The much larger 1973 Mustang was a far different car than the original 1964 model. Ford was deluged with mail from fans of the original car who demanded that the Mustang be returned to its original size and concept. Upon taking over the presidency of Ford Motor Company in December, 1970, Lee Iacocca ordered the development of a smaller Mustang for 1974 introduction. Initial plans called for the downsized Mustang to be based on the compact Ford Maverick, which was similar in size and power to the Falcon upon which the original Mustang had been based. Those plans were later scrapped in favor of an even smaller Mustang based on the subcompact Ford Pinto. Such a car, it was believed, could better compete with smaller, sporty import coupes such as the Toyota Celica and the Ford Capri, then built by Ford of Germany and Britain, and marketed since 1970 in the U.S. by Mercury as a captive import. Dubbed "Little Jewel" by Iacocca himself, the car sold well, with sales of more than 400,000 units the first year.

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