With record gas prices and tough regulations plaguing the industry, fuel efficiency was paramount for the Blue Oval brand and its top-selling Mustang. Lee Iacocca, one of the original minds behind the Mustang, navigated its journey from spirited sports car to sensible subcompact with these “Mustang II” models. Now based on the Pinto, size and power was reduced to better compete against Japanese imports, with performance and luxury taking a backseat to practicality and MPGs. 1974 sales were very promising with almost 400K sold, but the novelty quickly wore off and the Mustang sank deep into the same “malaise era” experienced by all of Detroit’s Big 3 automakers. However, with features like T-tops, hatchbacks, and the slow-roll intro of the 5.0L V8, the ’77-’78 models gained lots of momentum.