1985-1986 GT
The 1979 Mustang was based on the longer Fox platform (initially developed for the 1978 Ford Fairmont and Mercury Zephyr). The interior was engineered to accommodate four people in comfort despite a smaller rear seat. The larger body meant the interior offered more space for four passengers, especially in the back seat, as well as a larger capacity trunk and a bigger engine bay. Two trim levels were available and included the base model and the more luxurious Ghia model. Body styles included a coupé (or notchback), hatchback, and convertible. Available trim levels included L, GL, GLX, LX, GT (1982-1993), GTS, Turbo GT (1983–84), GT-350 (1984), SVO (1984–86), Cobra (1979–81,1993), Cobra R (1993), and Ghia (1979–81). From 1979 to 1986, the Mustang's Mercury counterpart was called the Capri, again using its own styling cues. Handling was upgraded with a new rack-and-pinion steering system.
The third generation Mustang had two different front end styles. From 1979 to 1986 the car had an angled back front clip and four headlights, known by enthusiasts as "Four Eyes," the same front end styling that was also used on the Chevrolet Camaro from 1982 until 1992. Then in the 1987 to 1993 model years, the front clip had a rounded-off shape known as the "aero" style with flush composite headlamps. Also in 1986, engines featured EFI (electronic fuel injection) instead of carburetors. Other changes for the 1986 models included an upgraded 8.8-inch (224 mm) rear-end with four shock absorbers.
In addition to the base & Ghia trim levels, a Cobra appearance package also made its debut and would continue through both the 1980 & 1981 model years. The all-new 1979 Cobra (17,579 produced) featured black trim and grille area, chrome door handles, stainless steel lock sets & antenna, aluminum roof drip rail, body colored sail panels, black lower body-side paint, colored coordinated dual pinstripes in the wraparound body-side moldings and bumper grooves, an optional snake decal for the hood and Cobra lettering on the doors. There was no rear spoiler on the 1979 models (except on the mid year introduction of the Indianapolis Pace Cars). The 1980 Cobra (5,550 produced) and the 1981 Cobras (1,821 produced) had a makeover in the appearance department as a new front bumper and air dam (complete with fog lights), full length cowl type hood scoop, and rear spoiler were added (all carried over from the 1979 Indy Pace Car). Also included in the '80/'81 Cobra package were colorful body length decals, COBRA hood decal, COBRA side window decals, and a COBRA decal on the rear spoiler. All trim was now "Blacked out", including the door handles, keylocks, antenna, and sail panels.
On May 27, 1979, the all-new Mustang was chosen as the Official Pace Car of the Indianapolis 500. Ford commemorated this event with a mid-year addition "Indy 500" Pace Car model (10,478 produced). The two-tone Pewter and Black colors were complimented with Orange and Red graphics. The front end featured a unique front air dam with fog lights, and a full length cowl type hood scoop, while the rear end got the new for '79 rear spoiler (all of these additions carried over to both the '80 & '81 Cobra). The black interior featured Recaro seats with patterned Black and White inserts. Available were the 2.3 L Turbo with mandatory four-speed manual transmission or the 5.0 L V8 with either an overdrive 4-speed manual or three-speed automatic transmission. The production cars included a sunroof. However, the three actual pace cars were fitted with a T-roof by Cars & Concepts of Brighton, MI. The T-roof option would not become an available option until the 1981 model year.
In 1982, the Cobra model was dropped in favor of the Mustang GT, which returned after 13 years. The new GT featured a re-engineered 157 hp (117 kW; 159 PS) 302 cu in (4.9 L) "5.0 L" engine with new valves, a more aggressive cam (from a 1973 351W Torino application), a larger twin-barrel carburetor, and a revised firing order, as well as a better breathing intake and exhaust system. The GT included the front air dam with fog lamps and the rear spoiler from the '79 Pace Car and the 1980 & 1981 Cobras. However, the full length hood scoop from those models did not carry over and the smaller 1979 Cobra hood scoop made its return on the GT. Only four colors were offered on the GT model and they consisted of Dark Red, Bright Red, Silver, and Black. As in many previous years, the 5.0 engine was not tied only to the performance flagship GT. It was available on lower trims, and also formed the basis for the "SSP" (Special Service Package) cars that were used by government and police law enforcement, and were almost exclusively ordered in the 2-door sedan bodystyle. The 4.2 Liter V8 was available for the last time on all Mustang models and only with an automatic transmission. Trim levels were also revised to now include the L (base), GL, and GLX under the GT model.
Engines for the 1979-1982 models included the 88 hp (66 kW) 2.3 L Pinto inline-four, 109 hp (81 kW) 2.8 L Cologne V6 (made by Ford of Germany), and the 140 hp (104 kW) 302 cu in (4.9 L) Windsor V8; which was marketed as a 5.0 L engine and front fenders badged as such. All were carried over from the Mustang II line. Shortly after the model year started a 85 hp (63 kW) 3.3 L straight-six engine was available. Supplies of the 2.8 L V6 proved inadequate leading to it being discontinued in late 1979. A new 132 hp (98 kW) 2.3 L turbo four-cylinder, debuted that offered similar horsepower to the V8. The automaker had plans this engine would usher in a new era in performance. The 2.3 and 2.3 Turbo, as well as the V8 models could also be optioned with the newly developed TRX handling suspension that included Michelin 390 mm tires and specific metric wheels.
Following the second oil crisis in 1979, the 302 cu in (4.9 L) "5.0 L" engine was dropped in favor of a new 255 cu in (4.2 L) V8 due to its better fuel economy. It was the only V8 offered in 1980 and 1981. Basically a sleeved down 302, the 4.2 L V8 had restrictive heads and produced 120 hp (89 kW), the lowest power ever for a Mustang V8. The 4.2 L was mated only with the three-speed automatic transmission. This meant the 2.3 L Turbo 4 was the sole "performance" engine. The Turbo 4 was plagued with reliability issues from its release. Inadequate lubrication led to premature turbo failure and some engines caught fire. It was listed as an option through 1981, but dropped for 1982, although it was still available in Canada. This engine would return in the new-for-1983 Turbo GT. The "Traction-Lok" limited slip differential was available for the first time in 1981, with all engine combinations. A five-speed manual option arrived late during the 1980 model year, originally only in the 2.3-liter four-cylinder engines. New for 1981 was an optional Traction-Lok rear axle (all engines), and a T-bar roof.
In response to poor sales and escalating fuel prices during the early 1980s, a new Mustang was in development. It was to be a variant of the Mazda MX-6 assembled at AutoAlliance International in Flat Rock, Michigan. Enthusiasts wrote to Ford objecting to the proposed change to a front-wheel drive, Japanese-designed Mustang without a V8 option. The result was a major facelift of the existing Mustang in 1987, while the MX-6 variant had a last minute name change from Mustang to Probe and released as a 1989 model.
