America's pony car has only just landed and already gone up in price. Who'd have guessed?
ADVANCE knowledge that Mustang pricing was to increase around the time that first deliveries of the model were being here made led to a spike of orders right before the stickers altered.
Ford New Zealand spokesman Tom Clancy said there was a definite flurry of order activity in the days immediately before the increase took effect, on December 1.
The Auckland domiciled distributor concludes that word about the increases got out and customers reacted accordingly.
“We did have a few people who knew about it and we did have orders spiking just before (it implemented).”
Clancy said Ford NZ chose not to publicise the increase at the time or since. “There was no press release or anything like that.”
Currency exchange rates have been blamed.
When the initial Mustang prices were announced back in March 2015 the New Zealand dollar was worth 86 cents American.
But it lost significant value against the greenback during the year, falling to the low 60c region. Today the NZ dollar was worth 68 cents US.
It is understood any impact on profit margins is being felt by the parent brand rather than the distribution network.
Asked if Ford US was likely to be losing money on cars bought at the original price, Clancy replied: “I couldn’t tell you that. I don’t know.”
Ford New Zealand has assured existing customers who placed firm orders when the original price was in effect will be honoured for their deliveries.
“No, absolutely. If you’ve signed a contract (before the price increase) then the original price stands. I don’t think any company could go back and change the price on someone.”
The changes mean the coupe and convertible four-cylinder EcoBoost Mustangs are now respectively $57,880 and $62,880, having previously been $$56,990 and $61,990, while the V8 GT variants are now at $74,880 and $79,880, having previously resided at $71,990 and $76,990 (convertible). There is no premium for an automatic gearbox in preference to the standard six-speed manual.
In some countries, Australia included, demand for Mustang has been so intense that cars ordered now are now coming for at least another 12 months.
New Zealand has escaped that effect. Clancy said anyone who ordered a car today would likely see it around the end of June.
He could not say what the 2016 New Zealand allocation for the car stood at, or whether it is close to being exceeded – as has happened across the Tasman.
The Mustang is being sold with the choice of a 233kW 2.3-litre turbocharged four-cylinder EcoBoost engine or a 306kW 5.0-litre V8.
It is believed Kiwi buyers are so far heavily favouring the V8 model, in automatic coupe format, though some manual coupes have been ordered. The four-cylinder is mainly featuring in automatic convertible form.