Ford Motor Company announced on Tuesday that it’s lowering the prices of its electric SUV, the Mustang Mach-E, by as much as $8,100 (Sh.1.2 million) following a drop in sales in January.
“The cost of the base model for the 2023 Mach-E now stands at $39,895 (Sh.5.8 million), down from $42,995 (Sh.6.3 million).
Similarly, the higher-end Mach-E GT version will see a reduction of about $7,600 (Ksh.1.1 million), priced at $52,395 (Sh.7.6 million).”
Additionally, other variants, including the extended-range premium model, will experience a price decrease of $8,100 Sh.1.2 million) to $48,895 (Sh.7.1 million).
Ford stated that these price adjustments are part of its effort to “adjust to the market to find the best balance between sales growth and customer satisfaction.”
The automaker, headquartered in Dearborn, Michigan, reported a 51% decline in Mach-E sales in January, with only 1,295 units sold.
The Mach-E lost eligibility for a $3,750 (Ksh.548,000) tax credit starting January 1 due to new battery sourcing regulations from the U.S.
Treasury Department, designed to shift the EV supply chain away from China.
Several other models also lost tax credits.
According to recent reports, the Treasury Department has reimbursed auto dealers approximately $135 million in advance consumer EV tax credit payments since the beginning of the year through February 6, with over 25,000 sales reports submitted to the Internal Revenue Service, including over 19,500 with advance payment requests.
Competing with the Mach-E, Tesla’s Model Y crossover starts at $42,990 (Sh.6.2 million) before federal tax credits of $7,500 (Sh.1 million).
Tesla initiated a price war early last year to stimulate demand and capture a larger market share.
While Ford and other traditional automakers have slowed down their EV initiatives, focusing more on higher-margin hybrid and gas-powered models, Ford announced in January its plan to reduce production of its F-150 Lightning pickup truck, scaling back production at its Michigan Rouge Electric Vehicle Center to one shift starting April 1.
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