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The Mustang grew larger and heavier with each passing year, culminating with the 1971-73 models designed under the supervision of Ford's new product design manager, Seamon "Bunkie" Knudsen, originally of General Motors. Knudsen's turn at the helm would see the last high-performance big-block Mustang, 1971's 375 horsepower (280 kW) 429 Super Cobra Jet. Ironically, that very same body style that was designed for the sole purpose of big-block installation versions were limited to a maximum of 351 in³ (5.8 L) in 1972 and 1973, due almost entirely to extremely strict US emission control regulations.

The DC generator was replaced by a new AC alternator on all Fords and the now-famous Mustang GT was introduced, available with either four-barrel engine and any body style. Additionally, back-up lights were added to the car in 1965. Originally, the Mustang was available as either a hardtop or convertible. During the car's early design phases, however, a fastback model was strongly considered. When the 1965 model year production began in September, 1964, the Mustang 2+2 fastback, with its swept-back rear glass and distinctive ventilation louvers made its debut as well.

Looking like a car that cost hundreds of dollars more with its "long hood/short deck" styling reminiscent of designs such as the Lincoln Continental and two seat Ford Thunderbird with an intentional touch of Ferrari at the grille, the Mustang earned a number of prestigious auto industry awards and accolades its first year including Motor Trend Car of the Year, Mustang pace car duties for the 1964 Indianapolis 500 and the Tiffany Design Award for "excellence in design," the first automobile so honored.

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