Many Mustang enthusiasts still look back at the 1974 Mustang II with regret and disdain, though the car was in truth a faithful return to the Mustang’s roots. The problem was that it was a poorly executed car, lacking a V8 option (at least initially). Yet the ’74 Mustang II had more in common with the ’64 Mustang than it did with the ’73 Mustang. It was lighter, smaller, and handled much better. Plus, it was quite frugal on the fuel consumption, a big plus during the gas-starved 70’s.

The Mustang News, quoting unnamed sources, reports that the 2014 Mustang will follow a similar pattern, being a lighter and smaller version of the muscle car that we know and love. Referred on the inside as “Mustang III”, will this car avoid the mistakes of the Mustang II?

We’ve already heard Ford Chief Creative Officer J Mays talk about a “very cool” Mustang coming in 2014, though what that means we simply don’t know. Is he talking about a special, limited-edition model to celebrate 50 years of the Mustang, or an all new car from the ground up? The 3.7 liter V6 and 5.0 liter V8 engines, all new for 2010, aren’t like to disappear anytime soon. So how does one improve performance without changing engines?

It is simple really; make the car smaller, lighter, and lower to the ground. The current Mustang platform is based, on part, on the old Lincoln LS platform, which was a big car. By building an all-new, smaller platform, the Mustang could once again return to its smaller roots. In this way, Ford could keep the current crop of excellent engines and improve performance. Will it lose the retro looks though and go for a futuristic look? Or is it something none of us can even fathom?