In 1989, Shelby's newest project differed from any of his previous. Shelby now decided to use the two-wheel drive shortbed Dakota Sport. Beneath the hood, the stock 125HP 3.9l V6 was replaced with the factory throttle-body injected 5.2L V8. Due to limited space, the belt-driven engine fan was replaced with twin electric fans mounted in front of the radiator. This changed gave the vehicle a total of 175HP and 270 lb-ft of torque.

The transmission was a four speed automatic with locking torque converter and a limited slip diff with a ratio of 3.90:1. The heavy-duty suspension was carried over directly from the V6 Dakota Sport and each wheel was replaced with a Shelby five-spoke aluminum wheel shod with Goodyear Eagle GT+4s in 225/70HR-15.

For the first time ever, two colors were available: bright red or white. A large airdam with integrated driving was added and all trim pieces were blacked out. A fiberglass light bar was placed behind the cab with were decals along the sides that featured the Shelby name. A "V8" logo was attached to each fender next to the turn signal, and the "Shelby" decal was applied to the.

The interior of all Dakotas was identical. Again the Shelby leather-wrapped steering wheel was used and the dash featured two Shelby plaques. A four-speaker AM/FM cassette stereo was installed. The standard cloth bench seat was used but covered in red with grey cloth insets with the name Shelby printed were added as accents. The gray cloth was also used as the insert in each door.

Total Production: 1475. 480 in white and 995 in red. List price was $15,813 plus freight.