Ford’s first big push into the electric vehicle market is the Mustang Mach-E. It appears the vehicle has been very popular. Any automotive enthusiast knows that dealerships like to price gouge when cars are popular by adding what is known as market adjustments to the MSRP. For instance, some Mach-Es have been seen with as much as $15,000 added to the sticker price.
Twitter users were in an uproar over a picture posted to the social network showing an Illinois Ford dealership with a Mach-E First Edition Premium with $10,000 in market adjustment. The report also claimed that a shopper was allowed to sit in the vehicle but not test drive it.
As you might imagine, Twitter users were on fire. Ford’s Mike Levine later tweeted that the market adjustment had been removed from that Mach-E. I’ve long maintained that Ford needs to do something about dealerships gouging fans with any reasonably popular vehicle, most notably on Mustangs. This is the first time I’ve heard of Ford forcing a dealership to remove a market adjustment. All marking up the price of a vehicle above sticker does is send shoppers to other brands.
The Impact of Market Adjustments on Consumer Trust
Market adjustments, while not illegal, can significantly impact consumer trust and brand loyalty. When dealerships add exorbitant fees to the MSRP, it can create a sense of distrust among potential buyers. This practice is particularly harmful in the electric vehicle market, where consumers are already navigating new technology and higher upfront costs compared to traditional gasoline vehicles. For instance, a $15,000 markup on a Mach-E can deter even the most enthusiastic buyers, pushing them towards competitors like Tesla, which sells directly to consumers and avoids dealership markups altogether.
Moreover, the uproar on social media platforms like Twitter highlights the power of consumer voices in the digital age. When a single tweet can garner thousands of retweets and comments, it puts immense pressure on companies to address unfair practices swiftly. Ford’s quick response to the backlash by removing the market adjustment is a testament to the influence of social media in shaping corporate policies.
Ford’s Strategy in the Electric Vehicle Market
Ford’s entry into the electric vehicle market with the Mustang Mach-E is a strategic move to compete with established players like Tesla and emerging competitors like Rivian and Lucid Motors. The Mach-E, with its blend of performance, style, and advanced technology, aims to capture a significant share of the growing EV market. However, the success of this strategy hinges not just on the vehicle itself but also on the overall buying experience.
To ensure a smooth transition into the EV market, Ford needs to address several key areas:
1. Dealer Training and Incentives: Dealerships need to be well-versed in the unique aspects of electric vehicles, from charging infrastructure to maintenance. Providing incentives for dealerships to sell EVs at fair prices can also help mitigate the issue of market adjustments.
2. Consumer Education: Educating consumers about the benefits of electric vehicles, including lower long-term costs and environmental impact, can help drive adoption. Ford can leverage its marketing channels to highlight these advantages and dispel common myths about EVs.
3. Charging Infrastructure: A robust charging network is crucial for the widespread adoption of electric vehicles. Ford’s partnership with charging networks like Electrify America is a step in the right direction, but continuous expansion and improvement are necessary.
4. Customer Support: Offering exceptional customer support, including easy access to information and assistance with charging and maintenance, can enhance the overall ownership experience and build long-term loyalty.
In conclusion, while the Mustang Mach-E has garnered significant attention and popularity, Ford must address the challenges posed by dealership markups and ensure a positive buying experience for consumers. By focusing on dealer training, consumer education, charging infrastructure, and customer support, Ford can solidify its position in the competitive electric vehicle market and build lasting relationships with its customers.
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