1966 saw further refinement of the Mustang. The gauge cluster was redone to seperate the Mustang from its Falcon roots while the 260 cid V8 was replaced with 2 and 4 barrel versions of the 289 cid V8.
The Shelby GT-350 was still available, though its race image was being dilluted by the addition of an automatic transmission, a choice of four colors, and special examples that were prepared for Hertz-Rent-A-Car (known as Shelby GT-350H) for rental to weekend drag racers.