The company's first foray into racing was in 1969 with the production of the Ford Mustang Boss 302, a high-performance version of the first-generation Mustang Boss 302 car. The two-year-old project was developed by a team of engineers and designers at Roush. The team consisted of Ed Roush, a Ford Division engineer; Bill Case, Ford's Chief Engineer at the time; Bill Johnson, Project Development Manager; John Roper, Roush's Chief Engineer; and Bill Carmody, Ford's Chief Engineer in the racing program at the time. The Boss 302 was the first production car to feature independent rear suspension. The suspension system used a transverse leaf spring on top of a coil spring on top of a single shock absorber. The chassis had the first use of a special lightweight aluminum pan which was made by Ford. The Boss 302 was a race-winning car, winning seven of the 10 races it competed in, and was the fastest production car in the world.
In 1973, Roush built the Roush-Mustang, a more powerful version of the Boss 302. The engine is a small-block, 427-cubic-inch supercharged version of the race engine, which was rated at 580 horsepower. The chassis was completely redesigned, which helped the car's handling. The Roush-Mustang was Roush's first true performance car. The racing version was the top-selling car in the U.S. market that year.
Roush raced the Boss 302 in the 1971 and 1972 NHRA Winternationals. It won six of the eight events it entered. The Boss 302 also won the 1971 NHRA Street/Road Championship and the 1972 Top Fuel Eliminator championship.
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