In response to disappointing sales of the new-for-2016 Chevrolet Camaro, Common Motors revealed last week that it will cut prices of the 2017 model.
Although there are a lot of 2017 Camaros already obtainable — all of which will benefit from the newly lowered price — the situation facing GM’s U.S. dealers now pertains to the quantity of 2016 Camaros on dealer lots. Of the roughly 27,000 Chevrolet Camaros in stock at dealers across America, according to Automobiles.com, 40 percent are MY2016s, the appeal for which decreases swiftly as much more MY2017s turn into obtainable.
This ballooning Camaro inventory, a 139-day supply heading into September 2016, was caused by a sharp lower in Camaro demand with the launch of the all-new sixth-generation model, a subject we’ve explored often in the previous. By way of the first eight months of 2016, U.S. sales of the Chevrolet Camaro are down 15 percent.
But sales of the Camaro’s chief rival, the wildly far more well-liked Ford Mustang, are falling, as effectively. Dodge Challenger sales are sliding, too.
From Ford to Chevrolet, however, there have been huge differences in expectations for calendar year 2016. Although the Camaro is the new muscle car on the block, the Mustang is a year-old vehicle which benefited from pent-up demand a single year ago. The year-more than-year comparison that reveals a 7-percent, five,940-unit Mustang loss comes soon after Mustang sales spiked in 2015.
“Mustang buyers know it is coming and they wait for the new car,” Ford sales analyst Erich Merkle stated of the launch of the sixth-generation Ford pony auto. As a outcome, Mustang sales rose to an eight-year higher in calendar year 2015, surging 48 percent compared with 2014.
We’ve observed the identical kind of surge in the previous, when the significantly re-engineered fifth-generation Mustang developed a 24-% jump in 2005 and continued to climb in 2006, free of charge from rivals. Then, whilst remaining popular by the standards of sports vehicles, Mustang sales tailed off sharply in following years.
Mustang volume is tailing off, but not sharply, and not unsurprisingly. Following all, there’s a new version of a lengthy-time rival accessible in competing showrooms.
Globally, meanwhile, Mustang sales are stronger than they’ve ever been, with an emphasis on foreign markets and even right-hand-drive markets that just before did not exist.
TTAC asked Ford’s Merkle if that worldwide emphasis is by any likelihood accountable for the U.S. downturn. No, there are enough Mustangs to go about in the United States.
“We’re usually going to look to match production to demand,” Merkle says. And U.S. demand in 2016 is basically not as strong as it was at this stage of 2015.
In August, especially, Mustang volume plunged 17 percent to eight,299 units as Ford passenger auto sales tumbled by much more than a quarter. Chevrolet Camaro sales had been down by a tenth to 5,604 units. Regardless of an 5-% August uptick, Dodge Challenger sales, at five,262 units, had been slightly less several than Camaro sales. August was the 1st month since April that the Chevrolet Camaro managed to outsell the Dodge Challenger.
Year-to-date, the Ford Mustang is America’s 16th-very best-selling auto. The Camaro ranks 26th the Challenger 30th. Combined, the trio sells slightly more often than the Nissan Sentra, not as often as the Ford Fusion.
Timothy Cain is the founder of GoodCarBadCar.net, which obsesses over the cost-free and frequent publication of U.S. and Canadian auto sales figures. Stick to on Twitter @goodcarbadcar and on Facebook.