For 1967, the GT 350 was equipped with the K-Code high performance 289 with a 'COBRA' aluminum hi-rise. The GT 500 was newly added to the lineup, with a "Ford Cobra" V8 (FE Series 428 cu.in.) engine with two four-barrel carburetors sitting atop a mid-rise Aluminum intake manifold. Planned introduction of a convertible mid-production year was unfortunately scrapped since issues of supply, production, and finance arose when the first cars arrived at Shelby's Los Angeles facility in September. As a result, Ford took control over engineering and purchasing for the remaining production, and A.O. Smith was commissioned to address the fiberglass fitment and quality problems. In May 1967, Shelby Automotive, Inc. was formed and control of Shelby production was moved from Los Angeles to Ionia.
Notable cars for 1967 include the first G.T. 500 ("0100"), the only Shelby GT coupe ("0131"), and the only Shelby GT 500 convertible ("0139") built that year. Additionally, one 1967 Fastback was equipped with a GT-500 engine with a 427 FE GT40 racing engine producing 650 horsepower, and was known as the "Super Snake". Capable of speeds of up to 170 mph, the car tested Goodyear's Thunderbolt tires during a demonstration by Shelby himself, although no other cars of this design were put into production due to limited interest.
For 1968, the Cobra name was used for both models, the Shelby Cobra GT 350 and the Shelby Cobra GT 500. The K-code engine was phased out by Ford and replaced with a 230 hp 302 (which, with a high rise intake produced 250 HP) although it did not have Shelby headers to make room for power steering. The early 1968 GT500 was also fitted with a 428 Police Interceptor with a single four barrel carburetor rated at 360 HP.
1968 Shelby Cobra G.T.500KR
Beginning in April 1968, Ford introduced the "Cobra Jet" version of the 428 engine, making the vehicle better known as the GT 500-KR (with the "KR" standing for “King of the Road”). Ford rated the Cobra jet at 335 horsepower (250 kW), but due to its 440 foot-pounds of torque at 3400 RPM, it was assumed to have been significantly underrated. Shelby kept the engine untouched except for the addition of die-cast aluminum valve covers with “Cobra Lemans” to mark the FE engine family’s successful victories over Ferrari at Le Mans in 1966 and 1967.
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