2023 Ford Mustang vs Cupra Leon

What's the difference?

The Ford Mustang is having a mid-life crisis.

Since the first pony car launched back in 1965 it has grown over the years and begun to appeal to an older, wealthier demographic than the original, youthful audience Ford attracted.

So, for this latest seventh-generation model, the Blue Oval has tried to make this Mustang have more appeal for a younger buyer.

What does that ultimately mean? In 2023 that's not a more powerful V8 or racing stripes (although it has both of those things) but instead a more hi-tech 'Stang.

Ford has borrowed elements from the all-electric Mustang Mach-E to give the coupe and convertible a fresh look and feel.

But don't worry if you're one of the existing Mustang fans, because they've not only kept the bits you really love - like the V8 - but have added an all-new hero model.

The four-cylinder EcoBoost and V8 GT remain and Ford has introduced the Dark Horse, a new permanent flagship for the line-up based on the limited edition Mach 1 from the previous generation.

While it's hailed as the seven-generation model and has some major changes, the reality is this new Mustang shares a lot in common with the previous model.

Which isn't unsurprising in the current automotive climate, as demand for petrol-powered performance cars remains uneven and Ford needs to invest billions into new electric vehicles.

So, to save on development costs this latest pony car features updated powertrains, a carry-over platform and a facelifted-rather-than-redesigned interior. But there's still a lot to talk about with this new Mustang, so let's dive in.

Behold the beautiful Cupra Leon VZe.

Like its name and multimedia screen, this enigmatic hatchback needs some decoding to make sense to Australians.

Essentially, the Leon VZe is a variation of today's eighth-generation Volkswagen Golf. Except it's built in Spain by VW Group subsidiary SEAT (remember them?), offering sleeker styling, and – in VZe guise – a plug-in hybrid electric vehicle (PHEV) powertrain.

In other words, this is similar to the intriguing Golf GTE grade not offered in Australia, but with more than a splash of Balenciaga about the way it looks, feels and drives – and with pricing to match (from $59,990, before on-road costs).

So, does the Leon VZe combine the sportiness of a hot hatch and torquey zing of an EV with the parsimony of a hybrid? Could this be the most complete small car on sale in Australia today?

Let's spill the tea to find out.