Ford makes a decision to reduce the price of electric cars in Europe


If Ford did not wish until then to bring down the prices of its cars, the firm could finally change its mind. It is indeed preparing to offer less expensive LFP batteries on its Mustang Mach-E in Europe, but this could also benefit its finances.

While the European Parliament has in turn voted in favor of banning the sale of electric cars in Europe in 2035, all manufacturers will have to adapt. This is particularly the case of Ford, which plans to only offer electric models from 2030 in its catalog. For this, the firm plans to invest massively, while it aims to sell 600,000 electric cars worldwide this year according to a press release.

new batteries

If it did not plan to reduce the price of its cars, the blue oval firm seems to be reviewing its plans. As announced in a press release, it is preparing to offer LFP batteries to its customers for its Mustang Mach-E. A strategic choice, which offers many advantages. Unlike the NMC (nickel-manganese-cobalt) batteries currently in use, these batteries do not use cobalt and nickel.

These are two materials whose extraction is polluting which ultimately makes the electric car not so clean as that, as we explained in a previous article. Especially since the exploitation is done in developing countries, under unethical conditions.

Waiting for sodium and solid-state batteries, LFP (lithium-iron-phosphate) accumulators offer several advantages, including lower production cost and longer life compared to NMCs. If the energy density is lower, with a slightly higher consumption to the detriment of autonomy, recharging is then done more quickly.

Which is therefore not a concern, as we have shown that wanting great autonomy is a mistake. Moreover, more and more manufacturers prefer to opt for small batteries, less heavy, less expensive to produce and therefore using less lithium, while some fear a shortage in the future. This is particularly the case for Ford, but also for Renault.

A price drop to be expected

The aim is thus to offer cheaper electric cars, but also to increase their profits. According to Ford, LFP batteries would make it possible to reduce production costs by 10 to 15%. Thus, the brand could increase its margin, rather than pass this cost reduction on to its customers. But while Tesla launched a major price war by dropping those of its Model 3 and Model Y by 13,000 euros a few weeks ago, the Dearborn firm has revised its plans.

She recently in turn operated a sharp drop in her Mach-E, but only in the United States. Would Ford therefore be reviewing its plans? It may well be so, as it faces increasing competition from Chinese brands. Several of them have also lowered their prices, such as Xpeng.

Ford specifies in the press release that the arrival of these new LFP batteries is ” as part of the company’s commitment to making electric vehicles more affordable and accessible“.

Ford’s new LFP batteries will be offered on the Mustang Mach-E this year and will enable Ford to increase the profitability of its Model e electric division by 8% by 2026. The firm has also just announced a $3.5 billion investment to build its own battery plant in Michigan. , in partnership with the Chinese giant CATL. And this for a specific purpose, in particular to allow its customers to benefit from the $7,500 US government tax creditprovided that the batteries are manufactured in the territory.

These should then logically equip all future cars of the brand, starting with the future electric SUV based on the MEB platform provided by the Volkswagen group. An electric version of the Puma will also see the light of day in the course of 2025. In total, these are then two million brand electric cars that should be on the road by the end of 2026.


Want to join a community of enthusiasts? Our Discord welcomes you, it’s a place of mutual aid and passion around tech.



Source link -102