Ford hasn’t slashed the price of its Mustang Mach E electric crossover in Europe to compete with Tesla, which has slashed the prices of its Model Y and Model 3 by up to 20%.
Ford’s European operations are following a different path than in the United States, where the automaker slashed the price of the Mustang Mach E from $600 to $5,900.
A Ford France spokeswoman said there were no immediate plans to cut prices in response to Tesla’s price cuts. A Mustang spokesperson said the price cut for his Mach E is “specific to the North American market. We have nothing to announce at this time.”
Ford will be able to deliver the Mustang Mach E in France in less time and is mostly configured after a period of production constraints, the spokesperson added.
Pricing for the Mustang Mach E remains unchanged in Ford’s largest European markets, the UK and Germany.
Ford’s U.S. price cuts came in response to Tesla’s price cuts for the Model Y, a direct competitor to the Mustang Mach E.
Marin Gjaja, chief customer officer of Ford’s EV division, told Automotive News: “It’s a competitive market and it’s more competitive because of what Tesla has done. We’re not going to make concessions to anyone.”
Ford said Monday it plans to produce 130,000 Mustang Mach-Es worldwide this year, up from 77,959 last year.
Ford sold about 25,000 Mustang Mach-E models in Europe last year, according to Dataforce.
The Volkswagen Group has said it will not cut prices in response to Tesla’s move.
“We have a clear pricing strategy and focus on reliability. We believe in the strength of our products and brands,” said CEO Oliver Blume. Sunday newspaper of Frankfurter Allgemeine.
Renault hasn’t cut prices for EVs either.
“I don’t think the fight over the pricing of electric vehicles is the best thing that could happen to the industry as it is just starting out,” DeMeo said at the headquarters of industry lobby group ACEA in Brussels on Tuesday. rice field.
De Meo has taken over the role of chairman of ACEA from BMW CEO Oliver Zipse. ACEA’s leadership rotates leaders among automakers operating in Europe.
De Meo said car makers need to ensure sufficient profit margins on electric vehicles as they will need to invest heavily.
He said he believes the EV price cuts we’ve seen so far are not “structural” but driven by real cost savings passed on to consumers.
Automakers are seeing the cost of all-electric vehicles skyrocket due to soaring battery materials.
De Meo said the battery was 40% of the new car price and the raw material was 80% of the battery price.
“Everyone is trying to protect their margins. The cost of electric vehicles is still relatively high,” he said.