Ford Authority

Ford Mustang Mach-E Assembly Cost Reduced By $1,000 Since Inception

Last year, former Ford engineer, owner of engineering consulting firm Munro & Associates, Inc., and YouTuber Sandy Munro completed a teardown of a 2021 Ford Mustang Mach-E. Munro then sat down with Mach-E chief engineer Donna Dickson to discuss his findings, which included some opportunities with the EV’s cooling system and frunk. Dickson revealed that Ford would be making continuous, year-to-year improvements and tweaks to the Mach-E, and that proved true when the 2022 model launched with more usable battery capacity and better range, updates that the 2021 model won’t get, in spite of the EV’s over-the-air-update capability. Regardless, it seems that the automaker has made some other improvements to the Ford Mustang Mach-E that have also reduced its assembly cost.

Ford CEO Jim Farley revealed on the automaker’s recent earnings call that it brought the Mach-E development team back together to figure out ways to reduce costs and improve profit margins, and that resulted in a $1,000 reduction in the EV crossover’s bill of materials. This approach is quite different from the status quo in the industry, which typically involves waiting for a mid-cycle refresh or redesign to reduce costs or improve efficiencies.

“He said, ‘Gone. Stop that. Take that away,'” Darren Palmer, Ford’s general manager of battery-electric vehicles, told Automotive News in a recent interview. “We now do continuous improvement. You don’t wait for a model year; you just continually drop them in. It’s not about stripping the car,” Palmer added. “It’s about giving them things they love, but simpler.”

Ford accomplished this cost-cutting measure by studying competitor products, connected vehicle data, and social media input, which led to a number of changes, including the reduction in frunk pieces from nine to two. The automaker also discovered that it could save money by adding heated seats to trims that didn’t come with them, which reduced complexity and decreased costs through increased scale. Finally, Ford also eliminated two of the four motors used in the cooling system, as well as a third of the hoses present.

“Those are the opportunities we’re going after,” Farley said. “And we are not going to wait for next year. We’re not going to wait for a minor change. We are going to reengineer that vehicle now and then use that expertise for Lightning, E-Transit, and, of course, our all-electric platforms.”

We’ll have more on the Mach-E soon, so be sure and subscribe to Ford Authority for more Mustang Mach-E news and 24/7 Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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  1. Jim Glass

    If Ford followed the Tesla model, the 2021 MMEs would continue to receive OTA upgrades such as the increased range. If you plan to do away with model years eventually this would a huge marketing tool to continue selling more cars.

  2. Michael

    So Ford lowered the production costs ( and an outside consultant had to tell them how to do it ), raised the price, and refused to update 2021 models for added range, etc., that would cost Ford nothing. Guess I am not buying a Mach E, because of the way they treated previous owners, who took the risk in buying the first model year. The old saying still stands true, don’t buy the first model year.

    1. GuyInVA

      It doesn’t seem to have taken “an outside consultant to tell them how to do it.” If I recall correctly from watching the referenced video a few weeks/months ago, Ford’s Dickerson said that Ford had a deadline for production, and sort of repurposed an existing reliable system rather than engineering and testing a new solution, which would have taken too much time. Ms. Dickerson said that Ford would be looking for areas to improve and simplify the Mach E, including the very next model year.

      As far as raising prices, Ford does operate in a capitalistic society and profit seems to be a major driving factor in nearly every business. If you’re disappointed that Ford has raised the price while reducing production costs, then you’re doing the right thing to step out of the way so the many waiting on their order of a new Mach E can buy one.

      Also, I’m curious which auto manufacturer has reduced the price of a vehicle in high demand, with a months long waiting list, when the manufacturer has found a way to reduce production cost.
      – Would you please share their name(s), as I, and maybe others, would like to praise them for doing that?

  3. Yeniss

    I still say to the people dont buy Mustang Mach-E now guy listen to me I got this car someone was crashed me now my car is in the auto body for 7 months waiting for parts from Ford. That’s too much and the only they says is you have to wait for the dealership. Is you don’t want have a nightmare don’t buy this car thay have a lot issues they don’t want to recognize that this company its a totally irresponsible.


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