Second-generation Ford Mustang
Encyclopedia
The first generation Mustangs grew in size; the 1973 model had become markedly larger than the original model. The pony car
Pony car
Pony car is an American class of automobile launched and inspired by the Ford Mustang in 1964. The term describes an affordable, compact, highly styled car with a sporty or performance-oriented image.-Origins of the breed:...

 market segment saw decreasing sales in the early-1970s "with many buyers turning to lower-priced, fuel-efficient compacts like Ford's own Maverick - a huge first-year success itself." The Mustang was growing to become an intermediate-sized
Mid-size car
A mid-size car is the North American/Australian standard for an automobile with a size equal to or greater than that of a compact...

 sedan, "too big and alienated many in its customer base." The allure of the original Mustang was its trim size and concept. The automakers in Detroit had "begun to receive vibrations from the only source it really listens to — new-car buyers... The message: Build smaller cars" as customers stopped buying and the inventory of unsold new cars climbed during the summer of 1973, and there were already positive market expectations for the new downsized Mustang. Automakers were "scrambling" by December 1973 as "the trend toward smaller, less extravagant cars to surge ahead faster than anyone had expected."

Subsequent to becoming president of Ford Motor Company on December 10, 1970, Lee Iacocca
Lee Iacocca
Lido Anthony "Lee" Iacocca is an American businessman known for engineering the Mustang, the unsuccessful Ford Pinto, being fired from Ford Motor Company, and his revival of the Chrysler Corporation in the 1980s...

 ordered the development of a smaller Mustang for 1974 introduction. Initial plans called for a downsized Mustang based on the compact Ford Maverick, similar in size and power to the Falcon, the basis for original Mustang. Those plans were later scrapped in favor of a smaller Mustang based on the subcompact Ford Pinto
Ford Pinto
The Ford Pinto is a subcompact car produced by the Ford Motor Company for the model years 1971–1980. The car's name derives from the Pinto horse. Initially offered as a two-door sedan, Ford offered "Runabout" hatchback and wagon models the following year, competing in the U.S. market with the AMC...

. The final product was "less of a Pinto than the '64½ had been a Falcon."

The new model would better compete with 2+2 import coupes such as the Toyota Celica
Toyota Celica
The Toyota Celica name has been applied to a series of coupes made by the Japanese company Toyota. The name is ultimately derived from the Latin word coelica meaning "heavenly" or "celestial"....

, Datsun 240Z, and the Ford Capri
Ford Capri
Ford Capri was a name used by the Ford Motor Company for three different automobile models. The Ford Consul Capri coupé was produced by Ford of Britain between 1961 and 1964. The Ford Capri coupé was produced by Ford of Europe from 1969 to 1986...

 — which itself was inspired by the original Mustang but built by Ford of Europe, and marketed since April 1970 in the U.S. by Mercury
Mercury (automobile)
Mercury was an automobile marque of the Ford Motor Company launched in 1938 by Edsel Ford, son of Henry Ford, to market entry-level luxury cars slotted between Ford-branded regular models and Lincoln-branded luxury vehicles, similar to General Motors' Buick brand, and Chrysler's namesake brand...

 as a captive import
Captive import
Captive import is a marketing term and a strategy for an automobile part or entire vehicle that is foreign-built and sold under the name of an importer or by a domestic automaker through its own dealer distribution system....

. The design featured rack and pinion
Rack and pinion
A rack and pinion is a type of linear actuator that comprises a pair of gears which convert rotational motion into linear motion. A circular gear called "the pinion" engages teeth on a linear "gear" bar called "the rack"; rotational motion applied to the pinion causes the rack to move, thereby...

 steering and a separate engine sub-frame that decreased noise, vibration, and harshness
Noise, Vibration, and Harshness
Noise, vibration, and harshness , also known as noise and vibration , is the study and modification of the noise and vibration characteristics of vehicles, particularly cars and trucks...

.

According to Ford's Chief Engineer, Stuart M. Frey (younger brother of Donald N. Frey
Donald N. Frey
Donald Nelson Frey , was widely known as the Ford Motor Company product manager who, along with Lee Iacocca and others, developed the Ford Mustang into a viable project — and who ultimately supervised the development of the car in a record 18 months.At times besieged by autograph seekers for...

