It’s sleek, fast, and just flat-out gorgeous. But can the new Ford Mustang revive Ford’s stock, which is stuck in neutral?
For those living under a rock, Ford is launching a 50th anniversary version of the pony car for 2015. The completely redesigned car will offer a choice of 3 different engines, including the first four-cylinder version in 20 years. It’s been a long, slow decline for America’s favorite muscle car. In 1965, Ford sold an astounding 559,000 Mustangs to the American public. In 2009, it sold just over 66,000, despite a snazzy redesign. But since hitting its nadir in 2006, Mustang sales have been on the rise, climbing to 82,000 last year.
(Watch: Alan Mulally: We are reinventing the Mustang)
But enough with the car talk. What will the new Mustang mean for Ford’s bottom line?
“Probably not much in and of itself,” said Chantico Global’s Gina Sanchez. “But it could be a way to get people into the showroom and interested in other models. It is great looking.”
A more pressing issue for shareholders is the fate of CEO Alan Mulally. Rampant rumors that Mulally will leave Ford to take over for outgoing Microsoft CEO Steve Ballmer have been swirling around the company for months. After a hugely successful stint at Boeing, Mulally has been with Ford since 2006, steering the auto giant through the depths of the financial crisis without seeking a government bailout. According to published reports, Mullaly and Ballmer are close.
The uncertainty surrounding Mulally has weighed on Ford’s stock price. In the last three months, Ford shares are flat while rival GM is up over 10% during that time.
But could the charts offer a reason to kick the tires on Ford? Click the video below to find out.
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