Ford: Battery Supply Instability is the Main Problem for Delivering Fewer than 400 Vehicles in China

By Wanbo, from the Copilot Temple
Reference: AI4Auto WeChat Official Account

The most beloved electric vehicle in the United States, delivers less than 400 vehicles per month in China?

Ford’s latest response is:
It’s true that the delivery is less than the production capacity, and the main problem is the unstable battery supply.

Is it all because of the battery?

Ford’s highly-anticipated vehicle, the Ford Mustang Mach-E, was recently reported to have been insured for only 352 units in China in January.

This result cannot be regarded as good.

Recently, the Ford Mustang Mach-E was also selected as the most popular electric vehicle of the year 2022 by Consumer Reports, a consumer culture authority magazine in the United States. Last year, it sold 27,000 units in the US market, which is second only to Model 3 and Model Y.

How come that the most beloved electric vehicle in the United States cannot perform well in China?

Regarding this issue, AI4Auto WeChat Official Account communicated with Ford.

Ford stated that the 352 units of insured vehicles can be regarded as the actual delivery situation, and Ford will not disclose the delivery figures of Ford Mustang Mach-E separately in the future.

As for why the delivery is so small?

Ford stated that the small delivery volume of electric cars in January is mainly due to two reasons.

Firstly, Ford encountered the same problem as NIO: unstable battery supply.

It is reported that the three-element lithium battery installed in Ford Mach-E is supplied by BYD and mainly produced by the latter in its plant in Xi’an.

But affected by the COVID-19 pandemic, Xi’an was locked down from the end of last year to January this year in response to the epidemic, which led to the inability of raw materials of batteries to be transported normally, and the batteries from Xi’an factory could not be transported to the Changan Ford Chongqing Factory in time.

Therefore, the production of Mach-E was also affected, which made it impossible to deliver on time.

Ford also stated that the owner was informed in a timely manner about the battery shortage issue.

According to Ford, there is only one battery supplier for the Ford Mach-E, which is BYD.

As for whether Ford will seek other battery suppliers in the future, Ford declared that currently, all major car companies are seeking multiple suppliers to ensure stable production. However, for Ford, due to technical adjustments and other reasons, the situation of a single battery supplier cannot be changed in the short term.

Secondly, there are also production capacity restraints.# Ford Mustang Mach-E Update: Production Capacity and Expansion of Stores

Ford Mustang Mach-E was launched in China in April last year, with the official delivery started at the end of December, and it takes time to increase production capacity.

Currently, the production capacity of Changan Ford’s Chongqing plant is unknown, according to Ford. However, they claimed that with a stable supply chain, they can ensure timely delivery of existing orders.

Regarding rumors of delivery periods lasting 2-3 months for previous pre-order customers, Ford confirmed this, but said that as the epidemic improves and the supply chain stabilizes, the delivery period for later pre-order customers will be reduced to 6-7 weeks.

Are there any other updates?

Ford also shared the latest developments with Mustang Mach-E.

Firstly, the expansion speed of stores.

It is reported that the number of Ford Mustang Mach-E stores in China has increased significantly from 13 in October last year to more than 20 now.

Ford stated that the total number of Ford Mustang Mach-E stores will exceed 60 by the end of this year, with a focus on major cities and regions of EV consumption, especially in the Yangtze River Delta and the Greater Bay Area.

After that, the expansion will be carried out in second and third-tier cities.

Regarding store positioning, Ford stated that it is similar to NIO HOUSE of NIO, aimed at providing a space for user interaction, rather than just selling cars. In the future, Ford also plans to improve user services based on its direct sales stores.

Secondly, it is related to the positioning of Ford Mustang Mach-E.

According to Ford, around 70% of Mustang Mach-E users in China are male and aged between 25 and 35.

At present, there are two main types of Mustang Mach-E users. Some choose Mustang Mach-E because they understand the American muscle car culture, especially the recognition of the “Mustang” brand. The other part seeks individuality.

This is also the positioning of Mustang Mach-E. It is all about personality and emotion.

Regarding this positioning, Ford stated that it will not follow the Tesla route. Tesla is like the iPhone of EV, and when thinking of EV, it reminds people of Tesla. However, for Mustang Mach-E, customers are making their choices when they have an understanding of Ford Mustang Mach-E.

Lastly, given the choice between Mustang Mach-E and Tesla, which one would you choose?

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This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.