Ford's success has GM and Chrysler ponying up
05-16-2008, 04:50 AM
#1
Super Moderator
Thread Starter
Join Date: Aug 2007
Location:
Posts: 1,400
Likes: 0
Received 0 Likes
on
0 Posts
Ford's success has GM and Chrysler ponying up
http://www.tradingmarkets.com/.site/...0News/1570018/
[quote]Ford's success has GM and Chrysler ponying up
Friday, May 16, 2008; Posted: 08:01 AM
7 Stocks You Need To Know For Tomorrow -- Free Newsletter
May 16, 2008 (The Orlando Sentinel - McClatchy-Tribune News Service via COMTEX) -- -- No one at Chrysler or General Motors is much interested in saying it on the record, but make no mistake: We would not be getting the 2008 Dodge Challenger or the 2010 Chevrolet Camaro had it not been for the out-of-the-gate success of the retro-styled 2005 Ford Mustang.
In the monkey-see, monkey-will-do-as-soon-as-he-gets-the-board-to-agree world of automobile manufacturing, imitation is the sincerest form of flattery. Ford moved more than 160,000 Mustangs at or above list price in 2005, and even more in 2006. GM and Chrysler executives correctly reasoned that they, too, had "pony cars" from the 1970s they could revive: Why let Ford get all that gravy?
First, though, a quick history lesson for those who just recently started shaving: "Pony car" is the term used to describe that cadre of uniquely Detroit cars from the 1960s and '70s that included the Ford Mustang, Chevrolet Camaro, Dodge Challenger, Pontiac Firebird, Plymouth Barracuda, Mercury Cougar and American Motors Javelin.
Born in an era of 30-cents-a-gallon gasoline, pony cars typically emphasized style over substance, performance over practicality. Perhaps that's one reason we remember them so fondly _ they remind us of when driving was supposed to be fun, not a pricey, often political ordeal.
So when the 2005 Ford Mustang, a faithful re-creation of the 1969 and 1970 Mustang, became a hit, it was only natural for Dodge to figure out how to resuscitate the Challenger, and Chevy to do the same with the Camaro.
Decisions such as these must be made well in advance _ at least three years or longer. In the 1970 business climate, that was not such a big issue.
Now, it is. The problem: Mustang sales are down. Numbers just in from Automotive News show that Ford has sold 34,527 Mustangs in the first four months of 2008, compared to 47,082 in the first four months of 2007.
What's going on? Well, Ford Focus sales have gone from 56,463 the first four months of 2007, to 72,920 that same period this year. The Focus is cheaper than the Mustang and gets better fuel mileage. In an uncertain economy, and with record gas prices, that pretty well tells the tale.
Of course, this is not to say the Mustang is failing. If these numbers hold, Ford will sell more than 138,000 this year, and for a car that is 4 years old, that isn't bad. Of course, Ford is discounting the Mustang to keep it moving, but that's expected, at least until a redesigned Mustang shows up for 2010.
But what does this mean for Dodge and Chevrolet?
Mild to moderate uneasiness, I'd suspect. Serious devotees of the brands _ largely those who owned an original 1971 Challenger or 1969 Camaro, or wish they had _ won't be swayed by the economy or gas prices. But for both cars to be a mainstream success, they must tap into that Mustang market.
Which, suddenly diluted three ways, could get painfully thin.
So far, initial pre-sales of the 2008 Challenger, which is a top-of-the-line, $38,000 SRT8 model only, have been very strong. This fall, the 2009 Challenger lineup will grow to include a V-6 version that will start at about $23,000, and a midlevel performance version with a V-8. That puts the Challenger in direct competition with the Mustang.
The Chevrolet Camaro will finally go on sale in March 2009 as a 2010 model, and Chevrolet has been consciously steering its marketing machine away from billing the car as a performance vehicle, and more as a personal sporty coupe. There will be a powerful V-8 version offered first, followed promptly by a mainstream V-6 model. That 3.6-liter V-6 the Camaro will receive is expected to get 17 mpg city, 25 mpg highway, co
[quote]Ford's success has GM and Chrysler ponying up
Friday, May 16, 2008; Posted: 08:01 AM
7 Stocks You Need To Know For Tomorrow -- Free Newsletter
May 16, 2008 (The Orlando Sentinel - McClatchy-Tribune News Service via COMTEX) -- -- No one at Chrysler or General Motors is much interested in saying it on the record, but make no mistake: We would not be getting the 2008 Dodge Challenger or the 2010 Chevrolet Camaro had it not been for the out-of-the-gate success of the retro-styled 2005 Ford Mustang.
