Ford redesigned the Mustang for 1967, making it longer and wider but with the same 108-inch wheel base. The basic shape was exaggerated to look more aggressive, and flat panels gave way to curves. The front suspension was revised for improved handling and a dual braking system was introduced. Optional disc brakes now had power assist and cruise control was offered, but only with V-8 engines and Cruise-O-Matic transmission.

The grille was enlarged and the rear taillight panel was concave with larger lights. Simulated rear scoops were used on all three body styles and optional recessed panels on the hood featured rear-facing turn signal lights. The dashboard was redesigned and air conditioning was now integrated, instead of looking like an under-dash afterthought.

Production dropped this year to 472,121 units, in large part due to the introduction of the Chevrolet Camaro and Pontiac Firebird. The 1967 Mustang Hardtop Coupe was by far the most popular with 356,271 sold, followed by the Fastback at 71,042 and the Convertible at 44,808. Prices began at $2,461 for the Hardtop, $2,592 for the Fastback and $2,698 for the convertible.

Engines mostly remained the same. The 120 bhp, 200 cid six, 200 and 225 bhp versions of the 289 cid V-8 and the high-performance “K Code” 271 bhp V-8. New for this year, however, was the 320 bhp, 390 cid V-8, which increased power by 50 percent at the expense of being difficult to work on. As before, 3- and 4-speed manual gearboxes were available, plus the Cruise-O-Matic automatic transmission. The 390 proved a big hit with 28,800 buyers, while sales of the 271 bhp small-block V-8 dropped to 472.

A new package this year was the GTA (A for automatic), which included the GT equipment: power disc brakes, grille-mounted fog lights, dual exhausts, handling package, and rocker panel stripes. A total of 24,079 Mustangs were bought with the GT option. Also available with the GT package was the competition handling package, which added stiffer suspension, limited-slip and 15-inch wheels with wire-wheel covers.

Other new options included a tilt-away steering wheel, and folding glass rear window on the convertible. The Convenience Control Panel offered four warning lights in the dash above the radio, if you didn’t have A/C. With A/C, the panel was on the console. The lights warned about parking brake, seat belts, door open and low fuel. Overall, the list of dealer options grew longer, and included Cobra kits.

A total of 20 paint colors were offered, plus another eight as special orders, that weren’t coded. Twenty interior colors were available with eight of them the luxury package. Paint codes were as follows, but popularity was not recorded: Raven Black (Code A), Frost Turquoise (B), Acapulco Blue (D), Arcadian Blue (F), Diamond Green (H), Lime Gold (I), Nightmist Blue (K), Wimbledon White (M), Diamond Blue (N), Brittany Blue (Q), Dusk Rose (S), Candyapple Red (T), Burnt Amber (V), Clearwater Aqua (W), Vintage Burgundy (X), Dark Moss Green (Y), Sauterne Gold (Z), Silver Frost (4), Pebble Beige (6), Springtime Yellow (8). Codes not recorded were Playboy Pink, Anniversary Gold, Columbine Blue, Aspen Gold, Blue Bonnet, Timberline Green, Lavender, and Bright Red.

Convertible tops were black or white, and power assist cost $52.95. Vinyl tops cost an extra $74,36.