Last year was a strange one in the car market, with certain segments exploding and others faltering. Supply chains, though more robust than during the pandemic, still caused all sorts of problems for automakers. One of the unanticipated outcomes from all of this distortion was that the EV Mustang Mach-E outsold the regular, gas-powered Mustang for the first time ever over a full year.
Is this the rise of the EV Mustang and the death of the ICE-powered Mustang? Not quite. It’s a little more complicated and interesting than all that. For all the excitement over hybrids, there are still pockets of growth for EV automakers. In particular, the strength of its EVs helped propel Volvo to its best year ever and close to its goal of selling 800,000 cars globally. This will also benefit Volvo as it takes in money from automakers facing carbon-related credits.
Volvo won’t benefit as much as Tesla, which could make more than $1 billion from European carmakers desperate to avoid EU fines. Does this mean there’s good money in electric cars? Not for everyone, which is why Honda is at least considering slowing down its EV investments a bit until it’s all sorted.
Long Live All Mustangs
I’m just going to say it: I love Mustangs. I don’t really believe in objectivity in journalism as much as I believe in transparency and I am transparently a Mustang guy. If I were building a cheap, fun track car I know that a 1LE last-gen Camaro is the smart choice. I also know I’d still probably go with the Mustang. Because of my age, I’m torn between an early ’90s police-spec SSP Mustang or a pre-New Edge 1994 or 1995 Cobra with the 5.0-liter V8 as my ultimate pony car.
Nostalgia aside, I’d be extremely pleased to own a new Mustang as well.
I’m not alone! People in America seem to love Mustangs, but right now they’re buying more of the electric variety, with the Mach-E crossover reaching 51,745, an increase of 27% year-over-year. At the same time, the gas-powered Mustang dropped 9.5% to just 44,003, which is a big drop.
What’s going on here? A few things that are indicative of the larger market.
First, and most obviously, people love crossovers. Calling Ford’s first big electric crossover the Mustang was a stroke of genius and, though it pissed some purists off, it was clearly the right move. Second, according to Ford’s Said Deep in an interview with Automotive News, there were some production issues with the Mustang. Third, and perhaps most significantly, Ford loses money on the Mach-E but is otherwise incentivized to sell them, so Ford slashed prices and made the car quite competitive from a pricing standpoint. A Mach-E is a good deal and, if you lease it, perhaps a great deal.
Does this spell the end for the gas-powered Mustang? Of course not. Gas-powered Mustangs are a good business, as pointed out in the Automotive News article linked above:
“Measuring Mustang’s success by just looking at volume misses the mark on the strength of this particular segment,” Deep said in a statement. “Mustang is a very profitable and vibrant business for Ford. We build passionate products for enthusiasts and that’s going to continue to grow.”
Sports car sales have shrunk as rival brands Chevrolet and Dodge abandoned the segment. Despite lower sales, the Mustang’s share of its segment rose about 10 percentage points last year, said Joe Bellino, the car’s brand manager. He said it remains profitable thanks to enthusiasts who spend big bucks on accessories and special editions and that reception to the seventh-generation model has been “relatively strong” since its 2023 launch.
“We’re happy with where Mustang is and, frankly, where we’re going,” Bellino told Automotive News. “It’s a critical part of our business and will continue to be a part of our business.”
That’s all well and good, but if Mustang is a critical part of your business it needs to expand. What does that mean? Ford has already shown dealers images of both a Mustang with four doors and an off-road variant. Adrian already sketched what a Mustang Raptor might look like and it’s dope as hell, y’all.
More Mustangs! More Mustangs! More Mustangs!
Volvo Almost Sells 800,000 Cars
Volvo had a middling year in the United States, falling just a little short of its 2023 sales, though the brand picked up some momentum towards the end of 2024. Given that Volvo said it was going to delay its electrification plans you might assume this means that the company had a bad year overall, but that’s not quite the case.
In the United States, sales of “electrified” models, including plug-ins, increased to 35.7% of all Volvos sold in December, about on par with the 34.3% sold during 2024. Globally, Volvo set a new sales record, hitting 763,389 overall, just shy of the company’s long-term goal of getting 800,000 annual sales.
A lot of this has to do with the popularity of Volvo’s electric vehicles abroad, which largely came from the capable and relatively affordable Volvo EX30. Everyone at The Autopian who has driven one of these things loves it, and it’s a shame it was delayed coming over to the United States, though that should be resolved soon.
Even better for Volvo, because of all of its EV sales, it looks like it’ll be able to sell some emissions credits to its cousins at Mercedes (Geely owns Volvo and also a large share of Mercedes-parent Daimler). According to Reuters, Polestar/Volvo/Smart will pool with Mercedes and likely make hundreds of millions of dollars in an effort to offset potential penalties for the German automaker.