In the monkey-see, monkey-will-do-as-soon-as-he-gets-the-board-to-agree world of automobile manufacturing, imitation is the sincerest form of flattery. Ford moved more than 160,000 Mustangs at or above list price in 2005, and even more in 2006. GM and Chrysler executives correctly reasoned that they, too, had "pony cars" from the 1970s they could revive: Why let Ford get all that gravy?
First, though, a quick history lesson for those who just recently started shaving: "Pony car" is the term used to describe that cadre of uniquely Detroit cars from the 1960s and '70s that included the Ford Mustang, Chevrolet Camaro, Dodge Challenger, Pontiac Firebird, Plymouth Barracuda, Mercury Cougar and American Motors Javelin.
Born in an era of 30-cents-a-gallon gasoline, pony cars typically emphasized style over substance, performance over practicality. Perhaps that's one reason we remember them so fondly _ they remind us of when driving was supposed to be fun, not a pricey, often political ordeal.
So when the 2005 Ford Mustang, a faithful re-creation of the 1969 and 1970 Mustang, became a hit, it was only natural for Dodge to figure out how to resuscitate the Challenger, and Chevy to do the same with the Camaro.
Decisions such as these must be made well in advance _ at least three years or longer. In the 1970 business climate, that was not such a big issue.
Now, it is. The problem: Mustang sales are down. Numbers just in from Automotive News show that Ford has sold 34,527 Mustangs in the first four months of 2008, compared to 47,082 in the first four months of 2007.
What's going on? Well, Ford Focus sales have gone from 56,463 the first four months of 2007, to 72,920 that same period this year. The Focus is cheaper than the Mustang and gets better fuel mileage. In an uncertain economy, and with record gas prices, that pretty well tells the tale.
Of course, this is not to say the Mustang is failing. If these numbers hold, Ford will sell more than 138,000 this year, and for a car that is 4 years old, that isn't bad. Of course, Ford is discounting the Mustang to keep it moving, but that's expected, at least until a redesigned Mustang shows up for 2010.
But what does this mean for Dodge and Chevrolet?
Mild to moderate uneasiness, I'd suspect. Serious devotees of the brands _ largely those who owned an original 1971 Challenger or 1969 Camaro, or wish they had _ won't be swayed by the economy or gas prices. But for both cars to be a mainstream success, they must tap into that Mustang market.
Which, suddenly diluted three ways, could get painfully thin.
So far, initial pre-sales of the 2008 Challenger, which is a top-of-the-line, $38,000 SRT8 model only, have been very strong. This fall, the 2009 Challenger lineup will grow to include a V-6 version that will start at about $23,000, and a midlevel performance version with a V-8. That puts the Challenger in direct competition with the Mustang.
The Chevrolet Camaro will finally go on sale in March 2009 as a 2010 model, and Chevrolet has been consciously steering its marketing machine away from billing the car as a performance vehicle, and more as a personal sporty coupe. There will be a powerful V-8 version offered first, followed promptly by a mainstream V-6 model. That 3.6-liter V-6 the Camaro will receive is expected to get 17 mpg city, 25 mpg highway, co
__________________
º¿º
~) 69.5 SuperBee
º¿º
~) 69.5 SuperBee
05-16-2008, 06:49 AM
#2
Senior Member
RE: Ford's success has GM and Chrysler ponying up
I'll give Ford their due, but the PT Cruizer and Prowler were there before the Mustang. Ford had some success with the T-Bird retro before they dove into the Mustang. Also the Mustang never ended production and needed new skin anyways. Why not give it a whirl. But Dodge and Chevrolet had to go to scratch almost to bring their icons back. And the risk run by both is very antsie. Ford did not have to bump up the hp any when they went their retro direction. But Challenger and Camaro have a lot of competition with each other and from Mustang. Now if you want to standout you need the full package. Looks will be key and performance a must. I believe the Challenger will hold as the most retro with Musang a close second. Chevrolet we have yet to see the actual as delivered product. But from the pictures I've seen it will have only a hint of the retro look. But for most Chevy boys all it has to have is Camaro on the side and a good running SBC
Thread
Thread Starter
Forum
Replies
Last Post