William Maley

Ford News: Ford Pauses Mustang Production Amid Sales Slump

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William Maley    393

The Ford Mustang has been riding a wave of sales success, beating the Camaro in the total sales for the year - 87,258 vs. 54,535. But this past month, the Mustang saw a steep decline in sales (32 percent) and was beaten by the Camaro. Because of this, Ford has put Mustang production on idle for a week.

The Detroit News reports that Ford has idled their Flat Rock, MI plant for a week. Ford Spokeswoman Kelli Felker said this was to match production with demand. At the end of September, the supply of Mustangs stood at 89 days. Analysts say a 60 day supply is a healthy target - something the Mustang is somewhat close to.

But why did the Mustang see a steep drop in sales? The answer might lie in incentives. In September, Ford was offering $2,700 in incentives for the Mustang - down $300 when compared to August. Meanwhile, incentives on the Camaro tripled from $1,100 in August to just over $3,300 in September. It should be noted that Chevrolet has a glut of Camaros. At the end of September, dealers were sitting on a 120-day supply in Camaros. 

Update: As some our members have pointed out, the more likely cause to this Ford's reduction in fleet sales.

"Fleet sales of 42,120 vehicles, including daily rental, commercial and government segments, were down 21 percent, consistent with the company’s plan to front-load fleet sales this year. Sales to daily rental companies declined 36 percent for the month," Ford said in their September sales press release.

Source: The Detroit News


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I love the new Pony cars, but still remember the very early 1970's when their 1960's counter parts filled the roads. Personally, I want something more modern for my next sporty car-BRZ/FRS/ Fiata/Miata, something along those lines. Maybe a nice used S2000.

Would perhaps consider a Focus ST but the chassis tuning on the GTI is infinitely better with the MK VII (current) GTI.

I for one won't be buying a Camaro or Mustang, even though i am very happy both are still in production.  Watching them race at Mid Ohio is fun also....

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surreal1272    677

A sharp drop in fleet shipments play an even larger role here. This was mentioned in the Ford September sales thread.

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ccap41    1,162

Triple the incentives will help out.. 120 days is still a decent supply of 2016's while the 2017's are out.

Who would have guessed the more expensive of the two needs more of an incentive on the hood to sell?

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surreal1272    677

The cheaper car had much higher incentives than the Camaro (3x according to the article) all year prior to September to help boost its sales (on top of much higher fleet sales than the Camaro). What does that say about the cheaper car?

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FordCosworth    128

Smart move to stop production for a week. It'll help get inline with demand.

Or go the other route and keep pumping them out and adding to the  days supply like another company seems inclined to be doing.

 

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ccap41    1,162

While it isn't a good thing that sales are down for the month. It is good that they're taking measures to reduce costs while sales are down. I'm curious what their supply of Mustang's is in comparison to that 120 days of Camaros in stock.

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FordCosworth    128
15 minutes ago, ccap41 said:

While it isn't a good thing that sales are down for the month. It is good that they're taking measures to reduce costs while sales are down. I'm curious what their supply of Mustang's is in comparison to that 120 days of Camaros in stock.

As of the end of September, 89 day supply.

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surreal1272    677
1 hour ago, FordCosworth said:

Smart move to stop production for a week. It'll help get inline with demand.

Or go the other route and keep pumping them out and adding to the  days supply like another company seems inclined to be doing.

 

Not everyone chooses to keep their supply low by sending 30% of their cars to the rental market. This goes right in line with the reduction in fleet for September covered on the Ford September sales thread. 

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surreal1272    677
5 minutes ago, surreal1272 said:

Not everyone chooses to keep their supply low by sending 30% of their cars to the rental market. This goes right in line with the reduction in fleet for September covered on the Ford September sales thread. 

Care to offer a retort to the facts @FordCosworth? Here's a sample of what I'm talking about.

 

"Retail sales declined 4 percent in September, with 162,327 vehicles sold for the month. Fleet sales of 42,120 vehicles, including daily rental, commercial and government segments, were down 21 percent, consistent with the company’s plan to front-load fleet sales this year. Sales to daily rental companies declined 36 percent for the month."

 

 

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FordCosworth    128
4 minutes ago, surreal1272 said:

Not everyone chooses to keep their supply low by sending 30% of their cars to the rental market. This goes right in line with the reduction in fleet for September covered on the Ford September sales thread. 

And not everyone chooses to keep day supply high by adding more and more.

Ford is choosing to lower day supply by stopping production for a week.

 

 

 

 

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El Kabong    273

It's pretty obvious now that the profits model for the Mustang was stretched to its limit, and has been for quite some time. 

If upping your incentive spending by only 600 bucks over your competition for 30 days is enough to get them to say "uncle" on production then it's clear excellence of execution was the better way to go. 

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FordCosworth    128
3 hours ago, ccap41 said:

Triple the incentives will help out.. 120 days is still a decent supply of 2016's while the 2017's are out.

Who would have guessed the more expensive of the two needs more of an incentive on the hood to sell?

Bloomberg reports incentives on the Camaro were also stronger for September, more than tripling to an average discount of $3,409 per car. Incentives for the Mustang averaged $2,602

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ccap41    1,162
Just now, FordCosworth said:

Bloomberg reports incentives on the Camaro were also stronger for September, more than tripling to an average discount of $3,409 per car. Incentives for the Mustang averaged $2,602

Yeah.. That was in the original post.. kind of.

A guy's son on another site I'm on bought a 1SS for 28k. 10k of sticker, one hell of a deal. I might be a mustang guy a heart but if I could get a Camaro at that price I would scoop it up in a heart beat.

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surreal1272    677

The Mustang's sales decline can be attributed to Ford's massive fleet reduction last month, Check it out.

 

Source:

Also covered here is the fact that up until September, the Mustangs incentives were almost $2K higher than the Camaro. 

Edited by surreal1272
Post change.

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ykX    95

Right now Chevy is running 20% ! reduction on select Camaros.

Dealer near me has 2016 Camaro 2SS that has MSRP of $45,445.00 selling for $36,356.00

They have around me similar promos on V6 and turbo models as well.

 

Ford has only $750 back on 2016 Mustangs

Edited by ykX

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1 hour ago, ykX said:

Right now Chevy is running 20% ! reduction on select Camaros.

Dealer near me has 2016 Camaro 2SS that has MSRP of $45,445.00 selling for $36,356.00

They have around me similar promos on V6 and turbo models as well.

 

Ford has only $750 back on 2016 Mustangs

For some reason the automotive market seems to have gotten rather difficult in the last few mo0nths, not a good sign for the economy at large.

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