Business
See other Business Articles
Title: Camaro Outruns Mustang as Lost Sales Put Factory in Doubt
Source:
Bloomberg
URL Source: http://noir.bloomberg.com/apps/news?pid=20601010&sid=aCyb0wBYuKkA
Published: Jun 16, 2011
Author: By Keith Naughton
Post Date: 2011-06-16 16:42:39 by Brian S
Keywords: None
Views: 4164
Comments: 7
June 16 (Bloomberg) -- Ford Motor Co.’s Mustang is falling farther behind the Chevrolet Camaro as the top-selling U.S. sports car, jeopardizing a Michigan factory as designers work to win back the hearts of pony car fans. Ford narrowly lost the crown in 2010 after a 24-year run, and the gap widened this year, with General Motors Co.’s revived Camaro outselling Mustang by 33 percent through May. The 1,700- person plant in Flat Rock has just one shift of workers, and its Japanese partner decided last week to pull out. “The Mustang on its current sales pace isn’t enough to sustain Flat Rock,” said Jeff Schuster, an automotive analyst with researcher J.D. Power & Associates in Troy, Michigan. “The Camaro has a more modern feel and seems to draw more attention from a younger age group.” The second-largest U.S. automaker is working to increase production of V-6 engines while its designers prepare for a new version in 2014 to restore its cachet. GM started selling a convertible version of the Camaro this year and says the Mustang is one of the top trade-ins for the Chevy sports car. “They have a huge, loyal base with the Mustang,” John Fitzpatrick, the Camaro’s marketing manager, said in an interview. “We are starting to chip away at that.” Adding to Mustang’s misery, Mazda Motor Corp. said last week that it plans to pull its Mazda6 model out of the Michigan assembly plant where Ford also makes the sports car. Ford, which owns half of the factory, said it is working with Mazda and the United Auto Workers union to explore options for the “critical” site. Manufacturing ‘Options’ Not sharing the assembly line with Mazda will allow Ford to build more Mustang variations, said Steve Ling, the car’s marketing manager. “The flexibility that that provides is a good thing,” Ling said in a June 14 interview, declining to give specifics on how Mustang production might change after Mazda leaves. “It’s good to have options and that’s what that scenario provides.” Even if Mustang manages to overtake Camaro, Ford will never sell enough of its muscle car to fill up Flat Rock, Schuster said. The factory has the capacity to build 240,000 vehicles a year, Mazda has said. Last year, Ford sold 73,716 Mustangs. “Even with a boost from a redesign, because of what Camaro has achieved, you’re still looking at sales volume for the Mustang below 100,000 a year,” Schuster said. “The bottom line is something at Flat Rock will have to change.” Ford is to introduce a redesigned Mustang in 2014, said Brian Johnson, an analyst with Barclays Capital in Chicago. Popular V-6 This year, Mustang sales have suffered because of a short supply of a new V-6 engine that gets 31 miles per gallon on the highway while generating 305 horsepower, Ling said. The Mustang shares that engine with the F-150 pickup, the centerpiece of Ford’s top-selling truck line. As rising fuel prices have driven up demand for the V-6 engine, Ling said Ford has chosen to apportion more supply to the F-150, among its most profitable models. The V-6 Mustang starts at a list price of $22,310, according to Ford.com. “The V-6 powertrain that’s shared with all of our hot products is really very popular right now,” Jim Farley, Ford’s global marketing chief, said in a June 9 interview. “We have a lower days’ supply on Mustang, but we think that’s the right way to run that business.” The V-6 engine shortage has left Ford with less than 30 days’ supply of Mustangs, half the inventory it had a year ago, Ling said. Ford is now looking for ways to boost production of the V-6, which accounts for 51 percent of Mustang sales, up from 40 percent a year ago, Ling said. “We’re making sure that the truck has enough engines and obviously there is an impact to Mustang,” Ling said. “The dealers feel we could sell more” if Ford had more V-6 engines. Camaro Rolling GM is stepping up the pressure by updating the Camaro next month with a more powerful V-6 engine that gets 30 mpg on the highway, Fitzpatrick said. It also is updating the car’s interior with new features like a smaller steering wheel, he said. Rising gasoline prices and a stalling U.S. economy can’t seem to slow down the Camaro, which went on sale in April 