Ford Authority

Ford Mustang Mach-E Structural Costs Reduced By $5,000

With high pricing compared to ICE equivalents, all-electric vehicles have long faced an uphill battle in terms of stealing away market share. Ford is well aware of this, which is precisely why it has pivoted its focus to smaller, cheaper EVs, which will ride on a new low-cost platform underpinning a future crossover that’s slated to have a price tag of $25k when it launches in 2026. In the meantime, The Blue Oval is working to drive down the costs of its existing EVs – like the Ford Mustang Mach-E – and it managed to do just that in recent years, as CFO John Lawler revealed during the company’s Q1 2024 earnings call with investors.

Ford Mustang Mach-E Tesla Supercharger North American Charging Standard NACS Adapter - Exterior 001 - Rear Three Quarters

“The last couple of years, when you look at Model e, we’ve actually reduced the cost of our vehicles significantly,” Lawler said. “On Mach-E, we’ve taken over $5,000 of cost out, but the revenue keeps dropping faster than we’re able to take out the cost. And we’re being very thoughtful about what we’re putting in as far as structural costs, et cetera. And so, we’re going to continue to work on driving every dollar of cost out of the business in the near term.”

This process actually began shortly after the Ford Mustang Mach-E launched for the 2021 model year, as just roughly a year later, FoMoCo managed to shave around $1,000 from its assembly cost. As a result, the EV crossover is now cheaper than it was when it originally launched, though there’s obviously still work to be done.

2024 Ford Mustang Mach-E GT Bronze Appearance Package - Exterior 003 - Front End

The correlation between The Blue Oval’s desire to trim costs – and reduce pricing – of its EVs versus and the corresponding impact on sales was highlighted in a big way recently after the automaker slashed the prices of its leftover 2023 Ford Mustang Mach-E models, in fact. As Ford Authority previously reported, those cuts increased weekly sales from around 300 units per week up to 1,000 and even as high as 1,800, and that model’s share in the EV segment nearly tripled as well, going from 5.2 percent all the way up to 13.3 percent.

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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