Mustang Production Halts As Sales Drop In Favor Of Camaro
Falling demand for sixth generation Mustangs has led to rising inventory not selling fast enough. Industry analysts offer 60 days as a healthy rollover rate for a manufacturer’s inventory. Right now the latest Mustangs are nearly 150% of that with an 89 day turn rate.
Month over month had September 2016 sales down 32% as the falling sales continue. As a result of this trail off, their year over year is seeing a 9.3% dip in overall sales. The same time frame in 2015 outsold the current year to date which sits at 87,258 units after Q3.
The scale back is meant to find the demand quantity and get production on track with it. The Mustang is still the top American muscle car in terms of sales to this point in the year. That said, in September, the Camaro took over the top slot in that market segment.
Will Ford find the balance and get the Mustang into a space where it will have a healthy bounce back? That may be difficult with the number of sales incentives that have been placed on the Camaro recently.
In conclusion, all other muscle cars may now be hard pressed to compete without cutting into their own bottom lines. Camaro and Mustang sales have gone back and forth but overall the Mustang has almost always come out on top. For their own Sake, Ford should be looking hard at the market and what is working in order to adapt and succeed.
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