Ford Mustang Mach-E is America’s second-best-selling electric SUV [Update]

Update: ‘Mustang Mach-E recall’ section added.

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 has become 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 locally-made VW ID.4, the Hyundai Ioniq 5, the Toyota bZ4X, Subaru Solterra, the Kia EV6, and the Nissan Ariya joining the race this year, 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’s delivering 2,000+ units a month consistently since October 2021. Last year, 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 dealers

Message on Ford.com/suvs/mach-e/ as of April 27, 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 Q1 2022, the electric Mustang SUV began pulling away from the Mustang, recording 18,152 units (built in Mexico) as opposed to the latter’s 13,271 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.

MonthMach-E Sales in 2021Mach-E Sales in 2022
January2382,370
February3,7392,001
March2,6372,363
April1,9513,805
May1,9455,179
June2,465
July2,854
August1,448
September1,578
October2,848
November3,088
December2,349
Total27,14015,718
Ford Mustang Mach-E sales in the U.S. (Source: Ford)

In the first quarter of 2022, Ford sold 6,374 units of the Mustang Mach-E in the United States. Customers are scooping up every Mustang Mach-E when it hits the dealer lot. The all-electric SUV turned on dealer lots in just two weeks in January 2022, and 27.3% of its delivered units that month were in the high-performance GT variant.

In its March 2022 sales report, Ford said there’s a strong demand for Mustang Mach-E with AWD. 27% of sales came from the GT variant, which offers AWD as standard. In total, approx. 72% of Mustang Mach-Es sold in March 2022 were AWD units. In its April 2022 sales report, Ford said the Mustang Mach-E recorded its highest monthly sales since launch, with year-over-year sales up 95% – 3,805 units (April 2021: 1,951 units). In May 2022, Mustang Mach-E’s sales continued rising, clocking 5,179 units with a phenomenal year-over-year growth of 166.3% (May 2021: 1,945 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 contractor 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