For 1994, Ford gave the Mustang a major redesign that had been 15 years in the making. The new design, codenamed "SN-95", maintained the "Fox" platform but included stylistic elements reminiscent of earlier Mustangs. The vehicle remained rear-wheel drive, helping to propel it to success and making it Motor Trend magazine's Car of the Year for the third time in 1994. This base model featured a 3.8 L V6 engine with 145 hp (108 kW), while the top-tier GT model packed a "5.0" 4.9 L V8 that had a 5.0L Thunderbird intake manifold and a larger 60mm throttle body rated at 215 horsepower. The Cobra model also made an appearance, equipped with a GT-40 5.0 L engine reaching 240 hp (179 kW). Notably, the Mustang Cobra convertible took on the role of Pace Car for the 1994 Indianapolis 500, with 1,000 replicas sold through select dealers. Brakes, transmission, and suspension modifications were also included.
Two years later, the 5.8 L (351 in³) V8 took its place among the Mustang's lineup with a 160 kW (215 hp) 4.6 L SOHC "Modular" V8 engine. The engine had two valves per cylinder - one for intake and one for exhaust. Despite being SOHC, this engine lacked power beyond 5000 rpm, despite its torquey qualities. The Cobra edition's 305 hp (227 kW) dual over head cam configuration of the 4.6 L V8 was more suitable for speed enthusiasts. The block, cast by Teksid of Italy, was aluminum and cross-bolted. This provided more response speed at lower rpm due to its split ports and bigger valves. The 3.8 L V6 was also bumped to 150 hp (112 kW) in 1996. The V8 may have been preferred for its more powerful qualities, but the V6 was more aesthetically pleasing, resembling the earlier 5.0 engine bays. In 1998, SOHC 4.6 L V8 power was cranked up to 225 hp (168 kW), supported with a more aggressive computer and larger exhaust tail pipes. The 1998 Mustang was also the last of the "Round Bodies" and the only year that the "Sports" model was made, marked with a black stripe on the hood that extended to the wheel wells.
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