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
“Are you going to get mad when Ford makes a Mustang sedan?”
Probably not. Last night I was reading Hagerty’s magazine (comes with the insurance) and they had a reader ride of a Corvair Rampside and I was thinking about Corvair as a platform. Through the eyes of someone not alive then, it looks a lot like its own sub-brand of Chevy. All the variants, 2 door, 4 door, truck, van and wagon with a shared design language and it’s not really a bad idea. What else does Ford have now that you can do that with? They could have in the 1980s with the Taurus and maybe the 1990s with the Explorer.
Now, of course, the two existing mustangs don’t have much in common component wise but long term, it could work.
I know others said it but why call a sedan a Mustang when there’s so many other legacy names that are more appropriate? Make it a Falcon and suddenly you’d gain name appeal in the US and Australia without confusing buyers over variants and models all called “Mustang”.
Either way, it’s not going to make me upset, just confused.
Was it? Or was it just that they built a competent crossover EV, which last I knew is the hottest EV segment. Is literally anyone buying one because they think it’s an actual Mustang?
And the EX30 is the one with that atrocious Tesla-like interior, right? Can’t say I’m pleased to hear it’s selling well, if so.
Don’t forget that ford essentially gave all their unsold mach-e stock to police departments for next to nothing so that had to be a huge boost in revenue
I’m surprised Ford hasn’t yet introduced a 9000lb, 3 row, 8ft tall EV SUV called the Clydesdale.
“Are you going to get mad when Ford makes a Mustang sedan?”
Yes. They have so many other good names they could use… such as the Thunderbird, Torino, Falcon, Fairlane, Galaxie or Taurus.
All this kvetching and no one brings up the Probe. I’m disappointed.
Don’t know how I missed that 1LE article. I miss my ’18 SS 1LE. Amazing car with a fantastic engine and transmission. Bought it new and got it for just over $40k before TTL. Sold it to Vroom in ’21 for almost $42k thanks to Covid pricing. Hoped that the market would calm down and I could pick one up again for low / under $30k but I don’t think that’s going to happen.
I still think stealing the Mustang nameplate for a CUV was silly, drievetrain not whistanding. If they keep going, they’ll end up spinning it off a la RAM and I still think that creates tension and confusion under the brand tent. Nothing wrong with the raptorified stuff or another cool 4-door, just keep the name for the fast tarmac cars.
To put this in reverse, why not do a 2-door sports coupe called the Bronco? See how silly this is?
I didn’t know Leboncoin existed. I may hate you as I have just spent an hour down the Citroen and Renault rabbit hole. Then again I may love you because I just spent an hour down the Citroen and Renault rabbit hole. XM Break. Lust
Ford tested a 4-door Mustang as early as the first generation. Awkward-looking beast, stretched wheelbase but with the C-pillar as thick as it is on the ’64-6 notchback coupe, so it made the DLO look too small and cluttered. And it probably had sub-Falcon interior space in the length of a Fairlane.
Wasn’t that just a straight reskin of the Falcon sedan?
Add two doors, keep all performance (including the 3rd pedal), call it the Falcon, tip of the cap to Australia, collect money.
Upmarket the sedan via Lincoln to compete with Caddy, call it the Zephyr and the world would be an excellent place to be as a car nut.
Mustang Sedan, Yeah, that seems like a bold move cotton. It would not be most of us being mad, that just gets them lots of free press like the Mach-E. It’s the 1-2 year old sales slump they should fear. Though with the Charger getting a semi 4 door option, and fewer and fewer performance spec sedans coming out, it might make some sense to offer this. though I would probably suggest giving it to Lincoln to make a viable CTS competitor to fight the remaining lux hot rods out there. Of course Lincoln might eff that up and make it a watered down jelly bean, but one could at least hope. I for one would not hate a mordoor mousetang that the rear doors opened suicide style.
An AWD/Dakar-ified Mustang convertible is my ideal DD, don’t care how many doors it has, not ready for full BEV drivetrain for the DD yet but flexible otherwise. Too bad they’ll never make that combination.
Despite Ford’s insistence, I don’t consider the Mach E a “Mustang”. A Mustang is a coupe with above average speed/performance that is somewhat affordable. You could make an electric one, but the Mach E is not it. I still feel like Ford missed the opportunity to use “Model E” here for their big swing into EVs.
The idea of spreading the “Mustang brand” to a sedan or some “Raptorized” product is also silly. There are so many other historic names in the Ford catalog, go pull one of those and let the Mustang be a Mustang. If no one wants a sports car coupe, then mothball the Mustang name. Roll out your newest CUV variant as a Galaxie, Torino, or Falcon. Hell even the Thunderbird had an actual 4-door variant before, go revive that.
Names are just marketing.
