Lee Iacocca and Don Frey with the original '64-1/2 Ford Mustang.
To: Lido A. Iacocca, Beverly Hills, CA
From: Mike Davis, Detroit
Re: Thanks!
Dear Lee –
Your Old Gray Mare ain’t what she used to be, many long years ago.
When, as vice president of Ford Motor Company and general manager of the Ford Division, you introduced the first Mustang on April 17, 1964, you created a sensation in marketing circles with a, gasp, price advertisement for the new coupe.
The print ad showed the side view of a white two-door notch-back coupe with a long hood and, in large letters, the price: $2,368. It was a sensation. Wannabe buyers literally fell all over themselves (and delirious dealers) trying to buy that car at that price. And they could, almost, after adding on destination and delivery charges, sales taxes, registration and licensing fees.
That price bought you a snappy looking hardtop (no B pillar) with Mustang emblem on the front fenders, a three-speed manual trans with floor mounted shifter, and a 170-cubic-inch overhead valve six pumping out all of 101 horsepower. Oh, yeah, a heater/defroster was included in the price. No matter that one critic, later quoted by Ralph Nader, disdained it as a “hopped up Falcon.”
Iacocca is still around. So is the Mustang.
Fast forward almost 47 years to a Ford dealer showroom. There sits a 2011 Shelby Mustang coupe. The “shocking” bottom line on the Shelby price sticker: $57,365. The convertible is another $5,000. In today’s upscale market, that’s absolutely modest. We’ll get back to what’s included in a sec.
Nope. Lee, your Old Gray Mare sure ain’t what she used to be.
To be fair, one has to apply an inflation calculator to that 1964 price of $2,368, which in 2010 would be $16,707. In 1964, the least expensive Ford Falcon two-door sedan was priced at $1,985, only $383 less than the new ‘Tang.
Today, the bottom line 2011 Mustang coupe–still a six, albeit a V-type of 3.7 liters, or a mere 226 cubic inches, but putting out 305 horsepower—is set at $23,140 including D&D. The stick shifter is still on the floor, nicely encased in a console with cup holders (what are those?), but you have to work through six speeds forward.
Ah, but the 2011 Shelby has a plethora of special equipment never dreamed of in 1964. Let’s just stick to the “extras” which mount it high above the mundane six at less than half the price. To the “base” price for the Shelby of $49,495 with D&D, you add $3,495 for the SVT (Special Vehicles) package, $2,340 for an “electronics package” and $1,995 for a glass roof; Ford then gives you a slight discount on all that to nail it to the showroom floor at $57,365.
Among other features of the Shelby SVT, besides the obvious racing stripes, are 19-inch aluminum wheels in the front and 20-inchers in the rear, a 3.73 limited slip rear axle, and an aluminum hood.
Cover boy: whether pumping out new sheet metal, steering a turnaround or saying what's on his mind, Lee Iacocca has often made the headlines.
Oh yeah, the all-new GT 500 5.4-liter aluminum V-8 puts out 550 hp with 510 ft-lbs of torque, and still achieves a mind-boggling EPA mpg rating of 15 city and 23 highway. There weren’t such measures for the 1964 ½ Mustang, whether for the six or the $108 optional 260-cid 164-hp V-8, but my distant memory tells me even the GT 500 of today gets better mileage than either engines in the original ‘Tang. And that’s while meeting draconian clean exhaust requirements.
And the warranty on the 2011 is 3/36 (three years or 36,000 miles) bumper-to-bumper plus 5/60 for powertrain, including road service. Back in ’64, warranty coverage was one year or 12,000 miles, period, a big step up from the industry’s standard 30 days or 3,000 miles that prevailed before 1961 models. (By 1964, Ford’s warranty could have been improved to 24/24; my references don’t include that information and it is not a detail I recall.)
So, Lee baby, ya’ done Okay. For the fans and for Mother Ford both.