If they are making 10-15K why ADM at all??

needspeed

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I don't understand the numbers. My dealer is only confident in getting 3. If they are making so many, why would he think this. I would expect enough to satisfy the demand of the lunatic fringe, which I am a proud member of leaving enough left over for less crazy folks at MSRP.

I would think that each dealer would get 8-10. So sure some dealers would get more customers then cars and others would be able to order more cars then they could sell. Somehow should'nt this all level out so that ADM cannot be justified or charged??????

Someone help me understand........Steve
 

crazyhorse06

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There was a letter about allocation released a while ago. Search for it, you will likley find it. IT details the allocation plan. It gives an example of allocation. Current SVT dealers get 2 for being an SVT dealer, one for President's award and one for undergoing the certification process. This gives 4 to each of those dealers. The x factor in all this is the last line of the example says "Share of Nation - TBD" This means that after the dealers all get their cars, they divide what is left based on total Mustang sales.

The letter is written assuming several non-SVT dealers will want to certify and get a car or 2. I personally don't think that many will want to do it. I would guess it is expensive and not worth it for 1 or 2 cars. So, Share of Nation should be better than expected and dealers should get more than 3 or 4 cars.

Why ADM at all, because there are enough suckers out there willing to pay it. My stance is wait it out and most will get a car at or below MSRP within the first year. That is strictly my opinion. IF you must have one right away, you might have to pay ADM.

I agree, i think 8-10.
 
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needspeed

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crazyhorse06 said:
There was a letter about allocation released a while ago. Search for it, you will likley find it. IT details the allocation plan. It gives an example of allocation. Current SVT dealers get 2 for being an SVT dealer, one for President's award and one for undergoing the certification process. This gives 4 to each of those dealers. The x factor in all this is the last line of the example says "Share of Nation - TBD" This means that after the dealers all get their cars, they divide what is left based on total Mustang sales.

The letter is written assuming several non-SVT dealers will want to certify and get a car or 2. I personally don't think that many will want to do it. I would guess it is expensive and not worth it for 1 or 2 cars. So, Share of Nation should be better than expected and dealers should get more than 3 or 4 cars.

Why ADM at all, because there are enough suckers out there willing to pay it. My stance is wait it out and most will get a car at or below MSRP within the first year. That is strictly my opinion. IF you must have one right away, you might have to pay ADM.

I agree, i think 8-10.

So is it more that dealers are selling based on first allocation and do not know until later in the year how much additonal allocation they will get......
 

crazyhorse06

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needspeed said:
So is it more that dealers are selling based on first allocation and do not know until later in the year how much additonal allocation they will get......
that is my understanding. Now, that letter was written before the annoucement about Ford's layoffs and closures. Hopefully, it won't change the way the cars are allotted.

Here it is:

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
 

Top_Fuel

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I don't know how the allocation worked for Terminators in 2003, but I can tell you this...

In August of 2003, each of the 4 SVT dealers in my town had between 5-10 Terminators on the lot at the same time. Given the fact that these cars went on sale in June of 2002, each of these dealers easily must have sold over 20 Terminators for the 2003 model year.

Now, remember that they built almost 13,500 '03s...so it may have been a different story if they had limited the build to 10,000 (which is the projected number for GT500s). Still, if any of these same dealers tried to tell me they were only getting "two or three" GT500s when they got over 20 Terminators, I'd be a little skeptical.

I took this picture in August of 2003. There are 4 Terminators in this picture, and they had 4 more out of camera range...including a DSG coupe that my brother bought! :)

Sale2.jpg
 

chuckstang

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So once the initial 2-4 gt500s dealers get our gone, will they be given more later in the year? I def want to have one and a new one, not used! but I just hope that they will be had this november time when sales for sports cars are slow and I can pick one up for msrp.
 

Jpjr

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02JoeGhost said:
I dont know about the rebates, there still arnt any for the Mustang GT yet.