) Iacocca expected a high level of fit and finish, wanting the car to be "a little jewel". The Mustang II production was 385,993 units the first year. The big 1973 Mustang total reached 134,867, but the 1974 version was within "10 percent of the original Mustang's 12-month production record of 418,812." Over five years the Mustang II recorded four of the ten top model year Mustang sales. A 2009 report confirmed Iacocca's vision for the 1974–1978 Mustang, saying it "was the right car at the right time, selling more than 1 million units in four years."

The marketplace adjusted to the oil embargo
1973 oil crisis
The 1973 oil crisis started in October 1973, when the members of Organization of Arab Petroleum Exporting Countries or the OAPEC proclaimed an oil embargo. This was "in response to the U.S. decision to re-supply the Israeli military" during the Yom Kippur war. It lasted until March 1974. With the...

, increasing insurance rates, United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 emissions and safety standards, and downturns in the economy, and waning consumer demand in the pony car
Pony car
Pony car is an American class of automobile launched and inspired by the Ford Mustang in 1964. The term describes an affordable, compact, highly styled car with a sporty or performance-oriented image.-Origins of the breed:...

 segment. GM
General Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...

 had considered discontinuing the Camaro and Firebird
Pontiac Firebird
The Pontiac Firebird was built by the Pontiac division of General Motors between 1967 and 2002. The Firebird was introduced the same year as the automaker's platform-sharing model, the Chevrolet Camaro...

 after 1972, and in 1974 Chrysler
Chrysler
Chrysler Group LLC is a multinational automaker headquartered in Auburn Hills, Michigan, USA. Chrysler was first organized as the Chrysler Corporation in 1925....

 discontinued the Barracuda and Dodge Challenger
Dodge Challenger
The Dodge Challenger is the name of three different generations of automobiles marketed by the Dodge division of Chrysler.The first generation Dodge Challenger was a pony car built from 1970 to 1974, using the Chrysler E platform and sharing major components with the Plymouth Barracuda. The second...

, American Motors
American Motors
American Motors Corporation was an American automobile company formed by the 1954 merger of Nash-Kelvinator Corporation and Hudson Motor Car Company. At the time, it was the largest corporate merger in U.S. history.George W...

 discontinued the Javelin
AMC Javelin
The Javelin was a production version of one of the AMC AMX prototypes shown during the 1966 AMX project nationwide tour. Intended to rival other pony cars such as the Ford Mustang and Chevrolet Camaro. American Motor's Javelin debuted on 22 August 1967, for the 1968 model year...

, and lighter, more economical imported cars became increasingly popular — "in effect, filling the segment the Mustang had created, then abandoned."

1974

In 1974, the Mustang II returned to a size closer to the 1964 model, ultimately winning the Motor Trend Car of the Year
Motor Trend Car of the Year
The Motor Trend Car of the Year is an award given by Motor Trend magazine, an American monthly that is published since 1949.- Background :...

.

"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." Though the Mustang II carried handling and engineering improvements, its performance was comparable to contemporary Detroit products.

Competitors included the Toyota Celica
Toyota Celica
The Toyota Celica name has been applied to a series of coupes made by the Japanese company Toyota. The name is ultimately derived from the Latin word coelica meaning "heavenly" or "celestial"....

 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."

Available as a coupe or three-door hatchback
Hatchback
A Hatchback is a car body style incorporating a shared passenger and cargo volume, with rearmost accessibility via a rear third or fifth door, typically a top-hinged liftgate—and features such as fold-down rear seats to enable flexibility within the shared passenger/cargo volume. As a two-box...

, the new car's base engine was a 140 CID SOHC I4, the first fully metric
Metric system
The metric system is an international decimalised system of measurement. France was first to adopt a metric system, in 1799, and a metric system is now the official system of measurement, used in almost every country in the world...

-dimensioned engine built in the U.S. A 171 CID V6
V6 engine
A V6 engine is a V engine with six cylinders mounted on the crankcase in two banks of three cylinders, usually set at either a right angle or an acute angle to each other, with all six pistons driving a common crankshaft...

 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
V8 engine
A V8 engine is a V engine with eight cylinders mounted on the crankcase in two banks of four cylinders, in most cases set at a right angle to each other but sometimes at a narrower angle, with all eight pistons driving a common crankshaft....

