The LA Auto Show reveal of the 2021 Ford Mustang Mach-E last month created a lot of buzz from electric-vehicle fans and Mustang fans alike—so much, it seems, that Ford is making some preemptive moves to make sure its dealerships aren’t sharks in the cool blue waters.
In a bulletin sent to its dealers in early December—and reported by CarsDirect—Ford issued dealers specific instructions on how they are to advertise the price of the upcoming Mach-E, which won’t reach showrooms until late 2020. To put it in terms anyone can understand, to qualify for some special sweeteners for Mach-E sales, dealers won’t be able to advertise a price that’s lower than the MSRP.
2021 Ford Mustang Mach-E
CarsDirect quotes Ford as noting the move is intended to "be competitive in the battery electric vehicle space by transacting in the way customers want to transact." Although Ford is putting some strict controls over how dealerships advertise the price of the Mach-E, they still have little control over the actual selling price—which could actually be lower than advertised on the Ford, while on the Mach-E’s rival-to-be, the Tesla Model Y, it’s always fixed.
Base Select versions of the Mach-E will start at $43,895. That’s before the $7,500 federal EV tax credit that most buyers will be eligible for, along with the possibility of additional state incentives. The Tesla Model Y is currently listed at a $49,200 starting price—with no eligibility for the tax credit—although Tesla has said it will add a lower-priced version.
A stern talking-to might not fix what in the U.S. has been volatile pricing at the dealership on electric vehicles. Dealerships for Hyundai and Kia, for instance, have resorted to what they often openly advertise as “additional dealer markup” on top of MSRP. Last month when looking for inventory for what may have been the best electric-car lease deal of the year, on the 2019 Hyundai Ioniq Electric, Green Car Reports didn’t have to look long to find a $3,000 markup on the sought-after Kona Electric, for instance.
2021 Ford Mustang Mach-E
GCR asked Ford if it had issued the rules as a move to match Tesla, or to shore up pricing to be more straightforward with incentives, and the automaker replied with the following statement about the practice: “We are sharing recommended pricing with dealers and customers to simplify the purchase experience. Ultimately, customers and dealers will agree to the final price of the vehicle relative to our recommended price.”
Ford reiterated that the Mach-E can be reserved via the carmaker’s online reservation system or by visiting one of more than 2,100 EV-certified Ford dealers.
