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Ford introduced the newly-redesigned 1994 Mustang in December 1993. It was the first major redesign since the Fox-bodied Mustang bowed for 1979. The new 1994 Mustang was a vast improvement over the outgoing 1993 model. The new car’s ride, handling, styling, ergonomics, and standard and optional equipment were all a major step forward from the previous model. As nice as the new 1994 Mustang was, it still left Ford enthusiasts yearning for more power.

The Chevrolet Camaro Z/28 and Pontiac Firebird Formula and Trans Am, all redesigned for 1993, came standard with 275 hp (205 kW). The 1994 Mustang GT engine only put out 215 hp (160 kW).Thus, a new SVT Cobra model was needed to bridge that performance gap.