 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." Mustangs lost their pillarless body style; all models now had fixed rear windows and a chrome covered "B" pillar
Pillar (car)
Pillars are the vertical supports of the greenhouse of an automobile — known respectively as the A, B, C or D-pillar moving in profile view from the front to rear....

 that resembled a hardtop, but in fact was a coupe. In Mustang advertisements, however, Ford promoted the notchback coupe as a "Hardtop".

Sales for the Mustang II increased in 1974, making it the 6th best selling Mustang of all time with 296,041 sold.

1975

"With oil crisis memories starting to fade" Ford needed a V8 in the Mustang II to return "performance to respectable levels." The engine bay re-engineered to accept the 302 CID V8 option for the 1975 model year, with revised hood and header panel. The engine was limited to a two-barrel carburetor and "net" 140 hp. Since Ford's Mexican
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...

 division never lost the V8, they assisted in the modifications.

Testing by Road & Track "recorded zero to 96 km/h (60 mph) in 10.5 seconds, and a top speed of 171 km/h (106 mph)." The Mustang II's 302 cu in engine became Ford's first officially designated metric
Metric system
The metric system is an international decimalised system of measurement. France was first to adopt a metric system, in 1799, and a metric system is now the official system of measurement, used in almost every country in the world...

 V8 Mustang; it was called the "5.0 L" even though its capacity was 4.94 L.

Other than the optional V8 engine, the car underwent minor changes in 1975. The Ghia received opera window
Opera window
Opera Windows are small porthole sized side windows in the C-pillar of some cars. Typically offered in unison with a vinyl roof, they were a very common design feature of American automobiles during the 1970s. The design was new at the time, "... and would prove to be very popular, indicated by its...

s and a padded vinyl half-top. In mid-year, a 2.3 L "MPG" model was added, featuring a catalytic converter
Catalytic converter
A catalytic converter is a device used to convert toxic exhaust emissions from an internal combustion engine into non-toxic substances. Inside a catalytic converter, a catalyst stimulates a chemical reaction in which noxious byproducts of combustion are converted to less toxic substances by dint...

 and a 3.18:1 rear-axle ratio (standard was 3:40:1) to claim EPA
United States Environmental Protection Agency
The U.S. Environmental Protection Agency is an agency of the federal government of the United States charged with protecting human health and the environment, by writing and enforcing regulations based on laws passed by Congress...

-version economy estimates of 23 miles per US gallon in the city and 34 miles per US gallon on the highway. To underscore fuel efficiency, all base 2.3 L Mustang IIs were called MPG after 1975.

The Mustang II achieved record sales for 1975, making it the 9th best selling Mustang of all time, with 199,199 sold.

1976

In 1976, Ford offered the "Stallion" appearance group including styled wheels, blacked-out grille, bumpers and body moldings as well as the "Cobra II" appearance package with black grille, simulated hood scoop, front and rear spoilers, quarter window louvers, accent stripes and snake emblems — available with all engine choices. Automotive historian Gary Witzenburg observed that properly equipped, the thing actually performed pretty well by 1976 standards." Full instrumentation was standard.

1977

The 1977 model year introduced a "Sports Appearance Group" for the Ghia model that was color matched to either black or tan paint, as well as several minor styling changes and color options for the Cobra II. Also new was a T-top
T-top
An automotive T-top is an automobile roof with removable panels on either side of a rigid bar running from the center of one structural bar between pillars to the center of the next structural bar, the panels of a traditional T-top are usually made of auto grade safety glass.The T-top was patented...

 option for the fastback featuring twin removable tinted glass panels.

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.

On the momentum of the Mustang II's successful sales, a totally new Mustang was introduced for the 1979 model year.

Reviews

The Mustang II was named Motor Trend's Car of the Year
Motor Trend Car of the Year
The Motor Trend Car of the Year is an award given by Motor Trend magazine, an American monthly that is published since 1949.- Background :...

, in 1974, the only Mustang to achieve that honor until 1994. Nevertheless, there were also mixed contemporary reviews including Consumer Reports reporting that "there are better subcompacts on the market than the Mustang II" and recommended the AMC Gremlin
AMC Gremlin
The AMC Gremlin is a two-door subcompact car produced in the United States and Canada by the American Motors Corporation between 1970 and 1978. AMC reduced its development and manufacturing costs by adapting a shortened Hornet platform with a Kammback-type tail...

 as a car that was at least as good, and in some respects superior, in terms of seating, noise level, normal and emergency handling, and acceleration; and Road & Track was of the opinion that the Ford was neither fast nor particularly good handling.

