After Tesla reduced the price of the Model 3 and Model Y in mid-January, which for Portuguese customers represented a cut of between 3,000 and 13,000 euros, depending on the version, he put the ball in the side of the competition. Either the competition reacts and leaves with discounts, making their models more accessible, or they risk being left behind. Ford is committed to remaining competitive and accompanies its North American rival, lowering the price in the USA of the Mustang Mach-E between 600 and 5,900 dollars, depending on the version. And customers appreciate this price battle, which can only benefit them. But does it cover Portuguese drivers?
In mid-2022, Ford surprised the market by raising the price of its Mach-E electric SUV by €11,000, citing component shortages and price hikes. Now, after little more than six months, the manufacturer changes the price of its model again, but this time downwards. with the aim of keeping up with Tesla and its direct competitor Model Y.
Price reduction occurs when production capacity increases and there is more product to sell, so it is imperative to broaden the range of customers and make vehicles more accessible. But it is equally necessary that existing profit margins allow for this type of maneuver. Tesla, which has invested to double production capacity in China and hopes to finally get to cruising speed at factories in Berlin and Texas, is reportedly running at 30% gross profit margins, unrivaled among automakers with productions of more than a million vehicles/year. Hence the announced cuts, first in China and weeks later in the US and Europe.
Today @Ford began to deliver #MustangMachE to customers in the world’s largest automotive market: China. Here is Jin Zhang, one of the first customers in Shanghai to receive the keys from Mark Kaufman, general manager of Ford China’s BEV Division.
Congratulations Jin! Enjoy your Mach-E ⚡️ pic.twitter.com/Jc9sdv4QQI
—Jim Farley (@jimfarley98) December 26, 2021
Ford, whose Mustang Mach-E is produced in Mexico and from there exported around the world, has smaller production capacity. The blue oval brand manufactures less than 200,000 units/year, a value that increased at the end of 2021 with the start-up of the factory in China. But the units produced there are channeled exclusively to the local market and other Asian countries. Still, Ford has opted not to let its rival Tesla escape, accompanying it in lowering prices, which means that the manufacturer led by Jim Farley is confident in its profit margins.
Contacted by Observer, Ford said that the announced reduction is, at least for now, exclusive to the North American market, with no cuts expected in the European market. It remains to be seen how Ford intends to help Portuguese drivers to overcome the current difference between the most affordable versions of the Mustang Mach-E RWD, with 440 km of autonomy and a price of €66,922, and the cheaper Tesla Model Y, also RWD . and with a range of 455 km between recharges, which we offer you for €46,990.