharing options...
Andrew L Posted March 19 Share Posted March 19 "Of course, there’s just one problem with this trend – Ford, and many other automakers, are still working to make EVs profitable at lower costs. The Blue Oval expects its second-generation models to turn a profit within 12 months of launch, but for now at least, its all-electric Model e division continues to post losses in that regard." Makes me wonder how many they have to move to make it profitable. Is that even feasible at the current price point? Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted March 19 Share Posted March 19 7 minutes ago, Andrew L said: "Of course, there’s just one problem with this trend – Ford, and many other automakers, are still working to make EVs profitable at lower costs. The Blue Oval expects its second-generation models to turn a profit within 12 months of launch, but for now at least, its all-electric Model e division continues to post losses in that regard." Makes me wonder how many they have to move to make it profitable. Is that even feasible at the current price point? The two issues are the cost of the battery and cost of producing the rest of the car. EVs are far more simple to build vs an ICE, so new techniques and clean sheet designs will help with that. Quote Link to comment Share on other sites More sharing options...
DeluxeStang Posted March 19 Share Posted March 19 1 hour ago, Andrew L said: Makes me wonder how many they have to move to make it profitable. Is that even feasible at the current price point? There are lots of ways they could make it work. Platform and parts sharing for example is a fantastic way to develop a product quickly, for much less money, without compromising on quality or other attributes. Using smaller battery packs also saves thousands of dollars per car. As a whole, EVs tend to have much less complexity than ICE vehicles. Meaning you aren't having to source as many parts from suppliers, and you aren't having to hire as many workers to build them, saving money there as well. The only real hold up on making EVs affordable is the battery pack, which brands like Ford are starting to get around now through a variety of creative means. Once you get past that hurdle, making inexpensive EVs sustainable is definitely possible. Quote Link to comment Share on other sites More sharing options...
rmc523 Posted March 19 Share Posted March 19 I know some have mentioned it before, but another factor to consider is that the initial models are carrying the entire weight of building out Ford's EV infrastructure (production, design, etc), that future models won't have to bear outside of that particular model's development costs. 2 Quote Link to comment Share on other sites More sharing options...
Rick73 Posted March 19 Share Posted March 19 5 hours ago, akirby said: I know, right? I can’t wait to post this in the EV haters forums where they’ve declared that nobody is buying EVs any more. What about profitability? If you lower price enough and sell at a big-enough loss, someone will buy pretty much anything. Not a BEV hater, just questioning what if anything the higher sales proves in this case. My only take is that manufacturers need to lower build costs if they expect to have high sales while making a profit. Quote Link to comment Share on other sites More sharing options...
Trader 10 Posted March 19 Share Posted March 19 3 hours ago, rmc523 said: I know some have mentioned it before, but another factor to consider is that the initial models are carrying the entire weight of building out Ford's EV infrastructure (production, design, etc), that future models won't have to bear outside of that particular model's development costs. No they’re not. Costs of assembly plants and battery plants are capitalized over many years (probably 20 to 30). Quote Link to comment Share on other sites More sharing options...
Trader 10 Posted March 19 Share Posted March 19 6 hours ago, akirby said: I know, right? I can’t wait to post this in the EV haters forums where they’ve declared that nobody is buying EVs any more. To be fair, let’s see how sales go over the rest of the year. Although promising, one month could just be an anomaly. Quote Link to comment Share on other sites More sharing options...
akirby Posted March 20 Share Posted March 20 19 minutes ago, Trader 10 said: To be fair, let’s see how sales go over the rest of the year. Although promising, one month could just be an anomaly. The huge Mach-e numbers are an anomaly but EV sales are not stopping. They may not be growing or growing as fast but people will continue to buy EVs. Quote Link to comment Share on other sites More sharing options...
akirby Posted March 20 Share Posted March 20 (edited) 27 minutes ago, Trader 10 said: No they’re not. Costs of assembly plants and battery plants are capitalized over many years (probably 20 to 30). Some costs are capitalized but not all. E.g. all the people working on next gen batteries and platforms and yet to be released vehicles are an expense with zero revenue. Edited March 20 by akirby Quote Link to comment Share on other sites More sharing options...
