In the past few years, Ford has made headlines by announcing plans to transition its fleet over to electric vehicles in the next decade or so. In January, it even went so far as to announce that all of its models would be hybrid or fully electric by 2020, and that it would introduce 20 new electric vehicles in the coming years. However, it turns out that there will be one exception to this rule: its iconic Mustang muscle car, which is keeping its gas-powered engines as part of its electric vehicle push.
Jim Farley, the CEO of Ford Motor, was in his element on Wednesday night as he was surrounded by car enthusiasts and the brand’s new 2024 Mustang models, which also included a surprise new high-performance vehicle dubbed the “Dark Horse.”
Sustainability and electric vehicles were not discussed during the Detroit auto show’s premiere. There was nothing but roaring engines and tyre squealing, to the cheers of the many Mustang owners there.
For Farley and Ford, who have bragged about their electrification and green aspirations, the situation played out in sharp contrast to other recent occurrences. This is due to the fact that the seventh-generation Mustang will still employ gas engines in 2024, despite the switch to EVs.
Given Ford’s ambitions to invest $50 billion in new electric cars over the next few years and the anticipated plans for the Dodge Challenger and Chevrolet Camaro — the Mustang’s two biggest competitors — to go electric, that might come as a surprise.
Why then did Ford choose gas engines for the new car? Basically, Farley said, because it could… and because it makes sense commercially for the foreseeable future.
Sole survivor?
Given Ford’s ambitions to invest $50 billion in new electric cars over the next few years and the anticipated plans for the Dodge Challenger and Chevrolet Camaro — the Mustang’s two biggest competitors — to go electric, that might come as a surprise.
Why then did Ford choose gas engines for the new car? Basically, Farley said, because it could… and because it makes sense commercially for the foreseeable future.
The market for American muscle cars has diminished from its peak, but there is still a need for the cars, which can draw attention to their individual brands and bring in new customers.
Ford will continue to invest in its existing business even as it makes investments in EVs, according to Farley. The move is a part of the CEO’s new strategy to increase sales of the company’s conventional companies, EVs, and commercial vehicles.
Farley and Bill Ford, chairman of Ford, declined to comment on whether the seventh-generation Mustang will be the final gas-powered model of the vehicle.
Ford remarked, “That day will come with a tear in my eye,” adding, “If people don’t want them anymore, it’ll go away, but I personally feel people are going to want this vehicle for quite a while.”
Mach-E
Ironically, the popularity of the Mustang Mach-E, an all-electric crossover that first went on sale in late 2020 and has actually outsold the gas-powered version during some months, according to Farley, is one of the main reasons Ford is continuing to produce gas-powered Mustangs.
Ford has become the second-best-selling brand of EVs in the nation thanks to the Mach-E, which has few to no similarities to the gasoline-powered Mustang other than a moniker.
In contrast to other manufacturers that must compete for the sales and regulation pollution credits associated with electric vehicles, the automaker now has more freedom to continue with gas-powered versions.
Every year, a specific number of regulatory credits must be held by automakers. If a business can’t reach the goal, it can purchase credits from other businesses that have extra credits, like Tesla.
In a sense, the Mustang Mach-E “made, permitted this car to happen,” according to Farley. “Competitors are purchasing emissions credits, but they cannot release this kind of vehicle.”
The end of next year will be the final year of manufacture for Dodge’s gas-powered Charger and Challenger, according to the automaker. As part of General Motors’ intentions to only sell electric vehicles by 2035, Chevrolet is anticipated to stop producing the gas-powered Chevy Camaro in the upcoming years.
A representative for Dodge, a branch of Stellantis, said the firm is “celebrating the end of an era — and the start of a bright new electrified future” with the introduction of electric muscle vehicles.
The firm doesn’t comment on upcoming production, according to a Chevrolet representative, but they also noted that the Camaro “continues to play an essential part in Chevrolet’s performance car lineup and remains a vehicle in great demand that our consumers enjoy.”
The biggest crosstown rival of Ford, GM, is working to better compete with Tesla, the market leader in electric vehicle sales. GM is in the process of discontinuing its gas-powered products.
Farley, on the other hand, claimed that he wanted to expand the company’s traditional business through “opiniated items” like the 2024 Mustang and its new “Dark Horse” variation, which spark discussion and media attention.
“At the dealer show, I wore a shirt that proclaimed, ‘Ford vs. Everyone. That’s sort of how we think,” Farley added. “We want to be the underdog. In the EV industry, we’re a surprise contender versus Tesla. We aim to introduce a fresh game.
