Most significant is the new 5.0-liter V8 engine unveiled at the Detroit Auto Show. It's going to replace the 4.6-liter engine in today's car. The new engine is significantly more powerful, producing 412 horsepower compared to 315 from the 4.6-liter engine, while fuel economy is one mpg better.
The base Mustang's V6 engine, which was unveiled in November at the Los Angeles Auto Show, is a lot better, too. It produces 305 horsepower, nearly as much as today's V8. At the same time, it's projected to get 30 mpg on the highway.
Of course there's more to performance than just the engine. Ford promises better steering feel from a new electronic power steering system and the suspension system has also been improved to provide even better handing than the current Mustang.
NEXT: Cadillac CTS-V Coupe