Long before the American energy crisis of 1973-74 the Ford Motor Company had decided to re-design the Mustang and re-image it as a smaller, more economical car.
It is said that it all started with a woman who had spoken up at the Spring 1968 Ford Motor Company stockholder's meeting, who stood up and complained directly to Henry Ford II. "Why can't you just leave a sports car small?," she asked. "I mean you keep blowing them up and starting another little one, blow that one up and start another one. I mean why don't you just leave them?" Her forceful remarks received a round of applause from the other stockholders.
The new smaller version
The Mustang was no longer a sleek horse and within a few years of its introduction, it was more like a fat pig. In 1968, Bunkie Knudsen came in as the new president of Ford. Right away he added a monster of an engine with double the horsepower to the Mustang. To support the engine, he had to widen the entire car. By 1971, the Mustang had grown eight inches longer, six inches wider, and almost six hundred pounds heavier than the original 1965 model.
The "long-hood, short-deck" theme was retained but with a dimensionally reduced scale. The wheelbase was selected to be within about one inch of the rival Toyota Celica and as compared to the huge 1973 Mustang that it was replacing, some 20 inches shorter. A little trick to make the car quieter on the highway was discovered in testing, by building the car without rain gutters. Because of declining sales across the industry, a convertible version was never considered.
While some immediately thought the Mustang II was nothing but a Pinto with a different skin, there were actually numerous upgrades and changes, including the addition of two inches of wheelbase and lengthened to 96.2 inches. Overall length was also different, with the Mustang II being 6 inches longer as compared to the Pinto.
Like any other new model launch, nobody knew how well the smaller version of the Mustang would sell. The news and impact of a national gasoline shortage crisis in America soon came and the public welcomed the Mustang II with impressive sales numbers. The car was a success as a result.
Motor Trend Magazine awarded the Mustang II as their 1974 Car Of The Year and stated it was somewhat of an effortless decision. The editors recognized it as a "new class of small car" as they analyzed that 1974 was a time of introspective about the function and purpose of the automobile, and in a time when the entire motoring world is being reevaluated and radicalized by an energy crisis of enormous dimension. With that in mind, a car that delivered enhanced fuel efficiency was definitely what the publication wanted to recognize.
The timing of the Mustang II was truly phenomenal in terms of luck. As a result of the Arab oil embargo that had taken place starting on October 18th, 1973, debuting a more fuel-efficient sporty car at this time was most fortunate for Ford. Motor Trend Magazine had reflected on this when the Mustang II was shown at the press launch, saying that the introduction of the smaller had been "one of the best-timed announcements in auto history."
1974
At the end of the 1974 model year, the sales for the Mustang II added up to an impressive 338,136 sold. It has been said that the Mustang II saved the Mustang from extinction and with the healthy sales, the gamble of downsizing paid off handsomely.