Mach-E Production Costs Increases and No Longer Profitable For Ford

[andrew]

I’m genuinely curious to see what you consider to be a comparably optioned ICE crossover for around $30k.

I’m assuming it would be something like an Escape. I’m not really sure why everyone compares the Mach E to the Edge. It proportionately more similar to the Escape, no?

I’d rather have a Mach E than an Escape. I like the amenities and the drive more in a Mach E. However, assuming you upgraded the interior a bit in an Escape to be closer to the Mach E, it’s probably about a $33k car (as an ICE).

EDIT: I made a mistake when I looked up my reference. I thought I saw the Titanium at $30k. It is actually $37k, so I think an Escape with the Mach E interior would likely be around $40k.

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[MustangJoe84]

Sorry, but in my opinion the interior materials and interior design of the MachE is more akin to a 30K Escape. Definitley not 50-70K territory.

 

[buzznwood]

Well, if the $25K increase is really accurate, that’s gonna make economies of scale a lot harder to reach.

My guess is Ford will continue taking the cost beating knowing that inflation and costs are likely going down sooner now that the Fed confirmed the 75 basis point hike with more to come this summer. Plus, EVs are among the top new car searches now, so, even with a looming economic downturn, people will be buying them as a hedge against chronic high gas prices.

Maybe that 25k factors in the cost of all the HVBJB that will need to be replaced over the life of a new vehicle ? . I doubt the 25k is an accurate figure of what the cost increase really is, probably some lost in translation errors. I could believe that the base battery cost to Ford has now gone up to 25k.

 

[snowy_91]

Not buying it, if ford was seeing those increases so would the rest of the industry.

 

[Garbone]

I can't come to this forum and wade through this endless reactionary pile anymore. This thread has NO accurate numbers, it's title quotes a misprint and a too stupid to take seriously misprint at that.

The recall 22S41 thread is at 56 pages.

Seriously. Who has the time....?

I agree. I only really come here to find out if there will be scheduling next week and the beer ..

 

[jonkMACHE]

There is so much crap on the internet these days, and "journalists" and "editors" post this manure because they know it's clickbait. As much as I support freedom of the press, I'd love to see some of these liars spend a few nights in jail for spreading such nonsense.

I'm sure battery prices have gone up, but no way to the tune of $25,000. Often times the news uses a highly skewed worst-case scenario and reports it as the norm. So perhaps Ford had to ship 10x batteries on its own freight liner to finish up the last round of MachEs and maybe the shipping was astronomical for those 10 cars or something.

 

[jonkMACHE]

lol the article has been updated:

"Correction: This story has been updated to remove an incorrect figure for cost increases associated with building Ford’s Mustang Mach-E. Ford CFO John Lawler did not provide a number for that increase."

Pretty typical of the news these days. What a joke.

 

[newmme]

There is so much crap on the internet these days, and "journalists" and "editors" post this manure because they know it's clickbait

But we love the clickbait and spread it like crazy around here when it's about non-MME EV's. MME clickbait bad, Tesla clickbait good ?

 

[SnBGC]

Funny enough, none of the owners that drive one are saving money over an ICE vehicle either.

As nice as the Mach-E is, it's a $25,000 vehicle with another $25k worth of batteries in it.

You could find a comparably optioned ICE crossover for around $30k vs. Mach-E's $50k price tag. Add to that higher insurance premiums, and any illusion of saving money vs. driving an ICE car only make sense over a 10+ year lifespan.

My MME is saving me a crap ton of money. I am guessing you are being sarcastic because almost everything in you post is incorrect.

 

[mamejunkie]

The $25,000 made a lot of people click on the link. That's what it is all about. Internet articles rarely have anything to do with the facts or the truth. Its all about the clicks.

 

[VegasWeezy]

That would make much more sense. Maybe 25,000 Peso since it is make in Mexico? (about ~1,250 USD)

This sounds more accurate. When I read the headline, my initial reaction was “that is complete BS”.

 

[MachGT]

Audi lost money on every A2 it sold, mainly because it was a fairly low production technology demonstrator. I imagine that the low volume Mach-E is in a similar situation right now. It probably isn't just the cost of the battery driving the $25k loss per vehicle, but idle factory time, R&D, and of course, materials cost increases/labor scarcity.

 

[ShelJW]

Nobody is making money on EV's

They lose money on every EV sold, but make it up in volume.

 

[KlueBat]

Even though a correction has been posted I wonder how many people are gonna be quoting that 25K figure like it is gospel for the next few days.

 

[JCHLi]

Funny enough, none of the owners that drive one are saving money over an ICE vehicle either.

As nice as the Mach-E is, it's a $25,000 vehicle with another $25k worth of batteries in it.

You could find a comparably optioned ICE crossover for around $30k vs. Mach-E's $50k price tag. Add to that higher insurance premiums, and any illusion of saving money vs. driving an ICE car only make sense over a 10+ year lifespan.

Really? I traded in a $25K crossover (Honda HRV) for this. I loved the HRV, but in no way did the HRV compare to the MME except perhaps in size.

I suppose a top trim HRV might compare to a MME select... But that is neither a $25K nor $50K comparison.

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