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Yeah, being able to tool up and make things in mass quantities actually lowers costs because they can spread the cost of say a new engine's development over the 140k cars they plan to sell with that engine and easily make their money back.
The Mustang seems like easy money when you look at it. They look good, have cheap interiors, cheap chassis (that's shared with a lincoln I believe) not to mention the chassis uses old simple technology, and a decent motor. That's why they can sell them so cheap. And people buy them because they're a decent value and look good.
I hate to bring it up but I think Car and Driver said "As usual, the Camaro will outperform and undersell the Mustang". Which is likely true. Hopefully the price of the Camaro is right and they compete with the Mustang in price and it's true to a lesser extent.
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