I don't disagree that makes sense. My thinking is, looking at the OTL 'stang II (& Oil Shock), a smaller, Capri-based car makes the most sense: lighter, better handling, cheaper to run, probably cheaper to buy. The *Mustang III can reasonably be bigger.The idea is the ATL Pinto and mk3-5 Cortina either share a common platform (think larger Ford equivalent of GM T-Car which in GM terms would be the GM U-Car aka mk1 Vauxhall Cavalier / Opel Ascona B) or the ATL Pinto is more influenced by the mk3-5 Cortina as far as spawning a smaller more Capri-like coupe below the ATL Maverick-based Mustang II (and 4-door saloon / 5-door estate variants) is concerned.
That said, a *Mustang, *Pinto, & *Cortina sharing a platform, with common parts, would not be a bad thing, especially if (frex) the *Mustang can use *Cortina brakes & rad. (This offers opportunities for *Cortina police cruisers, too.)
I could live with that. I tend to want the Capri name for the North American Merc, which, in the above scenario, would be the *Cortina (with the *Cougar a mildly-reskinned *Mustang), but otherwise...An ATL Pinto-based coupe could still carry over the Ford Capri name for the North American market despite only being exteriorly similar to the European Ford Capri, reminiscent of how the Ford Granada refers to two completely unrelated cars in North America and Europe respectively (with the European Ford Granada being replaced by the Ford Scorpio from 1985).
I'd be fine with that. Probe-esque styling never really appealed to me; I actually kind of liked the looks of the Merkur...Ideally the related Sierra would form the basis of a smaller Capri-replacement in Europe from the 1980s until around 1998 (as well as North America in place of the Pinto or Cortina based small coupe) though would be moved upmarket (e,g, 2-litre to 2.9-3.0-litre V6+) due to the rise of the Hot Hatches during the 1970s-1980s that were heavily cutting into the sales of small RWD coupes (and led to the latter being replaced with arguably exterior attractive yet dynamically inferior FWD coupes e.g. Ford Probe / Cougar and Vauxhall / Opel Calibra, etc).
IMO, the Scorpio was dynamically appropriate for the Mustang niche, & had the right powertrain(s)--tho lacking a V8, & a S/DOHC 4.6 would take care of that. Sharing European tech & engineering in NAm & European markets makes sense to me, especially if you're applying the Cosworth spec where possible: a *Scorpio Cosworth as the *Mustang III beats the OTL Merkur, Scorpio, & SVO 'stang all hollow.Not sure about the notion of a Scorpio-based Mustang III and Mustang IV though agree the Ford Fox / SN95 platforms would have needed to have been more sophisticated in terms of engines and suspension for the European market, though the Scorpio did not appear until 1985 with the smaller related Sierra itself only appearing in 1982.
It could also be a nightmare for the Camaro & Firebird...