Ford said Friday the engine is expected to lead its class in fuel efficiency with 30 miles per gallon on the highway and 305 horsepower.
The Cleveland Engine Plant No. 1 in Brook Park is expected to build two-thirds of Mustang engines next year.
The Dearborn, Mich.-based automaker says the 3.7-liter engine with automatic transmission shows its commitment to delivering class-leading fuel efficiency in all new vehicles.
Ford says it's investing $1.8 billion and adding 1,260 jobs to support nine engines and transmissions for 2011 models in North America.