Latest News
2026 Chevrolet Tahoe ReviewRare Mercury Cougar Blends Muscle with Luxury
The Cougar, Mercury’s version of the Mustang, infused performance with refinement for the mid-level brand’s quintessential pony car.
The Rarest of Cougars
Whether it’s antiques, baseball cards, or cars, rarity counts a lot. Among muscle car fanatics, the more esoteric and exclusive the more sought after. COPO Camaros and Boss 429 Mustangs fit the bill, but so also do cars like the Mercury Cougar XR-7 GT-E, a subset of a subset of first-generation Cougars.
Part of what makes the Cougar interesting is its very Mercury-ness. The brand had been around since the late 1930s to fill the gap between Ford and Lincoln products. As such, Mercury’s cars had to justify themselves as fancier than Fords while not outshining Lincoln’s offerings. Though long defunct today, cars like the Cougar provide a perfect illustration of how Mercury successfully threaded the mid-market needle.
We thought there’s no better car to represent Mercury at its best than this 1968 Cougar XR-7 GT-E where semi-luxury appointments meet Mustang powertrains. This example boasts both a rare engine, a 428 V8 under the hood, and a rare factory paint, Cardinal Red, to make it one of only a handful left in existence.
First-Generation Mercury Cougar
In retrospect, badge-swapped versions of successful muscle cars seems not just logical but inevitable. But back in 1964, as the incoming Mustang was poised to disrupt the automotive landscape, Mercury was denied permission to develop their own analogous pony car lest it compete with the in-house original. It wasn’t until the Mustang had safely become a smash hit that Mercury got the go-ahead to create their version, the Cougar.
As Ford’s mid-level brand, Mercury positioned the Cougar somewhere between the Mustang pony car and personal luxury-focused Thunderbird in terms of quality, styling, and equipment. This meant the Cougar was heavier and longer than the Mustang even as it shared engines.
Where the Mustang was offered with an economical “Thriftpower” straight-six, the Mercury came exclusively with V8 power under the hood starting with the standard two-barrel 289 cu-.in. V8 making 200 horsepower. A four-barrel version kicked things up to 225 horsepower. A 390 cu.-in. Marauder V8 was good for 320 horsepower in GT versions which also received upgraded tires, wheels, and exhaust.
The styling was likewise a cut above. The Cougar was given a distinctive split grille design with vertical chrome slats and swanky hidden headlights. The vertical slat motif continued in back, deployed on the taillight covers. Mercury, accurately, touted the Cougar’s “untamed elegance” in their marketing materials. A “European road car interior” for the XR-7 trim added elements like faux wood trimmed dash, an overhead console, and full-instrumentation for the gauge cluster.
Sales outperformed expectations with over 150,000 units sold for 1967, and the ’67 Cougar was honored with Motor Trend’s Car of the Year award.
Initial Updates for the 1968 Cougar
For 1968, Mercury made the 302 V8 the default motor (210 or 230 horsepower depending on two- or four-barrel carburetors). The 390 V8 continued to be split between two-barrel (280 hp) and four-barrel (325 hp) versions while a new GT-E, with blacked out grille, added a 427 V8 (390 hp) to the top end of the engine lineup. Mid-year, Mercury swapped the 427 out for the 428 Cobra Jet Ram Air making 335 horsepower. Sales remained strong with over 113,000 sold.
The 1969 model year Cougar was given its first major revision, adding a convertible option and several visual updates that included new concave taillights, a new grille, swooping side crease, and Coke bottle curves. Ford’s 351 Cleveland V8 was made the standard engine for the Cougar (250 hp or 290 hp for the four-barrel version). The 390 V8 continued for ’69 before being dropped for 1970. The Boss 302 V8 was brought over from the Mustang mid-’69, good for 290 horsepower. The 428 Cobra Jet remained the top engine option with 335 horsepower.
Also new was the Eliminator trim which replaced the GT. It added performance and styling accoutrements like a rear spoiler and hood scoops, unique steel wheels, a revised rear axle, and an upgraded suspension. Sales remained strong for the first-gen Cougar, enough for it to see a second generation that pushed it further toward the Thunderbird’s personal luxury car segment and from there spawning another six generations that took the Cougar all the way into the 21st century.
This 1968 Mercury Cougar XR-7 GT-E
For those of us (me included) that are more familiar with the Cougar’s long time as a personal luxury coupe, its origins as a Mustang analogue make the first-generation cars especially compelling. The 1968 example we found on Carsforsale.com, an XR-7 GT-E, isn’t just in stellar condition, it’s also vanishingly rare. According to the seller, it’s one of just 256 XR-7 GT-E Cougars built for 1968, one of 134 painted in Cardinal Red, and one of a mere 37 cars equipped with the 428 Cobra Jet V8, and one of a scant nine such cars still extant. With 37 years kept by the same owner, this car comes in exceptional condition with 71,000 original miles.
Due to its rarity and impeccable condition, this museum-quality 428-equipped 1968 Mercury Cougar XR-7 GT-E is priced at $184,900.
$185k and the lines don’t line up. The gaps are off. What the hell is wrong with people? Just because it is rare and shines, doesn’t make it worth this much. Let’s get back to basics, like true work of art refurbishing.