The thermostat could be stuck open, or the wrong thermostat is installed....Possibly somebody put a 180 degree in instead of the 192 degree, or it could be nothing at all. Does it take a long time to warm up? Also check to make sure the electric cooling fans are not running all of the time. Around the M is about normal for typical driving. In hot weather at idle it should go up past that to a point where the cooling fans will kick in, and then go back down. This prior post from Paul gives more detail:
The total range of movement depends mainly on your t-stat rating. The total gage NORMAL range is ~160F to ~230F. The low speed fan(s) come on at 215F, off at 210F.
So if you have a 180F t-stat instead of a 192F t-stat this will add 12F to the sweep.
If you are moving and the fans don't need to be on then the gage will read lower. If in traffic and the fans are controlling the temp then it will be considerably higher.
From the manual...............
The cooling fan is controlled during vehicle operation by the Constant Control Relay Module (CCRM) 12B577 and Powertrain Control Module (PCM) 12A650 which will energize the cooling fan under the following conditions:
Cooling fan is turned on for the 3.0L SHO and on at low speed for 3.0L, 3.2L SHO and 3.8L if:
a. Engine temperature is higher than normal. (Fan starts running at 102°C (215°F) and stops running at 99°C (210°F).
b. A/C is on and vehicle speed does not provide enough natural airflow. (Fan starts running at speeds at or below 69 km/h (43 mph) and stops running at 77 km/h (48 mph).
On 3.0L and 3.2L SHO engines with ATX, low speed cooling fan motor operation is achieved by using a dropping resistor in series with the motor/motors.
The 3.8L uses a dual winding fan motor in which low speed motor operation is achieved through the low speed motor winding circuit (no dropping resistor).
Normal operation and cycling of the engine cooling fan will cause the temperature gauge indicator to read between the mid-point and upper portion of the temperature gauge scale. The slightly higher indicator reading will return to mid-point when fan operation begins.
Cooling fan will run at high speed if:
a. Engine temperature is higher than desirable and fan has been operating at low speed. Fan starts running at high speed at 110°C (230°F) and stops running at 107°C (224°F).