With the reopening of order books for 2023 models, Ford Motor Company (NYSE: F) is increasing the beginning prices of several electric Mustang Mach-E SUV models by close to $8,000.
Ford is increasing the price of 2023 Mustang Mach-E crossovers
Ford said that the markups, which vary from $3,000 to $8,475 depending on the battery and model, are likely because of the considerable surge in material costs, rapidly changing market conditions, and growing supply chain constraints.
The Mach-E will be among the electric vehicle to undergo a price rise since the costs of raw materials for electric car batteries has almost doubled since the start of the coronavirus pandemic.
The beginning costs for the Mustang Mach-E for the model year 2023 have increased from $44,000-$62,000 for the 2022 Mustang Mach-E model to $47,000-$70,000. Taxes and delivery/shipping fees are not included in the price.
The beginning pricing of Ford’s electric F-150 Lightning truck was also increased earlier in the month, based on the model, by around $6,000 to $8,500. Similar explanations were given by the manufacturer for those price hikes, with emphasis on the cost of raw materials used in car batteries, like lithium, nickel, and cobalt.
In addition to Tesla, other automakers like General Motors, Tesla, Rivian, and Lucid have markedly increased the cost of their latest electric vehicles. With prices of materials for battery manufacture growing, car manufacturers have started passing the costs to customers. However, some are holding down the prices for now.
Ford enhanced the performance of Mach-E cars
Ford said it modified accessories and boosted performance for certain Mach-E vehicles alongside the new pricing. Additionally, it is raising shipping costs for all models of the Mach-E $200-$1,300.
Once order banks resume on Tuesday, Ford indicated that the new orders would be subject to the increased prices.
The manufacturer said that buyers who already have unplanned orders for the 2022 models will get a “private offer” to switch to 2023 model vehicles. However, it’s unclear what those clients would be charged at this time.