Consumer reaction to the Mustang II was enthusiastic with a combined total production of the 1974–1978 models exceeding 1.1 million. "As the smallest, lightest Mustang since the original, it was a fresh start for Ford's pony car and a refreshing return to rationality. And it couldn't have been better timed, introduced just two months before the first "Energy Crisis" upended America. People came in droves to see the Mustang II—and to buy." "Not only did gasoline prices spike up, but its very supply looked to be in jeopardy. Economy immediately became a hot item, and this helped boost the smaller Mustang’s first calendar year sales to 385,993."

According to automotive historian Patrick Foster, "Ford executives decided to call the car 'Mustang II', since it was a new type of pony car designed for an era of high gas prices and fuel shortages". "Many people have never warmed up to the Mustang II, some even complaining it reminds them of the Pinto. But in its day, the public and the press sang praises for the little Mustang II. After all, a car with excellent fuel efficiency, sporty looks and a low price tag will always find acceptance. Mustang II was a success, simply because it was the right car at the right time."

Writers of the past few years tend to ignore the huge successes of the Mustang II and point out flaws by today's standards. Opinions include noting in 2003 that "[i]f there were any steps forward in technology with the Pinto chassis, it was that it had a rack-and-pinion steering gear rather than the Falcon's recirculating ball, and front disc brakes were standard," Edmunds Inside Line wrote of the Mustang II: "It was too small, underpowered, handled poorly, terribly put together, ill-proportioned, chintzy in its details and altogether subpar.

According to Edmund's, the 1974 base engine’s 88 hp was "truly pathetic" and the optional V6’s 105 hp was "underwhelming." (With the addition of mandatory catalytic converters in 1975 these outputs fell to 83 and 97 hp respectively.) In 1976 the "standard four [-cylinder] swelled to a heady 92 hp, the V6 increased to 102 hp, and [sales were] a surprisingly stable 187,567 units—a mere 1,019 less than in '75." In 1977 the engines’ power outputs dropped again, to 89 and 93 hp respectively, and production dropped "about 18 percent to 153,117 cars."

Writers of today ignore the rave reviews of 1974–1976 models, and one even describes the Mustang II as "lamentable." The New York Times said in 2006 that defective steering, together with a fuel tank of the same design as in the Pinto, a car "forever infamous for exploding when struck in the rear," caused owners an anxiety that was "heightened by the fact that some Mustang IIs had Firestone 500 tires, notorious in the 70's for widespread failures." It continued: "Ford, not content to drag the revered Mustang name through the mud...added badges from Ghia
Carrozzeria Ghia
Carrozzeria Ghia SpA is one of the most famous Italian automobile design and coachbuilding firms, established by Giacinto Ghia and Gariglio as Carrozzeria Ghia & Gariglio, located at 4 Corso Valentino in Turin....

, the venerable Italian studio that it had bought, to versions of the Mustang II with partial vinyl roofs and tacky opera windows."
According to Edmunds Inside Line the 1978 King Cobra "wasn't much more than a Cobra II with revised graphics and the hood scoop turned around backward..." This model was "visually about as nutty a Mustang as has ever been built" but "[m]ysteriously, production climbed to 192,410 units."

A 1995 book on the history of the Mustang refers to the introduction of "a lukewarm optional 302 V8 in 1975" and says that "the token revival of the Cobra name—appearing as the taped-and-striped Cobra II—the following year did little to stem the tide as customers grew less enchanted with the Mustang II’s cramped quarters and weak performance." There was "a steady slide in 1976 and '77." Despite the 25-percent rise in sales for 1978, "not even the high-profile Cobra with its flashy decals and snazzy spats and spoilers could save the day for the second-generation Mustang."

A review by Edmunds concluded: "As much as the Mustang II is despised today, Ford appreciated its success back then." "The Mustang II kept the pony car spirit alive in the face of those very rough times ... no small achievement and reason enough to respect Iacocca's little jewel."

"Many Mustang enthusiasts disdained the Mustang II as an aberration, not a “real” Mustang. It was, however, a product of its time, and many find it a desirable collectible today."
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