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Ford (F) says it and repeats it. Its main rival is Tesla (TSLA) .
The heritage automaker, which is on a major offensive in the electric vehicle market, is determined to compete with the sector leader in terms of profitability, market value, production and sales.
The blue oval brand plans to fight Tesla in all markets, even in those where the charismatic and eccentric Elon Musk’s group has a big advantage, such as China.
China is the world’s largest car market and also the most important when it comes to electric vehicles. The tax breaks and assistance given to consumers and manufacturers to facilitate the adoption of low-emission vehicles make it an ideal battleground for any vehicle manufacturer looking to establish itself in this highly profitable segment of the automotive industry.
Ford
Ford lowers prices
Ford and Tesla compete there primarily in the niche of electric SUVs. Ford’s weapon is the Ford Mustang Mach-E, while Tesla has the best-selling Model Y.
A group led by Jim Farley just made a surprising decision. This means slashing the prices of the various versions of the Mustang Mach-E in the country.
The manufacturer offers four versions of this EV.
The initial price of this model is RMB 275,900 ($37,911) for the standard RWD variant, rising to RMB 389,900 ($53,576) for the GT First Edition model.
Ford announced on the social network WeChat that starting from October 2021, the price of the four versions of the Mustang Mach-E produced in China has now been reduced. The reduction varies between 5% and 9%, allowing the two cheapest versions to qualify for the RMB 11,088 ($1,523.62) subsidy given to battery electric vehicles (Bev) in the country.
The standard range RWD now costs RMB 249,900 ($34,339), down 9.4%.
The initial price of the RWD Long Range drops 9% to RMB 288,900 ($39,698).
The cost of the RWD Premium drops 5.4% to RMB 349,900 ($48,080).
And finally, the price of the GT drops 5.1% to RMB 369,900 ($50,828).
Ford’s price cut comes just a few months after the Mustang Mach-E saw a price hike between RMB 7,000 and RMB 22,500 last May in China.
The Dearborn, Ill.-based company would not explain what led to the new twist. In a WeChat announcement, the auto group said it has two cheapest versions.
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, which cut prices in China by 5-9%. Tesla markets three versions of the Model Y in China. The base Model Y RWD has been on sale since October 24 with a base price of RMB 288,900 ($39,698).
Last week, Huawei-backed electric vehicle manufacturer Aito also lowered the prices of its vehicles. Therefore, Ford aligns with its competitors to stay competitive.
The moves by Ford and Tesla bring price ranges for their vehicles back closer to early March levels, with the two groups and other automakers raising prices several times over the past year to accommodate rising costs, particularly for lithium, which has nearly tripled. .
But Musk and auto industry experts recently said that raw material prices have started to fall. Steel and aluminum prices fell significantly.
China’s decision is in contrast to the situation in the US, where automakers have not made a gesture toward consumers after a series of price hikes aimed at passing on their unexpected cost increases to consumers.
In early October, Ford decided to raise the prices of the F-150 Lightning, an electric version of the iconic F-150 pickup/truck.
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