In late 1965, Ford launched the third generation Falcon, based on a shortened Fairlane platform with revised styling. At the top of the line was the highly-trimmed Futura Sports Coupe, which featured chrome side window frames, giving this two-door sedan the look of a hardtop. It also featured a premium all-vinyl interior. Large “Sports Coupe” script on the “C” pillar was borrowed from the 1964–1965 Fairlane Sports Coupe.
The heater-defroster became standard. Brakes were 9-in for six-cylinder Falcons, and 10-in for V8s. The two-door hardtop and convertible were dropped, while the station wagon and Ranchero were moved to a larger platform shared with the contemporary Fairlane. The Ranchero left the Falcon line and adopted the Fairlane’s front sheet metal for 1967. The 1966 Falcon was used in the Trans-Am series. The 1967 models were mostly the same as the 1966 models, but more Federally-mandated safety equipment was added, including a dual-circuit brake system, energy-absorbing steering wheel with a large, padded center hub, 4-way flashers, soft interior panels, and mountings for front shoulder belts (which were available as an option). A reminder light was added for the seatbelts; 1968 was the first model year for the square tail lights.
1968 and 1969 Falcons got new side marker lights or reflectors, front outboard shoulder belts, and headrests for cars built after January 1, 1969. The basic body and mechanical specifications remained the same as 1966–1967 models.