AFTER TESLA PRICE CUT, FORD FOLLOWS SUIT WITH MUSTANG MACH-E

Ford is cutting prices on its Mustang Mach-E electric SUV by as much as $6,000 just weeks after market leader Tesla took similar steps.

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The Detroit automaker is increasing production of the Mach-E this year and said it is taking advantage of streamlined costs to reduce prices across the board, it said.

The cut comes just over two weeks after Tesla Inc. dropped prices 6% to nearly 20% in the United States on most of its models in an effort to bolster demand and raise market share.

Ford’s maneuver will almost certainly force other automakers to trim prices as well, touching off a bit of a price war for electric vehicles, said Jeff Schuster, president of global forecasting for LMC Automotive, a Detroit-area consulting firm.

“To remain price competitive to consumers, it’s going to require a response from anyone who wants to play in this area,” he said.

However, Schuster says he doesn’t see an all-out price war that brings prices down even more. Automakers will try to protect profit margins on EVs as their share of the U.S. market keeps growing, he said.

Although Ford didn’t mention Tesla in its statement, the Dearborn, Michigan, company said the price cuts are part of Ford’s plan to keep the SUV competitive in a fast-changing market.