Opportunity Arises for Ford Mustang as Rivals Shift Away from V8 Engines
The Ford Mustang, an iconic American muscle car, is set to benefit from the shifting landscape of its competitors. With General Motors discontinuing the Chevrolet Camaro and Stellantis ending production of the Dodge Challenger V8, Ford sees an opportunity to grow Mustang sales as the last American muscle car with a traditional V8 engine.
The decision by other automakers to move away from V8 engines is driven by changing consumer demand, tightening fuel economy standards, and the rise of all-electric vehicles. However, Ford believes that there is still a market for a true American sports car like the Mustang, catering to generations of gearheads who are drawn to the performance and power of V8 engines.
According to Jeff Marentic, general manager of Ford Blue products, which includes the Mustang, the pony car remains good business for the automaker both domestically and internationally. He expressed excitement about continuing to offer the Mustang and stated that the departure of competition is beneficial for Ford. Marentic emphasized that for those looking for a true American sports car, the Mustang is available to them.
Ford has invested in making its Mustang V8 models more efficient and has also introduced smaller, turbocharged four-cylinder engines that now make up about 48% of Mustang sales in the U.S. The company has also expanded its Mustang lineup with the addition of the Dark Horse model, powered by a 5.0-liter V8 engine generating up to 500 horsepower. Furthermore, Ford plans to introduce a supercharged 5.2-liter V8 engine with more than 800 horsepower in the 2025 Mustang GTD.
While Ford recognizes the importance of environmental concerns and offers the all-electric Mustang Mach-E crossover, Marentic stressed the pride in their V8 engines. He mentioned that V8 models account for a majority of Mustang sales in Europe and help define Ford’s identity outside of the United States.
The seventh-generation Mustang, which was revealed in September, has started shipping internationally and will be sold in 85 markets on every continent except Antarctica. Non-U.S. sales have been instrumental in keeping the Mustang in production despite declining domestic demand for two-door sports cars. The Mustang has seen a decline in U.S. sales from a peak of over 122,000 units in 2015 to fewer than 49,000 units in 2023. However, internationally, Ford has registered over 235,000 Mustangs since 2015, with top markets outside the U.S. being Canada, Australia, and Europe.
The strong appeal of the Mustang is undeniable, with people relating strongly to the brand and its heritage. Marentic emphasized the pull of the Mustang, indicating the deep connection that enthusiasts have with the iconic car.
Looking ahead, Ford has not disclosed specific future plans for the Mustang, including a rumored hybrid version for the seventh-generation car or the potential for an all-electric Mustang. However, with its continued commitment to the Mustang and the opportunity created by rivals shifting away from V8 engines, Ford remains optimistic about the future of its iconic muscle car.
