While Ford's 1964 Mustang was a huge hit, it would never be mistaken for a "Total Performance" poster boy, especially since this pony was based on Ford's old economy-car Falcon. Carroll Shelby, already a Ford-related performance commodity with his 260- and 289-cid Cobras, was tapped to transform the mild-mannered Mustang into a potential "B" Production SCCA Racer. Unveiled by Shelby on January 27, 1965, the Shelby GT350 had a few subtle exterior changes including a fiberglass hood with functional hood scoop, a clean-looking grille and a tri-colored running horse located on the driver's side of the grille. A special aluminum intake increased the solid-lifter Hi-Po 289s horsepower from 271 to 306. Borg-Warner T-10 four-speeds, nine-inch Detroit "no-spin" differentials and extensive suspension work were just some of the 50 improvements incorporated into the GT350, which listed for a most reasonable price of $4,547.

The street GT350s of 1965 sold briskly, but since they were essentially thinly disguised race cars, early buyers complained about harshness, noise and rattles. As a result, the 1966 GT350 became more user-friendly due to a host of mechanical revisions that softened the edges and made the car more tractable. Exterior changes included Plexiglas quarter windows and the scoops and ducting necessary to help cool the rear brakes. Mechanically, the engine remained the same - a Shelby-prepared 306-hp solid-lifter 289-cid Ford V-8 with a Holley four-barrel carburetor and a considerably quieter exhaust system. The suspension was much closer to stock, greatly improving the ride and comfort.