If first generation Mustang production numbers were off the charts, the second generation Mustang did little to live up to the same success. For 1974, Ford introduced the Mustang II, a smaller and sleeker Mustang. Ford pitched the Mustang II as an upscale economy car. Engine choices were a 2.3-liter four-cylinder or a 2.8-liter V6. Despite the downsizing in dimensions and engines, the Mustang II was highly anticipated as consumers had shifted towards buying smaller vehicles.
The Mustang II arrived in fall 1973, just in time for the oil embargo, and the timing could not have been better. Sales started strongly with 385,993 for 1974, the Mustang II’s. That turned out to be the Mustang IIs best year as sales as dropped to 188,000 units in 1975 and 1976 and 153,000 units in 1977. The final year of production saw a jump to 192,000 units sold. For comparison, the first generation Mustang sold an average of 300,000 units per year while the second generation Mustang sold only 221,500 units per year and even that is skewed by a massive first year (it is closer to 180,00 units per year). Clearly it was nowhere near the commercial success of the first Mustang.