History of Ford Mustang : Seventh Generation (1994-1998)

By the early '90s, Ford knew it needed to keep the Mustang around no matter what — that wasn't something the company was so convinced of a decade earlier. Kill the Mustang and it would kill the one car the whole world associated with Ford. But a new Mustang would still have to be affordable, and the only way to control costs would be to build it atop the existing Fox chassis.

What appeared for 1994 was a Mustang clearly influenced by the styling themes of Mustangs past. There was the galloping horse in the grille, the side scallop reappeared and the taillights were split into three segments (albeit horizontally instead of vertically). Inside, the cockpit featured a twin-pod dashboard that recalled the dashes used between '64 1/2 and '73. Only two body styles were now offered, a two-door coupe with a semifastback roof and a convertible.

The Fox platform was thoroughly reinforced for the '94 Mustang, but the basic modified MacPherson strut front and coil sprung solid rear axle returned intact. Four-wheel disc brakes were now used throughout the line with ABS optional.

The biggest beneficiary of the new structure was the drop top; this was the first Mustang convertible since the '73 that was actually conceived as a convertible and not a conversion. The new convertible's structure was significantly stiffer and the car handled better than the outgoing '93.

Engine choices were also pared down to two for '94. Base Mustangs (no more LX, just Mustang) got a fuel-injected development of the 3.8-liter Essex V6 rated at 145 horsepower. The Mustang GT got a revised version of the 5.0-liter V8 with a flatter intake manifold that was rated at 215 horsepower. The disappointingly low-output rating of the V8 made many suspect that the '93 5.0's down-rating to 205 horsepower was done in a relatively shallow attempt to mitigate any outcry resulting from the squashed intake's stealing power from the '94 5.0-liter. Both engines could be mated to either five-speed manual or four-speed automatic transmissions.

Available with either 16-inch or 17-inch wheels and tires, the '94 Mustang GT proved to be a better handling, more secure driving car than ever before. But it wasn't really any more sophisticated than the '93. Most tests of the time found the 5.0-liter V8's performance to be soft in comparison to the 5.0-liter used in the '93 Mustang.

For the third time in its history, the Mustang was chosen to pace the Indianapolis 500. Instead of conjuring up some sort of special edition for the Speedway, Ford assigned its Special Vehicle Team (SVT) the task of building another Cobra version of the Mustang. The result was a slightly modified GT wearing 17-inch wheels and, thanks to a set of Ford's "GT40" cylinder heads and a different intake, a 5.0-liter V8 making 240 horsepower. Cobras were distinguished by their own uniquely blistered hood, rear spoiler and front fascia with round foglamps and snake logos on their fenders and in their grilles. While the Cobra used to pace the 500 was a convertible, the Cobra coupe was more common. Fully 5,009 Cobra coupes were sold along with just 1,000 convertibles during '94.

The new Mustang was a hit, but hardly overwhelming. Selling into a market vastly more fragmented than it was in 1965, Ford sold 123,198 Mustangs during '94. Not bad at all considering that the car didn't go on sale until January of 1994.

Why change something that was working? The 1995 Mustangs were virtually identical to the '94s. The only change to the model lineup was the introduction of a "GTS" model that essentially put the Mustang GT's drivetrain into a plain Mustang shell. Sales rose to 190,994 units that year, including 48,264 convertibles and another 5,006 SVT Cobras (1,003 of which were drop tops).

The big change for 1996 was the abandonment of the 5.0-liter V8 in favor of Ford's 4.6-liter, SOHC V8 in the GT. Rated at the same 215 horsepower as the outgoing 5.0, the 4.6 opened a new chapter in Mustang history as the good old small-block Ford V8 was left behind after serving in the Mustang for 31 of the previous 32 model years. In addition, the 3.8-liter V6 was rerated to 150 horsepower. Transmission choices remained the five-speed manual or four-speed automatic.

A special run of 250 Cobra R models were also produced for '95 powered by a 5.8-liter version of the Ford small-block V8 making 300 horsepower. The lack of a rear seat, radio or air conditioning didn't keep enthusiasts from snapping them up instantly.

Bowing to enthusiasts' demand, all Mustangs got new taillights for '96 that were divided vertically into three segments as tradition dictated. Otherwise, except for revised front fender badges on the GT announcing the 4.6 engine, styling was unchanged.

Also new for '96 was a heavily revised version of the SVT Cobra that now featured an all-aluminum, DOHC, 32-valve version of the 4.6-liter engine. To accommodate the tall engine, the hood sported a new bulge but otherwise the car looked quite similar to the '95. But with a full 305 horsepower available, it performed much better. This was, after all, the most powerful V8 in a Mustang since the Boss 351 back in '71. Cobra production expanded to 7,496 coupes and 2,510 convertibles during '96.

Some new upholstery, a new security system and new colors came for 1997, but that's about it. Ford built 108,344 Mustangs that model year, with 6,961 of them being Cobra coupes and 3,088 Cobra convertibles. Except for redesigned five-spoke wheels on the Cobra, revisions to the 4.6-liter V8 that increased output to 225 horsepower and the usual juggling of colors and trim, the 1998 Mustang carried over from '97. Inexplicably, sales increased to a healthy 175,522 total units that year, including 5,174 Cobra coupes and 3,480 Cobra convertibles. By the way, what is a "Mustang Cobra" anyhow? Is it a reptile? A horse? Or is it some cruel, misbegotten hybrid of the two?