Ford won’t cut production of Mustang Mach-E despite US tariffs

The Mustang Mach-E electric crossover, though produced in Mexico, will remain unchanged in Ford’s production lineup. Despite the imposition of 25 percent duties on vehicle imports, the company doesn’t plan to reduce production volumes of its key electric model, according to Andrew Frick, president of Ford’s Blue and Model e divisions, at its quarterly reporting meeting.

Tariffs won’t affect strategy

The new duties proposed by the Trump administration are expected to hit U.S.-imported vehicles, including Ford models like the Maverick and Bronco Sport, hard. But the main problem for the brand is Mustang Mach-E, which has become the centerpiece of Ford’s electric car strategy. It, too, is made in Mexico and is subject to a 25 percent tariff.

Nevertheless, the company is not going to cut production or revise plans:

«Everything is going according to plan. We have no plans to reduce production volumes,» Frick said.

He noted that Mach-E stock levels are minimal and demand has remained steady even four years after the model’s launch. That’s atypical for electric cars, and especially for fourth-model-year vehicles.

He noted that the Mach-E’s inventory is minimal and demand has remained steady even four years after the model’s launch.

European exports and regulatory obligations

One of the reasons Ford is continuing to produce the crossover at the same volume is unmet demand in Europe. Excess sales in the U.S. could be offset by exports, Frick emphasized.

Forced sales in the U.S., the company will continue to produce the crossover.

But there’s a far more serious reason: regulatory emissions requirements. Automakers are required to meet CAFE (average fuel economy) standards and Zero Emission Vehicle (ZEV) quotas – the number of electric vehicles sold. If a company sells a lot of high emission pickup trucks and SUVs, it needs to compensate by selling “clean” models. Otherwise, it’s fines or buying credits from other manufacturers.

And if they don’t, they’ll be fined or have to buy credits from other manufacturers.

«This vehicle is critical to meeting our environmental regulations,» noted Frick.

F-150 Lightning will not replace the Mach-E

Yes, Ford has another electric vehicle made in the U.S.- F-150 Lightning, but it’s an expensive pickup with far fewer sales. It can’t make up for the Mach-E’s contribution to the overall emissions picture.

So, to abandon the Mustang Mach-E now is to undermine the company’s entire regulatory strategy. In the future, Ford will certainly want to move production of its mass-market electric cars to the United States. But for the current moment importing from Mexico remains the only working solution.

Material Ford won’t cut production of Mustang Mach-E despite U.S. tariffs was first published on ITZine.ru.