1974 Designers and engineers worked feverishly on a "reinvented" Mustang, mimicking the first version, by the traditional new model year introduction during the fall of 1973. The new
Mustang II returned to a size closer to the 1965 model, ultimately winning the
Motor Trend Car of the Year. The economical Mustang II became popular for consumers almost concurrently with their experience with gasoline rationing that was part of the
1973 oil crisis. "Just as the original Mustang had been based on mundane Falcon components, Iacocca and company decided to use some of the parts from the new-for-1971 subcompact Ford Pinto as the basis for the Mustang." Competitors also included the
Toyota Celica and the
Datsun 240Z. Sales of such imports attracted fewer than 100,000 customers in 1965, but by 1972 demand had increased; therefore, the "Mustang II's mission was to capture a big slice of this sizable new pie." A V6 was the sole optional engine. Mustang II packages ranged from the base "Hardtop," 2+2 hatchback, a "Ghia" luxury group with
vinyl roof, and a top-of-the-line V6-powered Mach 1. A V8 engine option would not be available in a Mustang for the only time for the 1974 model year (except in Mexico). "The Mustang II's attractive all-new styling was influenced by coachbuilder
Ghia of Italy, which had recently been acquired by Ford. It carried through the long-hood, short-deck theme of the original, and — as Iacocca requested it — came as a notchback and hatch-equipped fastback." while Ford brochures suggested that the luxury-trim Ghia model, with its formal roofline, stylish exterior, and plush interior, be thought of as resembling the popular
personal luxury category of the time. Almost replicating the initial 1965 Mustang's sales rush, "even without any real performance appeal, the 1974 Mustang II brought buyers running into Ford dealerships." Sales for the Mustang II increased in 1974, making it the 6th best selling Mustang of all time with 296,041 units produced.
1975 "With oil crisis memories starting to fade," Ford needed a V8 in the Mustang II to return "performance to respectable levels." Testing by
Road & Track "recorded zero to in 10.5 seconds, and a top speed of ." The Mustang II's engine was called the "5.0 L" even though its capacity was . Other than the optional V8 engine, the car underwent minor changes in 1975. The Ghia received
opera windows and a padded vinyl half-top, as well as a plush Silver Luxury Group option. Ford sales literature continued to emphasize the car's potential similarity to the era's
personal luxury models, with the cover of its main dealership brochure calling the Mustang II Ford's "small, sporty personal car." In mid-year, a 2.3 L "MPG" model was added, featuring a
catalytic converter and a 3.18:1 rear-axle ratio (standard was 3.40:1) to claim
EPA-version economy estimates of in the city and on the highway. To underscore
fuel efficiency, all base 2.3 L Mustang IIs were called MPG after 1975.
Consumer Guide, however, noted that the car's sales had fallen by nearly fifty percent from 1974 levels.
1976 In 1976 only, Ford offered the "Stallion" appearance group, including styled wheels, blacked-out grille, bumpers, and body moldings, as well as black two-toned accent paint offered with silver, red, white, and yellow body colors. The foray into increased performance emphasis also included a new All-Black Sport Group option for the Mach I and an optional Rallye Package, both adding minor performance enhancements along with the sportier trim. New also was the "Cobra II" appearance package, with a black grille, simulated hood scoop, front and rear spoilers, quarter window louvers, and dual over-the-top racing stripes with matching lower rocker stripes and cobra emblems on the front fenders, echoing the appearance of the original 1965–68
Shelby Mustangs – available with all engine choices. The Cobra II was popular with the public, with
Consumer Guide calling it an "instant success" that likely increased Mustang II's sales across the board. Automotive historian Gary Witzenburg observed that "properly equipped, the thing actually performed pretty well by 1976 standards." Full instrumentation was standard. A manual moon roof was optional. Following continuing public concern about fuel efficiency,
Consumer Guide that year tested a 4-cylinder Ghia with a 4-speed manual transmission, an increasingly popular configuration. Staff found that performance was quite poor for a supposed sporty car and ranked it at the bottom of their Low-Priced Sports Car category.
1977 Capitalizing on the sales success of the previous year's racy-looking Cobra II, Mustang II sales literature for 1977 emphasized the more sporty aspects of the car, with the words "Sweet Handling" the featured catchphrase on the cover of that year's Mustang II dealership brochure (though a luxury Ghia model still got pride of place there). Along these lines, the 1977 model year introduced a "Ghia Sports Group" for the Ghia model that was color-matched to either black or tan paint, as well as several minor styling changes and expanded color options for the Cobra II. Also new was a
T-top option for the fastback, featuring twin removable tinted glass panels. Midway through the 1977 model year, changes for the 1978 model year were pulled ahead to sell early. It is most notable on the Cobra II models, where the
hood scoop was turned around to seem more aerodynamic and the graphics were revised. For the decals, the over-the-top dual stripes running the length of the car were replaced with a single stripe, and on the sides of the car, the snake and "COBRA II" decals were replaced with large stripes raised to the middle of the body sides with large "COBRA" lettering in the middle. Louvers were added to the hatch and the side panel louvers only came in black. All of the glass moldings were painted black. With these mid-year changes, for the first time, Mustang II sales brochures featured a sporty 2+2 hatchback model, with its fastback lines, on the cover instead of one of the more formal-looking notchback or Ghia models,. This new cover model featured the available T-top roof with a bright wrap wrap-over band.
1978 In 1978, the "King Cobra" became available. This was a limited-edition version with 4,313 units produced. It featured a deep air-dam, stripes, and a "
Pontiac Trans Am style" cobra snake decal on the hood. The King Cobra was available only with the V8 to help bolster the car's performance image. Following a marketing change initiated the previous model year, Mustang II sales literature continued to emphasize sportiness over the luxury that had been emphasized for most of the Mustang II's existence, again placing the 2+2 hatchback model with the optional T-top roof on the cover of the sales brochure. A "chic" Fashion Accessory Package was also offered this year, featuring Southwest-looking, striped "Fresno cloth" seating, enhanced interior lighting, vanity pockets, and special pinstriping.
Consumer Guide tested a Mustang II Cobra II that year and found that its power just exceeded that of its closest competitors in the Sporty class, the
Chevrolet Monza and its General Motors siblings, but that it ranked very low in handling and ride, with a marked tendency to lean despite its performance suspension. On the momentum of the Mustang II's successful sales, a new
Ford Mustang (third generation) would be introduced for the 1979 model year. == Reviews ==