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The Mustang's powertrains were carried over for 1999, but benefited from new improvements. The standard 3.8 L V6 had a new split-port induction system, and was rated at 190 bhp (140 kW) 1999–2000, while the Mustang GT's 4.6 L V8 saw an increase in output to 260 bhp (190 kW) (1999–2004), due to a new head design and other enhancements.
The Mustang GT also featured a stiffer handling suspension, a 3.08:1 rear axle ratio (later changed to 3.27:1 or 3.55:1 depending on the transmission and model year), dual exhaust tips, and larger 16-inch (410 mm) wheels (compared to the base Mustang's 15-inch wheels). The 1994 Mustang GT was named Motor Trend Car of the Year.
The GT was produced for the 2005 and 2006 model years. The car began assembly at Mayflower Vehicle Systems (MVS) in Norwalk, Ohio and was painted and continued assembly at Saleen Special Vehicles (SSV) facility in Troy, Michigan, through contract by Ford. The GT is powered by an engine built at Ford's Romeo Engine Plant in Romeo, Michigan.
Ford later used versions of the DOHC 4-valve 5.4 L in the 2000 Ford Mustang SVT Cobra R, the Ford GT supercar, and the Ford Shelby GT500. The DOHC 4-valve 5.4 L was also used in the Ford Falcon line in Australia under the Boss moniker until 2010, when it was replaced by a locally developed, supercharged version of the 5.0 litre Modular V8.
The special edition 2000 Mustang GT called the Spring Feature Mustang; all 3,091 units received the same side ducts and hood scoop as the 35th Anniversary Limited Edition GT, as well as black Mustang bumper inserts, dual black stripes on the hood with GT on them, and 17 in × 8 in (430 mm × 200 mm) bright finish wheels.
The Saleen S281 is a variant introduced between the 4th and 5th generations of Ford Mustang which was produced by the American manufacturer Saleen, Inc. By 2005, Saleen departed from being a company of modifying existing Ford Mustangs as well as various other Ford automobiles, and became an Original equipment manufacturer.