2005 Ford GT Preview

Ford's Ferrari Killer

Will 500 horsepower and 0-60 mph in under four seconds be enough to outsell Ferrari?

Forbes Fact

Supercars aren't logical. Sure, it makes sense for Porsche to produce the coming (in 2004) $300,000-plus Carerra GT -- rumors are that all of the limited-production cars are spoken for already. And Ferrari and Lamborghini make nothing but high-end performance machines. And we think that's as it should be. These companies can even manage to make serious profits, as is the case with Porsche.

But what about when carmakers that don't specialize in the supercar game get into the mix?

The results aren't impressive. DaimlerChrysler's $80,000 Dodge Viper has been a marginal success at best, selling in minute numbers compared with the far cheaper General Motors Chevy Corvette. (Through May 2003, 1,044 Vipers have sold, compared with 14,674 Corvettes.) So why should Ford have any luck selling 1,500 GTs per year at double the price of the Viper?

That's a question open for debate. By limiting production, Ford may indeed create short-term demand for the GT, in the same way that Ferrari customers are willing to wait in excess of a year for a 360 Modena.

However, Ford will also be fighting Volkswagen, since VW owns both Bentley -- which debuts the four-seat, $150,000 Continental GT next year -- and Lamborghini, which launches the roughly $150,000 Gallardo later this year. Further muddying the waters, Aston Martin, which is owned by Ford, will launch its AMV8 Vantage shortly after the Ford GT arrives, and that car will sell for about the same money.

All of which explains why no matter how good the GT might be, it's going to be a tough sell. One further issue? Residual value. Buyers in this market expect their cars to depreciate, but Ferraris and Porsches tend to lose value, then level off. What will happen when there are hundreds of used Ford GTs in circulation?