Mustang Mach-E, 'bellwether' of auto industry's EV bet, makes way to Michigan customers
Mar. 25—The Mustang Mach-E, Ford's Motor Co.'s inaugural battery-electric vehicle, is now rolling onto driveways in southeast Michigan and beyond, fueling excitement among buyers like Gene Zynda.
"It's like learning how to drive again because it is different," said Zynda, 74, of Rochester Hills. "It really is fun to drive — exhilarating."
Despite delivery delays slowing its widely anticipated rollout, the e-SUV is earning favorable comparisons to Tesla Inc.'s Model Y and rave reviews from critics, analysts and customers wowed by its styling, high-tech features and performance. In January, it was named Utility of the Year by the North American Car, Truck and Utility Vehicle of the Year awards.
The Mach-E launch marks an inflection point for Ford as it transitions to next-generation vehicles — as well as for an industry on the cusp of one of its most consequential transformations since the moving assembly line. Positive early attention could portend an auspicious start to Ford's shift to electrified vehicles amid an industry-wide pivot from the gasoline-powered cars that have been automakers' mainstay for more than a century.
"If other all-new electric vehicles start to be received as well as the Mustang Mach-E seems to be received, the impact for the industry, the impact for Tesla, the long-term planning for a lot of other manufacturers watching this — all of that is going to be highly dependent on what happens over the next 12 months," said Karl Brauer, executive analyst at iSeeCars.com. Mach-E "will be one of the big bellwethers we'll be watching."
Under Jim Farley, who took over as CEO of the 118-year-old automaker in October, the Blue Oval is reorienting itself not only around electric and autonomous vehicles, with electric versions of its F-150 truck and Transit van coming soon, but around data and technology more broadly. Over the last several months, Ford has announced accelerations of its EV and AV investments, touted a partnership with Google and delivered staffing changes that align with the areas it seeks to bolster.
The moves have gotten the attention of Wall Street, with Ford's stock up more than 40% year-to-date.
'Exhilarating' ride
Wanting to make the switch to an EV and seeing friends and acquaintances buy Teslas, Zynda put in a reservation for a Mach-E in November 2019 when Ford began accepting deposits. Though he likes Tesla's vehicles, he wanted to buy from the Dearborn automaker.
Zynda's Mach-E arrived at the end of January. In the two months since, he's spent time learning the intricacies of the vehicle's technological features and grown accustomed to a quiet, speedy ride that can be driven with one pedal and has an extended-battery range of about 300 miles. He's has been impressed by the vehicle's performance and safety features such as adaptive cruise control, and says the ride has drawn attention wherever he takes it.
Some customers grew impatient with the long wait time between the opening of reservations and the vehicle's launch. And the wait was extended for some 4,500 buyers when Ford delayed deliveries, saying it needed time for additional quality checks.
Ford now says most customers who experienced a delay have received their vehicle.
Who's buying
Jason Mase, who leads Ford's electrification marketing strategy, said there have been a few surprises about who is buying the Mach-E. As much as 70% of sales and orders so far, for example, have been from people who are new to the Ford brand.
"It reflects Ford's ability to reach out beyond their customer base, by delivering a vehicle that's not a traditional Ford vehicle," said Brauer. "There's nothing typically Ford about the Mustang (Mach-E) except maybe the name."
Ford officials also have been somewhat surprised by the high-income level of buyers and where the vehicle is selling. It's no surprise that EV-friendly California has been Mach-E's No. 1 market in terms of sales volume, but Michigan is No. 2 and Texas, Washington and Arizona are also among the top states.
"What we're seeing is, we have a lot of customers here in southeast Michigan reserve a Mach-E going all the way back to November of 2019, and they've stayed with it because they were so excited about it," Mase said.
The company has not disclosed how many actual orders it has received. But Mase said demand has been strong, with models that are in stock at dealerships tending to sell within 10 days. In February, Mach-E's first full month, Ford recorded about 3,700 sales.
Matt Stanford, general manager of Varsity Ford in Ann Arbor, said the dealership has so far sold more than a dozen Mach-Es. He expected early buyers would mainly be environmentalists, but instead the dealership has seen a diverse mix of customers in terms of age and interests.
"Ford being a traditional car company, it's nice to see them coming out with something like this that, let's be honest, wasn't in their wheelhouse," he said. "Now we're both feet in and ready to go."
