1966 Mustang

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	Sonny and Cher Mustangs	produced by customizer	George Barris	Mustang was already copyrighted in Germany, so the cars were sold with the designation "T5" in that country

The 1966 Mustang debuted with moderate trim changes including a new grille, side ornamentation, wheel covers and gas cap.

Ford's new C-4 "cruise-o-matic" three-speed auto transmission became available for the 225 hp V8.

The 289 "HiPo" K-code engine was also offered with a C4 transmission, but it had stronger internals and can be identified by the outer casing of the servo which is marked with a 'C'. The long duration solid-lifter camshaft that allowed the high revving 289 to make the horsepower it was known for, was not friendly for a low stall speed automatic torque converter. The "HiPo" could be spotted very easily by the 1-inch-thick (25 mm) vibration damper, (as compared to 1/2 inch on the 225-hp version) and the absence of a vacuum advance unit on the dual point distributor. With the valve covers off, there is a large letter "K" stamped between the valve springs, along with screw in studs (vs. a pressed in stud for other 289s) for the adjustable rocker arms.

A large number of new paint and interior color options, an AM/eight-track sound system, and one of the first AM/FM mono automobile radios were also offered. It also removed the Falcon instrument cluster; the previously optional features, including the round gauges and padded sun visors, became standard equipment.

New for 1966 was a relationship between Shelby American and Hertz Rental cars. Travelers could now rent a GT350"H" Mustang at select Hertz rental agencies. However, a popular side effect was for customers to rent a Shelby GT350H, take it to their local racetrack for the weekend, then return the rental with some very hard miles on them.
 

The Mustang would be the best-selling convertible in 1966, with 72,119 sold, beating the number two Impala by almost 2:1.