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Intially based on the contemporary Ford Falcon compact car,[1] production began in Dearborn, Michigan, on 9 March 1964 and it was introduced to the public on 17 April 1964 at the New York World's Fair. Media exposure included being televised nationally by all three American television networks on 19 April 1964. It also appeared as a character's auto in the James Bond film Goldfinger in September of 1964.

The Mustang had the most successful car launching in automobile history, selling, in its first eighteen months, more than one million cars. The Mustang created the "pony car" class of automobiles — the sports car's "long hood, short deck" design. It spawned competitors, the Camaro, inspired imported coupés, the Toyota Celica and Ford Capri. The Mustang remains in production after four decades-worth of stylistic and technologic revisions. Source: Wikipedia

First generation (1964–1973)
First conceived by Ford product manager Donald N. Frey and championed by Ford Division general manager Lee Iacocca, the Mustang prototype was a two-seat, mid-engine roadster. This would later be remodeled as a four-seat car penned by David Ash and John Oros in Ford's Lincoln–Mercury Division design studios, which produced the winning design in an intramural design contest called by Iacocca. 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 Fairlane. The car had a unitized platform-type frame, which was taken from the 1964 Falcon, and welded box-section side rails, including welded crossmembers. The Mustang grew larger and heavier with each passing year, culminating with the 1971 to 1973 models that were far different compared to the original 1964 model. The automaker was deluged with mail from fans of the original car who demanded that the Mustang be returned to its original size and concept.

Second generation (1974–1978)
Pony cars were in disfavor by 1970, buyers preferred cheaper, fuel-efficient compact cars. The new-for-1974 "Mustang II" model was drastically smaller than the 1973 cars. On assuming the Ford Motor Company presidency, in December of 1970, Lee Iacocca ordered a smaller Mustang for 1974, initial plans required basing the 1974 Mustang on the Ford Maverick, a compact car of like size and power akin to the Falcon's, the Mustang's original base car. Those plans went undone in favor of a yet smaller 1974 Mustang based on the Ford Pinto, a sub-compact car. Such a Mustang could better compete with smaller, imported, sports coupés, such as the Japanese Toyota Celica and the European Ford Capri (then Ford-built in Germany and Britain, sold in U.S. by Mercury as a captive import car). The introduction of the smaller Mustang II was well-timed — two months shy of the first "Energy Crisis", in October of 1973. The first-year sales were 385,993 cars, almost that of the original Mustang's twelve-month sales record of 418,812 cars.

Third generation (1979–1993)
In 1979, the new Mustang was based on the larger Fox platform (initially developed for the 1978 Ford Fairmont and Mercury Zephyr). The Mustang's interior was re-styled to comfortably accommodate four people, despite a smaller rear seat. The 1979 Mustang had a larger trunk (boot) and a larger motor bay, for better service access. The body styles included a coupé (Notchback) and a hatchback; a convertible Mustang was offered in 1983. The offered car-trim levels included: "LX", "GT", "Cobra", "SVO", and the "Cobra R". The available motors were: 88 hp (66 kW) 2.3 L four-cylinder, 109 hp (81 kW) 2.8 L Cologne V6 (made by Ford of Europe), and the 140 hp (104 kW) 302 CID (4.9 L), all from the Mustang II cars line. Supplies of the 2.8 L proved inadequate, leading to its mid-1979 replacement, Ford's 85 hp (63 kW). 3.3 L inline-six cylinder motor, and a new 132 hp (98 kW) 2.3 L turbo-charged, four-cylinder motor, with V8-like horsepower, was introduced.

Fourth generation (1994–2004)
In 1994, the Mustang underwent its first major redesign in 15 years. The design, code named "SN-95" by Ford, was based on an updated version of the rear-wheel drive Fox platform known as "Fox-4". It featured dramatic new styling by Patrick Schiavone that incorporated some stylistic elements similar to those on earlier Mustangs. However, unlike all earlier Mustangs, a notchback coupé model was unavailable.

The base model came with a 3.8 L V6 engine rated at (1994-1995) 145 hp (108 kW) or (1996-1998) 150 hp (112 kW), or (1999-2004) 190 hp (142 kW), while the GT featured the 302 cu in V8, now using the intake manifold from the Thunderbird, a 60 mm throttle body, and a 215 hp (160 kW) rating. The Cobra model also returned with its GT-40 equipped 302 cu in engine, now rated at 260 hp (194 kW). The Mustang was named Motor Trend magazine's Car of the Year for the third time in 1994. In 1996, the Ford Modular engine was introduced for the first time for the Mustang

Fifth generation (2005–present)
At the 2004 North American International Auto Show, Ford introduced a completely redesigned Mustang which was codenamed "S-197" and based on an all-new D2C platform for the 2005 model year. Developed under the direction of Chief Engineer Hau Thai-Tang and exterior styling designer Sid Ramnarace, the fifth generation Mustang draws inspiration from Mustangs of the 1960s, notably the 1967-68 models. It was this redesigned aesthetic that inspired Ford's Senior Vice President of Design, J Mays, to call it "retro-futurism." The 2005 Mustang's unique retro coupe styling complements its muscle car status with an approximate weight to power ratio of 11.5:1. The current Mustangs are manufactured at the AutoAlliance International plant in Flat Rock, Michigan. The base Mustang, equipped with a 5-speed Tremec T-5 manual transmission, is powered by a cast iron block 210 hp (157 kW) 4.0 L SOHC Ford Cologne V6 engine, replacing the 3.8 L pushrod V6. The Mustang GT features a standard 5-speed manual Tremec TR-3650 transmission with an aluminum 300 hp (224 kW) 4.6 L 3-valve Modular V8 with variable camshaft timing.

Special editions and modified Mustangs
While the original concept for the Mustang did not foresee its evolution into a performance car, Ford has catered to individuals looking for more performance. Early variants available direct from the factory included the Boss 302 Mustang and Mach 1. While high performance vehicles fell out of favor during the fuel crisis of the 1970s, the tradition was carried forward in later years with the Ford Mustang SVO and Ford Mustang SVT Cobra. Over the years, third party vendors and independent car designers have utilized the Mustang as a starting point for their own designs. Designers such as Carroll Shelby and companies such as Roush Performance and Saleen have made a name for themselves by specializing in producing Mustang performance parts and building custom cars. sales record of 418,812 cars.

Racing
In the late 1960s and into the mid-1970s Boss 302 Mustangs were prominently used in the Trans Am Series. Boss 429 Mustangs were used for NASCAR races in 1969 and 1970. Currently, Mustangs are used in a number of different racing series, including the KONI Challenge Series, where it won the manufacturers title in 2005. The Mustang remains a popular track and drag strip car at amateur and professional levels of competition.

Professional drifter Vaughn Gittin Jr. of Ford Racing and Falken Tires, drifts a Ford Mustang in the Formula Drift and D1 Grand Prix series. He was the number one ranked American drifter in the world in 2006.

Awards
The Mustang has been on the Car and Driver Ten Best list five times: 1983, 1987, 1988, 2005, and 2006, and won Motor Trend Car of the Year award in both 1974 and 1994. Ford Division's entire car line won the Car(s) of the Year award in 1964, which was the Mustang's first year of production, but a few weeks before its actual introduction.

The 1965 Mustang also won the Tiffany Gold Medal for excellence in American design, which was the first automobile to ever do so. In 2005, the Mustang was nominated for the North American Car of the Year award and won the Canadian Car of the Year award.