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1974
1974 was a dark year. Demand for cars, particularly profitable big ones, plunged thanks to the energy crisis.

The Mustang was redesigned for the first time since its 1964 launch. The new model was substantially smaller and lighter than the bloated 1973 model. This helped bring the car back to its roots and was good as the energy crisis meant demand for small cars was up.


The Mustang's European counterpart, the Capri, was also redesigned. To broaden its appeal as demand for sports cars shrank, it became a hatchback.

Ford decided it would downsize its cars starting with the 1977 model year after they got wind of GM's plan to do likewise. They also determined that front wheel drive was the future for all cars besides the Mustang.

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