Hoping to perk up a slowing EV market, Ford Motor Co. announced some lucrative financial deals for its two retail battery-electric models, the Mustang Mach-E and the F-150 Lightning. Price cuts on the electric crossover run as high as $8,100, while there’s as much as $12,500 in “bonus cash” on the battery pickup.
Looking to move more battery-electric metal, Ford upped the incentives on the Mustang Mach-E to as much as $8,100.
What was supposed to be a big year for Ford’s two retail battery-electric vehicles isn’t working out quite as planned.
The automaker has been forecasting big sales increases for both the Mustang Mach-E crossover, as well as the F-150 Lightning. While demand for the all-electric pickup did jump 55% last year, the numbers were well short of initial expectations. That led the company to announce last month it is dropping one of two shifts at the Lightning plant in Dearborn, Michigan. About 1,400 workers have been impacted.
Hoping to gain more momentum, Ford has now come up with some lucrative deals for Mach-E and Lightning buyers — on top of previous price cuts.
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Mustang Mach-E price cuts
The price cuts on the electric Mustang crossover cover leftover 2023 models — of which Ford dealers appear to have plenty. The deals cover everything from the base rear-wheel-drive Mach-E Select trim to the top-line Mach-E GT Performance Edition.
- 2023 Mustang Mach-E Select RWD has a new starting price of $39,895, after a $3,100 cut;
- Select AWD: now starts at $42,895 following a $3,100 cut;
- Premium RWD: adjusted base of $42,895 after a $4,100 reduction;
- Premium AWD: now starts at $45,895 after a $4,100 price cut;
- Premium RWD Extended Range: starts at $45,985 after an $8,100 discount;
- Premium AWD ER: is now $48,895 after an $8,100 price cut;
- California Rt 1 AWD: now starts at $48,895 after an $8,100 cut;
- GT: now starts at $52,395 reflecting a $7,600 cut;
- GT Performance Edition: now starts at $57,395 following a $7,600 price cut.
Buyers should note that they no longer can get $3,750 in federal tax credits on the Mustang Mach-E due to changes in the Inflation Reduction Act that went into effect Jan. 1. However, most dealers can offer the credits as an additional incentive on leased vehicles.
F-150 Lightning incentives
Ford F-150 Lightning sales were up 55%, but less than the company forecast. It cut production from two shifts to one, impacting 1,400 workers.
The good news for F-150 Lightning customers is that the electric pickup qualified for up to $7,500 in tax credits whether leased or purchased. Now, Ford is adding some incentives of its own.
Traditional pickup trucks routinely carry hefty rebates and other incentives in a crowded market. But these are the biggest givebacks Ford has yet come up with on the Lightning, especially when factored in with the federal tax credits. Another bit of good news: both 2023 and 2024 models are covered.
Buyers can receive:
- $7,500 in incentives on the F-150 Lightning XLT Extended Range trim;
- $5,000 off the Lariat Standard and Lariat Extended Range packages;
- $12,500 of the top-line Lightning Premium.
Lease customers can receive:
- $1,500 off a Lightning XLT;
- $5,000 off all Lariat packages;
- $7,500 off the Platinum edition.
Ford CEO Jim Farley said focusing on smaller, more affordable EVs is “nonnegotiable.”
Ford Shifts EV strategy
Detroit’s second-largest automaker recently announced a delay in its $11 billion EV program. At a business conference in New York last week CEO Jim Farley said the automakers will shift focus from larger, more expensive EVs to smaller, more affordable ones.
It’s not the only automaker rethinking its strategy. General Motors delayed some EV projects and plans to add some plug-in hybrids to its U.S. lineup to help meet increasingly stringent emissions standards, according to CEO Mary Barra. Genesis, the luxury arm of the Hyundai Motor Group reportedly will add hybrids, as well, rather than focusing on EVs alone.
Price cuts have also become more common as manufacturers try to address one of the biggest obstacles to EV adoption. The average transaction price for an EV has been running around $60,000, according to data from J.D. Power, Cox Automotive and others. That’s about $15,000 more than for the typical gas-powered model — though EVs tend to be loaded with more features that would otherwise drive up their prices.
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