Muscle Cars Mount Comeback, Can Market Sustain Them?

Dodge’s new Challenger turned heads at the Chicago Auto Show, and a production version of the Chevrolet Camaro is just around the corner. Both will lock horns with the venerable Ford Mustang, the market’s sole muscle car for several years running. Doubts remain, however, as to whether high gas prices and a weakening economy can sustain three cars whose V-8 engines burn as much fuel as they do rubber.

Dodge parent Chrysler has high hopes for the rebirth of American muscle. At the Challenger’s introduction, Chrysler president Jim Press told reporters the rear-wheel-drive coupe represents “the DNA of the company.”

Press said muscle cars are “not a huge market … [but] in the long term these vehicles will continue because these are vehicles people love.”

Put another way, the cars have a decent chance of weathering an economic storm.

“What we see particularly with this performance segment is resilience to gas prices and recession,” marketing director Mike Accavitti said. “As gas prices go up, SRT sales don’t fall. … Enthusiasts drive this car every day. They put greater value on the driving experience.”

They’ll likely pay dearly for it. No mileage figures have been released yet for the 425-hp, 6.1-liter Challenger SRT8 shown at the auto show, but the Dodge Charger SRT8, which shares its drivetrain, gets just 13/18 mpg city/highway — and requires premium fuel. (The 500-hp Mustang Shelby GT500 isn’t much better: On premium fuel, it gets 14/20 mpg.)

Dodge will unveil a broader lineup of Challenger models at next month’s New York auto show, Accavitti said. Presumably that means smaller engines — likely including a 5.7-liter V-8 — with better mileage.

Even so, the Challenger will be a niche vehicle. Once production ramps up, Press expects annual sales to be somewhere between 20,000 and 30,000. That’s about the number of X3 SUVs BMW sells in a year — and it’s a flyspeck compared to the Mustang, which sold some 135,000 copies in 2007.

Dodge doesn’t expect its sales to come at the Mustang’s expense. Press characterized the Challenger as an emotional purchase that doesn’t necessarily supplant another car, and Accavitti said that for many, it’s likely to be the third or fourth vehicle in the driveway.

“There’s an existing pie right now that’s buying Mustangs,” Accavitti said. “What we see is our addition growing that pie.”

Ford welcomes the competition.

“If we’re sitting here next year, and we’re in the middle of the muscle-car war, I will be the happiest person on the Ford stand,” car marketing manager Robert Parker told us at the Chicago Auto Show. “As the three domestic manufacturers, this is very important to us — Challenger and Mustang and Camaro, competing head-to-head in the showroom, on the track, on the drag strip and in cities and towns across America.

“It’s uniquely Americana,” Parker said. “I’m glad they’re coming. It’s been a bit of an intra-squad scrimmage, and we’re looking forward to the regular season. And I think the segment is going to grow, and I think we’ll all get our fair share.”

J.D. Power and Associates analyst Tom Libby shares Ford’s optimism, though his is more qualified. He characterized the Mustang as the most “American” of the three cars — people buy it because it’s a Mustang, not necessarily because it’s a muscle car — but said it will lose a few buyers to its rivals.

“The advertising and promotional activity will increase awareness and interest in the entire segment,” Libby said, but added that “the move toward better fuel economy and lower emissions goes against the move toward performance, so I think the entire performance-oriented portion of the market will have less appeal and success in today’s marketplace than it would have 10 years ago.

“There is room for all three, but the [sales] volumes will not be that great,” he said. “The question is whether or not the launch of the Challenger and Camaro will expand the segment or just split the same group into three separate parts. I think there will be some of both.”

Comments

[Nathan]

I like the shape of these cars, I like the way they drive, I wont' be driving them on race track and I hate paying speeding tickets.

That is why if Ford can put their efficient 3.5V6 that puts out around 265 HP with their six speed auto transmission into their Mustang I will seriously consider buying one. I believe this will give at-least 22 miles in the city and 30 miles in hwy per gallon. 13/18 mpg is ridiculous and irresponsible, I think.

Same is the case with Challenger or upcoming Camaro.

[Nathan]

I like the shape of these cars, I like the way they drive, I wont' be driving them on race track and I hate paying speeding tickets.

