Ford News: Ford Pauses Mustang Production Amid Sales Slump

[William Maley]

The Ford Mustang has been riding a wave of sales success, beating the Camaro in the total sales for the year - 87,258 vs. 54,535. But this past month, the Mustang saw a steep decline in sales (32 percent) and was beaten by the Camaro. Because of this, Ford has put Mustang production on idle for a week.

The Detroit News reports that Ford has idled their Flat Rock, MI plant for a week. Ford Spokeswoman Kelli Felker said this was to match production with demand. At the end of September, the supply of Mustangs stood at 89 days. Analysts say a 60 day supply is a healthy target - something the Mustang is somewhat close to.

But why did the Mustang see a steep drop in sales? The answer might lie in incentives. In September, Ford was offering $2,700 in incentives for the Mustang - down $300 when compared to August. Meanwhile, incentives on the Camaro tripled from $1,100 in August to just over $3,300 in September. It should be noted that Chevrolet has a glut of Camaros. At the end of September, dealers were sitting on a 120-day supply in Camaros. 

Update: As some our members have pointed out, the more likely cause to this Ford's reduction in fleet sales.

"Fleet sales of 42,120 vehicles, including daily rental, commercial and government segments, were down 21 percent, consistent with the company’s plan to front-load fleet sales this year. Sales to daily rental companies declined 36 percent for the month," Ford said in their September sales press release.

Source: The Detroit News

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