_{SECOND GENERATION: 1974–1978​ - Mustang II}

Reflecting those same pressures that affected Mustang sales in 1972 and 1973, the all new and downsized 1974 Mustang II was a total departure from all previous Mustang models, based on the new compact Maverick platform launched earlier in 1969. Mustang II was a departure from previous models in many ways; there was no convertible, standard engines were a 2.3 OHC 4 cylinder or a 2.8 German sourced V6. The 302 V8 (downrated to 140 hp) followed later. As the market pressures eased, Ford turned its attention back to sports performance albeit within the Mustang II engine limitations, with the progressive introduction of Rallye Pack, Cobra and King Cobra models.

(Whilst the Mustang II model is not recognised as the marketing and image success of its predecessors, it has a special place in NZ Mustang history, and the base car for the all conquering PDL Mustang 2 race car, built on US IMSA guidelines on a Mustang II base car).