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2015+ Shelby GT350 Mustang
GT500 Will Kill GT350 Prices, No?
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<blockquote data-quote="ANGREY" data-source="post: 15801914" data-attributes="member: 188865"><p>I'm in the minority that thinks Ford will not do this.</p><p></p><p>Ford already has an icon car and Ford is not a boutique manufacturer. There are plenty of healthy niche manufacturers (Roush, Shelby, Hennessey, etc) that specialize in low production, high margin sales.</p><p></p><p>you don't have to have an MBA with a focus in marketing to know that profits = sales numbers times margin.</p><p></p><p>If you're going to sell a low number of something, you'd better have a really high margin. Conversely, if you're going to have a low margin on something, you'd better sell a lot. Nothing earth shattering here.</p><p></p><p>There are companies that make money and employ lots of people by selling a couple of yachts a year. Conversely, there are companies that simply sell thousands and millions of orders of low cost, low margin products.</p><p></p><p>I don't think Ford is going to put the cost of the 500 up in the realm of MANY other competitors and try to sell just a few. Maybe, I guess one could argue that their development and tooling costs are reduced in that they have a majority of the components already established (brakes and wheels and such from the 350 development, 10 speed auto from the JV with GM, TVS from previous developments, etc). So if the 500 is simply a new combination of already established/invested components, their production costs will be lower. (but that just lends itself to a lower price, to chase more sales).</p><p></p><p>I guess what I'm saying is that is it better to sell a zillion mustang GT's at a quarter of the margins or to sell a handful of 500s at a few times the margin (at most)?</p><p></p><p>I happen to think that the 500 will be square in the price range of the R. I just can't see Ford selling a lot of 500's for MSRP's North of $90k. There's too much competition from a whole host of other manufacturers and offerings and at the end of the day, you can't totally rewrite the public perception of "mustang" which is what you just eluded to. There's not a large segment of the US or foreign sales market that can afford a $90k car and even less that will drop cash on a mustang at that price. Granted there are die hard Ford nuts and mustang enthusiasts, but the more you zero in on these niche markets, the more the numbers dwindle of your potential consumers.</p><p></p><p>It's a neat thought and interesting discussion, but only time will tell.</p></blockquote><p></p>
[QUOTE="ANGREY, post: 15801914, member: 188865"] I'm in the minority that thinks Ford will not do this. Ford already has an icon car and Ford is not a boutique manufacturer. There are plenty of healthy niche manufacturers (Roush, Shelby, Hennessey, etc) that specialize in low production, high margin sales. you don't have to have an MBA with a focus in marketing to know that profits = sales numbers times margin. If you're going to sell a low number of something, you'd better have a really high margin. Conversely, if you're going to have a low margin on something, you'd better sell a lot. Nothing earth shattering here. There are companies that make money and employ lots of people by selling a couple of yachts a year. Conversely, there are companies that simply sell thousands and millions of orders of low cost, low margin products. I don't think Ford is going to put the cost of the 500 up in the realm of MANY other competitors and try to sell just a few. Maybe, I guess one could argue that their development and tooling costs are reduced in that they have a majority of the components already established (brakes and wheels and such from the 350 development, 10 speed auto from the JV with GM, TVS from previous developments, etc). So if the 500 is simply a new combination of already established/invested components, their production costs will be lower. (but that just lends itself to a lower price, to chase more sales). I guess what I'm saying is that is it better to sell a zillion mustang GT's at a quarter of the margins or to sell a handful of 500s at a few times the margin (at most)? I happen to think that the 500 will be square in the price range of the R. I just can't see Ford selling a lot of 500's for MSRP's North of $90k. There's too much competition from a whole host of other manufacturers and offerings and at the end of the day, you can't totally rewrite the public perception of "mustang" which is what you just eluded to. There's not a large segment of the US or foreign sales market that can afford a $90k car and even less that will drop cash on a mustang at that price. Granted there are die hard Ford nuts and mustang enthusiasts, but the more you zero in on these niche markets, the more the numbers dwindle of your potential consumers. It's a neat thought and interesting discussion, but only time will tell. [/QUOTE]
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GT500 Will Kill GT350 Prices, No?
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