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The Mustang sells all over the world.

It's one of the most popular cars in Germany, for example.
The only vehicles the so-called domestics sell in the US that aren't sold anywhere else in the world are the mammoth pick up trucks. But that market is protected by a tariff, and trucks have always been highly profitable.
All of the other vehicles sold here are world cars, mostly powered by small displacement turbocharged four cylinder engines that exist because most of the rest of the world taxes displacement.
I'm sure they can make money selling gasoline engined cars in the US only, but it will cost them money as well.
Regulators here won't force any car company to make one type of car or stop making another type. Ford will ditch the V8 Mustang voluntarily once the gasoline-powered cars are banned from the EU. The EV replacement will be going on sale soon. If Ford can sell the Mustang EV all over the world, but the gasoline-powered Mustang only in the US, then it's goodbye V8 engine. Make book on it.
The manufacturers really aren't interested in volume. Selling fewer units for more money per unit drives costs down and profits up. They way they make this happen is by eliminating consumer choice.




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