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Ford (F) – Get a Free Report it says and repeats. Its main rival is Tesla (TSLA) – Get a Free Report.
The legacy carmaker, which is on a major offensive in the electric vehicle market, is determined to compete directly with the sector leader in terms of profitability, market value, production and sales.
The brand with the blue oval wants to fight Tesla in all markets, even those where the group of charismatic and eccentric Elon Musk has a big advantage, like China.
China is the largest automobile market in the world and also the most important when it comes to electric vehicles. Tax credits and subsidies given to consumers and manufacturers to facilitate the adoption of low-emission vehicles also make it an ideal battleground for any automaker looking to establish itself. in this highly profitable segment of the automotive industry.
Ford
Ford Cuts Prices
Ford and Tesla are competing there especially in the niche of electric SUVs. Ford’s weapon is the Ford Mustang Mach-E, while Tesla has the best-selling Model Y.
The group led by Jim Farley just made a surprising decision. This is equivalent to lowering the price of various versions of the Mustang Mach-E in the country.
The manufacturer offers four versions of this EV.
The starting price of this model is RMB 275,900 ($37,911) for the RWD Standard Range, while it rises to RMB 389,900 ($53,576) for the GT First Edition model.
Ford announced on the social network WeChat that the price of the four versions of the Mustang Mach-E produced in China from October 2021 has now dropped. The reduction varies between 5% and 9%, allowing the two cheapest versions of the subsidy benefit of RMB 11,088 ($1,523.62) granted to battery electric vehicles (Bev) in the country.
The Standard Range RWD is now priced at RMB 249,900 ($34,339), down 9.4%.
The RWD Long Range sees its initial price drop by 9% to RMB 288,900 ($39,698).
The value of the RWD Premium decreased by 5.4% to RMB 349,900 ($48,080).
And finally, the GT sees its price drop by 5.1% to RMB 369,900 ($50,828).
Ford’s price cut comes just months after a price hike of between RMB 7,000 and RMB 22,500 last May for the Mustang Mach-E in China.
The Dearborn, Mich.-based company. does not explain what led to the new pivot. In the announcement on WeChat, the automotive group said it has two cheapest versions in stock.
This information suggests that there is an imbalance between supply and demand.
Ford did not respond to a request for comment.
Stay Competitive
Importantly, Ford’s move comes just days after a similar move by Tesla that lowered prices in China by between 5% and 9%. Tesla sells three versions of the Model Y in China. The base model, the Model Y RWD is on sale for a base price of RMB 288,900 ($39,698) as of October 24.
Last week, Huawei-backed EV maker Aito also cut prices for its vehicles. Therefore, Ford aligns itself with its competitors to stay competitive.
The moves by Ford and Tesla return their auto price ranges to levels closer to those of early March, with the two groups and other automakers raising prices several times in the past. year to accommodate rising costs, in particular lithium, which nearly tripled. .
But Musk and auto industry experts recently said prices for raw materials have begun to decline. Steel and aluminum prices dropped significantly.
The decision in China is in contrast to the situation in the United States where car makers are still not making a move on consumers after several price hikes aimed at passing on unexpected increases in their costs to consumers.
At the beginning of October, Ford decided to raise the prices of the F-150 Lightning, the electric version of the iconic F-150 pickup/truck.
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