Ford kills SVT unit

2007 Shelby Cobra Mustang to be performance division's swan song

Source: Autoblog

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Too bad, but inevitable. There's no way Ford could continue to justify SVT, considering current market and Corporate fiscal conditions.

Reply to
Backyard Mechanic
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So what does this mean? One model year of GT500?

It clearly means that they are going to filter them out one per dealer or so. Which means significant price mark ups by itself, but with SVT going away even more. If there is only one model year of GT500 the mark ups will be incredible. It's as if ford is trying hard not to sell cars.

Reply to
Brent P

I dont think that necessarily follows.

Unless Ford LOSES money on each one - which COULD be the case, if the MBS's so desire- then the more they sell, the better for the bottom line. It aint the production costs, it's the design and tooling.

And remember the significance of these specialties against the corporate sales/bottom line.

What it DOES mean is that a smart aftermarket guy like Saleen, or even Shelby who isnt that smart, can really make some money from this... if he can hire away -or part time- one or more of the skunkworks designers. What Saleen DOESNT do, in my opinion, is give a design that really integrates into the original appearance flow.. eg should look less like 'bolt-on'

Reply to
Backyard Mechanic

I just wonder if this really only means the SVT as its organized now will not exist. Whats the chance that the specialty cars will be brought fully under the umbrela of the parent program, i.e. Mustang, or Fusion or whatever. I guess I'm hoping for the best in what appears to be a bad deal on the surface. SVT has no doubt made money for Ford (they kept it alive for this long) but I suppose in these dire times its about putting the resources where they get the best return. At least I have my 96 model. Can't afford a 2007. Kinda sad if this is all turns out to be true.

Reply to
HerkyJerky

Which is why I find it bogglesome that Ford continually chooses 'collectable' over production when it's the dealer that profits the most. Who the hell knows what will be collectable in 30 years, turn the crank and pay off the tooling.

Reply to
Brent P

The eternal optimist in me hopes that the April 1st date has meaning.

dwight

Reply to
dwight

They could market it via the regular division, just an upmarket model. Why do they even need a separate division? Cachet?

Reply to
rander3127

I don't know how THAT could be. Every time they issue a Cobra, the next model of GT just whomps it's ass for a lot less money. Maybe it will go the way of the Camaor "We're never making another one!! Well, not until next time"

Kate

Reply to
KJ.Kate

Unless you've got big $$$, a lot of time, and a very good eye for the market, the "collectible car" business is going to be a constant financial drain on the casual buyer. Cars are a depreciating asset. With very few exceptions (unless you have all those items above), you'll never recoup the investment and will likely never make a dent in the relentless march of depreciation on the vehicle. That's what makes Ford's bumbling strategy of limited production so maddening for the everyday enthusiast (you know, the people that actually help keep them in business). Unless you are buying a GT or a Shelby to put under wraps for 20 years and then sell it at a profit (you'd probably do a lot better by just buying a $50k bank CD), you're going to throw 5 figures down the toilet. If you're buying it to actually drive it, then you just need to resign yourself to this fact.

It makes a lot more sense to buy a cheaper Mustang GT, spend a few grand on a supercharger and whatever other performance goodies you like, then just "drive it like you stole it" and not worry about taking a home mortgage out to buy a playtoy...unless, of course, you can afford to flush that $$$. In that case, you're simply buying what you want without worrying about those pesky financial details. In that case, I'd recommend a nice Ferrari. 8-)

Cheers,

Reply to
Ritz

While it does seem strange in the days of multiple specialty groups within/out various automakers, SRT, AMG, M-Series, and so forth we have to remember that Ford is bleeding blue arterial blood right now.

It just doesn't seem to make any sense that after doing all the tooling up for the GT500 that they would shut the production line down after just one model year run. I can see (though not understand) shutting down any future Soups-2-Nuts designs out of SVT, but killing their latest creation without even knowing what the sales figures are seems like really piss poor management to me. Unless of course Bill Fords retirement portfolio contains one of each SVT model in shrink wrap and he wants to maximize the collector value of this latest product.

Reply to
Zombywoof

Yeah I was just going to modify my '97 GT. Well, it's still almost stock. See, I was driving it, so I couldn't have the downtime or the nagging problems and fixes that come with modification.

I just don't want to mess with it. By the time the GT has a super charger and suspension mods and brakes it's going to be over 30 grand anyway. Throw in the other bits here and there that get upgraded and the difference between building the mustang GT up and GT500 MSRP is going be what? 5 grand or so? Maybe less... Don't install the mods yourself and there's no savings at all. I've got too many other projects demanding my time than to spend all that effort to risk the reliability and damaging other parts of a new car in the trial and error of the process.

Ford should just build the GT500 to demand, I don't care if it's worth something in 30 years or not. I'll take good care of it like I have my GT and if it's a collectable car, great. If not, so what, it's not like I was going to sell it anyway if I've had it that long.

Reply to
Brent P

Isn't this exactly what happened to the SVO group from the '80's?? Came back around as SVT. What'll be next?

Reply to
Blue Mesteno

Camaor - oh good God in heaven was that a bad one. Almost as bad as Camero

C_A_M_A_R_O damnit!

Reply to
KJ.Kate

Well ya know what they say about depreciating assets. If it floats, flys or F**ks, lease it.

Reply to
Zombywoof

They won't lose anymore money. After the development of the model, They would make money on each car they sell. The more they sell, the sooner the investment will be recouped. GM and Ford are in big trouble, and niche cars like the svt models are the first one to get axed since it isn't high volume and they won't make substantial amounts of money on it. My guess it that they will sell the shelby for a couple years to at least recover some of the investment. As long as the pure production/warranty cost does not exceed the asking price they should sell it. I think they make enough on it.

Yup, Saleen, roush etc, will get more business for sure.

Reply to
RT

It's not about making money. You can't make (a lot) of money on low volume cars like the svt models. It's a billboard with indirect results. You have to remember, car manufacturers make money on mass volume.

yup

Reply to
RT

It's called progress.

I'm sure we'll see another one in the future.

Reply to
RT

Do you have proof that Ford is in trouble ? I have proof that it is not currently in trouble:

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Ford has been profitable for the last 3 years. Not very profitable, but a little profitable is a whole lot better than losing money.

I fully expect Ford to get even better when the UAW contract gets renegotiated next year when GM is in bankruptcy. In fact, I would not be surprised to see the UAW walk off the job for six to twelve months. I fully expect Ford, GM and Chrysler to convert their retirement plans into 401Ks and drop retiree health benefits.

Lynn

Reply to
Lynn McGuire

True. It has been profitable on a worldwide basis. However, when you look at the automotive sector alone, they have lost money the last three years at least. In 2005 the loss was nearly $4 Billion (before tax effects). Lost nearly $2 Billion in 2003. North American operations and the Premium Auto Group account for a lot of that.

Reply to
HerkyJerky

...

The typical Union guy is afraid of the 401, while most white collar corps converted to them starting 20 years ago. and they perform FAR better than the pension funds.

Of course, you have to actually DO something to manage them.

But it's the same guy who howls against any change in the Social Security.

Reply to
Backyard Mechanic

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