When Lee Iacocca, a tough car salesman from Allentown PA, became the President of Ford Division, the first thing he said was “Ford’s going to stop building boring cars. The baby boomers are now driving and nothing Ford has interests them … even a little.”
Lee’s predecessor, Robert S. McNamara–A.K.A. The accountant’s accountant–left Ford on Jan. 1, 1961 to become Secretary of Defense in the Johnson Administration. His main achievement at Ford was to birth the famous Edsel (1958 – 1961). “The first car designed by a computer!” Every feature on the car, from hood ornament to taillight, was focus grouped to see which design potential buyers liked best. “Mac” had succeeded in building the first passionless car.
Before the Edsel, Mac had overseen the development of the Falcon, the bottom of the line of Ford products. When first introduced in 1960, the Falcon sold over 435,000 units, but dropped to 120,000 in 1961 and continued downward. The MSRP for a 6-cylinder, 2-door Falcon was under $2,000, about $25,000 today. Mac thought the reason Falcon sales had tanked was the market wanted an even cheaper car.
His answer was a tin can with a front wheel drive transaxle ahead of a longitudinally mounted V-4 motor, and nothing else. It was to be called the Cardinal, and later became the Ford of Germany Taunus.

Ford had some of the best designers on the planet, but as Lee looked at what they offered to promote his vision, only one sketch came close to what he had in mind, and it was only a sketch. It looked like a mid-engine 2-seat roadster.

The engine and transaxle already existed, thanks to McNamara’s Cardinal concept. Turn that engine-transaxle 180 degrees and voila, you have an independent rear suspension, mid-engine race car platform. The hard points of the chassis only exsisted between the engineer’s tape measure and his eyeball, and the body shape only exsisted between the designer’s thumb and his pencil.
Ford Advanced Vehicles (FAV), headed by Roy Lunn, formerly with Aston Martin, stick welded some tubing together into a “skunk works” proof of concept.

Ford Advanced Suspension Design, led by Klaus Arning, formerly with Borgward, took the opportunity to develop his independent rear suspension (I.R.S.) designs, on which he received several patents reassigned to Ford. An engineer working in Klaus’ department, Chuck Carrig was working on a computer designed suspension program, and was tasked with putting all this together into a first of its kind design program. All of this technology later became crucial to the GT-40 defeating Ferrari four times in a row at Le Mans, and played a part in the success of Foyt, Andretti, Gurney and many others in F-1, Indy, etc.

The computer program, envisioned on a Friday afternoon on the back of several bar receipts from The Brass Rail, allowed chassis engineers to change one component and see what effect it had on the rest of the car in three dimensions–a first–that all suspension programs have followed since.

Lee loved the thought of a Ford two-seat roadster and challenged FAV to turn out a finished car in 100 days, to be driven at the U.S. Grand Prix at Watkins Glen, a traditional gathering spot for East Coast college students.
“No budget, no problem. We’ll hide the cost in the production cars, and we’ll all work after hours for free–‘cause it won’t take very long–or cost much money. We can turn this into a car in 100 days!” The bare minimum engine-chassis was shipped to Troutman & Barnes in L. A., who was used to working on back of the napkin race car ideas.

Troutman built two cars.
Dan Gurney drove one around Watkins Glen on Oct 7, 1962, at race pace. It was supposed to be a slow parade lap but “It felt so good I couldn’t resist.” said Gurney.

The Mustang I concepts gave birth to the Falcon-derived MUSTANG with Independent Rear Suspension (IRS) and the FORD GT-40 with similar suspension concepts.

Roy Lunn and F.A.V. showed the Mustang I to the Detroit Chapter of the Society of Automotive Engineering (S.A.E.) Congress and Exposition at COBO HALL, now called Huntington Place. It is the center of downtown Detroit. The show ran Monday and Tuesday Jan. 14-15, 1963. On Sunday, Klaus and his oldest son, who was about 10 at the time, picked up the Mustang I on a trailer from F.A.V. and were delivering the car to COBO when a wheel bearing on the trailer froze. Fortunately, a pay phone (remember those?) was nearby, so Klaus phoned the P.R. agent who had arranged the whole thing to ask him what he wanted to do.
“You and your son ride dirt bikes don’t you,” said the PR. Man.
“Well, yes,” Klaus said.
“Unhitch the trailer, drive home, and get your helmets and face shields (it was a typical Detroit January day–bitter cold–thus the face shields) and drive back to the trailer. Hitch the trailer back onto the car and leave the keys to the car over the driver’s visor. Unload the prototype and drive it to COBO. I‘ll have someone pick up your car and trailer and bring them to you. You can drive your car home and we’ll get the prototype and trailer after the Exposition is over. Thanks for your help.”
The staff wouldn’t let Klaus drive the Mustang I into the 400,000 square foot COBO Hall, so Klaus and a staffer pushed it down the halls while his son became the youngest person to ever drive the prototype! The Exposition apparently went smoothly and Mustang I was a big hit!
Like we said at the top of this piece, it was a different world.












































