By on December 20, 2019

ford

In the lengthy run-up to the Mustang Mach-E‘s arrival date, Ford made the fairly unusual decision to order dealers not to advertise the EV crossover at a price that falls below MSRP. Ford wants its first ground-up electric vehicle to sell for full price, and to ensure it does, it made the even more unusual choice of eliminating invoice pricing, making both invoice and MSRP the same.

At the customer-dealer level, things may be different, but not all buyers have to worry about paying full MSRP for the Mach-E. The first discounts are on the books, but you’ll need to be a member of the Blue Oval clan to ensure any savings.

According to CarsDirect, a dealer bulletin shows that a select group will be eligible for modest savings — those who qualify for Ford Plan Pricing. Through A-Plan, company employees will be able to secure 4 percent off MSRP, plus a $275 admin fee and o.25 percent advertising fee.

On a base, $44,995 Mach-E, that amounts to $1,800 before fees, or an after-destination price of $43,588. There’s still a $7,500 federal tax credit to consider at that point. Retirees eligible for Z-Plan pricing get the same deal.

For dealer employees (D-Plan), the deal amounts to A-Plan plus $100. If your relationship with the automaker is more distant than this, X-Plan pricing offers 2 percent off MSRP, plus a $275 admin fee.

As Ford takes reservations on its rear- or all-wheel-drive pony-badged crossover, would-be owners are preparing for a long winter and coming year. The cheapest Mach-E variant won’t appear until early 2021, with several higher-margin examples also landing at that time. The mid-range Premium and limited-edition First Edition bow in late 2020.

[Image: Ford]

Get the latest TTAC e-Newsletter!

Recommended

45 Comments on “All in the Family: Turns Out There *Are* Mustang Mach-E Deals to Be Had...”


  • avatar
    ToddAtlasF1

    They must be staring down the barrels of some terrifying market conditions for their CUEV to be pulling this level of BS. Aren’t there franchise agreements to protect dealers from embarking on this lemming migration with Ford?

    • 0 avatar
      here4aSammich

      Not sure why it’s such a big deal that Ford is offering employee/partner discounts on the Mach E. I get X-plan through my employer, the only thing I CANNOT purchase with that discount is a Raptor. The Mach E is meant to be a mass market vehicle, why would it not be eligible?

  • avatar
    Felix Hoenikker

    I think Ford is under the illusion that they can out Tesla Tesla.

    • 0 avatar
      EBFlex

      I mean it’s not that hard to put out a low quality and extremely faulty product.

      Look at the Explorer. Granted you have a lot more opportunity to fail when you have a proper ICE powertrain, but Tesla has proven that just because something is electric does not mean it’s any good.

      • 0 avatar
        SCE to AUX

        The word is out on Tesla. In Q3-2019, the Model 3 outsold *every* Ford nameplate except the Escape and F-Series. Yeah, they’re terrible, and this must be what Ford is aspiring to with the MME.

        • 0 avatar
          eng_alvarado90

          Actually the Transit sold as many or more units as the Tesla model 3.
          Also, Model 3 sales mean cannibalization across Tesla’s lineup; US revenue dropped 39% compared to the same quarter last year. Is it really a win for the almighty Tesla?

          • 0 avatar
            SCE to AUX

            The Transit was close. But let’s be honest, just a few years ago any comparisons to the Big 3 would be a joke. The same is true of GM; the Model 3 is outselling nearly all GM nameplates.

            As for Tesla revenue, check your numbers; I see an 8% YoY decline, not 39%. Tesla attributes this to more leases, even though their volume continues to rise.

            https://ir.tesla.com/static-files/47313d21-3cac-4f69-9497-d161bce15da4

            As for the Model 3, it is *supposed* to be the breadwinner at Tesla, along with the future Model Y. The S and X are not. If the 3 fails, Tesla fails.

          • 0 avatar
            Art Vandelay

            Why is that relevant SCE? Yes, Tesla’s volume vehicle outsold a bunch of Ford models in lower volume segments which Tesla sold zero vehicles in. But lets not get crazy…The Escape outsold it by roughly the same amount by which the 3 outsold the dead car walking Fusion.

            I don’t have a beef with Tesla, but I’m not going to move the goalposts for them either. If we are going to call it the breadwinner and make comparisons on that then keep in mind, all of the big 3’s breadwinners are pickups and their sales numbers and profitability are on a different planet.