Volvo isn’t alone…
Tesla Might Get $1 Billion From EU Emissions Rules
It’s convenient to me that the Euro and US Dollar are basically even right now because that means I can easily make the conversion calculation in my head when I’m writing these stories (or shopping for old Renault 5s on Leboncoin).
Utilizing the same deal as Volvo, Tesla could be the beneficiary of almost $1 billion from its competitors in Europe. Here’s Bloomberg on how that works:
The US company will pool the fleet of electric vehicles it sells this year with at least five other manufacturers, led by Toyota Motor Corp., Stellantis NV and Ford Motor Co., according to an EU document issued Tuesday. The arrangement allows carmakers to average out the emissions of their fleets, with those selling fewer EVs compensating companies like Tesla that over-comply with limits on carbon dioxide emissions.
“Tesla’s compensation could even exceed €1 billion if it monetizes its entire long CO2 position,” UBS analysts led by Patrick Hummel wrote in a report published Wednesday.
Tesla is the most obvious choice because it sells the most electric cars and is a friendly-ish carmaker from the United States. Bloomberg links to this paper from center-right European Parliament member Jens Gieseke, who argues that this is a weird position to be in:
“Our European brands are forced to check whether it’s a smarter idea to give the money to Tesla or to BYD,” said Jens Gieseke, a center-right lawmaker in the European Parliament who authored a paper last month calling on the commission to revisit its automotive policies. “This is not the best approach.”
There might not be much choice, as Tesla probably doesn’t sell enough cars to cover every automaker in Europe.
Honda Press Forward With US-Built EVs, But Maybe At A Slower Pace
Honda’s 0 Saloon Prototype was shown at CES this week and, thanks to some digging, we know it was also shown at the 2003 Tokyo Motor Show. Honda is committed to making this, along with the other prototype, in the United States quite soon.
The EV market in the United States continues to grow, albeit at a way slower pace than when Honda started making these plans. A Trump presidency and the potential loss of EV subsidies don’t make those prospects look much better. Does this mean the company is reconsidering? Not quite yet, according to Honda’s EV business manager in an interview with Bloomberg:
“Some investment plans may be delayed as growth slows down, but we haven’t changed our thinking on bringing more EVs to market,” Katsushi Inoue, a senior managing director in charge of EV business development, said in an interview. “EVs will go mainstream over a longer-term time frame.”
And, in the meantime, Honda sells a crap-ton of hybrids so it has some runway to figure it out.
What I’m Listening To While Writing TMD
Apple Music suggested to me that I should listen to some Synth Pop and, at first, I did not believe Apple Music. Surely, I don’t listen to a lot of Synth Pop while I work, right? Apparently I do. Future Islands. MGMT. CHVRCHES, LCD Soundsystem. And if I listen to all that stuff maybe I want to listen to something honest, a Yaz record. Here’s Yaz doing “Don’t Go.”
The Big Question
Are you going to get mad when Ford makes a Mustang sedan?
Top Image: cammep/stock.adobe.com
Fix Or Repair Daily/Found On Road Dead’s suck and the Mach-E(atto) is a travesty and not a real Mustang
Not only will I not be mad, I’ll buy one, but only with a stick.
I’m a day late, but yes. ABSOLUTELY. Ford should build a 4 door sedan based on the Mustang. But also it should not 1.) be called a Mustang..cough..Galaxie..cough or 2.) share the front or rear fascia designs. And it should be a hatchback for more versatility. So it has been stated. So it should be.
I have friends who owned a total of four Teslas over an eight or so year period. 2X S, a 3 and a Y. After getting tired of being on a first-name basis with the ENTIRE New England Tesla service team, they got rid of the second S and the Y in favor of a pair of E-Stangs. Which they initially loved. And then they aged like milk – mostly software dilemmas (they were still FAR better than the Muskmobiles). Today, they have a pair of KIA EVs, an EV6 and an EV9. And so far, so good, but it’s only been a year.
The problem with a Mustang sedan (and the coupe) is that we live in the worst timeline where people are both boring and chickenshit. Though that said, I get why the Mustang doesn’t sell particularly well. They are cool cars, but they have gotten REALLY expensive, and they are too big on the outside and too small on the inside. And in the eyes of most of the car buying population, terrifying for half the year in half the country. “OMG, without AWD and 9″ of ground clearance we will DIE as soon as the first snowflake falls”. The E-Stang is at least practical, and if Ford wanted to sell a TON of them, they just need to stick a V8 in there while keeping the price reasonable. Something they used to be good at, but doesn’t “maximize shareholder value” anymore. Sedans are just non-starters at this point,
In all seriousness, how hard could it be to make an AWD Mustang coupe/convertible? That alone would probably boost sales considerably. And even tame their Cars & Coffee departure reputation!
Well, Ford certainly ripped the Bandaid off as abruptly as possible by tacking the pony onto their EV CUV. I don’t think anything else could sting as much as that, so bring on the sedan! I’d just be happy with a new Ford sedan regardless of nameplate. I just think it’s nuts that they cannot justify 1 f*ing sedan in their whole lineup! Sure, having 3 may not have been smart business in this crossover-or-nothing climate, but you can sell 1 in decent volumes. I’m pretty sure the outdated (but still great-looking) Fusion was still selling pretty well when they axed it.