Trader 10 Posted March 20 Share Posted March 20 1 hour ago, akirby said: Some costs are capitalized but not all. E.g. all the people working on next gen batteries and platforms and yet to be released vehicles are an expense with zero revenue. Correct. Btw, why was the thread on the report of the Oakville EVs being delayed shut down? The post silvrsvt referred to was a Ford Authority article dated Feb 9th. The one I linked to was published today. Quote Link to comment Share on other sites More sharing options...
akirby Posted March 20 Share Posted March 20 21 minutes ago, Trader 10 said: Correct. Btw, why was the thread on the report of the Oakville EVs being delayed shut down? The post silvrsvt referred to was a Ford Authority article dated Feb 9th. The one I linked to was published today. Josediago posted the same link in that topic on page six a few hours ago. 1 Quote Link to comment Share on other sites More sharing options...
jpd80 Posted March 20 Share Posted March 20 (edited) 14 hours ago, akirby said: I know, right? I can’t wait to post this in the EV haters forums where they’ve declared that nobody is buying EVs any more. I stand corrected, the uptake rate may have slowed but people are still most definitely buying BEVs. Ford won’t be slowing BEV production until April so there’s a week and a bit of overproduction still to go. Ford is right to offer its ‘23 Mach E with cash incentives, it’s a great way to promote without hurting the ‘24 price. Good old fashioned end of model year selling. Edited March 20 by jpd80 Quote Link to comment Share on other sites More sharing options...
akirby Posted March 20 Share Posted March 20 3 hours ago, jpd80 said: I stand corrected, the uptake rate may have slowed but people are still most definitely buying BEVs. Ford won’t be slowing BEV production until April so there’s a week and a bit of overproduction still to go. Ford is right to offer its ‘23 Mach E with cash incentives, it’s a great way to promote without hurting the ‘24 price. Good old fashioned end of model year selling. That wasn’t directed at you or anyone here (although it would be apropos to a couple of folks). There is a car group on Facebook that is over the top declaring EVs are dead and nobody wants them. 1 Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted March 20 Share Posted March 20 29 minutes ago, akirby said: There is a car group on Facebook that is over the top declaring EVs are dead and nobody wants them. Oooh social media with a completely terrible hot take on something? LOL 1 Quote Link to comment Share on other sites More sharing options...
ice-capades Posted March 20 Author Share Posted March 20 14 minutes ago, silvrsvt said: Oooh social media with a completely terrible hot take on something? LOL But we all know that if it's on the Internet it must be true! 1 Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted March 20 Share Posted March 20 10 hours ago, Trader 10 said: Correct. Btw, why was the thread on the report of the Oakville EVs being delayed shut down? The post silvrsvt referred to was a Ford Authority article dated Feb 9th. The one I linked to was published today. 10 hours ago, akirby said: Josediago posted the same link in that topic on page six a few hours ago. Plus I wanted to drive attention/traffic to the new EV forum. 1 Quote Link to comment Share on other sites More sharing options...
akirby Posted March 20 Share Posted March 20 37 minutes ago, ice-capades said: But we all know that if it's on the Internet it must be true! You can’t believe everything you read on the internet. - Abraham Lincoln 4 Quote Link to comment Share on other sites More sharing options...
jpd80 Posted March 21 Share Posted March 21 (edited) At the moment, Ford is compelled to move the rest of its 2023 Mach E stock, be that strong cash incentives or killer lease deals to retail customers or, loading up Ford internal fleet vehicles including dealership courtesy vehicles. No matter how Ford gets it done, it’s better to move tin and get the message out rather than sit stubborn with premium prices that few buyers are willing to pay. As costs lower on battery production, we will probably see Ford holding down prices provided lithium doesn’t spike again, maybe having a sodium battery alternative to hepl keep prices in check… Edited March 21 by jpd80 Quote Link to comment Share on other sites More sharing options...
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