The new Ford Mustang undercuts its competition the 2010 Camaro from Chevrolet as it announces its official tag price starting at $22,995. The sticker includes a destination charge of $850.

The 2011 Ford Mustang sports a new V6 3.7L engine that outputs 305 horsepower. The new Camaro LS is tagged at $23,350 which already includes a destination charge of $850.

The price of the Mustang is a bit up compared to its older sibling. The 2010 model year was priced at $22,245 including the usual destination charge of $850.

The top of the line convertible Mustang GT that comes with a premium package can be yours for $38,695 inclusive of the shipping charge. According to Ford, the new Shelby GT500 coupe has a sticker of $49,495.

You can also get some optional installations like a glass roof for $1,995, a navigation package that comes with a rearview camera and an HD radio for $2,340, and a brake package for the Mustang GT premium made by Brembo for $1,695.

It really appears that Ford decided to meet the Camaro head on with this pricing scheme. The war of muscle cars is really heating up nicely.