Car Spot: 78 Mustang II 2+2

Expensive fuel and insurance rates led to its development

I remember the fall of 1973. The Arabs decided to punish the US for backing Israel and reduced our oil supply. Nearly quadrupling the price of oil from $2.90 a barrel before the embargo to $11.65 a barrel in January 1974 gas prices went through the roof. Remember the long gas lines? All of a sudden big cars were out and MPG was more important than hp. Because of that, along with tighter emission standards and safety regulations, pony car sales started to sag. So much so that GM considered discontinuing the Camaro and Firebird after 1972. In 1974 the Barracuda, Dodge Challenger, and Javelin were all discontinued as lighter, more economical imported cars became increasingly popular. Enter the Mustang II, the subject of this week’s spot.

RELATED Spot: A Mustang that’s not a Mustang.

This is another example of Lee Iacocca’s footprint in automotive history. Marketed as an entirely new kind of pony car designed for an era of high gas prices and fuel shortages. Utilizing the Pinto platform it was 490 pounds lighter and almost 19 inches shorter than the 1973 Mustang. Instead of going head to head with the Camaro and Firebird, the Mustang II was now competing against GM’s sporty subcompact models like the Buick Skyhawk, Oldsmobile Starfire, Pontiac Sunbird, and Chevrolet Monza. Throw in the mix 2+2 import coupes such as the Toyota Celica, Datsun 240Z, Mazda RX-3, and the European Ford Capri.

Available as a coupe or three-door hatchback, the base engine was a 140 cu in (2.3 L) SOHC I4. A 171 cu in 2.8 L V6 was the only engine option until 1975 when a V8 was available. Packages ranged from the base Hardtop, 2+2 hatchback, and a “Ghia” luxury group with vinyl roof, and a top-of-the-line V6-powered Mach 1.

With Americans starting to forget about the oil crisis the engine bay was re-engineered to accept Ford’s 302 cu in (4.9 L) V8 but with only a two-barrel carburetor the engine put out an anemic 140 hp. Most of the automotive press hammered it. Testing by Road & Track “recorded zero to 60 mph in 10.5 seconds, and a top speed of 106 mph. The Mustang II’s 302 cu in (4.9 L) engine was called the “5.0 L” even though its capacity was 4.9. They found the new V8 to be sluggish and ill-suited to the car, with its added weight handling was crap.

RELATED Spot: A 68 GT Fastback

Consumer Reports reported that “there are better subcompacts on the market than the Mustang II” and recommended get this, the AMC Gremlin as a car that was at least as good, and in some respects superior, in terms of seating, noise level, normal and emergency handling, and acceleration.” Hey I’m not making this stuff up. I said most of the automotive press. However Motor Trend loved it and named it Car of the Year in 1974.

The Mustang II sold over 1.1 million sales over four years of production before being replaced by the Fox body in 1979. The hardcore Mustang fans hated it. It was a perfect example of the “malaise era” cars thanks to regulations the The U.S. federal government put into effect resulting in the death of the 1960s-style American muscle car. Sound familiar?

What are they worth now? Well not a lot. According to Hagerty, a 74 Base Coupe with the 6-cyl. 171cid/105hp 2bbl in Good condition is under 10 grand. A 78 King Cobra, 3dr Hatchback Coupe with the 8-cyl. 302cid/139hp 2bbl is $20,500 and in Concours condition only $37,500.

Thanks for stopping by and checking out this week’s spot along with some automotive history from the malaise era. Check out my other spots and be sure to head back here next Friday for another one of my spots. Have a great weekend.

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