Ford Mustang hybrid back on the cards – report

The Ford Mustang is set to go hybrid according to reports from the US, as emissions regulations threaten the legendary sports car’s future. 

The iconic sports car is currently offered with a 5.0-litre V8 or a four-cylinder turbocharged petrol engine, with the V8 in particular under increasing pressure from tightening emissions regulations around the world. 

According to Ford Authority, a hybrid version of the current S650 generation Mustang is in the works, codenamed ‘S650E’, with prototypes having reached the ‘prove-out stage’.

No details or specifics were mooted, but the Mustang may follow the path of another legendary sports car, the Porsche 911, which was introduced with its first hybrid powertrain in 2024. 

CarExpert can save you thousands on a new car. Click here to get a great deal.

The 911 hybrid kept its famed ‘flat’ six-cylinder petrol engine as Porsche added its ‘T-Hybrid’ tech, including an electric turbocharger, to reduce emissions yet keep the sports car’s attributes. 

Similarly, the Mustang’s 5.0-litre V8 engine is part of its folklore – as referenced in pop culture, such as Vanilla Ice’s 1991 hit, Rollin’ in my 5.0 – with hybrid tech enabling it to live on a little longer. 

Ford Australia introduced a plug-in hybrid (PHEV) version of its best-selling Ranger dual-cab ute earlier this year, using the same 2.3-litre turbocharged four-cylinder found in the Mustang EcoBoost.

As a classic rear-drive, two-door performance car, Ford has previously said the popularity of the Mustang, the world’s best-selling sports car in 2024, meant emissions legislation was its biggest threat going forward.

In 2025, Australia introduced the New Vehicle Efficiency Standard (NVES) mandating annual reductions in new-vehicle CO2 emissions between now and 2029.

Ford Australia upped the price of every Mustang, both four-cylinder and V8, by $5000 in July, pointing to NVES as a factor in the increase – with a further $1000 rise confirmed for 2026 models expected to arrive in February. 

The price rise is used to counter potential future penalties if Ford exceeds emissions levels, with fines accrued from July 1, 2025. 

The fines are based on the average CO2 across all vehicles sold by an automaker, with Ford selling predominantly diesel-powered models in its Ranger and Everest best-sellers. 

The Australian-spec Mustang GT coupe automatic has a combined carbon-dioxide (CO2) emissions figure of 293g/km, described as “worse than average” by the Australian government’s Green Vehicle Guide. 

A previous plan to introduce a hybrid Mustang to showrooms back in 2020, following a significant $US700 million ($A1.06 billion) investment in the Flat Rock Michigan plant, was shelved. 

The Flat Rock plant builds the global supply of the Mustang sports car range, including right-hand drive versions for Australia.

The unrelated Mustang Mach-E electric SUV is currently made in Mexico. 

MORE: Ford planning 1000hp off-road ‘supercar for gravel’ MORE: Explore the Ford Mustang showroom