1967 Mustang

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The 1967 model year Mustang was the first redesign of the original model. Ford's designers began drawing up a larger version even as the original was achieving sales success, and while "Iacocca later complained about the Mustang's growth, he did oversee the redesign for 1967 ."

The major mechanical feature was to allow the installation of a big-block V8 engine. The overall size, interior and cargo space were increased. Exterior trim changes included concave taillights and side scoop  ornamentation, square rear-view mirrors, and usual yearly wheel and gas cap changes.

The high-performance 289 option was placed behind the newer 335 hp (250 kW; 340 PS) 390 cu in (6.4 L) FE engine from the Ford Thunderbird, which was equipped with a four-barrel carburetor.

The 1967 Deluxe Interior was revised, discontinuing the embossed running horse motif on the seat backs (the source for the "pony interior" nickname) in favor of a new deluxe interior package, which included special color options, brushed aluminum (from August 1966 production) or woodgrain dash trim, seat buttons, and special door panels. The hardtop also included upholstered quarter trim panels, a carryover from the 1965-66 deluxe interior. The 1967 hardtop also had the chrome quarter trim caps, carried over from 1965-66. The 1967 deluxe interior included stainless steel-trimmed seat back shells, similar to those in the Thunderbird. These were dropped at the end of the 1967 model year. The deluxe steering wheel, which had been included in the deluxe interior for the 1965-66, became optional, and could also be ordered with the standard interior.

1967 Shelby G.T. 350 and the new G.T. 500
For 1967, the G.T. 350 carried over the K-Code high performance 289 with a 'COBRA' aluminum hi-rise.

The G.T. 500 was added to the lineup, equipped with a "Ford Cobra" V8 (FE Series 428 cu.in.) engine with two 600 CFM Holly four-barrel carburetors sitting atop a mid-rise Aluminum intake manifold.

Documented plans to introduce a convertible mid-production year were shelved due to supply, production and financial problems that happened as soon as the first cars started to arrive at Shelby's Los Angeles facility in September. By October 1966, Ford took control over engineering and purchasing.

A.O. Smith Company was tapped to fix the fiberglass fitment and quality problems. Six months later, in May 1967, the decision was made to terminate the California-based Shelby operation. On August 18, 1967, a small staff, along with the remaining engineering cars, were sent to Ionia,Michigan. The small staff of the newly formed Shelby Automotive, Inc. had substantially less involvement after this time.

Notable cars for 1967 include:
0100, the first G.T. 500 built.
0131, the only Shelby G.T. coupe built ("Little Red'), which was the precursor to the '68 California Special
0139, the only Shelby GT 500 convertible built (in 1967) Note: cars 0100, 0131 and 0139 were the first big block Shelby G.T. cars ordered and built.

One 1967 Fastback was updated with a G.T. 500 equipped with a 427 FE GT40 racing engine producing 650 horsepower, and was known as the "Super Snake". The car was capable of speeds over 150 mph; hitting 170 mph during a demonstration (by Shelby himself) of Goodyear's Thunderbolt tires. No cars other than the prototype were built due to limited interest.

The car sold at Mecum's 2013 Indianapolis auction for $1.3 million.