One of the many arguments against the Mustang II is that the Ford-badged pony was rather ugly and awkward looking due to its short wheelbase, while the rivaling Chevrolet Camaro continued with the aggressive, muscle car-like design it gained in 1970 until its next redesign in 1981. That may be true to some extent, but the issue here is that the Mustang II was no longer competing against the Camaro.
Being significantly smaller, the Ford was aimed at sporty subcompact models like the Chevrolet Monza and Pontiac Sunbird. And let’s face it, the Monza was no show stopper and it wasn’t more powerful either. In 1974, Chevy’s 2.3- and 2.5-liter four-cylinder engines were rated at 78 and 87 horsepower, respectively, while the base Mustang came with 88 horses on tap.
The Monza’s V8 engines weren’t doing much better with ratings of 110 and 125 horsepower. The Buick Skyhawk and Oldsmobile Starfire were also very similar in design, while drivetrains were shared with the Monza. As for the Dodge Challenger, it was discontinued altogether after the 1974 model year and a second-generation model wasn’t offered until 1978, the Mustang II’s final year on the market.
But unlike Ford’s pony car, the second-gen Challenger was just a rebadged Mitsubishi Galant Coupe with small-displacement four-cylinder engines. With a design that was almost identical to the Asian-spec Galant and engines rated at 77 and 105 horsepower, the Challenger wasn’t an appealing alternative to a Mustang II that still had some of the spirit of the first-gen model.
Which brings me to another point: Mustang production wasn’t going very well in the final years of the first-generation model. Sales dropped from 150,000 in 1971 to 125,000 in 1972. Although there was a mild increase in 1973 to 134,000 units, the Mustang’s popularity was on the decline due to the oil crisis and output figures of the V8 having dropped below the 200-horsepower mark.
The arrival of the Mustang II essentially kept the nameplate running and the second-gen model is one of the reasons why Ford was able to produce the Mustang for 52 consecutive years as of 2016. Unlike the Chevrolet Camaro and Dodge Challenger, which were discontinued at some point.