Mase said the feedback from customers has been that they love the vehicle's styling, technology and performance. Many, too, are excited to own their first battery-electric vehicle.
Another appealing factor could be the vehicle's relatively accessible price point: it starts at $42,895, without the $7,500 federal tax credit, which is not much higher than the overall average transaction price in the U.S.
"There's a lot of levers that have been pulled to make this vehicle attractive to non-traditional EV buyers and the heartland," Brauer said. "Ford clearly wants to break into those markets, and it looks like they might have started to do that with this car — which is huge."
Ford continues to take orders for the vehicle online. And more than 2,000 dealerships across the country are getting test vehicles in stock as well as limited inventory customers can purchase off the lot.
Lease vs. Buy
With the Mach-E, Ford introduced a new program called Ford Options that functions similar to a lease but allows customers to take advantage of the federal tax credit for electric vehicles.
Mach-E customers have the option to sign a contract for a 36-month or 48-month term, at the end of which they can either buy the vehicle or return it to Ford. In the meantime, they can claim the credit.
Under a traditional lease, Ford's financing division retains ownership of the vehicle, and thus gets the credit. Zynda opted to buy his Mach-E outright; he'll be able to claim the credit on his 2021 taxes.
For WDIV-TV news anchor Devin Scillian, 58, of Grosse Pointe Park, whose Mach-E arrived at the dealership this week, the financing process was one of his only complaints. He found that a similar Tesla model would have been cheaper to lease on a monthly basis.
He opted to sign a Ford Options contract rather than a traditional lease, so he'll be able to bring the cost down by filing for the tax credit. Still, he felt the process could have been smoother.
"That is something that Ford needs to look at and improve because Tesla has already kind of set the bar on what people expect to pay monthly for an electric vehicle," he said. "I had a little bit of sticker shock until I figured a way forward."
Otherwise, Scillian is thrilled with his selection and eager to drive his first fully-battery electric vehicle after owning and loving the plug-in hybrid Chevy Volt. And though he did consider a Tesla, he was drawn to the Mach-E in part because it reminds him of the 1967 convertible Mustang his parents owned — a "mythical car" the whole family loved.
"When I first saw the pictures of (Mach-E), I fell in love with it," he said. "I am more excited about this car than I've been about getting a new car in a long time."
Ford vs. Tesla
Mach-E has gotten attention for its similarities to Tesla's Model Y — and early sales results suggest it could be tough competition for the EV leader.
Morgan Stanley recently published an analysis showing that Tesla's share of the U.S. EV market fell to 69% in February, down from 81% in February 2020. Adam Jonas, auto analyst at Morgan Stanley, attributed Tesla's share loss almost entirely to Mach-E.
Experts say Tesla losing some of its grip on the EV market is inevitable as traditional automakers begin to catch up. General Motors Co. has led the Detroit automakers with an ambitious plan to debut 30 new EVs by 2025, including a new version of its Bolt EV, the new Bolt EUV and new GMC Hummer EV coming this year.
"More companies are jumping into the electric vehicle field ... and that means the once-enviable position that Tesla held for most of its first 10 to 15 years is kind of evaporating," Brauer said. "If you wanted a 200-plus-mile-range electric vehicle, especially one that also had appealing looks and performance, it was Tesla or nobody else."
But going forward, he said, "there will be alternatives to Tesla's once-singular position in the market ... and the Mach-E is a nice preview of those coming attractions."
Really a Mustang?
The branding of the Mach-E as a Mustang has drawn skepticism from enthusiasts of the brand.
But dealers and industry analysts expect some loyalists will come around once they experience the vehicle. A GT performance edition that is coming later this year might help change some minds.
Stanford of Varsity Ford admits that as a Mustang fan, he initially fell into the skeptics' camp.
"At first it was a little strange, I will say that as a Mustang enthusiast," he said. "But ... if you take a nameplate such as Mustang that's just so revered, and you make it a battery-electric vehicle, it really starts changing that mindset. It helps people understand that gasoline engines aren't necessarily the only way to propel a vehicle."
He was impressed by the vehicle's instant torque and has since placed an order for the GT edition for himself.
"I think that Ford forging ahead with the Mustang Mach-E and taking Tesla on head-to-head has been great," he said. "Instead of seeing the Teslas driving around, I've seen quite a few more Mach-Es on the road — and it's nice."
Twitter: @JGrzelewski