2009 after a seven-year hiatus. Camaro sales are up 4 percent this year, while Mustang is down 3 percent, according to researcher Autodata Corp. of Woodcliff Lake, New Jersey. “The Camaro is highly unusual in a segment that tends to be very fickle,” said Jeremy Anwyl, chief executive officer of auto researcher Edmunds.com. “Normally a sports car that’s really hot fades fast.” Maintaining Interest To keep interest stoked, GM will advertise around the movie sequel “Transformers: Dark of the Moon,” debuting June 29 and again featuring a yellow-and-black Camaro as a crime-fighting robot, Ling said. The Camaro known as “Bumblebee” has been the ride of actor Shia LaBeouf in all three Transformer movies. “The linkage to Transformers has really helped create and build the brand Camaro,” Schuster said, “especially with young people.” Early next year, GM plans to roll out a ZL1 Camaro with a 550-horsepower engine, matching Ford’s Shelby GT500 version of the Mustang that starts at $48,810, according to Edmunds. “It looks like they clearly targeted the GT500,” Ling said. Much is riding on Ford’s 2014 redesign of the Mustang, which Ling declined to describe. By then, Camaro will be five years old and more than a year away from its own restyling in late 2015, Schuster said. “As the Camaro starts to age and the Mustang is redesigned, that will heat up the battle,” Schuster said. “We see the Mustang regaining its No. 1 position when it’s redesigned, but it will be close.”
Post Comment Private Reply Ignore Thread
Top • Page Up • Full Thread • Page Down • Bottom/Latest
#1. To: Brian S, *Gear Heads* (#0)
That's heap big HP for a V-6 and sounds like a dynamite engine for a passenger car. I question it's fitness for a pu,though. These high hp little engines always seem to be lacking in torque,and torque is what a truck needs.
"I adore John McCain, support him 100 percent and will do everything I can to support his reelection. As everyone knows, I was honored and proud to run with him. And Todd and I were with him in D.C. just a week ago." (Sarah Palin,Dec 2009) ************************************ DID Palin say or write these things or not? (Me) I don't know or F ing care. (Mad Dog posted on 2009-12-26 16:36:33 ET,post # 105 http://libertysflame.com/cgi-bin/readart.cgi?ArtNum=5510&Disp=114#C114)
I question it's fitness for a pu,though. These high hp little engines always seem to be lacking in torque,and torque is what a truck needs. I'd give the new engine at least 2 years before considering it but I'm that way with most new automotive 'innovations'.
Never swear "allegiance" to anything other than the 'right to change your mind'!
-- I always thought this was a groovy commercial in '68, though the Cougar that year was cooler looking. I learned to drive in a '68 Vista Cruiser, Which gave me chore duties of driving siblings to where they needed to go. But I bought a derelict 1955 Dodge Custom Royal for $ 50.00. It was mine if I could make it drive itself out of it's open air burial place in a field on a farm near me. It cost me that, the price of a new six volt battery, recap tires and a few other new life support items it needed to go. It has a Hemi Head V8 that said, "Super Red Ram" on the heads. It's amazing I never killed myself in that monster. It was blue and white and had an automatic tranny. I had a Ford Pimple *err* Pinto slide in front of me because of ice and I had no choice but to stay to my left as far as the oncoming car would let me. I took my foot off the gas and kept going. I heard and felt the impact and when I ran back the two women in it were fine. But the Pinto was toast, the cooling fan was hitting asphalt the frame was so bent. My car had a small dent just in front of the front passenger door. Because she was nice and told the cops looking at young very long haired me in a somewhat intimidating manner it was her fault, I gave them a ride to the airport in Boston to catch a flight. I got enough money from her insurance I made a profit on the car. I was back in Connecticut the year before I went into the Army and bought the now derelict once more monster from the people I had sold it too before moving to Oregon. I did some pretty extensive repairs to make it really street worthy, and when I left I sold it to a garage owner looking for a hobby car to keep his son out of trouble. I will visit her when I go back East this Summer. It still lives. Of course I am going to ask to drive it. Just thought you'd find my 'save the bomb' story from my youth.
