In the modern pony car wars, Ford is outgunned with its small-displacement engines, giving a major advantage to the Chevrolet Camaro and less so to the Dodge Challenger. Blue Oval loyalists take solace in that Ford powertrain engineers have been hard at work on a new 5.0-liter V-8 for car and truck applications, and it will join the Mustang ranks in year,according a report by Australian site Drive and covered by AutoBlog.

Word has it that with the increased displacement comes squared power output, with 400 horsepower and 400 lb.-ft. of torque. The 2010 Mustang GT has a 4.6-liter V-8 with 315 horsepower and 325 lb.-ft. That mill was impressive a few years ago, but it pales against a similarly priced Camaro with 426 horsepower. The return of the 5.0L designation may come with the return of a classic package, such as a Mach 1.

An EcoBoost V-6 is expected to join the ranks, as well, though it is doubtful it will be the 3.5-liter as reported elsewhere. The Eco 3.5L produces 355 horsepower in other applications. Exciting as that may be, it isn’t the solution the Mustang needs. Instead, expect a lower displacement version, likely a four-cylinder engine turbocharged to produce more power than today’s anemic V-6, yet with better fuel economy.

Clearly, the Mustang is becoming more appealing with each passing year, and the latest redesign addresses past criticisms such as the previous penny-pinching interior execution. Now, the Mustang stands as a right-sized alternative to the larger, heavier competitors. On the practical side, the 2010 Mustang coupe just earned coveted five-star safety in government front and side crash tests. In the end, it is expect power gain that will add sizzle that enthusiasts crave. After all, a pony car is all about the horses