Fords chief executive, Jim Farley, gave another reason on why Ford is decreasing prices on their electric vehicles. Jim stated on twitter " We want to make E.V.s more accessible, so we're increasing production and reducing prices across the Mach -E lineup" Ford's hopes is that with the increase in production, it will create an opportunity for dealerships and sellers to have a higher inventory of electric vehicles. When people see that there is a price decrease in electric vehicles, sales for the vehicles may increase as customers may be more interested more now than ever. Farley also added " With higher production, we're reducing costs, which allows us to share these savings with customers."
These statements and decisions made by ford is more of a response to Tesla's decision for price reduction. With these actions in place, this may help the market for electric vehicles as demands for them may increase because of the price reduction which would create a higher competitive market. Before, Tesla was the main company that everyone went to if they were looking for electric vehicles. With Ford creating their Mach-E models and increasing production of their sport utility vehicle, Ford will be able to set their feet in the door and become a fighting competitor with Tesla.
Main Source: https://www.nytimes.com/2023/01/30/business/ford-mustang-electric-prices.html
Maybe these drops in prices on EV's will allow for more people to buy them and that could have a great impact on the environment. Hopefully the prices on EV's will continue to drop with the increase in competition we are seeing in the EV sector.
ReplyDeleteThis is a great start to embracing energy sustainability and green energy practices. Do you think that governments should subsidize electric vehicles, similar to the CHIPS Act and the microchip industry? Or do you think that economic involvement this large will disrupt large sectors of the economy, resulting in structural unemployment?
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