Main article: First-generation Ford Mustang
1964 MustangAs Lee Iacocca's assistant general manager and chief engineer, Donald N. Frey was the head engineer for the Mustang project — supervising the overall development of the Mustang in a record 18 months[15][16] — while Iacocca himself championed the project as Ford Division general manager. The Mustang prototype was a two-seat, mid-mounted engine roadster. This vehicle employed a Taunus (Ford Germany) V4 engine and was very similar in appearance to the much later Pontiac Fiero. It was claimed that the decision to abandon the 2 seat design was in part due to the low sales experienced with the 2 seat 1955 T-Bird. To broaden market appeal it was later remodeled as a four-seat car styled under the direction of Project Design Chief Joe Oros and his team of L. David Ash, Gale Halderman, and John Foster[17][18] — in Ford's Lincoln–Mercury Division design studios, which produced the winning design in an intramural design contest instigated by Iacocca.
Having set the design standards for the Mustang[19], Oros said:
“ I told the team that I wanted the car to appeal to women, but I wanted men to desire it, too," he said. "I wanted a Ferrari-like front end, the motif centered on the front – something heavy-looking like a Maserati, but, please, not a trident – and I wanted air intakes on the side to cool the rear brakes. I said it should be as sporty as possible and look like it was related to European design.[19] ”
Oros added:
“ I then called a meeting with all the Ford studio designers. We talked about the sporty car for most of that afternoon, setting parameters for what it should look like -- and what it should not look like -- by making lists on a large pad, a technique I adapted from the management seminar. We taped the lists up all around the studio to keep ourselves on track. We also had photographs of all the previous sporty cars that had been done in the Corporate Advanced studio as a guide to themes or ideas that were tired or not acceptable to management.
Within a week we had hammered out a new design. We cut templates and fitted them to the clay model that had been started. We cut right into it, adding or deleting clay to accommodate our new theme, so it wasn't like starting all over. But we knew Lincoln-Mercury would have two models. And Advanced would have five, some they had previously shown and modified, plus a couple extras. But we would only have one model because Ford studio had a production schedule for a good many facelifts and other projects. We couldn't afford the manpower, but we made up for lost time by working around the clock so our model would be ready for the management review.[17]
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To cut down the development cost and achieve a suggested retail price of US$ 2,368, the Mustang was based heavily on familiar yet simple components. Much of the chassis, suspension, and drivetrain components were derived from the Ford Falcon and Ford Fairlane (North American). Favorable publicity articles appeared in 2,600 newspapers the next morning, the day the car was "officially" revealed.[20][21] A Mustang also appeared in the James Bond film Goldfinger in September 1964, the first time the car was used in a movie.[22]
Original sales forecasts projected less than 100,000 units for the first year, but in its first eighteen months, more than one million Mustangs were built.[23] All of these vehicles were VIN-identified as 1965 models, but several changes were made at the traditional opening of the new model year (beginning August 1964), including the addition of back-up lights on some models, the introduction of alternators to replace generators, and an upgrade of the V-8 engine from 260 to 289 cubic-inch displacement. In the case of at least some six-cylinder Mustangs fitted with the 101 hp., 170 cu. in. Falcon engine, the rush into production included some unusual quirks, such as a horn ring bearing the 'Ford Falcon' logo beneath a trim ring emblazoned with 'Ford Mustang.' These characteristics made enough difference to warrant designation of the 121,538 earlier ones as "1964½" model-year Mustangs, a distinction that has endured with purists for the past 46 years and counting.[24]
