Ford Motor Co. Adjusts Prices After Tax Credit Loss

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In recent news, Ford Motor Co. announced significant price cuts for its all-electric 2023 Mustang Mach-E SUV following the vehicle's loss of eligibility for the federal government's tax credit. The automaker has reduced the starting price by $3,100 to $39,895 for the Select rear-wheel drive model, while the top-of-the-line GT performance edition sees a reduction of $7,600 to $57,395. Despite these adjustments, destination and delivery fees remain unchanged.
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Responding to Market Changes and Shifting Consumer Preferences

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These price reductions come after the Mach-E, along with several other electric vehicles, lost eligibility for the federal tax credit on January 1st due to increased requirements under the Inflation Reduction Act regarding the origin of vehicle components and materials. As stated by spokesperson Marty Günsberg, Ford Motor Co. is adapting pricing for MY23 models to achieve the optimal mix of sales growth and customer value in response to evolving market conditions.

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Ford continues to offer a $7,500 tax credit through a "red carpet" cash incentive for leasing a 2023 Mach-E through Ford Credit. Additionally, Ford Credit is providing 0% financing for 72 months for qualified buyers. These measures aim to maintain competitiveness and support customer accessibility to electric vehicles amidst changing tax credit eligibility.

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The price adjustments coincide with Ford CEO Jim Farley's emphasis on the automaker's strategic approach to EV sales, particularly targeting the transition from early adopters to early majority buyers. Recognizing consumer reluctance to pay a premium for EVs amidst ongoing developments in charging infrastructure and alternative powertrains, Ford is actively working on a low-cost EV platform to accommodate a broader range of consumers, potentially offering vehicles priced as low as $25,000.

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Updated Pricing for 2023 Mustang Mach-E Models

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Here's a breakdown of the revised pricing for the 2023 Mustang Mach-E models:

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• Select RWD: $39,895 (down $3,100)

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• Select AWD: $42,895 (down $3,100)

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• Premium RWD (Standard Range): $42,895 (down $4,100)

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• Premium AWD (Standard Range): $45,895 (down $4,100)

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• Premium RWD (Extended Range): $45,895 (down $8,100)

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• Premium AWD (Extended Range) and California Route 1 AWD: $48,895 (down $8,100)

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• GT: $52,395 (down $7,600)

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• GT (Performance Edition): $57,395 (down $7,600)

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At Milnes Ford, we are committed to providing exceptional value and service to our customers. For inquiries or to explore our inventory, please contact us at (810) 667-5000 or visit us at 333 E. Genesee, Lapeer, MI 48446.

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