Why Ford is keeping its Mustang gas-powered even with its EV push

DETROIT – Ford Motor CEO Jim Farley was successful his constituent Wednesday night, surrounded by gearheads and the automaker's caller 2024 Mustang models, including a astonishment caller high-performance mentation called the "Dark Horse."

There was nary speech of electrical vehicles oregon sustainability during the unveiling for the Detroit car show. Just revving engines and the screeching of tires, to the applause of hundreds of Mustang owners successful attendance.

The country unfolded successful stark opposition to different caller events for Farley and Ford, which person touted electrification and greenish goals. That's due to the fact that contempt the EV transition, Mustang is sticking with gas-powered engines for the seventh-generation conveyance successful 2024.

That whitethorn travel arsenic a surprise, fixed Ford's plans to put $50 billion successful caller electrical vehicles successful the years ahead, arsenic good arsenic expected plans for the Dodge Challenger and Chevrolet Camaro — the Mustang's largest rivals — to spell electric.

So wherefore did Ford instrumentality with state engines for the caller vehicle? Farley said, essentially, due to the fact that it could … and due to the fact that it makes bully concern consciousness for the foreseeable future.

The Ford Mustang could beryllium successful a conception each by itself successful the coming years, forcing those who inactive thirst for an American coupe musculus car to travel to the brand. That includes non-U.S. customers, who correspond astir 20% of Mustang's sales.

"People are leaving the segment, similar Dodge, truthful we person a accidental to truly contiguous thing caller astir Mustang," Farley said pursuing the 2024 Mustang debut. "This is going to springiness america a large vantage due to the fact that a batch of radical inactive emotion this benignant of car."

While the American musculus car conception has dwindled from what it erstwhile was, there's inactive request for the vehicles, which besides tin pull attraction and caller customers for their respective brands.

As Ford invests successful EVs, Farley says the automaker volition proceed to put successful its accepted business. It's part of the CEO's caller plan to turn income crossed its accepted businesses, EVs and commercialized vehicles.

Farley and Ford Chair Bill Ford declined to accidental whether the seventh-generation Mustang is expected to beryllium the past gas-powered mentation of the car.

"If radical don't privation them anymore, it'll spell away, but I personally judge radical are going to privation this conveyance for rather immoderate time," Ford said, adding "that time volition travel with a teardrop successful my eye."

Farley said a large crushed Ford is continuing with gas-powered Mustangs is, ironically, the occurrence of the Mustang Mach-E, an all-electric crossover that archetypal went connected merchantability successful precocious 2020 and has really outsold the gas-powered mentation during immoderate months.

The Mach-E, which shares small to thing with the gas-powered Mustang different than a name, has led Ford to go the 2nd bestselling marque of EVs successful the country.

That EV occurrence has fixed the automaker much flexibility to transportation guardant with gas-powered models, compared with rival automakers who person to pursuit electrical conveyance income and regulatory emanation credits awarded for them.

Carmakers are required to have a definite magnitude of regulatory credits each year. If a institution can't conscionable the target, it tin bargain the credits from different companies, specified arsenic Tesla, that person excess credits.

"The Mustang Mach-E, successful a way, created, allowed this car to happen," Farley said. "Competitors are buying credits for emissions, and they can't travel retired with this benignant of vehicle."

Dodge has said specified emissions regulations are among the reasons it's ending accumulation of its gas-powered Charger and Challenger astatine the extremity of adjacent year. Chevrolet is expected to extremity accumulation of the gas-powered Chevy Camaro successful the coming years arsenic portion of General Motors' plans to exclusively connection EVs by 2035.

A spokesperson for Dodge, a part of Stellantis, said successful announcing electrical musculus cars, the institution is "celebrating the extremity of an epoch — and the commencement of a agleam caller electrified future."

A spokesperson for Chevrolet said the institution doesn't remark connected aboriginal production, but added, "Camaro continues to play an important relation successful Chevrolet's show car lineup and remains a conveyance successful precocious request which our customers love."

Ford's largest crosstown rival, GM, which is successful the process of sunsetting its gas-powered products, is aiming to amended vie against Tesla, the EV income leader.

Farley, meanwhile, said helium wants to turn its accepted concern done "opiniated products" that gully statement and attraction similar the 2024 Mustang, including the caller "Dark Horse" variant.

"I had a garment astatine the trader amusement that said 'Ford vs. Everyone.' That's benignant of our attitude," Farley said. "We privation to beryllium a acheronian horse. We're a acheronian equine against Tesla successful the EV business. We privation to bring a caller game."