GT500 Allocation Memo From Ford

[needspeed]

Got this off of BON from XCR440SP:

Ford published this letter today that hints at 2007 Shelby production numbers. Please note that I've seen things like this change (look at Mach 1 production numbers for example).
_____________________________________


Darryl B. Hazel Ford Motor Company
email: [email protected] Dearborn, Michigan 48126-4207

July 19, 2005

All Ford Division Dealers
Subject: SVT Distribution Plan
The purpose of this communication is to announce the following:
· Revision to the SVT distribution policy
· Allocation plan for the Mustang Shelby Cobra GT500
As we go forward, our goal is to expand our lineup of Ford performance oriented vehicles. One such
example is the Mustang Shelby Cobra GT500 which is scheduled for production next summer. As we
expect to have a strong line-up of performance products in the future, the cadence of these products
necessitates a change to our distribution policy. Accordingly, the Mustang Shelby Cobra GT500 and all
future products engineered by SVT will be available to all dealers who complete the necessary
certification requirements. This will further strengthen the Ford brand by providing us with a greater
opportunity to drive showroom traffic by leveraging halo products in all our marketing communications.
This will also help achieve compliance with various state laws by providing all dealers who become
certified the opportunity to sell performance oriented vehicles.
Certification Requirements to Sell SVT-Engineered Products
SVT-engineered products will be available to all dealers who complete the certification requirements. A
unique certification plan will be announced for each SVT engineered product at a later date. Similar to
Escape Hybrid, certification will likely include sales consultant training, technician training and purchase
of special service tools. As in the past, this opportunity will be open to all dealers who enroll in the SVT
program and who meet SVT program requirements.
Mustang Shelby Cobra GT500 Allocation Plan
Dealers will be required to complete certification requirements to receive any type of allocation for the
Shelby Cobra GT500. In recognition of their commitment to the program, current SVT dealers and SVT
Focus dealers will receive preferential allocation for the Shelby Cobra GT500 for the first model year.
At current projections, we expect around 7,000 units to be produced for the 2007 model year. Allocation
will be as follows:
· Two incremental units for current full-line SVT dealers (605 dealers)
· One incremental unit for SVT Focus-only dealers (700 dealers)
· One unit for any dealer who completes certification requirements
· One unit for 2005 President's Award winners (343 dealers)
· Remaining production will be allocated based on a Mustang share-of-nation formula
Allocation Example:
A current full-line SVT dealer who wins the 2005 President's Award will receive four units plus any
units for Mustang share-of-nation.
Example: Full Line SVT Dealer: 2
Completed certification: 1
2005 President's Award: 1
Mustang share-of-nation: TBD
Managing Customer Expectations
We are already receiving customer inquiries about GT500 availability as well as reports of dealers
holding deposits for this car. Dealer allocation will not be announced until the first quarter of 2006.
Despite the extremely high market interest in this product, it is important to appropriately manage the
expectations of your customers according to your actual allocation.
Sincerely,
Darryl Hazel

Based on this (If True) my dealer will get 4. He is charging MSRP and has 1 slot left open........Steve

 

[xbolt68stang]

I just posted this on another thread before reading the above.

7000? Are you out of your minds? Your marketing research folks already screwed up big time on the Mustang GT numbers. Now your going to screw up again with the GT500. Don't the clowns at Ford realize they could easily sell 12,000 of these vehicles. The stock is down to what? And now your going to limit another vehicle.

From a previous post:

My feeling is that if Ford is cutting back on certain items to keep the cost down, they also need to produce more than the rumored 7000. With the anticipated dealer gouging, you'll likely pay $10,000 over MSRP which would bring the cost up to the $50,000 range anyway. It seems as though it's a difficult balancing act for Ford. I would be happy to pay $40K for the current vehicle. If I were to pay $50k, I would like more goodies. I don't want to pay $50k for a $40K car with the dealer pocketing an extra $10k. Ford needs to raise production to keep prices reasonable. I also feel the decision to spread the proposed production level to all dealers will only fuel the gouging. Look at what happened with the GT(40).

