Definatly, it could be a number of things with that discription:
1) Some people refered to the later 'VC-Auto Drive', and the 'Auto Drive' as Mustang Auto's, when they are just re-named versions of the VC-160 Auto Drive (This would be a good outcome for you especially)
2)its a late 70's or early 80's Power Plus Self Propelled (a very good mower)
3)it could be a Pro 550 Self Propelled, or something similar, a self propelled model from the Professional range, and it may well have a wide cut, and other good features.
4) I have once heard somone refer to the super 600 and super 24 as 'Mustangs' this is unlikely, as most dont mix these up, but it can happen, and in the mid 70's, the super 24 came in self propelled (this is quite unlikely to be what your friend has.
I cant think of anything self propelled from the 70's or 80's that had the actual 'Mustang' Badge, but i could well be wrong.