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How much do you think the PP1 option actually costs Ford to build?

Zathras

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I know retail prices aren't set by what things cost to produce, but whatever the seller can get for it. That being said, just thinking about the parts that come with PP1 over the basic, standard Mustang GT, how much more do you think it costs Ford to build a PP1 car?

I mean we're talking about upgraded wheels, tires, brakes, struts, springs, structural bracing, maybe some minor programming changes. I'm sure these all cost more than the basic spec parts, but I'd still be surprised if Ford's incremental cost (meaning the cost of the PP1 parts minus the cost of the standard parts) is more than two grand or so. Charging six grand for that option just seems like ... a lot.
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spankybranch

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The package cost has increased significantly but I still think it’s a good value. I am probably off but I think it was a $3000 option when it was introduced and now it’s $6500? While the most obvious (visual) changes are thing people commonly do anyway (wheels/tires, spoiler, lower-suspension, etc) there are several things that are considerably more work to replace like the 3.73 gears & torsen diff, larger radiator & oil cooler, brembo calipers/better and the “unique abs, steering and TCS tuning” if you can even do that at all.

While you can have all of that done aftermarket with the same/better parts it would be a lot of work to fit all the PP1 parts, and even if you do it yourself you’re probably breaking even $ at best - if you need to pay for labor on something like the diff you would be spending way more.

If you take into account you have a warranty on the PP1 parts as option and the PP cars do sell for a bit more I think it’s a “must have” option IMO even now that it’s double the price.
 

MrMike

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I have done everything from PP1 or better except for the rear diff at this point. I had a great time doing it all and learned a lot in the process. A second set of hands sure makes the suspension easier, and there are plenty of better setups than PP1.

I originally bought the Mustang as a fun but comfy DD and my needs changed. Instead of selling it and buying something else, I decided to mod.

If you want the Torsen, get PP1. It's expensive and not easy to get new like everything else.

I don't believe the "unique tuning" matters. It's probably just the 760-02-02 xxxx 7xxx in ABS As Built.
 

Skye

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It'd be nice to know (any option or feature). But public information will not get so granular.

The following links will give an idea into Ford's margins.

https://s201.q4cdn.com/693218008/fi...rporate-Earnings-Presenation-Final-2-6-24.pdf

See slide #17 for Ford Blue.

https://www.detroitnews.com/story/b...rgins-tops-investor-expectations/70174659007/

"Operating profits for Ford Pro nearly tripled from a year ago to $1.4 billion on revenue of $13.2 billion, while Ford Blue's operating profits nearly doubled to $2.6 billion on revenue of $25.1 billion. Both segments were profitable in every geographic region where they operate, and had earnings margins of more than 10%."

https://www.reuters.com/business/au...ises-20-demand-suvs-pickup-trucks-2023-05-02/

"The company for the first time broke out financial results for its Ford Blue, Ford Pro and Ford Model e units. Ford Blue earnings before interest and taxes doubled to $2.56 billion, a margin of 10.4%, and Ford Pro EBIT nearly tripled to $1.4 billion, a margin of 10.3%."

"Ford's overall EBIT margin was 8.1%, after factoring in losses from Model e."
 
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sms2022

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IMO ford went from “how much does this cost us to produce” to “how much would it cost the customer to upgrade to these specs after the fact” and they adjusted the price accordingly. I would never pay $6k for it but it’s sort of a moot point now that the S550 run is done and you can pickup a PP1 or PP2 car for maybe a grand or two more than a comparable GT if you look around.

I got my car for $40k out the door including tax and registration with 6k miles in January. I originally thought it was a demo car but now found out it was a display car driven from dealer to dealer in Canada before it was imported and then sat in the showroom at my dealer for a year. The car was literally brand new. It’s got every option but magride.
 

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Strokerswild

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The option was $2,495 in 2015, just looked at my sticker.

It's ludicrous how the price balooned. Talk about fleecing the customer.
 

Balr14

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I used to handle the material requirements and parts database for GM. Those parts mentioned could cost much less than you think, depending on where they are sourced from.
 

Torched10

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Mine was 3995 in may 2019 came with 355 rear
 
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Is there a side by side comparison list out there somewhere with differences for PP1 vs. Non PP1 with OEM part numbers?
 

Strokerswild

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Is there a side by side comparison list out there somewhere with differences for PP1 vs. Non PP1 with OEM part numbers?
I had this in the archives that someone had put together:

PerfPack.PNG


Not really sure that the Street Handling Pack is necessarily equivalent to PP1 and there are no doubt a few other differences, but the gist is here on the hard parts.
 

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SheepDog

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I had this in the archives that someone had put together:

PerfPack.PNG


Not really sure that the Street Handling Pack is necessarily equivalent to PP1 and there are no doubt a few other differences, but the gist is here on the hard parts.
But you are giving back all the lesser parts. The difference in cost is only maybe 10-20%. For example, the PP1 wheels cost 1,095, but the wheels that come with the non PP1 car may cost 995 ish. Ford is charging you a premium on all of this, and making maximum profit.

The best value in any car, is the base model. The highest profit margin for any manufacturer is their highest spec trim models

Another example: A base model Dodge charger can be had for 30k. A loaded Hellcat Charger costs over 100k. No way that Dodge adding all the higher performance stuff, but taking back all the base model stuff (engine, transmission, brakes etc) costs them 70k.
 

JBR14

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The option was $2,495 in 2015, just looked at my sticker.

It's ludicrous how the price balooned. Talk about fleecing the customer.
I am shocked, no one brought up inflation as the rationale for the price increase. That being said, the PP1 package is well done and covers a lot of basic mods. But, ppl that want to mod are going to regardless. In hindsight, I wish I would have gotten my daughter a car with this package.
 

chuckhammer

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The package cost has increased significantly but I still think it’s a good value. I am probably off but I think it was a $3000 option when it was introduced and now it’s $6500? While the most obvious (visual) changes are thing people commonly do anyway (wheels/tires, spoiler, lower-suspension, etc) there are several things that are considerably more work to replace like the 3.73 gears & torsen diff, larger radiator & oil cooler, brembo calipers/better and the “unique abs, steering and TCS tuning” if you can even do that at all.

While you can have all of that done aftermarket with the same/better parts it would be a lot of work to fit all the PP1 parts, and even if you do it yourself you’re probably breaking even $ at best - if you need to pay for labor on something like the diff you would be spending way more.

If you take into account you have a warranty on the PP1 parts as option and the PP cars do sell for a bit more I think it’s a “must have” option IMO even now that it’s double the price.

I don't think PP1 or the older PP2 packages included an external air-to-oil cooler, such as the Mach 1 and Shelby cars have. Just the standard engine coolant-to-oil cooler.
 
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MAGS1

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We must be in a deflationary environment, the PP cost on S650 went down to $4,995. There you go @JBR14 i brought inflation into the convo 🤣
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