Although Ford’s electric pickup saw higher demand in October, Mustang Mach-E sales surprisingly fell over 53% month-over-month. The move comes as Ford pulls back Mach-E production.
Ford’s October 2023 EV sales
After setting a new sales record in September, selling 5,872 (+153% YOY) Ford Mustang Mach-E sales dropped to 2,732 in October.
Despite Mach-E sales falling over 20% through the first half of 2023, Ford retooling its Cuautitlan plant was expected to boost output. And it did – up until recently.
Lightning sales were expected to pick up following a six-week shutdown. That said, Ford sold 3,712 Lightning models in October, up 52.4% compared to last year.
Overall EV sales are up 12.6% through October, beating out ICE vehicles (+6.8%) growth but losing out to hybrids (18.8%). Ford’s ICE sales fell 8.8% in October, including its popular F-series (-5% YOY).
To boost EV demand, Ford introduced a new “Flash” trim for 2024. Ford says the new trim hits the “sweet spot” with 320 miles range, a tech-loaded interior, and a heat pump for under $70,000.
Pulling back Mustang Mach-E production
Ford has been ramping up production all year as “Improved Mustang Mach-E inventory flow began to hit at the end of Q2,” according to Andrew Frick, VP of sales distribution.
|Ford Mustang Mach-E production||0||360||7,481||11,858||13,639||13,000||11,611||7,203||11,716||7,895|
However, Ford’s CEO, John Lawler, explained on last week’s earnings call the company has “taken out some Mustang Mach-E production.”
Lawler added, “We are also slowing down several investments, including making a decision with SK On to delay the second BlueOval SK JV battery plant in Kentucky.” Ford is delaying around $12 billion in EV spending altogether.
The news comes as rival GM announced EV delays of its own. The company said it was pushing back production of its Equinox, Silverado RST, and GMC Sierra Denali EVs by “a few months.”
There’s been a lot of discussion on whether EV demand is pulling back or not. Electric vehicle sales hit another record with 7.9% of total auto sales, up from 7.2% in Q2 and 6.1% a year ago, according to Cox Automotive.
EV sales have now increased for 13 straight quarters, and a 14th is more than likely. Although prices are down significantly from last year, led by price cuts from EV leader Tesla, new models, and higher inventory will likely spur demand.
Chevrolet Blazer EV deliveries began this past quarter, Tesla’s Cybertruck is set to start rolling out any day, and Kia opened orders for its flagship EV9 last month.
New EVs and lower prices will continue pushing sales higher. Hyundai’s IONIQ 5 and Kia’s EV6 set new October sales records. Many automakers, including Volvo, expect the momentum to continue as new, more advanced models hit the market, offering more value to buyers.
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