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

[RickMachE]

@Administrator should edit the title, they edit other things...

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[andrew]

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

Ah, I made a mistake. I did a quick Google search and didn’t study the knowledge panel correctly. I thought the Titanium MSRP was $30k, but it’s actually $37k. I think if you were upgrade the escape interior to match a MachE, it would be around $40k. I actually think that’s pretty generous if you are comparing it to the Select w/o the tech package.

Your numbers also have a mistake. You built them off the Plug In Hybrid. We were explicitly trying to compare it to an ICE, so you should not be using anything with an electric motor or battery as a reference point. It is weird though that the Hybrid is the cheapest of the Titanium trims. I don’t understand why anyone would buy the gas Titanium Escape.

Destination charges & incentives probably shouldn’t be used in the calculation, but I assume you just included them because you were doing a copy/paste from the build page.

The Mach E is an incredible deal. I think you are realistically comparing a $48k EV to a $40k ICE. That battery is worth way more than $8k, and the EV has (so far) qualified for a $7.5k tax credit. There is absolutely no way this price stays where it’s at next year. I think this car is going to significantly increase in cost.

 

[GABAR]

There’s no way that the cost has gone up that much.

If this was the case, every vehicle manufacturer would be making the same statement including Tesla.

 

[ToadStool]

Yeah, I'm with many of you. There is zero chance this number is correct. Production would have been completely stopped.

Hmmmmm. Are they delivering MME's at this very moment?

 

[bostondan77]

Same article link now states “
Update, June 16, 12:40pm EST: This article was initially published on June 15 with the headline “Ford’s Cost to Build the Mach-E Increased $25,000 Per Car Due to Battery Prices Skyrocketing.” Our report was based on an article from CNBC which included that $25,000 figure. Today, CNBC has issued a correction on that piece, stating that the article “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.” We have updated this article and headline to reflect this change.”

 

[DR.J56]

5 minutes of my life GONE!

 

[Monke]

I saw it somewhere this morning that $25k is not a price increase but it is how much more to build MME compared to a comparable ICE. Let's pretend that a Titanium Escape is a comparable subject with some extra options. I am aware that there is no way to match MME with the Titanium. Let's give a price Tag of $40k for the Titanium plus $25k extra based on the news for MME. The final cost to build (with profit) would be $65k and selects with BC are selling around $49k. That would yield $16k lower than $65k. It depends on how much profit have been made for a Titanium. That number will be subtracted from $16k to show the lost. These are just some rough numbers.

 

[jonkMACHE]

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.

Please let me know which $25k ICE crossover can do 0-60 in 4.5 seconds.

 

[ChuckA]

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.

I see your point. Maybe suspend just the x-plan program.

 

[Green Machine]

you might want to go shop for a new all wheel drive car for 25000 today. your price is a bit optimistic.

 

[SigSauer]

My first thoughts, check the news source of the article. CNBC, really?

 

[Maquis]

you might want to go shop for a new all wheel drive car for 25000 today. your price is a bit optimistic.

I think you quoted the wrong post. I was also commenting on the guy who thought he could get a comparable ICE for 30K. Ain’t happening!

 

[RickMachE]

I expect the 2023 models to be at least $5,000 more, probably closer to $7,000 more.

 

[nvabill]

I think you quoted the wrong post. I was also commenting on the guy who thought he could get a comparable ICE for 30K. Ain’t happening!

They are still a hell of a lot cheaper than the Mach E, I just priced a well equipped Escape Titanium at $41,000. How in the world are younger people starting out going to be able to afford an electric car at these ridiculously high prices? I can afford anything I want and pay cash but that's not the norm.

 

[nvabill]

Please let me know which $25k ICE crossover can do 0-60 in 4.5 seconds.

I don't know about you but to me the Bronco Sport is pretty impressive. 0-60 times are 5.9 seconds for $28,760.

Another is the Rav 4 Hybrid, while not totally ICE it does 0-60 in 5.4 seconds at $29,500.

Let's face it, the Mach E and most other electric cars are too damn expensive. I'm buying one but I still shake my head and think, how can the average person afford this, these prices are nuts!

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