Only one of those is a Mustang, regardless of what Ford decides to call it.
The emissions credit thing is stupid. It does absolutely nothing to reduce the total emissions on the roads, it just transfers money from companies whose vehicles emit more to those whose cars do not. I know it’s supposed to incentivize the higher emitting companies to push to compliance, but you know what else would? Just flat out penalties. This artificially improves the profitability of EV manufacturers which disincentivizes them from improving their actual profitability.
I was very excited to see my local Volvo dealer has an EX30 sitting out front as of yesterday. I need to go check it out one of these days.
A few years ago I would have self righteously lambasted Ford for making a Mustang sedan. Now I would just be glad to see a rear wheel drive car introduced. There’s my conditions, ICE and rear wheel drive.
They could call it the Standardbred, and the off-road version could be the Clydesdale.
Gee, I don’t think Ford has any legacy four-door sedan names. They can’t use Taurus, Fairlane, Torino, Crown Victoria, Galaxie, Falcon, Fusion, or LTD!
Regardless of whatever they name it, I’d be glad to see them produce a sedan. I’m tired of the 10-foot-tall monster trucks they are selling right now.
I don’t love how this is written to imply that the Mache-E is actually a type of Mustang.
I don’t care if they make a Mustang sedan (though Stef is probably right that it isn’t a real Mustang). I’ll just be happy they are making a sedan!
Oh man:
As someone who felt like an absolute baller the last time this happened (beer alone is so cheap in Germany, holy crap), this combined with plans to do the ‘Ring again this year is the danger zone.
C’mon, favorable conversion rate. I don’t have much faith in anything staying favorable over the next year (or two years, or three years or four), but in case it does, I wanna buy so much stupid crap on vacation.
Give me a sports sedan with low beltline and tall greenhouse, you can call it anything you want. Something like the Monteverdi 375/4. Have you seen a Fiat 130? A BMW e28? A Peugeot 604? Reasonably thin A pillars, lots of glass, you can do it if you try, Ford, I know you can, even though the current Mustang looks like it ate two deep fried classic Mustangs for breakfast. Here’s a start: take a Lamborghini Espada from the front through the B pillar, change it enough so nobody gets sued, then add a two more doors and a trunk. It can be done. Save us from driving all these pill boxes.
Flush: Well, a sedan is not a Mustang. That’s a totally different kind of car. Same goes with the Mach-E crossover, which would’ve sold regardless of the branding for being what people want right now, and probably would have looked better without the awkward Mustang cues.
Yuck, Ford. Yuck. Hire a creative. Give your new vehicles distinct names. “Mach-E” alone is what most people I know call it anyway, and honestly a fine name.
FORD FUSION!!! A perfect energy-centric name was RIGHT THERE!!
Seriously. They have plenty of sedan nameplates they could revive that would fit, too. Doing a bunch of “”Mustangs”” that have nothing in common is the stupidest, most confusing thing they could do. If everything is a Mustang, then nothing is.
Also, to update this comment: https://www.theautopian.com/why-more-people-are-ordering-the-hybrid-scout-than-the-electric-one/comment-page-3/#comment-553554
GUESS WHERE I’M COMMENTING FROM?! EVENING DUMP, BABYYYYY! WE ARE SO BACK! SO! BACK!!!
I’m going to credit the nice biscuit from Bird Bird Biscuit and the marionberry jam I got from a friend that prompted me to order a few plain biscuits to go. I needed to put my jam on something, man.
One of my cats had major GI issues (she just passed) and it was always an exciting moment when she’d take her dog-sized dumps.
Drop those kids off at the pool!
Aww, I’m sorry for your loss. High five to that cat for dumps like a [dump] truck, though.
There are no more mustangs
Who cares if an EV SUV out sells an ICE SUV? IT AIN’T a Mustang. No mustang fan is buying one of these but an EV FAN might buy a SUV because it is called a mustang. Can I get a common sense call here?
I wonder why people care so much. Unless you have personal equity in the word ‘Mustang’ only being applied to a specific body style, how does it affect you? The “”true”” Mustang still exists, the existence of another body style doesn’t change that.
I won’t be mad, but I’d rather they call it something else. Lots of good legacy names to bring back as others have suggested. Also, I don’t know anyone that calls a Mach E a “Mustang Mach-E,” they just call it a “Mach-E” which is a perfectly good name. My dad has one and I’m not sure he’s ever said Mustang in reference to his car.
To be honest, if they kept the 2 door just a mustang, came out with a sedan called the mustang falcon, and an off-roader called a mustang raptor, I’d be proud of them and it would make the mustang mach-e name a much better fit; assuming they never do a 2 door coupe ev…