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Seventh Generation Mustang (1994-1998)
Engine choices were also pared down to two for '94. Base Mustangs (no more LX, just Mustang) got a fuel-injected development of the 3.8-liter Essex V6 rated at 145 horsepower. The Mustang GT got a revised version of the 5.0-liter V8 with a flatter intake manifold that was rated at 215 horsepower. The disappointingly low-output rating of the V8 made many suspect that the '93 5.0's down-rating to 205 horsepower was done in a relatively shallow attempt to mitigate any outcry resulting from the squashed intake's stealing power from the '94 5.0-liter. Both engines could be mated to either five-speed manual or four-speed automatic transmissions.

Available with either 16-inch or 17-inch wheels and tires, the '94 Mustang GT proved to be a better handling, more secure driving car than ever before. But it wasn't really any more sophisticated than the '93. Most tests of the time found the 5.0-liter V8's performance to be soft in comparison to the 5.0-liter used in the '93 Mustang.

For the third time in its history, the Mustang was chosen to pace the Indianapolis 500. Instead of conjuring up some sort of special edition for the Speedway, Ford assigned its Special Vehicle Team (SVT) the task of building another Cobra version of the Mustang. The result was a slightly modified GT wearing 17-inch wheels and, thanks to a set of Ford's "GT40" cylinder heads and a different intake, a 5.0-liter V8 making 240 horsepower. Cobras were distinguished by their own uniquely blistered hood, rear spoiler and front fascia with round foglamps and snake logos on their fenders and in their grilles. While the Cobra used to pace the 500 was a convertible, the Cobra coupe was more common. Fully 5,009 Cobra coupes were sold along with just 1,000 convertibles during '94.

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