The Fairlane was revised in 1966. The appearance was changed to match the Full-size Ford, which had been restyled in the 1965 model year. The front end featured vertically stacked dual headlights. The XL, GT and GTA packages were introduced, as well as a convertible to join the existing range of sedans, hardtops and station wagons. The "K-code" 289 CID engine was dropped this year. The GT featured a 390 CID FE V8 as standard, while the GTA also included the newly introduced the SportShift Cruise-o-Matic automatic transmission.The GT/GTA 390 CID engine developed 335 bhp (250 kW) with higher compression, and had a four-barrel carburetor. Mid year, Ford produced 57 special Fairlane 500 two-door hardtops with "R-code" 427 CID V8s rated at 425 bhp (317 kW) and equipped with Ford's "Top-Loader" four-speed manual transmission. Built to qualify the engine/transmission combination for NHRA and IHRA Super Stock racing, they were white and had fiberglass hoods with a forward-facing hood scoop which ended at the edge of the hood. The Fairlane Squire wagon was reintroduced for 1966.
Minor trim changes were introduced for 1967 as the Fairlane was mildly facelifted. The 289 CID small-block became the base V8, with a 200 CID six standard, with the 390 CID optional (with either two- or four-barrel carburetor, at 275 and 320 bhp (240 kW), respectively). The 427s were still available, either with a single four-barrel carburetor or dual quad carbs, developing 410 (W-code) and 425 bhp (R-code), 427s were available on XL models but very few were built. The notable addition for the 1967 model year was a Ranchero pickup as part of the Fairlane range (from 1960 to 1965, the Ranchero was based on the Falcon, while in 1966 it used the Fairlane platform but Falcon styling).
1967 Fairlanes also included a number of Federal government-mandated safety features, including a new energy-absorbing steering column with a large padded steering wheel hub, soft interior trim, four-way hazard flashers, a dual-chamber braking system, and shoulder belt anchors. The convertible had a tempered safety glass rear window.
The Falcon Ranchero and Falcon station wagon were, between 1966 and 1970, identical under the skin to the Fairlane versions of the same model. Only sheetmetal and trim differed.
Two different two-door coupe models were offered. The lower end Fairlane Club Coupe had pillars around the rear windows, while the higher trim level was a pillarless two-door hardtop, similar to the convertible.
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