My uncle is a Ford salesman at a NY dealership. My immediate family has purchased five Ford vehicles in the past two years from this dealer. I asked my uncle about the GT500. He stated they already have a list of 20 with no gaurenteed price. The SVT rep stated they'll likely go for $20k over MSRP. They plan to go down the list until someone bites. That's exactly the kind of BS that pisses me off. I've never owned a vette, but before I would ever pay $20k over MSRP an lose $25k as soon as I drive it off the lot, I'll purchase a Z06. So Ford, stop the BS about keeping costs down and make the vehicle in numbers that won't result in gouging. OK, so I might be willing to pay $5K over for a second year GT500. But my feeling is that If I can't find a dealer willing to reward brand loyalty, I'll never purchase another New Ford.

 

[jshen]

Very Interesting!

But I must admit, I thought SVT dealers would be given priority as they have to pay out the "ying-yang" to receive certification......I'm in line....

 

[needspeed]

But I must admit, I thought SVT dealers would be given priority as they have to pay out the "ying-yang" to receive certification......I'm in line....

I would hope SVT dealers get 05 & 06 for free since they have nothing to sell

 

[COBRA CRUIZER]

FORD does give priority to SVT certified dealers.
· Two incremental units for current full-line SVT dealers (605 dealers)
· One incremental unit for SVT Focus-only dealers (700 dealers)
· One unit for any dealer who completes certification requirements

And Ford has no control over dealer gouging. The units to be produced falls in line with SVT's hallmark.

 

[Diggy Moe]

So it's going to be 7000 for 2007.I willing to bet the production number goes up in 2008.

 

[putawaywet]

Actually, the way Ford is killing their own hype on this car they might just be lucky to move 7,000....

Shelby's name has been removed from just about every part of the car
It's looking like a Roots over a Twin Screw
Exterior styling tweaks are turning out to be anything but exciting.
Interior is looking like the same old rehashed vinyl and plastic.

I've already gone from a sure sale to wait and see. And something tells me I'm not the only one.

 

[drmustang]

The article is essentially meaningless as about half way through there is a phrase "At current projections, we expect to produce 7,000. Ford has purposely given itself a huge backdoor on this issue. A more truthfull way of wording this would be: We will produce 7K units and increase to whatever level we see fit should sales warrant. This is exactly what they are obviously saying. The current statement allows them unlimited freedom and the ablility to create a pre-sales hype. Very smart on their part. Eliminating the Shelby name is a good idea as he obviously has had no meaningfull part in this models development.

 

[chuckstang]

There is no way that they will sell these for 50k. Aint no way, Id put my life on it.
That is vette terriotory and they know to stay far away! The reason the car looks so drab is because they will release it for under 40k.

 

[drmustang]

You got that right. No sane person is paying 50 grand for a Mustang. These could be a tough sell at 40.

 

[01LightningGal]

puta, we, on this forum, probably account for less that 1% of Mustang sales. The majority of people who will buy this car, will never visit any forum. Thus, the car that you do not want will just be snapped up by some lame collector who has no intention of really driving it.

I think that many on forums give way too much credit as to the pull of those who are on forums.

That said, the cars that you have seen driving around are not the final product. For the most part, they are GT's with the correct drivetrain............ for durability testing. If the car is being called the Shelby GT500, then I guarantee you there will be Shelby badging on it. Ford is not going to pay Carroll for nothing.

 

[Terminator]

Actually, the way Ford is killing their own hype on this car they might just be lucky to move 7,000....

Shelby's name has been removed from just about every part of the car

Maybe Mr. Shelby is also disgusted with the direction Ford has taken. :shrug:

 

[spdfrkFL]

Easy guys!

