General Motors Company (GM): Ford Motor Company (F)’s 2015 Mustang Is Risky

Speaking of evolution, this represents a drastic change in fuel efficiency expectations for the Mustang. My 2010 GT gets a meager 18-19 miles per gallon, which makes it difficult to attract a more fuel-conscious consumer — a trend that is quickly gaining momentum. Ford might be taking steps to resolve its Mustang fuel-efficiency problem with the rumor of an EcoBoost 2.7-liter, four-cylinder engine that would produce over 300 horsepower and bring highway fuel use near 30 miles per gallon. I must admit, it’s a very intriguing option, but it certainly won’t replace the V8 option right away, as Ford Motor Company (NYSE:F) will try and appease the core Mustang fan base.

Investor vs. driver
Ford Motor Company (NYSE:F) is at a fork in the road when it comes to its next-generation model. The Mustang alone outsold the entire Lincoln brand last year, and represents immense value to Ford’s iconic brand image. As both a driver and investor, one thing I feel reassured about is the amount of options Ford has before it and the flexibility the company exhibits. It can offer a smaller EcoBoost engine to Europe, while maintaining the muscle car V8 style in the U.S.

Investors will have to watch this evolution unfold because it will have effects on multiple fronts. It will redefine the iconic Mustang versus Camaro feud that has existed for decades. It could catapult Mustang sales much higher globally. It all comes down to management and marketing being able to walk a very fine line between very different consumers. But you know what, if Ford has proven one thing since the recession, it’s proven that it has solid management and marketing. Let’s hope that doesn’t change, for your sake and mine – as investors and drivers.

The article Ford’s 2015 Mustang Is Risky originally appeared on Fool.com is written by Daniel Miller.

Fool contributor Daniel Miller owns shares of Ford. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford.

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