Introduced in September 1973 for the 1974 model year, the Mustang II arrived around the same time as the oil embargo of 1973 and subsequent fuel shortages. Developed under Lee Iacocca, it was an "entirely new kind of pony car." Ford decided to call it Mustang II as it was designed for an era of high gas prices and fuel shortages. The Mustang II was 490 lb (222 kg) lighter and almost 19 in (483 mm) shorter than the 1973 Mustang, and derived from the subcompact Pinto platform. It employed an exclusive subframe, isolating its front suspension and engine mount subframe, and used a rack-and-pinion steering design.
Named Motor Trend's 1974 Car of the Year, the Mustang II reached over 1.1 million sales over four years of production. It is noted for its marketing prescience and strong sales, for introducing numerous features that would become Mustang hallmarks, and for possibly saving the Mustang itself. Simultaneously, it is noted for abandoning essential aspects of the Mustang heritage, for its commonality with the Pinto, and for embodying aspects of the automotive Malaise era.
The first-generation Mustangs grew in size, with the 1973 model becoming markedly larger than the original. The pony car market segment saw decreasing sales in the early-1970s. Many buyers turned to lower-priced, fuel-efficient compacts like Ford's own Ford Maverick. The original Mustang's allure was its trim size and concept. Automakers in Detroit began to receive messages from new-car buyers to build smaller cars as customers stopped buying and inventory climbed during the summer of 1973. There were already positive market expectations for the new downsized Mustang.
After becoming president of Ford Motor Company on December 10, 1970, Lee Iacocca ordered the development of a smaller Mustang for 1974 introduction. Initial plans for a downsized Mustang based on the compact Ford Maverick were scrapped in favor of a smaller Mustang based on the subcompact Ford Pinto, introduced in 1971. Rather than competing against GM's larger pony cars like the Chevrolet Camaro and Pontiac Firebird, the Mustang II competed against sporty subcompact models. These included GM's Buick Skyhawk, Oldsmobile Starfire, Pontiac Sunbird, and Chevrolet Monza. It also competed with 2+2 import coupes such as the Toyota Celica, Datsun 240Z, Mazda RX-3, and the European Ford Capri. New competitors in 1974 included the Volkswagen Scirocco, and the BMW 2002 introduced earlier. The new design featured rack and pinion steering and a separate engine sub-frame to decrease noise, vibration, and harshness.
According to Ford's Chief Engineer Stuart M. Frey, Iacocca expected a high level of fit and finish, wanting the car to be "a little jewel." Mustang II production reached 385,993 the first year. The 1974 model reached 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 II, stating it "was the right car at the right time, selling more than 1 million units in four years." The introduction of the Mustang II on September 21, 1973, coincided with the Arab oil embargo. The marketplace was adjusting to the fuel crisis, increasing insurance rates, United States emission standards, safety regulations, and downturns in the economy. GM had considered discontinuing the Camaro and Firebird after 1972. In 1974, Chrysler discontinued the Barracuda and Dodge Challenger, and American Motors discontinued the Javelin. Lighter, more economical imported cars became increasingly popular. The Mustang II would be an early example of downsizing among Detroit's Big Three later in the decade.
Based on the Ford Pinto, the initial Mustang II production design was done by young Ford designer Howard "Buck" Mook and personally selected by Iacocca. Two body styles were available: a two-door notchback coupe and a sportier three-door "2+2" hatchback. A folding rear seat was optional on the notchback coupe and standard on all hatchback models. Weight distribution was front-heavy, with a 1974 V6-equipped car having 58 percent of its weight over the front wheels. The Mustang II was also the first American car to have power-assisted rack and pinion steering.
The Mustang II uses a Hotchkiss-type rear suspension consisting of a live hypoid rear axle supported and located by semi-elliptic multi-leaf springs, two telescoping hydraulic shock absorbers, and, on most models, a rear anti-sway bar. The front suspension featured a compression strut with lower trailing links, a stabilizer bar, and coil springs. Steering was rack and pinion. Front brake size was 9.3 in (236 mm) and rear brake size was 9.0 in (229 mm). Standard tires were B78 x 13 on 13 x 5 wheels.
Designers and engineers worked on a "reinvented" Mustang, mimicking the first version. 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 during the 1973 oil crisis. The new Mustang was viewed as a "fun-to-drive economy" car, sharing its underpinnings with the Pinto. The Mustang II carried handling and engineering improvements. Competitors included the Toyota Celica and the Datsun 240Z.
Available as a coupe or three-door hatchback, the new car's base engine was a 140 cu in (2.3 L) SOHC I4, the first fully metric-dimensioned engine built in the U.S. A 171 cu in (2.8 L) 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 was not available for the 1974 model year (except in Mexico). The Mustang II's styling was influenced by Ghia of Italy. Sales for the Mustang II increased in 1974, making it the 6th best-selling Mustang of all time with 296,041 units produced.
For the 1975 model year, the engine bay was re-engineered to accept the 302 cu in (4.9 L) V8 option, with revised hood and header panel. The engine was limited to a two-barrel carburetor and "net" 140 hp (104 kW; 142 PS). The Mustang II's 302 cu in (4.9 L) engine was called the "5.0 L" even though its capacity was 4,942 cc (4.9 L; 301.6 cu in). Other than the optional V8 engine, the car underwent minor changes. The Ghia received opera windows and a padded vinyl half-top, as well as a plush Silver Luxury Group option. In mid-year, a 2.3 L "MPG" model was added, featuring a catalytic converter and a 3.18:1 rear-axle ratio. The Mustang II achieved record sales for 1975, making it the 9th best-selling Mustang of all time, with 199,199 sold.
In 1976, Ford offered the "Stallion" appearance group, including styled wheels, blacked-out grille, bumpers, and body moldings, as well as black two-toned accent paint. A new All-Black Sport Group option for the Mach I and an optional Rallye Package were also introduced. New 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. Full instrumentation was standard. For the luxurious Ghia, 1975's Silver Luxury Group was replaced by a broader Ghia Luxury Group option. A manual moon roof was optional.
Capitalizing on the sales success of the previous year's Cobra II, Mustang II sales literature for 1977 emphasized the sporty aspects of the car. The 1977 model year introduced a "Ghia Sports Group" for the Ghia model, 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. This was notable on the Cobra II models, where the hood scoop was turned around and graphics were revised. The over-the-top dual stripes were replaced with a single stripe, and on the sides, the snake and "COBRA II" decals were replaced with large stripes and "COBRA" lettering.
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 bolster the car's performance image. 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. On the momentum of the Mustang II's successful sales, a new Ford Mustang (third generation) would be introduced for the 1979 model year.
The Mustang II was named Motor Trend's Car of the Year in 1974, the last Mustang to achieve that honor until 1994. 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. It was introduced just two months before the first "Energy Crisis" upended America. People came in droves to see and buy the Mustang II. 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." Automotive journalist Michael Lamm described Ford's Mustang II as "the best idea of the year."
Writers of the past few years tend to ignore the sales success of the Mustang II, pointing out flaws in the design compared to cars that came before and after, symbolizing the very start of the Malaise era in American auto design. 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 Edmunds, the 1974 base engine's 88 hp (66 kW; 89 PS) was "truly pathetic" and the optional V6's 105 hp (78 kW; 106 PS) was "underwhelming." The automotive editor of Mustang Monthly magazine describes "The Mustang II was the right car at the right time to keep the legend going into the future." Ford hosted the first "National Mustang II Reunion" in 2016.
This article is based solely on the supplied corpus. No external sources were consulted; claims that could not be substantiated against the corpus were omitted under the drop-the-claim rule.
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