Because of an increased concern for safety in automobiles, due in part by the efforts of Ralph Nader, shoulder harnesses were now mandatory, side marker reflectors and front marker lights, collapsible steering columns and a redesigned padded steering wheel were also necessary as government policies tormented the automakers of America.

Although sales slid by almost 1/3 partly due to the two month long strike of the United Auto Workers at the Ford plants, and also to allow time to tool up for the major restyling of the '69 models, the Mustang still easily outsold the competition.

This was to be the final year of the famous 289 engine as the stroke was increased to three inches while retaining its four inch bore, which calculated out to 302 cubic inches.

The new 302 engine was available with either 2v or 4v carburetors, while the 289 was only offered as a 2v. When the remaining 289s were all used, the new 302- 2V was substituted under the old 289 ''C'' engine code.

To stimulate sales in some areas, special coupes with exterior fiberglass modifications that was borrowed from Carroll Shelby's prototype ''Lil' Red'' coupe. '65 Thunderbird tail lights, twist type hood locks and a '67 grill with rectangular fog lights were utilized to give these cars a more aggressive appearance. The ''California Special'', and the ''High Country Special'', (Colorado) were each sold in a specific area on a limited basis. They were referred to by many as ''the poor man's Shelby''.

Performance was becoming more competitive, so in retaliation, Ford introduced their new version of the old FE engine on April first and dubbed it the ''428 Cobra Jet''. The Shelby GT500 moniker was changed to GT500KR, or ''King of the Road'' to designate the more powerful engine. Performance options were added to the new 302 4v engine that propelled the GT350 for 1968.

Of the 4450 Shelbys produced in 1968 , 1124 were Convertibles.

Production of the Shelbys for 1968 was subletted out to a company named ''A.O.Smith'' in Iona, Michigan. The last Shelby's were assembled in 1969 at Ford's Dearborn assembly plant. Unsold '69 Shelbys were renumbered with 1970 Vin #s with a few minor modifications.