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

[trutolife27]

There's no way Ford was EVER making money on the Lightning Pro, period.

The battery materials issue will sort itself out, but it will take a couple of years. We'll see a whole slew of new materials projects come onstream (and maybe even the advent of cheap sodium batteries). The point is we'll have a glut of batteries in a couple of years and that's when we'll finally see genuinely affordable EVs come out. In the meantime, hang on!

The lighting pro, is about the best deal on a vehicle in years for what you get for the price. There is very little if any profit on them.

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[trutolife27]

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).

The to compare with the escape and all the options the cost would be 44,115. Maybe you need to check the prices of comparable cars. Just taking the 7,500 tax credit and money saved one gas the first year makes it cost less for the mache. So again wrong.

• BASE MSRPS1
  $40,700
• OPTIONSS4 & ACCESSORIESS8
  + $2,920
• DESTINATION CHARGESS17
  + $1,495
• TOTAL MSRPS16
  = $45,115
• AVAILABLE INCENTIVESS3
  - $1,000
• ESTIMATED NET PRICES5
  = $44,115

 

[trutolife27]

What $30k crossover has similar options that also matches the performance of the Mach E?

none

 

[SWO]

Since this is now determined to be fake news, can the title either be corrected or the thread locked?

 

[gordonf238]

Tesla never made money on their cars, but they made a lot of money on the stock price. It makes sense for them to just drop the car manufacturing altogether and save a lot of money in the process.

how does a company make money on its own stock?

 

[Thunderbuck]

Yeah, I highly doubt this. That would mean Bolts, ID4s and anyone using an LG pouch pack and similar chemistry would also be hemorrhaging money. GM literally just dropped the Bolt EV and EUV lines by $6k to match the $30k launch of the equinox EV, so I'm guessing not.

I suspect GM might have decided to take a loss on the Bolt for a while for strategic reasons. The Bolt is now just about the most affordable new EV in the US, and I suspect GM is willing to take a loss for a few quarters, hoping to hook those buyers into their ecosystem.

 

[Chuck]

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.

Bahahaha. My Mach E is SIGNIFICANTLY nicer than the 2009 Edge that I had for 12 years and back in 2009 that Edge cost me $39,000 plus tax and license.

As to saving money: That Edge averaged 20 mpg. I drove it 18,000 miles per year. That's 900 gallons of gas per year. At $6.5 where I live that would be $5,850 per year, but that amount is rapidly increasing. I have solar and charge my car at home so that's a pure savings. Over 10 years I will have saved more than the car cost just in fuel savings alone. My savings is actually more than that. My wife has a Lincoln Navigator which gets significantly less than 20 mpg and we now use the Mach E on trips more than 10 miles from home.


Methinks you didn't think your post through before posting it.

 

[RickMachE]

Keep in mind that part of the Mach E cost is fixed (i.e. facility, tooling, debt, depreciation). If Ford discontinued production all together, the loss would be greater.

I think Ford should discontinue all regional discounts and suspend x/y/a pricing discounts. Why give a financial incentive when it’s not necessary to build demand?

Costs could be up 15-20%. That would be $10k, maybe $15k..

While X-Plan discounts are mostly not "earned", discounts for A, Z, and D plan are earned by people working, some for many years, for Ford. That's why they get them.

 

[RickMachE]

The lighting pro, is about the best deal on a vehicle in years for what you get for the price. There is very little if any profit on them.

There's also very few being manufactured.

 

[mburtsvt]

how does a company make money on its own stock?

Buy low - sell high. Really- using the company stock for deferred compensation is the best way. You don't have to pay the employees with real money - just all ready paid for stock.

 

[Mirak]

Just to jump in, there is no vehicle under $40k (maybe more) with a hands free driver assist system or a 15”+ infotainment screen. Throw in the acceleration & performance and you’re easily in the $50k ICE range for a lot of models. Things like that are always subjective to a buyer and if they want to pay for them, but there is certainly no comparable $25k or $30k ICE vehicle. If I had to guess the exact same vehicle if Ford put in performance Ecoboost engines would run about 5k less than the comparable Mach-E trims & options.

That’s an interesting way of considering the issue: let’s imagine that Ford made the Mach E exactly the same but as an ICE instead of EV….

My wild speculation is maybe a net savings of roughly 10k swapping ICE for motors/battery?

I would gladly pay that premium for all the benefits of EV: fun acceleration, quieter ride, OPD, frunk, less maintenance, saving roughly $2,000 per year on fuel.

Other than the fact that road trips are still a pain in the ass due to lack of infrastructure, charging speeds, and 220mi range (highway, cold temps, wind, etc.) - paying the premium for EV is a no-brainer.

 

[Avelli]

how does a company make money on its own stock?

Tank stock. Demand bailout. Buyback stock. Performance bonuses go to executives.

 

[kindofblue]

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.

So maybe the OP should edit the title.

 

[RedStallion]

how does a company make money on its own stock?

Do you know how much Elon "earned" from his stock options? Companies benefit from stock price a lot. They constantly emit more shares, giving options to the top execs, sell convertible bonds and warrants. Shares can be collateral for other debt. And even negotiating contract sales from the position of power gives an edge on pricing.

 

[kikibop]

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.

I'd love to see what car you have in mind here. Considering efficiency, passenger and cargo room, acceleration, cabin tech, and ADAS, what ICE car even comes close for less than $80k, much less $30k? You seem ill-informed.

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