I was at my Ford dealer today and seen the e-mail. The gt500 will have a msrp of around $40,000. The sad thing is that dealers will be marking the cars up like mad now that nonsvt dealers will sell them. I beleive it's a good move to take the shelby name off of the car it's just another way to mark up the car. Let's face it we buy the car for the horsepower! There are changes being made to the appearence of the car but it's basicly the Ford GT motor. That's alot of power and just think what a pulley and a retune will bring! There is still hope that the whipple will make it into production. The problem was that Whipple had a different company that makes it's casings and that company could not keep up with the demand. Whipple has since bought their own machinery so that they can supply the demand. A quote from a SVT rep. is that in the cobra will be produced for 3-5 years and that there will be a Cobra for everyone that wants one.
My dealership has 30-40 people on the list I'm about 20 on the list. That's cool with me because I will not pay the mark up. Besides I'd rather have a second run car anyways. Just be patient it will come and just like the 03-04 Cobra it will be worth the money.

 

[putawaywet]

puta, we, on this forum, probably account for less that 1% of Mustang sales. The majority of people who will buy this car, will never visit any forum. Thus, the car that you do not want will just be snapped up by some lame collector who has no intention of really driving it.

I think that many on forums give way too much credit as to the pull of those who are on forums.

That said, the cars that you have seen driving around are not the final product. For the most part, they are GT's with the correct drivetrain............ for durability testing. If the car is being called the Shelby GT500, then I guarantee you there will be Shelby badging on it. Ford is not going to pay Carroll for nothing.

I certainly don't disagree with you on that one because I have said all long that this car is not being marketed towards the 25-35 year old crowd but rather the 35+ set who grew up during the muscle car years and now have both the means and the money to own what they could only dream about years ago.

However, if Ford winds up distancing themselves from the Shelby connection that very well could take the collectors out of the equation and put the enthusiasts back into the game. Except for the part about their long standing propensity for the ever popular "bait and switch" which seems to do nothing more than frustrate a lot of people, myself included.

 

[COBRA CRUIZER]

The Shelby name is coming off the deck lid, NOT off the car! The Shelby name will be on the car, somewhere. The Shelby name being on the car is HUGE to most people . Not everyone agrees. BUT THE MAJORITY RULES.

 

[R1Lello]

puta, we, on this forum, probably account for less that 1% of Mustang sales. The majority of people who will buy this car, will never visit any forum. Thus, the car that you do not want will just be snapped up by some lame collector who has no intention of really driving it.

I think that many on forums give way too much credit as to the pull of those who are on forums.

That said, the cars that you have seen driving around are not the final product. For the most part, they are GT's with the correct drivetrain............ for durability testing. If the car is being called the Shelby GT500, then I guarantee you there will be Shelby badging on it. Ford is not going to pay Carroll for nothing.

You and I think alike..........and I hope you are right. I also agree with you that what's around are built up GT's.........why didn't they show that motor on the yellow car???? Makes you wonder if the 5.4 was in that......I bet it wasn't.
If that name comes off, then my deposit comes back. Simple as that.

 

[eichisama]

You and I think alike..........and I hope you are right. I also agree with you that what's around are built up GT's.........why didn't they show that motor on the yellow car???? Makes you wonder if the 5.4 was in that......I bet it wasn't.

Keep in mind Ford is making the "California Special" edition of the GT. Perhaps some of what we're seeing is testing for that car? Like the engine package of that yellow car that they wouldn't show? Just a thought...

 

[Purvis]

Thanks Needspeed..
Will be taking this to the dealer this weekend!

 

[chuckstang]

Have you all heard they are going to build the Bullit again?

 

[drmustang]

Bullits, Mach1s, California Special, GT500, Shelby whatever. These are a jump shot as they will be nothing more than variations of an existing high volume car. There is no logical reason to pay a premium for any of this stuff. Be smart if you are buying new or be even smarter and get one after it has taken the huge 1st-2nd owner hit that these kind of cars always experience.