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Poor Sales halt Mustang/Continental Production


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Ford has idled production at FlatRock due to poor sales of the Mustang, Continental also idled. Production expected to resume Oct 17th.

 

If you remember from last month, Mustang sales dropped 32% and was outsold by Camaro.

Edited by BORG
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There's a little more to it than that

 

There's a backlog of Continentals waiting to be repaired before they can ship them out.

 

 

But there is nobody at the factory repairing them while idled.

 

This is pretty normal for Lincoln launches.

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The article at the Detroit News site http://www.detroitnews.com/story/business/autos/ford/2016/10/10/ford-halts-mustang-production-amid-slower-sales/91875710/ also goes on to say that incentives on the Mustang were about $2,700 last month. I'd like to know where the $2,700 figure came from because the average rebate on a 2017 Mustang has only been $250 in the New York Region!

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The article at the Detroit News site http://www.detroitnews.com/story/business/autos/ford/2016/10/10/ford-halts-mustang-production-amid-slower-sales/91875710/ also goes on to say that incentives on the Mustang were about $2,700 last month. I'd like to know where the $2,700 figure came from because the average rebate on a 2017 Mustang has only been $250 in the New York Region!

 

If that! Last time I used the build and price...there was no incentives in my area (NJ)

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The article at the Detroit News site http://www.detroitnews.com/story/business/autos/ford/2016/10/10/ford-halts-mustang-production-amid-slower-sales/91875710/ also goes on to say that incentives on the Mustang were about $2,700 last month. I'd like to know where the $2,700 figure came from because the average rebate on a 2017 Mustang has only been $250 in the New York Region!

 

Really makes you wonder how they calculate avg incentives. I know a lot of it comes from subsidized leases where you don't see the incentives but I still find that hard to believe.

 

Some of it also comes from 0% financing.

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GM and Ford are roughly equal on incentive spending, both of them are very high because of Trucks. GM ATPs are higher however so that may mean Ford is spending more per dollar, but ultimately it comes down to the margins on each vehicle and how much their spending effects those. Ford is likely a more margin-rich company since a larger percentage of the business is in Truck and commercial.

Edited by BORG
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Really makes you wonder how they calculate avg incentives. I know a lot of it comes from subsidized leases where you don't see the incentives but I still find that hard to believe.

 

Some of it also comes from 0% financing.

 

You have to wonder if they're assuming that everyone qualifies for 0% financing as well--

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Unless you're in California, the desert southwest or below the Mason-Dixon line, wouldn't you expect Mustang sale to drop off right before winter?

Yes, that is somewhat expected, it happens every year and is usually planned for on the company's end. The last 2 years have been a bit of an exception since the 2015 redesign though.

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There are a lot of incentives at the local/regional level that don't show up on ford.com. Best bet is to either check a local dealer who is advertising all the applicable rebates or have them price out a specific vehicle for you to see exactly what you qualify for.

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There are a lot of incentives at the local/regional level that don't show up on ford.com. Best bet is to either check a local dealer who is advertising all the applicable rebates or have them price out a specific vehicle for you to see exactly what you qualify for.

 

 

I went to a local Ford dealer site and they are offering $250 or $750 bucks off...or a horrible 5.9% interest on a 84(!) month loan on the Ecoboost and V6 Mustangs they have (no GT's)

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I went to a local Ford dealer site and they are offering $250 or $750 bucks off...or a horrible 5.9% interest on a 84(!) month loan on the Ecoboost and V6 Mustangs they have (no GT's)

 

 

It's $750 off plus 0% for 36 months on the 2016s - about $2K off msrp with dealer discount. $250 rebate on a 2017.

 

Meanwhile 2016 Camaros are $6K - $9K off MSRP. Appears to be $750 rebate on the 2017s.

 

Gee - no wonder they outsold mustang last month. Hard to beat a $4K-$7K price difference.

 

Gee - I can't imaging why Camaro outsold them last month.

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