1974 – 1978
Second Generation Cobra Mustangs 1974 - 1978

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Due to the demand for lower pollution and higher efficiency, Lee Iacocca has his engineers come up with a smaller, more fuel-efficient Mustang in 1974. The Second Gen mustangs was originally based on the Ford Maverick, but ended up being tooled much more like the Pinto car of the early 70's.
The new Mustang was now known as the Mustang II, and with the loss of personality from the muscle car era, the Mustang II also lacked the power that had made the mustang so popular through 1973! Finally, in 1975, Ford returned to the V8 series of Mustangs and released a version of its 302 engine, but with a very limited 133 horsepower, taking the fun out of driving the Mustang!

ClassicCar.com
In 1978, Ford worked to create a special edition mustang, named the King Cobra! The King Cobra was the first Mustang to feature the widely popular 5.0 badging, and roughly 5000 units were produced to fill the need for a more powerful Mustang. The King Cobra had a distinctive exterior style, featuring a prominent air dam and a cobra decal on the hood.
The combination of a higher horsepower engine with such a light car, got the Mustang enthusiasts back on track, and the cars are still in high demand today!
Sources:
Second Generation Mustang Pictures
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