FORD TO INCREASE MUSTANG
PRODUCTION TO MEET RUNAWAY CONSUMER DEMAND
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Ford will increase Mustang
production to 192,000 in 2005 – 80,000 more than in 2004
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2005 Mustang is the
hottest-selling car in the industry
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Nearly one out of every two
sports cars sold in U.S. is a Mustang
DEARBORN, Mich., March 17, 2005 –
What’s an auto company to do when demand for a hot model exceeds supply?
Give the customers what they want.
Ford today announced that it will
take production of the hot new Mustang to more than 192,000 units in 2005
– an increase of more than 70 percent, or 80,000 units, from the previous
year.
"Ford Mustang is the hottest car in
the industry, and its performance on the street and in the showrooms is
beating everyone’s expectations," says Steve Lyons, Ford Division
president. "Sales are up more than 45 percent over last year, and V-8 GT
and convertible model demand is so strong that we haven’t been able to
build enough.
We’re planning to increase
production well beyond what was initially planned. This will allow us to
sell 160,000 – 165,000 Mustangs in the U.S. this year."
Sales and Share Gains
Since its launch in the fall of
2004, the new model Mustang has been an instant sensation with new car
buyers. Sales of the 2005 model, coupled with the sell-down of the prior
model, have sent overall Mustang sales to record levels every month since
launch.
The higher-end Mustang GT V-8
models are in short supply, and the much anticipated new convertible model
is just beginning to arrive at dealerships in time for spring.
Traditionally, May and June are the hottest selling months for convertible
models.
In the key U.S. market, overall
Mustang sales are up more than 45 percent on a retail basis over last
year, a feat accomplished without the support of the convertible model,
which traditionally accounts for one-third of overall Mustang volume.
Based on the current sales trajectory, Ford expects to sell about 160,000
– 165,000 Mustangs in the U.S. for the 2005 calendar year. In Canada,
where Mustang was named 2005 Canadian Car of the Year, sales continue
their triple-digit month-after-month rise, topping records set more than a
decade ago.
Increasing sales gains have also
been accompanied by share gains. Since the 2005 launch, Mustang has
garnered 44 percent of the small specialty segment, featuring sports
coupes such as the Pontiac GTO, Nissan 350Z, Chrysler Sebring and Hyundai
Tiburon among others.
Historical Anecdotes
Red-hot sales and resulting
production increases of a new Mustang are not unprecedented. When Mustang
was first introduced in April 1964, Ford had only expected to sell 100,000
the first year. But dealers took 22,000 orders the first day. Ford shifted
production mid-year and Mustang went on to sell 618,812.
Mustang fever spread from showrooms
to car-hops and Mustang legend spread through barbershops, diners and
service stations on "Main Street USA" as Mustang became a part of
Americana:
A Ford dealer in Chicago locked the
doors of Mustangs in his showroom because he feared for the safety of
people trying to crowd into them.
In Garland, Texas, 15 customers bid
on the same car and the successful bidder insisted on sleeping overnight
in the car until his check cleared the bank in the morning.
In Pittsburgh, a restaurant
advertised "Our hotcakes sell like Mustangs."
Parents purchased 93,000 Mustang
toy pedal cars during the 1964 Christmas season at a price of $12.95.
Today, restored Mustang pedal cars are extremely popular with collectors
and some sell for more than $1,000, nearly 100 times the original price.
Nearly 500 Mustang clubs formed in
the first two-and-a-half years of the car’s production.
More than 8 million Mustangs have
been sold in the 41 years since its introduction. The 1 millionth Mustang
was sold by March 1966. |