Many young buyers, who wanted more performance, were attracted to
the new Pontiac GTO, also introduced in 1964. The car sold well in the first
year, but when the ‘65 GTO was introduced, it started selling very well, even
though it was more expensive than the Mustang. Many of the other car companies
were also introducing high horsepower, mid-size cars, prompting Ford to
The ‘67 Mustang was similar to earlier models, but it was a
little longer and wider than the previous model to squeeze in a 390ci engine.
Now the top of the line Mustang engine was the 320 horsepower 390 that could be
hooked to a four-speed transmission. New options included tilt-away steering,
an overhead console, power disc brakes, and an FMX transmission that allowed
manual or automatic shifting. Even still, sales were negatively affected by the
new Camaro and other muscle cars, with Ford selling 472,000 Mustangs in 1967.