          • 0 avatar
            Art Vandelay

            And if you are talking about the Cybertruck, sure…compare it to the Ford…they are the current king of the truck hill. But small and midsized Cars? Who cares, Ford is barely competetive. Numbers for the segment leaders:

            Civic: 86,312
            Rav-4: 124,012

            For crying out loud, Nissan moved more Altimas than Tesla did 3’s. If they are making money and meeting projections, great…but saying look…we outsold the Big 3 products in this segment is akin to saying “Look, our country is great because we beat the US Soccer Team”. Ueah, nobody really cares. The big 3 make their money on trucks and SUV’s. If you want to build those then that is who you go after. If you are in the car game then measure success against those people.

            I do wonder, what was the per car profit on a Fusion vs. a 3?

          • 0 avatar
            ajla

            “For crying out loud, Nissan moved more Altimas than Tesla did 3’s.”

            Now you are the one picking poor comparisons. The Model 3’s pricing (starts at $34K goes up to $66K) puts it much more in line with something like the Q50 instead of the Altima. I’d consider the Model 3’s main competition to be that sort of entry-level premium sedan and the Tesla sells quite well in comparison.

            The Model 3 is also by a large margin the most successful selling EV of all time and the has been making the newest BEV from established manufactures look underdeveloped and over-priced. The Mach-E will be more direct competition so we’ll see how it turns out.

            If they aren’t found out to be running a financial Ponzi scheme I give Tesla a lot of credit for the products they’ve built.

          • 0 avatar
            Art Vandelay

            “The Model 3 is also by a large margin the most successful selling EV of all time”

            I don’t think it is yet and if it has passed the Leaf, it isn’t by much…yet anyway. Yes, the Leaf had a head start and yes, the Tesla will catch and pass it, but you did use the words “By a large margin” and “of all time” and that simply isn’t true.

          • 0 avatar
            JimZ

            “Why is that relevant SCE?”

            possibly because it lets him brag about something he had nothing to do with?

        • 0 avatar
          Art Vandelay

          And it just annoys me when you say “Look, Tesla’s volume model outsells every except for the models that is known for selling a metric ton of.

        • 0 avatar
          EBFlex

          Because raw sales mean everything. Just ask GM…..

          • 0 avatar
            Art Vandelay

            So is the 3 as a line more profitable than the F series or even the Escape? If that is what you are driving at I’d love to see a source.

  • avatar
    28-Cars-Later

    I was talking to a co-worker yesterday and I think I figured it out and Ford deserves more credit than I gave them. My co-worker’s words, [on Mach E] “they want to sell a Porsche” which is why its a “Mustang” because “Ford” doesn’t have the panache of Porsche but they think “Mustang” is closer to this. ***Ford’s plan is to sell this in order to get through the teething of an EV in advance of F-150 which is for all the marbles***.

    Unlike Tesla, Ford has an entire distribution chain of dealers who have no experience with this type of product and mistakes/bugs will happen, so why not iron them out with a new product which doesn’t matter? They are in a position of if it sells “great”, if not, “m’eh”. Even if Mach E is a complete disaster, 1. Ford doesn’t care because its so niche those new buyers don’t matter and 2. the niche Mach E going down is preferable to the damage it could do to F-150’s reputation/brand. GM has erased ELR from history, Ford could do the same here if necessary. Its actually cunning and I am giving Dearborn the credit.

    • 0 avatar
      ToddAtlasF1

      What kind of dealer buy-in are they going to get with a product that has no margin and limited opportunities for profitable after-sale support business? Suppose you’re a salesman looking at a mini-deal commission on a $45K car that has to sell for list. Are you going to go to any great lengths to represent it, or are you going to tell customers to get an Escape Hybrid if they want an Escape Hybrid or a real Mustang if they want a Mustang?

      • 0 avatar
        dal20402

        Nobody interested in a Mach-E is going to have the slightest interest in an Escape Hybrid, which they will see as a car for Uber drivers.

      • 0 avatar
        krhodes1

        “Invoice price” is largely BS anyway. I am SURE Ford will pay the dealers just fine to sell these on the back end.

      • 0 avatar
        Art Vandelay

        Man I go to the dealer and tell them what I want. I don’t care about their “buy in”…it is 2019, if they won’t sell it to me for a fair price I will whip the internet out of my pocket and find someone that will. This isn’t Clark Griswold down at Lou Glutz Motors getting the bait and switch on the arctic blue Sportwagon.

        I have not once had a dealership experience where they tried to sell me an entirely different class of vehicle. I had one place try to play games on the Fiesta ST and it took all of 10 minutes to find a deal elsewhere. Again, it is 2019…not 1978.

      • 0 avatar
        Scoutdude

        Nothing says the car has to sell for list. The rule is that they can’t advertise it for less than list. They are free to sell it for less than list of if they think they can get it through an ADM sticker on it, which I expect will happen frequently, in certain areas, in the beginning.

    • 0 avatar
      FreedMike

      It is kind of a stellar idea if you look at it that way.

