The Ford Mustang continued to evolve in 1968 to further the production of the car into yet another good year. Many different options were available that make this Mustang significantly different from the previous models. The main two trademarks that distinguished the 1968 Mustang, on the outside, from the ’67 Mustang were the federal government mandated side marker lights and a modified grille. From the inside, a whole new horde of engines were thrown into the car. The power under the hood of the Mustang made fantasies start turning into a reality for the future of the car. No car of this year could beat the stable idle and crisp performance of this exceptional car. Mustang enthusiasts were eager to get their hand’s on not only the newer look and design throughout, but the performance within.

The whole line options available blew the minds of many. Ford dealers in 1968 could now offer a whole cluster of new options for the Mustang. An AM/FM radio was added as well as a rear window defogger that was available for the coupe and fastback editions only. The front power disc brakes were redesigned, and the newest 302 cid engine was available. The 289 Challenger Special from the prior years was replaced by the 302 four valve, 230 horsepower engine.

The exterior components were changed not only because of restrictions, but to add a specific and unique look for that year. The Mustang was given a simpler grille, by deleting the horizontal bars, as well as simpler side trim. The F-O-R-D letters across the front of the hood were deleted, and the quarter panel ornament was simplified. The script lettering on the side name plate replaced the former block lettering. Many new safety features were added, and important government mandated regulations added to the car in various ways. This included the previously mentioned mandated front and rear side marker lights, an energy absorbing steering column, and flush mounted interior door pulls. A limited number of 427 engines were slipped into only certain select Mustang models. Even though the engines were slightly toned down from the previous, they still produced about 390bhp. The Mustang could still prove a threat to other competing cars and could hold its own on the streets and drag strips.

On April 1, 1968, Ford revealed one, if not the only, of the best engines it has ever created. The much loved race 427 engine was offered only a short time. It was not only expensive to buy but expensive to keep up to working order. Therefore, a new engine was born. The 428 Cobra Jet engine effected the Mustang’s future by setting customer’s standards higher for the years to come. The engine was built upon the regular 428 but received larger valve heads and the race 427’s intake manifold. The engine had ram air induction and breathed through a functional hood scoop. The output was said to be around 410bhp but was listed at 335bhp. The two types of engines were most frequently sought after but extremely rare options to come by. The 428 matched the Chevy Camaro’s power unlike the 390 cid V8. The 428 had a horse power rating of 335 and was actually very modest so that insurance companies may be deceived. The engine was dyno’ed then to be around 400 horse power which was much larger than the previous claims. Even though these monster big blocks had plenty of torque and horse power, they did not handle as well as the 289 engines because the car’s nose was heavy.

In 1968, Ford also kept the Shelby Mustangs available to the customers. The Shelby’s were joined with a new convertible model and was renamed the Shelby Cobra. The GT-350 received a 302 cid 250bhp engine after dropping its 289 cid 306bhp engine. However, halfway through 1968, the GT-500 was dropped. It was replaced by the GT-500KR, which stood for “King of the Road.” The GT-500KR received the Ram Air 428 Cobra Jet Ford created for performance. It could run zero to sixty in 5.4 seconds and one fourth of a mile in 14.01 seconds at 101mph.

Numerous “region specific” models were offered from several dealers. The two models that proved to be the most popular were the Mustang California Special and the Mustang High Country Special. In the year 1968, a total production of 317, 404 units were sold.