As Ford's sales increase, Mustang sales continue to drop.
09-01-09: The 2010 Mustang has won accolades in the press for its fresh new styling and was greeted warmly by most of the Mustang enthusiast rank-in file. So why is it not selling? In August, sales of the 2010 Mustang dropped again 23.3% to only 6289 units, well below even last year’s 2009 model closeout low. While the car was well anticipated, sales have gradually been dropping, not rising like a new model should.
In a month where Ford’s overall sales are up an amazing 21%, the second month in rising sales, it raises questions. There are a number of reasons, some having to do with market conditions. But lets be honest, some have to do with the car itself and how it compares to its competition.
Cash For Clunkers & Market Conditions
Most of the rise in sales over the past couple of months were attributed to the CARS or “Cash For Clunkers” program that gave consumers up to $4500 to trade in their gas guzzlers for a high MPG car. This program steered most new car buyers in the Ford showrooms toward the Fusion Hybrids, the Focus, and the Escape Hybrid because those vehicles qualified for the CARS program. This is where you see the majority of Fords big sales increases.
Secondly, the car market is still in a state of recovery as is the economy. The people buying new cars right now for the most part are seeking out what they need, not necessarily what they want. The market for sports cars and luxuries like a Mustang that could be seen as a frivolous buy is still pretty soft. Most working families struggling through this tough economy right now would find it hard to justify spending money on something that many would consider impractical.
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How Mustang Stacks Up To Competition
Market conditions aside, people are still buying sporty cars. Lets face it, the Mustang has some new rivals out there now who are putting up a good fight. The Mustang has enjoyed the better part of a decade with little or no competition. While that has been good for Ford’s sales, some might say it has allowed Mustang to be comfortable being less than it could be.
The Dodge Challenger is not selling in very large numbers hitting 1100-1500 unit’s a month. So it's barely even competing. But the new 2010 Chevrolet Camaro is outselling the Mustang by a significant margin since its rollout last spring. The 2010 Camaro sold 8,680 units in August, over 2000 more than 2010 Mustang. It was expected that the Camaro would be a good seller with its well executed styling that speaks to the original model very well.
Buyers who aren't brand loyal note that the Camaro came out of the gate with a standard 300+hp V6 that almost matches the Mustang GT’s V8 in power. Then you can get the 6.2 liter Camaro SS with 400+hp for about the same price as Mustang GT with a 315hp V8. Add the fact that the Camaro comes with a modern chassis with an independent rear suspension and you have a stiff competitor that can run circles around the pony car from Ford dollar for dollar.
Ford knew the “new guy on the block” would have a honeymoon, but the trends show that the buying public is showing a continued appreciation for the Camaro into summer. This can in part be given to the fact that it’s new, but the swing buyers out there are really seeing the value in the 100 extra horsepower you get for the money as well as the sophisticated handling aspects of Camaro’s modern day chassis.
The reality for Mustang is that while it has all the history, the hype, the legend and the love much of the buying public still sees it as the same old car with the same old engines and the same old live axle. The base V6 Mustang is hardly competitive with its 210hp V6 whos roots are in the 1970's. The Mustang GT's 315hp V8 is also getting long in tooth when many V6 engines across town can churn out the same power.
The good news is that there are some new engines on the horizon for Mustang. There is the 2011 3.7 liter V6 for the base Mustang we reported on earlier this year. Then there is the rumored 5.0 liter Coyote V8 that promises to match the Camaro SS in performance and horsepower. Most agree Ford would have been smart to push these new motors into the 2010 at launch, but we were told that wasn’t in the cards due to budgetary constraints.
It’s unfortunate because from the marketing standpoint, the 2010 Mustang has already lost the window of opportunity to be seen as the top dog as it relates to muscle. It put the 2010 Mustang in catch-up mode the day it hit the showroom. When the new engines do finally come it will likely be a footnote in the press and will require more marketing money be spent getting John Q Public to take note.
Mustang core enthusiasts are well in the know however and wanting more before they are ready to plunk down their money. A survey we are taking right now shows that over 80% of our readers say they would rather wait to buy a new Mustang for the day more power is found under the hood. While an independent rear-suspension is likely too much to ask for, most would agree that new more powerful engines cant get here fast enough for Mustang.
