Ford $F ( ▼ 0.56% ) may be gearing up to launch a new kind of Mustang: a hybrid version of its iconic pony car—with the potential to deliver a meaningful revenue boost.
The details: According to report from Ford Authority referencing unnamed sources, the Detroit automaker has a hybrid variant of the American muscle car in operation, known internally as the S650 Mustang—marking the culmination of a project nearly a decade in the making.
Ford first announced plans for a hybrid Mustang in 2017, roughly two years before unveiling the all-electric Mustang Mach-E.
That same year, the company said it would invest $700 million into its Flat Rock Assembly Plant in Michigan to build a hybrid V8 model, originally slated for a 2020 debut.
Worth noting: Prototypes of the Mustang S650E have reportedly been spotted and have entered the Technology Prove-Out stage, signaling that mules are being tested for potential production.
We reached out to Ford for comment, and have not heard back as of publication.
Why it matters: A hybrid Mustang could provide Ford with a fresh advantage, especially given the strong sales of the Mustang Mach-E—which at one point even outsold the gas-powered Mustang.
OUTSMART THE CAR MARKET IN 5 MINUTES A WEEK
No-BS insights, built for car dealers. Free, fast, and trusted by 55,000+ car dealers.
Between the lines: With EV sales slowing and regulations in flux, hybrids are gaining traction in the marketplace.
Goldman Sachs now projects hybrid electric vehicles (HEVs) to make up 12% of the global market by 2030 (up from 10%) and 9% in 2040 (up from 5%).
Plug-in hybrid electric vehicles (PHEVs) are forecast to reach 14% market share in 2030 and 17% by 2040, compared with a prior estimate of 9%.
In North America, Goldman Sachs sees auto operations trending 2 to 3 percentage points higher than previous forecasts as legacy automakers balance internal combustion with hybrids to maximize profits.
What they’re saying: “The strength of HEV sales even amid low gasoline prices testifies to the fact that consumers value not only fuel efficiency but also power performance,” Goldman Sachs Research analyst Kota Yuzawa wrote in a report. “We believe that the simultaneous downsizing of gasoline engines and increase in vehicle size in the US market has led to demand for HEVs with better acceleration.”
Bottom line: With EV demand cooling and hybrids gaining momentum, a hybrid Mustang could strike the right balance between performance and efficiency—boosting sales and profitability while helping Ford navigate shifting consumer demand and regulatory pressure.
A quick word from our partner
Winning in today’s market means more than just adjusting prices or boosting ad spend.
It’s about seeing what’s holding each vehicle back - and taking smarter action from day one.
Long before AI became a buzzword, Lotlinx built the industry's first VIN performance platform — powered by AI and the most robust dataset of VIN and shopper behavior — to help dealers optimize every vehicle and maximize profit.
With Lotlinx, dealers can:
Spot inventory risk before it hits
Move cars with precision
Turn each VIN Into a star
Visit lotlinx.com to discover how to win with every VIN and maximize profit - one VIN at a time.
