Passage DETROIT – Ford Motor CEO Jim Farley was in his element Wednesday night, surrounded by gearheads and the automaker’s new 2024 Mustang models, including a new surprise high-performance edition called the “Dark Horse.” There was no mention of electric vehicles or sustainability at the unveiling for the Detroit auto show. Just the engines revving and the tires screeching, to the applause of the hundreds of Mustang owners in attendance.

Brad Gerstner of Altimeter Capital reveals a new stake in Tesla The scene unfolded in stark contrast to other recent events for Farley and Ford, which have touted electrification and green goals. That’s because despite the transition to electric vehicles, the Mustang is sticking with gas engines for the seventh-generation vehicle in 2024. That may come as a surprise, given Ford’s plans to invest $50 billion in new electric vehicles over the next few years, as well as expected plans for the Dodge Challenger and Chevrolet Camaro — the Mustang’s biggest rivals — to go electric. So why did Ford stick with gas engines for the new vehicle? Farley said, essentially, because he could… and because it makes good business sense for the foreseeable future.

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The Ford Mustang could be in a class by itself in the coming years, forcing those still hungry for an American muscle car coupe to come to the brand. This includes customers outside the US, who account for about 20% of Mustang sales. “People are leaving the segment, like Dodge, so we have an opportunity to really introduce something new for the Mustang,” Farley said after the 2024 Mustang debuted. “That’s going to give us a big advantage because a lot of people still love this kind of car.” 2024 Ford Mustang Dark Horse Source: Ford While the American muscle car segment has declined from what it once was, there is still demand for the vehicles, which can also attract attention and new customers for their respective brands. As Ford invests in electric cars, Farley says the automaker will continue to invest in its traditional business. It’s part of the CEO’s new plan to boost sales in its traditional businesses, EVs and commercial vehicles. Farley and Ford president Bill Ford declined to say whether the seventh-generation Mustang is expected to be the last version of the gas-powered car. “If people don’t want them anymore, it will go away, but I personally think people will want this vehicle for quite some time,” Ford said, adding “that day will come with tears in my eyes.”

Mach-E

Farley said a big reason Ford is continuing with gas-powered Mustangs is, ironically, the success of the Mustang Mach-E, an all-electric crossover that debuted in late 2020 and in in fact it has outsold the gas version during some months. The Mach-E, which shares little if anything with the gas-powered Mustang except for a name, has led Ford to become the nation’s second-best-selling electric vehicle brand. That EV success has given the automaker more flexibility to move forward with gas-powered models, compared to rival automakers that have to chase electric vehicle sales and regulatory emissions credits awarded for them. Automakers are required to have a certain amount of regulatory credits each year. If a company can’t meet the target, it can buy the credits from other companies, such as Tesla, that have extra credits. “The Mustang Mach-E, in a way, that was created allowed this car to happen,” Farley said. “Competitors are buying emissions credits and they can’t get away with this type of vehicle.” U.S. President Joe Biden stands next to a Ford Mustang Mach-E SUV (electric) during a visit to the Detroit Auto Show to highlight electric vehicle manufacturing in America, in Detroit, Michigan, September 14, 2022. Kevin Lamarque | Reuters Dodge said such emissions regulations are among the reasons it is ending production of the gas-powered Charger and Challenger late next year. Chevrolet is expected to end production of the gas-powered Chevy Camaro in the coming years as part of General Motors’ plans to offer all-electric vehicles by 2035. A spokesman for Dodge, a division of Stellantis, said in announcing the electric muscle cars the company is “celebrating the end of an era – and the start of a bright new electrified future.” A Chevrolet spokesman said the company does not comment on future production, but added: “The Camaro continues to play an important role in Chevrolet’s performance car lineup and remains a vehicle in high demand that our customers love.” Ford’s biggest crosstown rival, GM, which is in the process of exiting its gas-powered products, aims to better compete with EV sales leader Tesla. Farley, meanwhile, said he wants to grow his traditional business through “opinion-driven products” that get conversation and attention like the 2024 Mustang, including the new “Dark Horse” variant. “I had a shirt at the dealer show that said ‘Ford vs. Everyone.’ That’s our attitude,” Farley said. “We want to be a dark horse. We are a dark horse against Tesla in the EV business. We want to bring a new game.”