The established automaker just made a choice that its clients won’t appreciate.
Obtain Ford Motor Company Report did not want to annoy its current or potential electric vehicle customers.
The manufacturer has chosen a staged plan to disclose price increases for its electric vehicles as consumers struggle with skyrocketing prices for practically everything, from groceries to basic necessities to gallons of gas at the pump.
A price rise for the F-150 Lightning, the electric variant of the well-known F-150 truck, was announced on August 9 by a group from Dearborn, Michigan. Depending on the model, these price hikes ranged between $6,000 and $8,500. As a result, the base price of the F-150 Lightning model year 2023 increased by $47,000 to $97,000, as opposed to roughly $40,000 to $92,000 for vehicles model year 2022. Taxes, delivery fees, and other costs are obviously not included in these prices.
Ford stated that consumers who had already placed orders for the vehicle were unaffected by the higher rates. The automaker cited a steep increase in the cost of building the battery as justification for its decision to raise costs.
Pricing for the Mustang Mach-E rises!
Since the coronavirus epidemic, the price of developing batteries has more than doubled, according to research firm AlixPartners. Costs have increased as a result of supply chain interruptions brought on by the epidemic and rising raw material costs as a result of Russia’s invasion of Ukraine.
According to a report released in June by AlixPartners, the average cost of the raw ingredients (cobalt, nickel, and lithium) required for the production of an electric car climbed by about 144% in just two years to $8,255 as of last May. The total cost of these expenses was $3,381 as of March 2020. The research firm also said that over the previous two years, the cost of developing the electric vehicle rose by nearly $2,000.
The majority of automakers have decided to pass these unanticipated price increases on to customers. Prior to Ford, Tesla (TSLA) – Get Tesla Inc. Report, GM (GM) – Get General Motors Company Report, and Rivian (RIVN) – Get Rivian Automotive Inc.
Ford has updated the F-150 Lightning in an effort to please its customers. After being overrun by high demand, the group is now accepting orders once more.
A single battery charge will allow the 2018 basic F-150 Lightning to drive 240 miles, an increase of 10 miles over the earlier models. The battery range for the F-150 Lightning with a big battery has been increased to 320 miles. Ford now also comes in new amazing shades.
The Jim Farley-led business recently adopted the same approach for the Ford Mustang Mach-E full-electric crossover. For the Mach-E model year 2023, Ford has just announced price increases ranging from $3,200 to $8,675 depending on the variation selected by the buyer.
The basic price of the base Mustang Mach E ranges from $44,995 for a vehicle from the 2022 model year to $48,195 for a vehicle from the 2023 model year. In comparison to the 2022 model year vehicle, the base price of the Premium RWD variation in the standard range is now $58,975 rather than $52,900. Ford Mustang Mach-E Premium eAWD Extended Range’s starting price has increased to $67,575 from the vehicle’s basic price of $58,900 for the 2022 model year.
Significant price hikes
According to Ford, these price increases are a result of “substantial material cost increases, ongoing pressure on key supply chains, and quickly altering market conditions.”
According to Ford, which will also reopen orders for this vehicle, the new prices will apply to all orders made starting on August 30.
Marin Gjaja, chief customer officer of the model E division, stated, “We’re releasing these modifications ahead of re-opening order banks on Tuesday so customers can understand the feature and pricing revisions around ordering a Mustang Mach-E.”
Ford has attempted to quell any customer ire by stating that customers will have 90 days to test the BlueCruise hands-free driver assistance system before deciding whether or not to subscribe to it. This is similar to how Ford did with the F-150 Lightning.
Customers can now purchase new colours from Blue Oval, and some models’ batteries now have greater autonomy.