Ford Motor Co. on Tuesday said it was cutting thousands of dollars off the price of its all-electric 2023 Mustang Mach-E SUV after the vehicle lost eligibility for the federal government’s tax credit.
The Dearborn automaker cut the starting price by $3,100 to $39,895 for the Select rear-wheel drive model. The top-of-the-line GT performance edition is down $7,600 to $57,395. The largest dollar amount decrease of $8,100 is on the Premium extended range model as well as the California Route 1 option. Destination and delivery fees remain unchanged at $1,800.
The reductions come after the Mach-E on Jan. 1 was among the dozens of EVs that lost eligibility for the federal government’s up-to $7,500 tax credit because of increased requirements under the Inflation Reduction Act concerning the origin of vehicle components and materials. There are 14 nameplates still qualified for some type of tax credit when purchased.
The reductions come after the Mach-E on Jan. 1 was among the dozens of EVs that lost eligibility for the federal government’s up-to $7,500 tax credit because of increased requirements under the Inflation Reduction Act concerning the origin of vehicle components and materials. There are 14 nameplates still qualified for some type of tax credit when purchased.
“We are adjusting pricing for MY23 models.” spokesperson Marty Günsberg said in a statement, “as we continue to adapt to the market to achieve the optimal mix of sales growth and customer value.”
Automakers following the new year also typically seek to clear out last year’s models in favor of the current year.
Ford still is passing along a $7,500 tax credit from the government through a “red carpet” cash incentive when a 2023 Mach-E is leased through Ford Credit. Ford Credit also is offering 0% financing for 72 months for qualified buyers.
The Mach-E price reduction comes after Ford CEO Jim Farley last week emphasized the automaker’s learnings around EV sales as the market looks to shift from early adopters to early majority buyers who at this point are unwilling to pay a premium for EVs as the charging network is being built out and other powertrains alleviate range anxiety. The automaker says it’s been developing a low-cost EV platform that could support a vehicle costing as low as $25,000.
2023 Mustang Mach-E pricing
—Select RWD: $39,895, down $3,100
—Select AWD: $42,895, down $3,100
—Premium RWD (Standard Range): $42,895, down $4,100
—Premium AWD (Standard Range): $45,895, down $4,100
—Premium RWD (Extended Range): $45,895, down $8,100
—Premium AWD (Extended Range) and California Route 1 AWD: $48,895, down $8,100
—GT: $52,395, down $7,600
—GT (Performance Edition): $57,395, down $7,600
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