Ford’s European business will not follow the company’s decision to cut prices of the Mustang Mach-E electric crossover in the US, in an effort to compete with Tesla’s Model Y.
In the US, Ford has reduced the Mustang Mach-E’s price by $600 to $5,900, while Tesla has also made significant price cuts in Europe, with up to €9,100 off in Germany and up to £8,000 in the UK. Despite the competition, Ford has no plans to cut prices in Europe at this time.
A Ford France spokesperson stated that the price cuts in the US are specific to that market and that there is currently no announcement for Europe. Ford is able to deliver the Mustang Mach-E in France in a shorter time and in most configurations, with prices remaining unchanged in the UK and Germany, its largest European markets.
See also: Ford celebrates a milestone of 150,000 Mustang Mach-E production
The Ford Mustang Mach-E and the Tesla Model Y are two popular electric crossover models available in Europe. However, the Mustang Mach-E has a higher starting price than the Model Y in Germany, with the entry-level Mach-E priced at €62,900 while the Model Y RWD starts at €44,890. In the UK, the price difference between the two models is smaller, with the Mustang Mach-E Select starting at £50,830 and the Model Y RWD priced from £44,990.
Last year, Ford sold approximately 25,000 Mustang Mach-E units in Europe, while Tesla sold 31,562 Model Ys in Europe just in December 2022, with full year sales expected to be significantly above 100,000. In comparison, Ford sold 39,458 Mustang Mach-E units in the United States in the same period.
Ford has announced plans to build 130,000 Mustang Mach-Es globally this year, an increase from 77,959 in 2022. However, other major electric vehicle (EV) players in Europe, such as Volkswagen and Renault, have stated that they have no plans to reduce the prices of their EVs.
Despite the high sales numbers of the Tesla Model Y and Model 3 in Europe in 2022, it remains to be seen how other EV players, including Ford, Volkswagen, and Renault, will compete without reducing their prices in response to Tesla’s price cuts.
