Update: ‘Mach-E production beats the gas-powered Mustang in North America’ section and ‘Mustang electric SUV demand at 2X production rate’ sub-section updated.
The Ford Mustang Mach-E went on sale in the U.S. at the end of December 2020. In its first year of sales, it became one of the country’s most popular electric SUVs. While Tesla Model Y firmly holds on to pole position, the Blue Oval’s Mustang electric SUV is the second-best-selling e-SUV in the U.S. today. However, with cars like the Hyundai Ioniq 5, Toyota bZ4X, Subaru Solterra, and the Kia EV6 having joined the race this year, and the locally-made VW ID.4 and the Nissan Ariya arriving by December 2022, how long will the Mach-E stay on top?
Ford is witnessing an unprecedented demand for the Mach-E at home. The company was able to deliver just three units in December 2020, but with the production ramp-up, it delivered 2,000+ units a month consistently for eight months since October 2021. In 2021, the company sold 27,140 units of the Mustang electric SUV in the U.S. despite the odds. Ford hasn’t disclosed the margin on the electric SUV, but it has confirmed that the Mustang electric SUV is profitable already.
Mach-E is profitable, contribution margin-positive, and profitable on the bottom line today.John Lawler, CFO, Ford (Ford Q2 2021 Earnings Call)
Video Source: YouTube/Alex on Autos
Ford Mustang Mach-E demand
Ford’s U.S. retail website states the company has stopped taking 2022 Mustang Mach-E orders because of high demand.
Due to high demand, the current model year is no longer available for retail order. Limited inventory may be available at selected dealersMessage on Ford.com/suvs/mach-e/ as of July 6, 2022
In 2021, Ford said that the demand for its first high-volume EV models, including the upcoming F-150 Lightning and E-Transit, exceeded its most optimistic projections. The company is trying to expand production.
We are now working around the clock to break constraints and increasing our manufacturing capacity for these red-hot new battery electric vehicles. We’re working with LG Chem, SK Innovation to increase our annual battery capacity for the Mustang Mach-E by 70%, and we’re taking similar actions ahead of the launches of the E-Transit later this year and the F-150 Lightning early next year.James Farley Jr., President and CEO, Ford, in 2021
The Mach-E is a hit with customers worldwide, James Farley Jr., President and CEO, Ford, said during the company’s Q3 2021 earnings conference call on October 27, 2021. Over 90% of owners say they would recommend it to other customers, he added. The global annual demand could reach approximately 200,000 units a year, Farley Jr. said, with North America, Europe, and China as the core markets.
Mach-E production beats the gas-powered Mustang in North America
An interesting fact to note is that Ford is manufacturing almost as many Mustang Mach-Es as Mustangs in North America. In 2021, the company made 63,683 units of the Mustang and 65,590 units of the Mustang Mach-E, only from the Cuautitlan plant in Mexico, which Ford is now converting as the electric SUV’s global production center. In H1 2022, the electric Mustang SUV began pulling away, recording 33,953 units (built in Mexico) as opposed to the latter’s 29,402 units made in the United States (Detroit, Michigan).
It’s safe to assume that constant supply chain issues are holding back the true potential, and once bottlenecks resolve, the electric SUV will be well ahead of the gas-powered muscle car. Since October 18, 2021, the Changan-Ford joint venture company is also manufacturing the Mach-E, in Chongqing, China, for the domestic market.
Mustang electric SUV demand at 2X production rate
On December 7, 2021, Farley Jr. told CNBC‘s Jim Cramer that the demand for the Mustang Mach-E is “about twice” the production rate. The company desires to increase EV production capacity to 600,000 units in the next 24 months, Farley added. The issue with the Mustang Mach-E is in the supply chain, and we’re not referring to just semiconductor chips. There’s a shortage of batteries, too, but Farley Jr. said that Ford could source batteries from China to overcome that challenge.
|Month||Mach-E Sales in 2021||Mach-E Sales in 2022|
In June 2022, Ford delivered only 1,957 units of the Mustang Mach-E in the U.S. That was 20.6% lower than in June 2021 (2,465 units). However, the first half of 2022 was a growth period for the model. The company shipped 17,675 units between January and June 2022, 36.2% higher than in the first half of 2021 (12,975 units).
The Ford Mustang Mach-E accelerates from 0-60 mph in as quickly as 3.5 seconds and, when driven efficiently, delivers a range of up to 314 miles (EPA). Prices of the Tesla Model Y rival in the U.S. start at USD 43,895.
Mustang Mach-E recall
According to American media reports on June 14, 2022, Ford issued a recall for 48,924 units of the Mustang Mach-E in the U.S, with units made between May 2020 and May 2022 affected by the issue. The company has also communicated to dealers to pause demonstrations and deliveries of the affected units in the country. It has found a safety issue that can lead to “a loss of motive power” while driving and potentially become the cause of an accident.
Ford says that affected Mustang Mach-Es’ battery main contactors could overheat on DC fast-charging and repeated wide open pedal events. This may lead to arcing and deformation of the electrical contact surfaces, resulting in a cofactor that remains open or a contactor that welds closed. An overheated contactor opening while driving is what can result in a loss of power. Ford will issue an OTA software update for the Secondary On-Board Diagnostic Control Module (SOBDMC) and Battery Energy Control Module (BECM) to address the issue in July 2022.
Featured Image Source: Ford