During its third generation, the Mustang evolved through several sub-models, trim levels, and drivetrain combinations during its production and seemed destined for replacement with a front-wheel drive Mazda platform.

[6] "Ford built the 1979 Mustang around a platform it would share with more humble cars in the Lincoln-Mercury-Ford corporate family in order to keep development and construction costs down.

Color-coordinated dual pinstripes in the wraparound body-side moldings and bumpers, as well as COBRA decals on the doors, were standard.

All 1979 Cobras came equipped with a small, center mount non-functional hood scoop (to provide clearance for the air cleaner due to the 2.3 L Turbo extra height).

Rear spoilers were not included on the 1979 models, as they made their debut on the mid-year introduction of the Indianapolis 500 Pace Car replica.

The exterior trim on both the 1980 and 1981 Cobras was black, including the door handles, key locks, antenna, and sail panels.

This new GT model featured a re-engineered 157 hp (117 kW; 159 PS) High Output Windsor 302 cu in (4.9 L) engine with new valves, a more aggressive cam (from a 1973 351W Torino application), a larger two-barrel carburetor, a revised firing order, and a better breathing intake and exhaust system.

The GT included the front air dam with fog lamps and the rear spoiler from the 1979 Pace Car and the 1980 and 1981 Cobras.

It also formed the basis for the "SSP" (Special Service Package) cars that were used by government as well as police/law enforcement and were almost exclusively ordered in the 2-door sedan body style.

The 2.3 and 2.3 L turbo, as well as the V8 models, could also be optioned with the newly developed TRX handling suspension that included Michelin 390 mm tires and accompanying metric-sized wheels.

The small block 302 cu in (4.9 L) V8 engine received a four-barrel carburetor and a new intake manifold, bringing power to 175 hp (130 kW).

A total of 5,261 G.T.350 hatchback and convertible models were built, all trimmed with Oxford White exteriors and Canyon Red interiors.

A new "Quadra-Shock" rear suspension, which replaced the slapper bars with horizontally mounted axle shocks, became available after a few months of production.

Four-wheel disc brakes, 16-inch wheels, and an SVO-specific bi-plane rear spoiler were a few of the differences between the SVO and the rest of the Mustang line.

The front end was intended to use flush aerodynamic composite headlamps with replaceable bulbs, but the US DOT had not approved these in time for production.

Hagerty (Insurance), specializing in classic cars, calls the introduction of the first 200 hp (149 kW; 203 PS) Mustang in 1985 the end of the Malaise era in American auto design.

The AOD transmission was also still only available with CFI induction carried over from 1984 but shortly after the model year started it received the exhaust system from the 4V/T-5 engine, and a 15 hp increase.

The Mustang became Ford's main challenger in the early years of Group A touring car racing in Europe and Australia.

The Fox body Mustang was manufactured in Ford's Cuatitlan Itzcalli plant (located in Mexico City) from 1979 to 1984.

The front end was restyled to look more like the SVO which gave the car more of an "Aero" look, in keeping with Ford's overall modern styling direction.

The GT models featured new round fog lamps and gained aerodynamic lower bodyside skirting as well as new turbine style 15-inch (380 mm) wheels.

V8-powered Mustangs received E7TE heads and forged aluminum pistons with valve reliefs in 1987, as opposed to the flat-tops used in the previous year.

For 1990, Mustang added a new steering wheel featuring an airbag, and a revised lower driver's-side dash panel with knee bolster.

A limited run of 4.9 L (302 cu in) equipped LX convertibles — all painted Emerald Green metallic with white convertible tops, Oxford White leather interiors featuring GT seats, and 15-inch turbine alloy wheels — were produced for an NCAA half-court shot contest, sponsored by soda brand 7-Up, but the event was canceled shortly before it was scheduled to begin.

Ford, already having produced 4,103 vehicles (2,743 with the AOD four-speed automatic overdrive, and 1,360 with the T-5 five-speed manual transmission), released them for dealer availability.

Door map pockets and clear coat paint also became standard for the 1990 Mustang, along with the availability of optional leather interior trim.

In 1993, Ford switched to cast hypereutectic pistons for all 302 cu in (4.9 L) engines and also re-rated the GT to 205 hp (153 kW) and 275 ft⋅lbf (373 N⋅m) of torque.

The individual rear power window switches, mounted within the quarter panel speaker grilles in the back seat of convertible models, were removed.

Similar to the 1990 7-Up Mustang, for 1992, Ford produced 2,193 special Summer edition (1992-1/2) LX 4.9 L (302 cu in) convertible with a Vibrant Red exterior and Oxford White leather interiors.

Options such as air conditioning and a stereo system were not available on the Cobra R. The final third-generation Mustang rolled off the assembly line on 26 August 1993.