Ford is developing a 2.3-litre version of the Focus ST engine for the European Mustang range.

Although the car itself will differ little from the native American version, Ford is realistic enough to know that sales of the V8 version of the Mustang will be limited.

The four-cylinder 2.0-litre turbo in the ST offers 247bhp, and insiders reckon the Mustang's 2.3-litre version would yield around 300bhp. 

More importantly, the running costs of a Mustang with a smaller engine will be far more acceptable to European buyers.

The next-generation Ford Mustang will arrive in the UK in 2015.