The prototype first conceived by Ford product manager Donald N. Frey and championed by Ford Division general manager Lee Iacocca, showed us a two-seat mid-engined roadster. This later would be remodeled as a four-seat car and penned by David Ash and Joseph Oros in Ford's Lincoln–Mercury Division design studios (theirs the winning design in an intramural design contest called by Iacocca). The base, but yet well-equipped Mustang hardtop with its 105 hp, 156 ft·lbf 170 in³ inline six-cylinder engine and three-speed manual transmission listed for US$2,368. Looking like it cost hundreds of dollars more with its "long hood/short deck" styling, the Mustang earned a number of prestigious auto industry awards and accolades its first year. Motor Trend Car of the Year, pace car duties for the 1964 Indianapolis 500 and the Tiffany Design Award for "excellence in design," the first automobile so honored, becomes apparent in the Mustangs quality. Showing reminiscent of designs such as the Lincoln Continental and two-seat Ford Thunderbird with an intentional touch of Ferrari at the grille, the Mustang can be regarded as a true master of literature.

Surprisingly, for all its style and well-marketed sportiness, the Mustang was based heavily on familiar components. Much of the chassis, suspension, and drivetrain derived itself from the Ford Falcon and Ford Fairlane. The car had a unitized platform-type frame from the 1964 Falcon, and welcoming box-section side rails and five welded crossmembers. Although hardtop Mustangs were the majority, durability problems with the new frame led to the unusual step of engineering the (necessarily less rigid) convertible first, to ensure adequate stiffness. Overall length of the Mustang and Falcon was identical, at 181.6 in, although the Mustang's wheelbase at 108 in was slightly shorter. With an overall width of 68.2 in, it was 3.4 in narrower, although wheel track was nearly identical. Shipping weight, about 2570 lb with six-cylinder engine, was also similar; a full-equipped, V8 model weighed about 3000 lb.

Much of the appeal in such a low-priced car came from the options list. The Mustang's long list of optional equipment list enabled buyers to fully customize their cars to their tastes and budget. It also resulted in typical transaction prices hundreds of dollars above the base price, making the Mustang a profitable not only for the dealer but also the manufacturer.

The option list included several powertrain combinations; the buyer could choose a four-speed manual transmission or the three-speed Cruise-O-Matic automatic transmission. The standard six-cylinder engine could be replaced with a 164 hp 260 in³ for $116.00 or a 210 hp 289 in³ V8. With the latter and four-speed manual, Road & Track recorded a 0-60 mph time of 8.9 seconds, with the standing quarter mile in 17 seconds at 85 mph. Starting in June 1964, the new 271 hp "K-code" High Performance engine became available. Not only did they have high performance, but also the HiPo engine included a handling package with (stiffer springs and shock absorbers, stiffer front anti-roll bar, fast-ratio steering, and wider tires) optional on other Mustangs. At $442.60 (not counting the mandatory four-speed transmission) it was the single most expensive Mustang option, and only 7,273 of the 680,992 Mustangs sold in 1965 were so equipped. With a skilled driver, K-code/4-speed equipped Mustangs could do 0-60 in around 6 seconds, and put down mid 14-second 1/4 mile times with ease.

Other options included: limited-slip differential, styled wheels and wheelcovers, power steering, power brakes, air conditioning, center console, a vinyl top, various radios, a bench seat, and various other accessories. Disc brakes for the front wheels became optional later in 1965. The list would continue to grow through much of the Mustang's history,in which adding trim packages like the Interior Decor Group (or "pony interior") and GT package (which included disc brakes, handling package, and other items), became as ordinary as jell-o. Additional engine choices and convenience items are well know for the Mustang.

In its first two years of production, three Ford Motor Company plants in San Jose, Dearborn and Metuchen, New Jersey produced nearly 1.5 million Mustangs, a record unequalled before or since. It was a success that left General Motors utterly unprepared and the Chrysler Corporation only slightly less so. Chrysler had just introduced a car only a few weeks before that would be a competitor, the Plymouth Barracuda. Though the "'Cuda" would grow into one of the most revered muscle cars of all time, it started out as just a Plymouth Valiant with a hastily grafted fastback rear window. As for GM, they were certain that they had a Mustang fighter in their rear-engined Corvair Monza, but sales figures didn't even come close. The Monza was a fine performer, but was only a six-cylinder compared to the Mustang's available eight-cylinder. It took GM until the 1967 model year to counter with the Chevrolet Camaro and Pontiac Firebird. Even Lincoln-Mercury joined the fray in 1967 with the introduction of an "upmarket Mustang" (and subsequent Motor Trend Car of the Year), the Mercury Cougar, using the name originally given to the Mustang during the development phase. In 1968 American Motors (AMC) would introduce the Javelin and later, the 2-seater, high-performance AMX. This genre of small, sporty and often powerful automobiles was unofficially dubbed the "pony car" as a tribute to the car that started it all. The 1968 Mustang fastback gained pop culture status when it was used to great effect as Steve McQueen's car of choice in the crime thriller Bullitt. The Mustang was pitted against the Dodge Charger in the film's famous car chase through the streets of San Francisco.



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