In 1994, the Mustang underwent its first major redesign in 15 years. The design, code named "SN-95" by Ford, was based on an updated version of the rear-wheel drive Fox platform called "Fox-4." It featured dramatic new styling by Patrick Schiavone that incorporated some stylistic elements similar to those on earlier Mustangs. However, unlike all earlier Mustangs, a notchback coupé model was unavailable. The Mustang was named Motor Trend magazine's Car of the Year for the third time in 1994.
The base model came with a 3.8 L V6 engine with a diplacement of 232 cubic inches (3797 cc) which was rated at (1994-1995) 145 hp (108 kW) or (1996-1998) 150 hp (112 kW), or (1999-2004) 190 hp (142 kW). After nearly 40 years, Ford retired its 302 CID overhead-valve small-block V8 and in 1996, the 4.6 liter Ford Modular engine was introduced for the first time for the Mustang rated at (215hp for 1996-1997) (225hp for 1998 model year).
For 1999, the Mustang received Ford's 'New Edge' styling theme with sharper contours, larger wheel arches, and creases in the bodywork, but its basic proportions remained the same as the previous redesign. All 1999 Mustangs (except the Cobra) received "35th-Anniversary" badges on the front fenders, but there were 4,628 GTs made as "35th Anniversary Limited Edition" models featuring unique exterior and interior trim. In 1999, the GT continued to use the 4.6 litre V8, now with a 260 hp (194 kW) rating. The Cobra model also returned with its 32 valve equipped 4.6 litre engine (displacing 281 CID, 4601 cc), now rated at 320 hp (239 kW) after Ford recalled all 1999 SVT Cobras. 2003-2004 cobras we now supercharged with 390 hp. Ford also introduced a Mach 1 version featuring a 310hp 32v 4.6L engine and features that reminded customers of the original 60's model Mach 1.