The next-generation Ford Mustang is currently under development under the codename S650. While the current S550 Mustang still has some life left, the new model is expected to arrive in 2023 sporting a few notable changes. First, the next-generation Stang is expected to introduce a new hybrid drivetrain option. In addition to electrification, the new Mustang may also offer the option for four driven wheels.

Speaking with Ford Authority, Mustang brand manager Jim Owens left the door open to the possibility of an all-wheel-drive Mustang. "Well as you know, the Challenger has AWD. We're always looking at different kinds of performance, but we have nothing to announce at the moment," he said. While not a confirmation, Owens didn't reject the idea of an AWD Mustang.

Of course, the S650 would not be the first Mustang model to come with AWD. The 2021 Ford Mustang Mach-E already offers an AWD electric drivetrain, and back in 1965, Ford tested an AWD Mustang prototype that never reached production. At the time, converting the Mustang to AWD was considered too expensive, but today, it could help Ford compete in a segment that is currently dominated by the Dodge Challenger.

The Challenger is the only one of the three remaining American muscle cars to offer an AWD option, though only paired with the V6 engine. Ford could break the mold by offering the Mustang with a V8 and AWD traction.

An AWD option could open up the Mustang to buyers in cold weather climates, who may be unable to buy one now due to its impracticality during the winter months. Adding AWD also comes with some downsides, including increased cost and complexity, and possible negative impacts on the driving experience. There are performance benefits too, such as improved traction off the line during drag races. It's still too early to tell whether Ford believes the AWD pros outweigh the cons.