The year the pony car arrived and everything else kept selling anyway
1965 was a year of contradictions. The Impala still outsold the Mustang by two to one, which seems impossible and was not. The muscle car was beginning its formal existence with the Pontiac GTO now a named model and the Chevelle SS available with a 396 cubic-inch engine. The Beatles were in the middle of their American conquest. Medicare had just passed. A new car cost an average of $2,650, gas cost thirty-one cents a gallon, and the automobile industry was producing cars for a country that was getting richer, younger, and less interested in what its parents had driven.
Lee Iacocca's gamble with the Mustang was not, strictly speaking, a gamble. The concept had been validated by the Falcon compact's success and the Corvair Monza's sporting trim. What Iacocca understood that his colleagues did not was that a car could be sold on the basis of what it looked like and what it implied about its owner rather than what it technically delivered. The base Mustang with a 170-cubic-inch six-cylinder was not a sports car by any meaningful definition. It was a sports car-shaped object at a sports car-adjacent price, and half a million Americans in 1965 found that to be precisely what they wanted.
