During the second generation, there was a huge sales drop. The Mustang II was not well received. They replaced the big block V-8 350ci engine with a 289ci four cylinder engine. Ford's idea with the Mustang II was to give people a smaller, lighter, and a more fuel-efficient car. Ford, obviously, made a big mistake. Mustang sales dropped by 76%. Ford's reputation took a huge beating. Another mistake Ford made was dropping the convertible models from their production line. The second generation Mustangs turned out to be failures.
In 1979 Ford came out with a brand new model of Mustang which began the third generation. This model replaced the s
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