Ford’s all-new seventh-generation Mustang.

        Courtesy of Mustang

An all-new Ford Motor Mustang is here. But this is not powered by batteries. However, it is electric.
Ford (ticker: F ) revealed the seventh-generation Mustang at the Detroit Auto Show late Wednesday. The sports car lives up to its brand heritage. That says something. Every new Mustang has a lot to live up to. It’s a 60-year-old American icon. A green machine even had a starring role in ‘Bullitt’, with Steve McQueen behind the wheel. Today, there’s even a battery-powered model, the Mach E, which rolled off showrooms in the tens of thousands following its late 2020 launch. Ford plans to secure this version’s place in the Mustang pantheon by racing it. “We are returning to Le Mans again with this Mustang,” said Ford executive chairman Bill Ford at his company’s launch event. (The film Ford v Ferrari, of course, details Ford’s early Le Mans experience.) The new model is gasoline-powered, equipped with the classic 5-liter V-8 engine that can produce up to 500 horsepower and go from zero to 60 miles per hour in 4 seconds. And for those drivers who like to be in control, or at least feel in control, Ford offers the car with a six-speed manual transmission.
There’s also something for the greener… or gas savers. Ford sells the car with a smaller 2.3-liter turbocharged engine, called the EcoBoost. Turbochargers help deliver more power using less gas. Don’t think this Mustang isn’t high-tech, though, just because of its classic engine and stick-shift option. There are plenty of digital enhancements, from advance driver assistance and customizable driving modes to over-the-air software updates and even a key fob that allows the owner to rev the engine remotely. Now, a few words about the styling of the car. The roofline and tail proportions remind Barron – a little – of a Ferrari (RACE) Roma. The front grille is larger and more sculpted, reminding buyers of Mustangs from days gone by. The 5 liter GT version also gets a hood vent. “Both the EcoBoost and Mustang GT have unique styling cues that deliver on their promise of Mustang Performance,” said Christopher Walter, director of Ford Mustang design, in a statement. Investors can get excited along with car buyers. The Mustang still sells well, but Ford has seen sales for the gas-powered model drop. New style and features will help you step on the gas.
In the US, Ford sold about 52,000 gasoline-powered Mustangs in 2021, up from about 61,000 Mustangs sold in 2020. This year, Ford sold about 33,000 gasoline-powered Mustangs, up from about 38,000 in the same period of the year.
Last year, the automaker saw its sales decline overall. U.S. sales totaled 1.91 million vehicles, up from 2.04 million delivered in 2020. A new Mustang might be a little boost for stocks—and Ford can use all the help it can get. The stock is down about 30% this year. The S&P 500 and Dow Jones Industrial Average are down 17% and 14%, respectively. The loss reflects the legitimate concerns of investors. They’re happy with Ford’s product lineup, but they can’t shake all that comes with hot inflation—especially rising interest rates.
Inflation has the potential to squeeze profit margins through higher costs. And most cars are bought with financing. Higher interest rates threaten new car demand by driving up those monthly car payments. The reality: Ford is still between a rock and a hard place, even with a disgusting new Mustang. Write to Al Root at [email protected]