This study aims to test recent theoretical frameworks in speech motor control which claim that speech production targets are specified in auditory terms. According to such frameworks, people with better auditory acuity should have more precise speech targets. Participants performed speech perception and production tasks in a counterbalanced order. Speech perception acuity was assessed using an adaptive speech discrimination task, where participants discriminated between stimuli on a /ɪ/-/ɛ/ and a /ɑ/-/ɔ/ continuum. To assess variability in speech production, participants performed a pseudo-word reading task; formant values were measured for each recording of the vowels /ɪ/, /ɛ/, /ɑ/ and /ɔ/ in 288 pseudowords (18 per vowel, each of which was repeated 4 times). We predicted that speech production variability would correlate inversely with discrimination performance. Results confirmed this prediction as better discriminators had more distinctive vowel production targets. In addition, participants with higher auditory acuity produced vowels with smaller within-phoneme variability but spaced farther apart in vowel space. This study highlights the importance of individual differences in the study of speech motor control, and sheds light on speech production-perception interactions.