    • 0 avatar
      Jagboi

      It makes perfect sense to try something on a low volume model first, work out the bugs and learn a lot in the process before rolling it out on a large volume model.

      Jaguar did this for years, a new engine appeared first in the sports cars, and then later in the mainstream sedans. They did it in 1948 with the XK in the XK120, 1971 with the V12 in the E Type, 1983 with AJ6 in the XJS, and in 1996 with the V8 in the XK8.

      • 0 avatar
        Bill Wade

        “It makes perfect sense to try something on a low volume model first, work out the bugs and learn a lot in the process before rolling it out on a large volume model.”

        “Work out the bugs?” After my Focus with the wretched dual clutch trans and Ford basically telling me to stick it, hell will freeze over before I buy another Ford, they can experiment on somebody else.

        Of course I was also burned with the PS 6.0 but that’s fodder for a different story. :(

    • 0 avatar
      dal20402

      “Ford’s plan is to sell this in order to get through the teething of an EV in advance of F-150 which is for all the marbles”

      This may not be wrong. The electric F-150 is absolutely critical not just for Ford but for the entire U.S. truck market. It’s going to be mostly a fleet product at first but a whole lot of individual truck owners will be watching very carefully. If they get it right, so many things get easier.

    • 0 avatar
      Scoutdude

      Actually Ford does have dealers who were EV certified to sell the Focus Electric and the store has to be EV certified to sell the Mach-E. Getting certified means training for both sales and service personnel, which is not what Tesla did, they are still setting up their technician training programs, and the oldest are only 1 1/2 to 2 years old.

      That said I do agree that the big make or break is the EV-150, and this is an opportunity to get some of the dealers up to speed sooner rather than later.

  • avatar
    indi500fan

    The front end on that rig has a “flap” that reminds me of the Riddell Speedflex football helmet.

  • avatar
    SCE to AUX

    “They are in a position of if it sells “great”, if not, “m’eh”.”

    If this is true, then what does Ford do afterward – renege on the F-150EV? That would put them in a very bad position, and so then Ford isn’t really planning to succeed; they’re planning to fail.

    As for margins, the only way to possibly make money on EVs is to build a lot of them, which means you have to be all in. If Ford isn’t all in, then they will struggle. Coping with uncooperative dealers will be a big part of that.

  • avatar

    exercising fixed pricing is anti capitalistic.

    undue control over dealers is a recipe for disaster.

    alienating salespeople is plain stupidity.

    • 0 avatar
      HotPotato

      What size violin would you like?

      In an industry where the customer experiences nothing but lying (salesman), cheating (sales manager), and stealing (finance manager), you may find customer sympathy for dealers lacking.

  • avatar
    ToolGuy

    The only way the MSRP = Invoice thing makes sense to me is if they are in essence bumping up the “holdback” type stuff on the back end.

    They are clearly trying to change the sales model in some way here, but I wouldn’t think their plan is to eliminate the dealer gross entirely.

    (Cue Jim Hackett with some out-of-the-box thinking to tell me why I’m wrong. Shrugs.)

    • 0 avatar
      Scoutdude

      I agree they just moved the profit all to the Holdback side instead.

    • 0 avatar
      ToolGuy

      Let it be noted that Ford is tying the change in dealer pricing structure to the Mach-E. Which tells us that *they* think that EV’s are new/special/different.

      In my mind, this is a mistake – as dumb as OEM’s tying ‘science fair’ styling to EV’s in the early days (most seem to have figured out their mistake at this point).

      Scenario A: Ford is your trusted vehicle supplier – we offer a full range of vehicles with either an ICE or EV powertrain, depending on your needs.

      Scenario B: Ford is your trusted vehicle supplier for the proven technology of ICE vehicles. We also offer a range of special/experimental/unproven EV’s, which we treat as special, because they are new and special and different.

      Scenario A is much more appealing to loyal Ford customers and to prospective new customers (in my opinion). If you pursue Scenario B and I’m getting something new/special/unique, why not just buy it from a new/special/unique manufacturer? (You’ve tipped your hand that this is all-new for you.)

      Ford just went down road B) with the Mach-E.

      • 0 avatar
        HotPotato

        Honestly I can see the Mach E selling mostly to people who WANT a Tesla Model Y but can’t quite swing it. The expiration of tax credits for Teslas means that the Ford is effectively $7500 cheaper, assuming the two start from an identical price. For those buyers, scenario B might work well: the Mach E looks and operates like no other Ford, and for Tesla intenders that is a plus.

        Hyundai/Kia seem to be going with scenario A, albeit while selling EVs only in states that reward doing so. Time will tell but I don’t know about that — a Kia Niro EV is a great value and great to drive, but looks completely identical to the most lamely styled model in Kia’s lineup, and you have to get it at (oof) a Kia dealer.