That is why if Ford can put their efficient 3.5V6 that puts out around 265 HP with their six speed auto transmission into their Mustang I will seriously consider buying one. I believe this will give at-least 22 miles in the city and 30 miles in hwy per gallon. 13/18 mpg is ridiculous and irresponsible, I think.

Same is the case with Challenger or upcoming Camaro.

[George]

The market will only sustain them in very small numbers and that usually spells an early demise. These cars, although decent, are nothing unique as they are just new bodies wrapped around old big block engines. Two out of the three didn't even exist a year ago. I suspect that the same will be said five years from now.

[LM]

They'll sell to the diehards and then die hard, as there are fewer and fewer diehards who have the disposable income to spend on these.

They are impractical for families, too expensive for kids (who view imports as superior anyway and have no ties to old names), and are seen as generally inferior to other performance cars such as the plethora of efficient, V6-sedans that can also go 0-60 in 5-6 seconds.

[DL]

just to be the devil's advocate, if these cars can boost brand image and give more people postitive, warmer feelings about Ford, Dodge, then they are an arguable success

[andrew]

I'd like to buy muscle car but with more efficient engine ex. how about 3L turbo-diesel has enough HP and torque for street muscle car. I drove 3l TD in Europe and is smooth, non smelly, no noisy,(like
old diesels) faaanntastic engine. For track lovers put engine as big as you can.

[Ty]

As the saying goes, "Nobody has ever gone broke underestimating the intelligence of the American public." Instead of moving seriously into new technologies in tune with the times, the american auto companies continue to roll out the same old cliches to the same old demographic( and I do mean old as the muscle car generation is reaching its seventies)
since the sinking economy has left only these folks with the disposable funds to buy these toys. What will Chrysler do when there all in the old folks home? it will probably long be out of business since its not looking to the future.

[Jim]

I am 46 years old and own a 69 Camero and a 66 Mustang. I am from the muscle car era. I did buy a new Ford Mustang GT conv. and enjoy it very much. A chip tune up and you have plenty of gitty up go and a fairly efficient gas economy. It's not disposable income that people are spending, look at the imports, they are inexpensive and then the add on are way more expensive, than real Detroit Muscle. People will see these for what they are, not real street rods, but good looking, nice driving, semi classic and fun to drive.

[John]

I'm usually not a big fan at all of these muscle cars, but that Challenger is damn good looking

[Trainer]

Both cars look great, and will get the job done with their old school V8s. But it would be truly exciting to see an update to the drivetrain - a hybrid system with the electric motor to get things moving and then a high winding turbo-charged four to finish off the quarter mile. You could have performance that matches the V8 with better mileage. I know some won't agree with the idea, but remember, an electric motor has 100 percent of its torque at 0 rpm. There's no need to rev it to get the power so a hybrid would make these cars extremely fast off the line. I just read an article(New York Times Auto section) about the Rocker Neil Young, who is converting a '59 Lincoln from V8 to a hybrid drive train. There's a guy down in Kansas or Oklahoma who does the conversions. Maybe the big three should talk to him.

[Troy in Ft Walton Beach]

Well,

I recall the muscle cars going the way of the dinosaur due to the fuel crunch of the 70's. Why make the decision to bring them back during the fuel crunch of today?

Detroit has been coming out with some attractive vehicles lately and have tightened the gap with the imports. In effect, they have taken a step forward. This muscle car revolution however is two steps backwards.

[The Nethead here]

What we have here is an original and two imitations.
For some of us only the genuine item will suffice, and we demand Mustangs.
or others, an imitation is plenty good enough, and they'll settle for Camaros and Challengers.

[Adrock]

Its worth mentioning that the entire range of the Big 3 are getting updates with better fuel efficient engines. I'm usually one to denounce fuel guzzlers that serve little purpose, but I don't necessarily have problems with a limited number of halo cars.

But when a halo car like this becomes the only imagine of the brand, it doesn't do much to raise consumer awareness. I mean, car people like us probably know just about every manufacturer's lineup from the ground up, plus what is coming in the future. But not everyone is as interested as us. Its too bad that an Escape Hybrid, for example, isn't as well known as the Mustang.

[Alicia]

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http://www.ticketwood.com/venues/Darlington-Raceway-Tickets/index.php
I hope I won’t miss my chance this year to attend because last year I do.

its very cool. try puting a biger air system in it for example a intercoolier