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Al C
07-22-2005, 11:40 PM
Darryl B. Hazel Ford Motor Company
email: - -@ford.com Dearborn, Michigan 48126-4207

July 19, 2005

All Ford Division Dealers

Subject: SVT Distribution Plan

The purpose of this communication is to announce the following:
Revision to the SVT distribution policy
Allocation plan for the Mustang Shelby Cobra GT500

As we go forward, our goal is to expand our lineup of Ford performance oriented vehicles. One such example is the Mustang Shelby Cobra GT500 which is scheduled for production next summer. As we expect to have a strong line-up of performance products in the future, the cadence of these products necessitates a change to our distribution policy. Accordingly, the Mustang Shelby Cobra GT500 and all future products engineered by SVT will be available to all dealers who complete the necessary certification requirements. This will further strengthen the Ford brand by providing us with a greater opportunity to drive showroom traffic by leveraging halo products in all our marketing communications.

This will also help achieve compliance with various state laws by providing all dealers who become certified the opportunity to sell performance oriented vehicles.

Certification Requirements to Sell SVT-Engineered Products
SVT-engineered products will be available to all dealers who complete the certification requirements. A unique certification plan will be announced for each SVT engineered product at a later date. Similar to Escape Hybrid, certification will likely include sales consultant training, technician training and purchase of special service tools. As in the past, this opportunity will be open to all dealers who enroll in the SVT program and who meet SVT program requirements.

Mustang Shelby Cobra GT500 Allocation Plan
Dealers will be required to complete certification requirements to receive any type of allocation for the Shelby Cobra GT500. In recognition of their commitment to the program, current SVT dealers and SVT Focus dealers will receive preferential allocation for the Shelby Cobra GT500 for the first model year.

At current projections, we expect around 7,000 units to be produced for the 2007 model year. Allocation will be as follows:
Two incremental units for current full-line SVT dealers (605 dealers)
One incremental unit for SVT Focus-only dealers (700 dealers)
One unit for any dealer who completes certification requirements
One unit for 2005 President's Award winners (343 dealers)
Remaining production will be allocated based on a Mustang share-of-nation formula

Allocation Example:
A current full-line SVT dealer who wins the 2005 President's Award will receive four units plus any units for Mustang share-of-nation.
Example: Full Line SVT Dealer: 2
Completed certification: 1
2005 President's Award: 1
Mustang share-of-nation: TBD

Managing Customer Expectations
We are already receiving customer inquiries about GT500 availability as well as reports of dealers holding deposits for this car. Dealer allocation will not be announced until the first quarter of 2006.

Despite the extremely high market interest in this product, it is important to appropriately manage the expectations of your customers according to your actual allocation.
Sincerely,
Darryl Hazel

Andy M
07-23-2005, 08:25 AM
Man, I can just see it now... the folks buying this car out of the gate will definitely get raped in the checkbook!!!! :eek: I see an opportunity for the dealers to bend the public over. You will see some outrageous markups on these cars, especially the first few hundred or so. I just hope people remember what happened to the market value of the 2003 Cobra once production cranked up. :( While I would agree that this is most definitely a very special car and will be valued as such, 7000 units doesn't actually make it a "rare" car.

Admiral
07-23-2005, 09:00 AM
I agree Andy, what irks me is that I'm hearing of changes to the car already. Things like removing the "S-H-E-L-B-Y" lettering from the trunk and other areas. Turn it into a glorified GT and say goodbye to the buyers who'll pay top-dollar for the car. At 7000 units I think Ford is missing the market here, put out about 12000 a year, make it the baddest Mustang available, and make it special. Priced just under $40K they should have a niche, cheaper than Corvette and better than anything else on the market in that price range. Dodge throws out a 4 door Charger with a HEMI - yeah, that's exciting. NOT.

I hate it when they take the air out of my balloon and I haven't even sat in the car yet. If they ruin the GT500 by marking up the price for an underachiever, then I'll buy a Mustang GT and have fun with it or try and talk myself into stepping up to a new Corvette.

jimmysidecarr
07-23-2005, 07:21 PM
I believe we are looking at the makings of another buyer feeding frenzy.... Which I believe is what drives the price up... the dealers are just not going to say no to people waving more money in their faces.
I bought mine way after the dust settled... and shopped the hell out of it.
I believe that would be advisable with this car too...... even more so!!!

Jimmy :D

Bingo13
07-23-2005, 07:25 PM
Just looks like an opportunity for more dealers to refuse warranty work, that being said where can I send my $10k mark-up payment to be first on the block with one. :D

cobltng
07-27-2005, 04:20 PM
When comparing MSRP of other offerings I know of at least one dealer in our area here who plans to use the $1,000.00 / HP formula. 450 HP X $,1000 = $45,000.00 sell price plus any mark up possible if the Shelby name is left in tact on the rear deck. On top of all this I am also told to expect a possible Dealer Market adjustment mark up for those who get one or two.Good thing I am still very pleased with our 01 Cobra( slobra,but has a pink in the safe), The Lightning (with a Pink ) and the old 440 HP 92 GT Vert. Still, when the dust settles and some one somewhere has one GT-500 for sale at a reasonable price I will buy it, where ever I have to go to get it. Let the games begin.

cobrabitn
07-27-2005, 09:55 PM
Removing the "Shelby" name doesn't hurt my feelings at all.

This is just my opinion but they should have made a 2007 Ford SVT Mustang Cobra with no special striping, no Shelby name, and IRS. Then offer the general public a chance to buy the 2007 Shelby Cobra GT 500 with the stripes, name plate, but give it the same drivetrain as the standard SVT Cobra only with a straight axle. That way, we get the best of both worlds and can have the IRS and for those of you that want to pay another 10K for the Shelby name.........can go for it. Just my opinion though... :p

Levi
07-28-2005, 09:35 AM
If they can, why cant we. Just build it. :cool:

The 2005 Cobra. A car that Mustang enthusiasts were eagerly waiting for in conjunction with the release of the new 05 Mustang. But the car never came. Instead, Ford's Special Vehicle Team treated muscle car lovers with a new treat - the upcoming Shelby GT-500. However, that car is still a good amount of time away. Enter Power Surge Performance, a company best known for pioneering SVT Lightning aftermarket performance, and modular vehicle performance and tuning.
2005 SVT Cobra - The car that never was...
http://www.stangnet.com/images/stories/2005cobra/2005cobra_1.jpg
http://www.stangnet.com/images/stories/2005cobra/2005cobra_7.jpg
http://www.stangnet.com/images/stories/2005cobra/2005cobra_12.jpg

cobltng
07-28-2005, 10:06 AM
Removing the "Shelby" name doesn't hurt my feelings at all.

This is just my opinion but they should have made a 2007 Ford SVT Mustang Cobra with no special striping, no Shelby name, and IRS. Then offer the general public a chance to buy the 2007 Shelby Cobra GT 500 with the stripes, name plate, but give it the same drivetrain as the standard SVT Cobra only with a straight axle. That way, we get the best of both worlds and can have the IRS and for those of you that want to pay another 10K for the Shelby name.........can go for it. Just my opinion though... :p

I think the Car you describe is what most of us wanted in the first place