  • avatar
    Art Vandelay

    How is this news. A plan, Z plan, D plan…this has been a thing at Ford on every model since forever. Back in the 90’s I remember some dealer getting in hot water in Atlanta for A-Plan shenanigans using workers from the Hapeville Taurus plant.

    This isn’t really news. A plan pricing typically, IIRC involves Ford Corporate paying the dealer or something.

  • avatar
    Superdessucke

    So my tax dollars get to go and subsidize this stupid thing? Great. I hope Trump in his second term gets rid of the EV credit. It’s not that I’m against electric vehicles but the credit’s been going on long enough that manufacturers should have learned how to create competitively priced electric vehicles which people want to buy without huge incentives. Let this thing sink or swim on it’s own merit, not with $7.5k of our money per vehicle.

    • 0 avatar
      Superdessucke

      IMO, if we want to do a vehicle tax credit, let’s do it for smaller vehicles so we can reduce the size of our vehicle fleet. That would reduce wear on roads, provide more parking spaces in urban areas, and encourage lower-income people to buy new more efficient vehicles. Somebody who can drop 40 grand or more on something like this doesn’t need our tax incentives!

      • 0 avatar
        ToddAtlasF1

        They don’t incentivize affordable cars. Progressives want the slaves back on the plantation. That’s why Obama’s CAFE punishes small cars. That’s why vehicle tax incentives are designed for people with household incomes of $165K or more. The goal is to focus industry on catering to a smaller pool of higher paying customers and the annihilation of the middle class. They can still call themselves middle class though, as long as they’re willing to live in tiny apartments in filthy cities with no cars or animal protein in their diets.

        • 0 avatar
          Superdessucke

          If I could give you a thumbs-up sir I would. Exactly. What is the average HH income of an electric car buyer? 165k sounds about right. I might even guess more.

          I mean look, I’m no SJW. I just get really angry when my tax dollars go for frivolous things. If people want to drive this abomination, fine, but let them pay for it. I’m sure the average Mach-E buyer can more than handle paying $7,500 more. If the government wants to give incentives, then put then where they might do actual good.

        • 0 avatar
          SCE to AUX

          @ToddAtlas1:

          What you’re describing is true in theory but not in practice, at least for non-Tesla cars.

          When I got my Leaf in 2012 and Ioniq EV on 2018, both dealers simply deducted the Federal subsidy from the price. I had no tax credit for the car, so therefore my income was irrelevant, except for being able to make a payment equivalent to one for an Elantra.

          However I’m sure it’s different with Tesla because they don’t play the dealer game.

        • 0 avatar
          Art Vandelay

          I am considering an electric Mini Cooper at lease end on my Fiesta ST. Partially this is due to my positive experience with the kid’s Leaf and it being fun to drive with perfectly adequate range for my use, but a large part is the fact that it would be 7500 fewer bucks I have to pay. Yes, it wouldn’t save me much if anything in the long haul, but I like the thought of “redistributing” some of my money to myself for a change and I get a sweet commuter as part of the deal.

  • avatar
    Lokki

    I understand that the success of Tesla means that all serious auto makers (except for Toyota, Honda, and Subaru) feel that they must at least dip their toes into the EV market, but wow…. Ford, Mercedes, Jaguar, Audi, VW, and GM are all getting in the water, and apparently GM is diving in head first. Is the market really already big enough to support all of them, and for that matter, is the EV infrastructure?

    I can’t help but wonder if 2022 will be a sort of EV trail of tears slow sales with the lots loaded with EV’s for whom there simply aren’t enough customers.

  • avatar
    dal20402

    Sigh. Wrong thread, again.

Read all comments

Back to TopLeave a Reply

You must be logged in to post a comment.

Recent Comments

  • conundrum: I suppose the freelance auto industry “consultants” will be further put out by this. I always...
  • lstanley: Yes! I drove an 84 Bronco II Eddie Bauer edition all through high school. One unique feature I had was that...
  • DenverMike: They can learn, we just have to crack the whip. They used to force a mid trim XLT/SLT if you wanted power...
  • conundrum: Well, Schreyer’s still there at Hyundai Group even as Donckerwolke left Genesis to pursue whatever...
  • CoastieLenn: I honestly think my favorite is the 64 Conti with the suicide doors, but then followed closely by this...

New Car Research

Get a Free Dealer Quote

Who We Are

  • Matthew Guy
  • Timothy Cain
  • Adam Tonge
  • Bozi Tatarevic
  • Chris Tonn
  • Corey Lewis
  • Mark Baruth
  • Ronnie Schreiber