Joe

the mustang gt is a very low margin car that was priced to boost sales. it's a bargain even at msrp. GT 500 is the opposite.. priced way over cost when you think about the R&D involved (new bumper design is all I can think of..). demand is high right now because there is no supply. but there will come a point when these things stop moving, just like any other 40k plus car..
 

mrGT

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Jpjr said:
the mustang gt is a very low margin car that was priced to boost sales. it's a bargain even at msrp. GT 500 is the opposite.. priced way over cost when you think about the R&D involved (new bumper design is all I can think of..). demand is high right now because there is no supply. but there will come a point when these things stop moving, just like any other 40k plus car..
Gee.....I'm no expert, but I thought they put a new larger engine with supercharger, transmission, modified the suspension, and did the cosmetic changes you pointed out to a GT. When I look at all that, and assume your assessment of the GT is correct, a $40K Shelby doesn't look to me like it's priced "way over cost". And assuming your assessment of the GT is correct and it is a low margin car, what's wrong with Ford trying to make a little more profit?
 

crispy23c

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mrGT said:
Gee.....I'm no expert, but I thought they put a new larger engine with supercharger, transmission, modified the suspension, and did the cosmetic changes you pointed out to a GT. When I look at all that, and assume your assessment of the GT is correct, a $40K Shelby doesn't look to me like it's priced "way over cost". And assuming your assessment of the GT is correct and it is a low margin car, what's wrong with Ford trying to make a little more profit?

Plus, upgraded interior, wheels & tires, upgraded standard options. Not a bad deal at all. :beer:
 

91svtbird

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Jpjr said:
the mustang gt is a very low margin car that was priced to boost sales. it's a bargain even at msrp. GT 500 is the opposite.. priced way over cost when you think about the R&D involved (new bumper design is all I can think of..). demand is high right now because there is no supply. but there will come a point when these things stop moving, just like any other 40k plus car..
You are kidding right? Show us another $40,000 car that even comes close to this car ! It's not like "any other 40k car" in the world period!!! :burn:
 

needspeed

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91svtbird said:
You are kidding right? Show us another $40,000 car that even comes close to this car ! It's not like "any other 40k car" in the world period!!! :burn:

Please don't flame me for this, since I know that they are different cars. You can get a C6 coupe for $41K from Kerbeck and you got to admit that the Vett is the complete balanced performance package (3200lbs vs 4000lbs). So yes, you can get a car in this price range that kicks ass in general, maybe not in raw power, but in overall performance it is a hell of a deal. Unfortunatly I am 47, a little over weight and balding, so I am not gonna put myself in a Vett just to complete the stereotype. If the price on this car stays out of reach it just does'nt compete. As others have said, this car is built by Ford at this price point so that Hard Working Loyal Mustang Fans can have something speacial and it is sad if that does not happen.......Steve

See Kerbeck Corvette for current prices
 
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drmustang

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91svtbird said:
You are kidding right? Show us another $40,000 car that even comes close to this car ! It's not like "any other 40k car" in the world period!!! :burn:
This car is a 2 ton tank with a half tank of gas. A brand new C6 for the same money will run circles around it.
 

Top_Fuel

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needspeed said:
:bowdown: ...C6 coupe for $41K from Kerbeck...
That's a great deal and would be hard to pass up for someone like me who doesn't need a back seat. Hmmmm... ;-)
 

crazyhorse06

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drmustang said:
This car is a 2 ton tank with a half tank of gas. A brand new C6 for the same money will run circles around it.
Do you seriously think that stock for stock, pound for pound, dollar for dollar that this car won't outperform the Terminator? Every time I see someone complain about how heavy this car is, they own a Terminator. The Terminator only weighs about250 lbs less than this car. The upgrades in Chassis, Suspension and power will easily overcome the 250 lbs.

The Vette is a nice car. to get one reasonably trimmed stickers for around $48K. Every block in every city has one and they only have 2 seats and no trunk room. How do we know how well it will compare to the GT500 when the GT500 has not been publicly tested. I bet it hangs surprisingly well for a 2 ton tank.
 

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