That sounds like it may have been a D-500 Dodge. If it was,it is a rare early Mopar muscle car. I've seen lots of Red Rams,but no Super Red Rams.
"I adore John McCain, support him 100 percent and will do everything I can to support his reelection. As everyone knows, I was honored and proud to run with him. And Todd and I were with him in D.C. just a week ago." (Sarah Palin,Dec 2009) ************************************ DID Palin say or write these things or not? (Me) I don't know or F ing care. (Mad Dog posted on 2009-12-26 16:36:33 ET,post # 105 http://libertysflame.com/cgi-bin/readart.cgi?ArtNum=5510&Disp=114#C114)
Well, the people who have it now know more about these car then me, and the old guy nearly burst a blood vessel when he first examined it. In retrospect I know I could of negotiated a better price, but back then was a time before the Army and as a very counterculture type I wasn't so concerned about that. I knew selling it to a guy in a New Have clique into these sort of cars if he wanted it was the best thing to do for the car. It is no longer stock looking, but it is very classy looking. The engine is the same, but it's re-wired for 12 volt, has a different sort of carburetor and the power flute automatic transmission has been replaced by a standard shifting one with when installed old new stock Hurst linkage. Honestly, I was just a dumb kid that felt sorry for the car sitting there so dejected looking and dirty. I passed up a gift of an Olds Dynamic 88 (1866) that was the fairly car before the Vista Cruiser. I felt the Dodge needed me more. Maybe it was that Karma that has given the vehicle a longer life then it would of had. The guy that owned it was going to have it taken by a bone yard. All in all my Mom thought I was crazy to do what I did by buying what she nicknamed 'Mike's Bomb,' but I feel good when I see it. If it got wrecked it would be a sad day for me.
I got that huge, heavy vehicle with that inefficient transmission and six volt electric system and an engine with over 160,000 miles on it before the odometer no longer worked up to 116 MPH on the Hammonasset Connector in Madison, Connecticut once. That's why I say I'm surprised I didn't kill myself in that thing. When I got near the end of the connect ore by the red light I had the brakes fade real bad and I, well, let's say my going through the intersection wasn't exactly legal. The things we do at age 21-22.
This is a beautiful survivor car. Equipped with the 270 CI Super Red Ram Hemi two speed PowerFlite automatic transmission with dash mounted shifter, power steering, power brakes, AM radio, reverse lights, custom flipper wheel covers, dual exhaust. Tri-toned paint: Heather Rose, Black, Sapphire White. This 2 door hardtop coupe is a rare survivor find! Different colors, but here is a close copy of my first car. http://www.vintagecarsandsuch.com/55DodgeRoyalL.htm
This year, Mustang sales have suffered because of a short supply of a new V-6 engine that gets 31 miles per gallon on the highway while generating 305 horsepower, Ling said. The Mustang shares that engine with the F-150 pickup, the centerpiece of Ford’s top-selling truck line.
#2. To: sneakypete (#1)
That's heap big HP for a V-6 and sounds like a dynamite engine for a passenger car.
#3. To: sneakypete (#1)
#4. To: Ferret Mike (#3)
#5. To: sneakypete (#4)
#6. To: sneakypete (#4)
#7. To: sneakypete (#4)
(Edited)
1955 Dodge Custom Royal Lancer
Top • Page Up • Full Thread • Page Down • Bottom/Latest
[Home] [Headlines] [Latest Articles] [Latest Comments] [Post] [Mail] [Sign-in] [Setup] [Help] [Register]