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The second-generation Mustang, also known as the Mustang II, was a bold shift from the muscle-bound days of the original. Introduced in 1974 and built on a smaller platform, this generation focused on fuel efficiency, compact size, and luxury — perfectly aligned with the 1970s gas crisis and evolving consumer needs.
Launched in the shadow of the 1973 oil crisis, the Mustang II marked a radical shift from its predecessor. Built on the subcompact Ford Pinto platform, it was significantly smaller and lighter, emphasizing fuel efficiency and comfort over high performance. While traditional enthusiasts criticized the lack of initial V8 power and Pinto roots, the Mustang II was a commercial success. It sold strongly and helped preserve the Mustang name through a challenging era. Notably, it was named Motor Trend’s Car of the Year in 1974.
Size & Platform: Smaller, lighter, based on the Pinto instead of the Falcon.
Focus: From muscle car to a balance of fuel economy, comfort, and handling.
Engines: No V8 in 1974 – the first Mustang without one. Base model used a 4-cylinder.
Performance: Lower horsepower; improved handling was a priority over straight-line speed.
Models: Hardtop Coupe (Notchback), Hatchback.
Trims: Base, Ghia (luxury), Mach 1 (sporty hatchback).
Engines:
2.3L OHC Inline-4 (Lima engine – Ford’s first metric engine)
Optional: 2.8L Cologne V6 (German-made)
No V8 offered
Features:
Rack-and-pinion steering (Mustang first)
Front disc brakes standard
Ghia trim added vinyl roof, upscale interior
Mach 1 included sporty trim, styled steel wheels
Styling: Compact size, formal grille, single round headlights, energy-absorbing bumpers.
V8 Returns: 302ci (5.0L) V8 introduced (~122–140 hp depending on emissions equipment)
Engines: 2.3L I4, 2.8L V6, 5.0L V8
Features:
Power steering and brakes required with V8
Catalytic converters added
Steel-belted radial tires standard
Styling: Minor trim revisions, Mach 1 graphics updated, opera windows on Ghia.
New Package: Cobra II introduced (Hatchback only)
Engines: Same as 1975
Features:
Cobra II offered bold racing stripes, spoilers, louvers, hood scoop (non-functional)
T-top (T-Roof Convertible) option introduced
Styling: Cobra II drastically altered appearance with Shelby-inspired visuals.
New Option: “Sports Appearance Group” for Ghia
Engines: 2.3L I4, 2.8L V6, 5.0L V8
Features:
T-tops now available on Mach 1
V8 received 4-speed manual (automatic optional)
Styling: Updated grille pattern, refreshed Cobra II and Mach 1 graphics.
Final Year for Mustang II
New Package: King Cobra (Hatchback only, V8 required)
Engines: Same as prior year. V8 rated around 139 hp.
Features:
King Cobra had a massive hood cobra decal, blacked-out trim, front air dam, rear spoiler, and styled wheels
T-tops continued
Styling: King Cobra had the boldest visual identity of the Mustang II era.
Economy-focused. 4-cylinder engine, minimal trim. Available as Notchback or Hatchback.
Luxury trim (Notchback only). Featured vinyl roof, plush seats, woodgrain trim, and sound insulation.
Sporty trim for Hatchback. Initially V6 standard, later available with I4 or V8. Featured graphics and optional scoop.
Cosmetic performance package. Shelby-inspired stripes, spoilers, scoops, and louvers. Available with any engine.
Top-tier appearance package. Only available with V8. Included bold decals, spoilers, and special wheels.
| Engine | Type | Power (Net HP) |
|---|---|---|
| 2.3L Inline-4 (140 ci) | OHC (Lima) | ~88 hp |
| 2.8L V6 (171 ci) | Cologne V6 (German) | ~105 hp |
| 5.0L V8 (302 ci) | Windsor V8 | ~122–140 hp |
4-speed Manual (standard with V8 by 1977)
3-speed Automatic (C3 for I4/V6, C4 for V8)
Rust: Vulnerable areas include shock towers, floor pans, rocker panels, and trunk.
Low Power Output: Even V8s were detuned; performance mods common.
V6 Maintenance: Cologne V6 may suffer valvetrain and timing issues.
Electrical: Aging wiring and fuses can lead to problems.
Suspension: Pinto-based front end prone to wear; bushings, ball joints need inspection.
Interior Trim: Prone to cracking and fading due to age and sun exposure.
Motor Trend Car of the Year (1974)
Sales Success: Over 385,000 units sold in 1974 alone.
Pop Culture: Featured in Charlie’s Angels driven by Farrah Fawcett’s character.
Cobra II & King Cobra: Evoked classic Mustang styling with bold graphics and sporty visuals.
Online Communities: MustangII.net and other forums offer support and guidance.
Parts Sources: Many parts shared with Ford Pinto and Mercury Bobcat.
Manuals: Look for model-specific service and workshop manuals.
The Mustang II kept the legend alive during tough times. Keep yours on the road with our dedicated Mustang Workshop Manuals, covering everything from the efficient 2.3L to the classic 5.0L V8.
Launch Year of the Second Generation.
Models: Coupe and Hatchback (no convertible).
Engines: 2.3L I4, 2.8L V6.
Notable Features:
No V8 available.
Better noise insulation and improved ride comfort.
Awarded Motor Trend Car of the Year.
Design: Smaller body, but styling cues inspired by the original Mustang.
Major Update: Return of the V8.
Engines: 2.3L I4, 2.8L V6, 5.0L V8 (302ci).
Features:
Automatic transmission paired with V8.
Slight exterior refinements.
Better handling with optional suspension packages.
Styling Refresh: More trim and appearance packages.
New Model: Stallion Package (black-out trim, graphics).
Upgrades:
Sports steering wheel option.
Performance Suspension Package improved cornering.
Continued popularity of the Ghia luxury trim.
Continued refinements and focus on customization.
New T-Top Option introduced for hatchback models.
Cobra II returns with racing-inspired looks: stripes, spoilers, hood scoop.
Ghia models emphasized plush interiors and vinyl roofs.
King Cobra model introduced — bold graphics, rear spoiler, front air dam.
Cobra II continues as a visual performance model.
Engines: I4, V6, and V8 options available.
Legacy: Prepares the way for the radically redesigned 1979 Mustang.
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