Manufactured from 1974 to 1978

Lee Iacocca became President of Ford Motor Company in 1970 and ordered a smaller, more fuel-efficient Mustang for 1974. Initially it was to be based on the Ford Maverick, but ultimately was based on the *gasp*, Ford Pinto.

The new model, named the “Mustang II”, was introduced two months before the first 1973 oil crisis, and its reduced size allowed it to compete against imported sports coupés such as the Japanese Toyota Celica and the European Ford Capri.

Lee Iacocca wanted the new car, which returned the Mustang to its 1964 predecessor in size, shape, and overall styling, to be finished to a higher standard, saying it should be “a little jewel”. However not only was it smaller than the original car, but it was also heavier and performance was reduced as a result.

The car was available in coupé versions, including a “luxury” Ghia model designed by Ford’s recently acquired Ghia of Italy. The coupe was marketed as the “Hardtop” but in fact had a thin “B” pillar and rear quarter windows that did not roll down. The “Ghia” featured a thickly padded vinyl roof and smaller rear quarter windows, giving a more formal look. Changes introduced in 1975 included reinstatement of the 302 V8 option as well as the performance option “Cobra II”, in 1976 and a “King Cobra” in 1978.