Ford still betting on its Mustang
 

The latest version of Ford's iconic Mustang is appears to be growing old, and back-to-back monthly sales declines to start 2007 have the struggling company a little worried.

The new Mustang, which made its debut in the fall of 2004, has been a bright spot for Ford at a time when bright spots have been few.

So when Mustang sales dropped by 19 percent in January and February compared with the same months in 2006, company officials became a little concerned.

"It's gotten our attention because when a high volume product like that declines as much as that, we want to see what we might want to do," said George Pipas, Ford Motor Co.'s top sales analyst.

A drop in Mustang sales should be a worry for Ford. Overall U.S. sales slipped 8 percent last year. The company sold 160,975 Mustangs in 2005 and 166,530 in 2006, big numbers in the midsize sports coupe market, a segment considered to be a niche.

"It did phenomenally well for a while, due in part to (it being) really the only car in the segment," said David Lucas, vice president of Autodata Corp. "It was exciting. It appealed both to young people and the people who remember what the Mustang used to be."

Pipas said even Ford was surprised at the car's staying power when sales continued to grow last year, though it is during the second year full year when sales usually begin to decline for most models.

It could be too soon, however, to write off Ford's Mustang, Pipas said.

"Two months is hardly a litmus test for the entire year, particularly when the two months aren't big sales months for anything, let alone two-door sports coupes," he said.

Still, Ford is working to keep the Mustang fresh with new variations that keep the car ex citing, as well gearing up new promotions heading into the spring and summer, traditionally the Mustang's best sales months, said spokesman Alan Hall.

The company just began shipping new versions of a Shelby GT Mustang, and sometime next year, it plans a dark-green "Bullitt" version reminiscent of the 1968 Fastback Mustang GT that Steve McQueen drove in the classic movie.

"We have other things up our sleeve that we can't talk about that you'll see midyear," said Hall.

Cars with sportier body styles like the Mustang traditionally have shorter life cycles than more conventional cars, said Tom Libby, J.D. Power and Associates' senior director of industry analysis. The Mustang, because of its name and status, has defied that at times, Libby said.

Still, Ford must do everything it can to protect the Mustang's turf, he said.

"That model is a core model for them," he said. "They can't let this one fall off its perch."

Competition for the Mustang is only going to get worse when Dodge resurrects the Challenger muscle car in 2008 and Chevrolet comes out with the new Camaro early in 2009.

"When you've got the Mustang and the Camaro and the Challenger going head-to-head, the winner is the consumer because it's going to put a lot of downward pressure on prices," Libby said.

I need to see a 500hp retro fox before I sell mine.

Ford just needs to build an aluminum 4 valve for the stang, I think it handles well stock but would be a bit better if the 4.6 went on a diet. To think there won't be performance upgrades availible for the Camaro would be silly, there probably already working on ways to get 600 Hp to the ground for a price competitive to the mustang and we've all seen what the Camaro crowd is like, they are as patriotic to those cars as we are to mustangs, it should be a very cool time we live in, then with the Challenger to put the icing on the cake.....what a time to be alive, who cares about the politics involved, the next 10-15 years is going to be sweet. 3 of the most popular muscle cars of all time with a sick retro look and big hp from all 3. Too friggin cool.

Too Much Too Soon?
 

Is it possible that Ford put all of it's cards on the table too soon with the 2005 Mustang style?

There is no doubt that the latest incarnation is awesome. Like the first Mustang in '64, the current body has resurected the "Pony Car" market with GM and Dodge again playing catch up.
The problem is that the Mustang hit a home run on it's first at bat. Leaving little room to change the body without losing the classic inspired look.
When Challenger and Camaro debut in the next 24 months, the current Stang will be 5 years old, and frankly, tired.
Much like seeing a magician. The act is cool the first few times. Then its a case of what have you done for me lately?

So, my question is, Did FOMOCO make the Mustang TOO good? Any major deviation will start the slippery slope of undoing the design.
Perhaps the Mustang should have been a slower (3-5 year) design change process. With each new year bringing her closer to what we have now. Keeping buyers interested and wanting to trade or purchase the next version.

I'm afraid what we may see is the repeat of the 1979-1993 (you can really say '79-2004) overuse of a chasis.