Ford cuts prices of electric Mustang by up to Ksh.1.2M

The No. 2 U.S. automaker's lowest-price 2023 model year Mach E version now has a suggested retail price of $39,895 (Ksh.5.8 million), down from $42,995 (Ksh.6.3 million). The higher-end Mach-E GT spec will cost about $7,600 (Ksh.1.1 million) less, at $52,395 (Ksh.7.6 million).

Other versions including the extended-range premium version will drop in price by $8,100 (Ksh.1.2 million) to $48,895 (Ksh.7.1 million).

Ford said the price cuts come as the automaker continues "to adapt to the market to achieve the optimal mix of sales growth and customer value."

The Dearborn, Michigan-based automaker said U.S. sales of the Mach-E fell by 51% in January to 1,295.

The Mach-E lost eligibility for a $3,750 (Ksh.548,000) tax credit on Jan. 1 after new U.S. Treasury Department battery sourcing requirements aimed at weaning the electric vehicle supply chain away from China took effect. Numerous other models also lost tax credits.

Last week, Treasury told Reuters it has reimbursed auto dealers for about $135 million in advance point-of-sale consumer EV tax credit payments since the start of the year through Feb. 6. The Internal Revenue Service has received more than 25,000 times of sale reports, including more than 19,500 with advance payment requests.

Tesla's Model Y crossover, which competes with the Mach-E, starts at $42,990 (Ksh.6.2 million) before federal tax credits of $7,500 (Ksh.1 million).

The Elon Musk-led EV maker sparked a price war early last year in a bid to spur demand and grab more market share.

Ford and other legacy automakers have slowed their EV push to instead focus on higher-margin hybrid and gas-powered models.

Ford said in January it would reduce production of its F-150 Lightning pickup truck, cutting production at its Michigan Rouge Electric Vehicle Center to one shift starting April 1.