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http://biz.yahoo.com/ap/070305/ford_mustang.html?.v=1

AP
Mustang Looking Like Old Gray Mare
Monday March 5, 5:48 pm ET
By Tom Krisher, AP Business Writer

Sales Slide for Mustang; Ford Hopes for Second Wind From Icon

DETROIT (AP) -- 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.
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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 of 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 exciting, 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."

Pony Ride

I personally don't think that introducing more special edition mustangs is going to save Ford or improve the overall Mustang sales numbers, although they do have their place in the market. I posted this in another forum about the same basic issue:

Well, if Ford thinks they're gonna improve Mustang sales by keeping it "FRESH", then they'd better try something different than they have so far. Up to now, keeping it fresh means coming out with special edition mustangs that end up costing more than the regular V6 and GT markets will bear, and then the dealers price gouge the hell out of them with $5K+ second stickers. This may increase the Mustang legend or mystique, and the collectablility of a few cars, but it's not going to improve the overall sales picture. That strategy rips off Ford's most loyal Mustang cutomers, and is a recipe for business disaster.

Since it seems Ford can't control their dealer's practicesrelative toprice gouging, I won't even address that (although Ford would get an increase in customer loyalty and supportout of doing something about this). Ford needs to continue offering new and exciting color and equipment options to make the standard cars more interesting to more of the market. How silly would it have been if the MP3 player audio jack or the premium trim package was only available in the 07 GT/CS? By making these options available on all cars, this type of non-recurring development cost can be applied over the entire product range, incorporated into the production process easier, and marketed to a wider audience. But the equipment options must grab the market attention in order to make a sales impact. Maybe offer a T-top option? Just my 2 cents....[/align]

edgespeeder06

i dunno but i cant wait to see what new models ford is introducing, and yea i think sales will go back up, lots of them are probably discounted agan around here like there were last year when i went lookin for mine, so hey in the next few months, it'll be up, its just been so cold and crapy up here that sales have declined here, and others usually wait til august or september to buy them

edgespeeder06

and yea dealers shouldn't be marking up, unless they want to lose money and see ppl purchase the car right from ford like some of my friends have done

kindred169

Anyone else not surprised to see a decline in sales of a REAR-WHEEL DRIVE vehicle during the January and February months? Anyone watching the news is aware that much of the country has been blanketed in snow and/or icy conditions. Wait for it to warm up a little. I expect sales will pick up again.

oldschoolera

I agree with you Pony Ride. I would add that it would have been great if Ford had continued to produce the 390hp engine used in the 04 Cobras and installed that engine in the current line of GT's. Or, at least offered that as an option to the 300hp 4.6. I would loveto have had the option for 390hp from the factory. That wouldbea viable option to the price gouging going on with the GT500's. Of course, that also assumes Ford and Ford dealers would be offering the extra power around the same price as the 04 Cobra . . . I believe around 36k. JMO

Buckshot Barry

Do you think it would leak? Sorry, just couldn't resist.

Can you see personalized tags that read "Leaker" and "Thunker"

Sixd7

Isn't waiting till august or sept. too late it starts getting cold shortly after that?

WuStangKlan

How can a man do this? This buying right from Ford? Must you be in the government or work for Ford?

edgespeeder06

i dunno but they told me they set it up by phone or something, if ur that curious, i'll ask him