What is a “Mustang” is entirely up to Ford to decide. If they took the current Mustang (not Mach E) and renamed it to the Raptor or something it would be the same car. The name is the least consequential thing about a car.
What I don’t get is using Maverick on the compact CUV-platform pickup when Ranchero is right there.
Ultimately the Ranchero was not a sales success despite several generations, while the Maverick (OG) broke sales records out of the box. I assume they used the name for that reason.
Bingo. I think they need to just drop “Mustang” from the Mach-E’s name. No one calls it that unless they have a weird chip on their shoulder about not buying an actual Mustang. Sorry you needed a four-door EV, I guess, but there’s no shame in that! Enjoy your crossover. It just isn’t a Mustang.
I was in Socal for Christmas and could not believe the amount of Mach-e I saw, at home in Edmonton I have seen maybe 2
If the Mustang stretched a little bit for the second door, but also stretched the hood a little bit to keep the proportion right, I wouldn’t hate it. If it became a legitimate GT/Cruiser ala Chrysler 300, I think it would be pretty cool.
At this point, I think we are all over the name thing with the Mustang. Call it what you want. That said, yes, please keep any non SUV/CUV on the road as long as possible.
I don’t know how that video escaped my 80’s MTV rotation, but that song will never be the same in my mind’s eye again. The Rocky Horror Vince and Alison Picture Show…
Well, that confirms what has been sort of niggling in the back of my mind for a while now: I see a lot of Mustang Mach-Es on the road these days. I’m still not seeing them on Model 3 levels, but it is probably the #2 or #3 most frequent EV I see (on par with the Model Y). As others have noted, Ford has made it a pretty compelling vehicle, and if I were in a position to buy an EV it would be the first one I’d look at.
Nope, I wouldn’t be upset to see a Mustang sedan, though I do fear the name they would give it given that naming things hasn’t been a Ford strong suite since Y2K.
Well gee, maybe Ford would sell more regular Mustangs if the GT wasn’t $60k. Or if the 4-cylinder model still had a manual.
The original 1965 Mustang sold for barely more than a comparable Falcon, and was available in a number of different engine and transmission combinations, which is how they moved 600,000 of them in about 5 minutes.
What’s this? Is Ford going back to making cars?!!
They do still have two sedans in China, Ford Mondeo and Lincoln Z, and they actually seem pretty decent
“Are you going to get mad when Ford makes a Mustang sedan?”
only if it gets old-think 4-doors. make the sedan 2-doors and the coupe’ a 4-door and i will be sated.
the world is upside down, embrace it.
Just got my EX30 customization email this week, but I probably won’t finalize the purchase. At least I got a cool resin model of the car for free out of it. All carmakers should give you a toy model of the car you buy.
Ha, I’m in the same boat as you. Forgot to cancel my preorder, got my EX30 diecast in the mail over winter break, reminded me to cancel my order. Thanks, Volvo!
I have a 1/64 Honda Fit I was gifted because I bought one of the first 2015 Fits. I love it – the model and the car.
Ooooooh, a model! That’s cool.
I like the idea of a mustang sedan but I’m not sure how much success it will enjoy. I think automotive journalists have ruined the muscle/pony car segment as the cars have gotten too good, or in other words too expensive. When you buy a Mustang GT or Camaro SS it really should feel like you bought a world class v8 drivetrain and just happened to get a economy coupe thrown in for free with the purchase. Years of statements along the lines of, it’s fast but can’t turn like a sports coup, or it drives nice but the BMW has a nicer interior have strayed from the car’s focus and put them out of reach for many. The Mustang should be the Coyote v8, basic interior, basic suspension,with aggressive styling. Let the aftermarket or special edition cars handle any upgrades from there. A sedan could absolutely work with this formula as well.
This right here. Base model Mustang should be spartan and they need to give something to Lincoln for relevance, so why not bring back the Continental as the four door and the Mark series as the two door?
I’m just afraid a Mustang sedan will end up looking like an ungainly stretched 911 like the Panamera did.
I hope so. I love the look of the Panamera.
I remember the Top Gear review of the 1st gen, Hammond said the best thing about driving it is that you can’t see it from the inside. Then saw its reflection while passing by a plate glass window and yelled “No! My eyes!!!”
I still do not understand why Porsche gave it that ungainly bubble butt.
The second and third gen fixed this issue…the first was definitely tough on the eyes though. Porsche doesn’t make a ton of missteps design wise but the 2000s were certainly not a high water mark for them between the first gen Panamera and Cayenne…which looked like an awkwardly stretched 996 911 that had let itself go.
It won’t be as bad, because the Panamera was and is trying to disguise a large front engine sedan as a small rear engine coupe. The proportions just aren’t going to be right.
Ford might still screw it up, but a Mustang coupe at least has the front engine RWD proportions and is fairly large already.