Ford will cut the starting price of the Focus Electric by $4,000 (€3,065) for the 2014 model year, as the U.S. carmaker wants to appeal to mainstream buyers who have been reluctant so far to buy pricey EVs, according to Detroit News report.
Surprisingly, just last month, a Ford executive told reporters that the automaker would not follow in the footsteps of its competitors and slash prices. U.S. sales of electric vehicles in the first six months of this year reached 41,000 units, making up only 0.5 percent of all new cars and trucks sold.
However, incentives and price cuts have led to a 385 percent increase in sales during the first six months of 2013 compared to the same period last year.
The Focus Electric now costs $35,200 (€26,980), down from $39,200, but it’s still some $6,000 (€4,600) more expensive than the Nissan Leaf. Ford said in a statement that the lower price “keeps us competitive in the marketplace.”
If the $7,500 federal tax credit is deducted, the Focus EV can be bought from $27,700 (€21,230). The Focus Electric will be the cheapest in California, as the state offers a further $2,500 credit, bringing the price to $25,200 (€19,315).
Ford’s price cut comes as automakers including Nissan and Honda have slashed prices on their electric models. GM is also expected to cut the price on its 2014 Chevrolet Volt. Currently the automaker is offering a $4,000 discount of the 2013 Chevrolet Volt through September 3, bringing the price to $35,145 (€26,940).
By Dan Mihalascu