Mustang Grazing?

Ford Motor Co.'s revived pony car eventually could find itself grazing in international pastures.

The Mustang, experiencing strong demand following the '05 redesign, has plenty of fans overseas and, should the market eventually soften for the car, certain global destinations could be on tap for export, Phil Martens, group vice president-product creation, tells Ward's in an interview.

The company recently increased Mustang output to the maximum 192,000 units annually at its AutoAlliance International Inc. joint venture with Mazda Motor Corp. in Flat Rock, MI. Inventory as of Feb. 28 sat at a 42 days' supply vs. 127 in like-2004, and the auto maker is enjoying a richer-than-expected sales mix, with 40% going to the top-of-the-line GT V-8, a spokesman says.

Maximizing Mustang capacity today won't weaken the long-term demand for the niche product, Martens says.

“There is tremendous global demand for (the Mustang),” Martens says. “I think the Mustang for us has the potential in limited ways to be a global product…were the market to shift. Clearly we haven't done any formal studies, because the (current) demand is so strong.”

Whether demand will remain high enough in the U.S. and Canada, alone, to hold down rebates and keep inventories in check is unclear, but history suggests Ford might have a bit of a battle on its hands, especially at current output levels.

Between the launch of a significantly redesigned Mustang in 1994 and 2004, Mustang deliveries have averaged 145,250 annually in the U.S. and volume has eclipsed the 160,000 mark only three times during that period. In 2004, sales of 129,858 hit the lowest point since 1997.