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You cannot make the claim that there was a lack of effort in the Mercury camp, at least not during the Sixties. At a time when the whole domestic industry was continuously stamping out ever more powerful machines for the hungry, heavy-footed masses, Ford's mid-priced division was right in the thick of it, offering sporting versions of everything from compacts to full-size fighters; Cyclone, Eliminator and Marauder are prime examples. The division also threw in a couple other performance Cougars (XR-7 and GT-E), as well as a Dan Gurney edition of the Montego-based Cyclone for good measure. Yet there is still one Mercury that somehow manages to cruise largely under the muscle car radar: the Cougar XR7-G.

It's been long understood, by those who have known of its existence, that the "G" designation for the one-year-only model stood for Gurney, as in road-racing legend Dan Gurney. The model also lends itself to some confusion with the Cougar-based Dan Gurney Special, which was nothing more than a dress-up package that consisted of vinyl seats with a standard Cougar interior, a special window sticker, turbine wheel covers and chrome engine trimmings (on 1967 editions--this vanished in '68).

The $666.95 XR7-G package, however, was substantially different. All were based on the upscale XR-7, with final assembly handled by the same production facility that managed the same-year Shelby Mustangs: A.O. Smith in Detroit. Furthermore, they were produced in a far lower quantity: a mere 619 (including this month's subject, owned by Denton, Texas, resident Joe Valenti), compared to the 32,492 Gurney Specials (12,506 in 1968). Of that 619, a scant 188 were Hertz editions. Want to get your hands on one of these rare, often-overlooked Mercury contenders? Here are some facts to consider before buying a '68 Cougar XR7-G.

ENGINES

Engine availability for the XR7-G was based on what could be found under the hood of the XR-7. In base form, the "G" came with the F-code 210hp version of the two-barrel carbureted 302-cu.in. engine; other specifics included a standard 4.00 x 3.00-inch bore and stroke, 9.0:1 compression ratio and a single exhaust system. According to information found on the XR7-G Registry website, which was obtained from Ford Motor Company and Marti Auto Works, just 85 XR7-Gs were assembled with this engine. These combined documents also call out 146 examples with the J-code four-barrel-carbureted, 235hp 302--which touted its 10.0:1 compression and dual exhaust--as well as just two export-only low-compression (and unrated) two-barrel-topped 302 engines that were given the Code 6 designation.

Five-spoke styled steel wheels replaced recalled Raders.

Moving up through the option chart, two versions of the 390-cu.in. engine (4.05 x 3.78-inch bore and stroke) were available, beginning with the X-coded two-barrel version, which featured a 10.5:1 compression ratio and single exhaust system and was rated for 280hp and 403-lbs.ft. of torque; 62 of these were installed in XR7-Gs. The S-coded, four-barrel version of the 390 proved far more popular, with 310 copies assembled; it was capable of producing a stout 320hp and 427-lbs.ft. of torque using the same compression ratio and exhaust arrangement as the two-barrel 390.

Meanwhile, the 427-cu.in. engine was reserved for the Cougar GT-E, but few likely complained when it was discovered that topping the XR7-G's engine option chart was the 10.5:1 compression 428-cu.in. Cobra Jet big-block. Making use of its 4.13 x 3.98-inch bore and stroke, four-barrel carburetor, a dual exhaust system and a functional Ram Air system, the V-8 boasted a conservative 335hp rating and 440-lbs.ft. of torque. Just 14 of these R-coded engines were bolted into the XR7-G.

Although markings pertaining to the XR7-G package were virtually nonexistent under the hood, Mercury/A.O. Smith sporadically included aluminum "running cat" rocker-arm covers.

What's particularly appealing about this engine lineup is that each of the available V-8s was widely used throughout the Ford-Mercury fleet, including the Mustang--this, of course, means that parts for everything from a simple tune-up to a complete rebuild are plentiful. Although the cars' rarity usually means that a majority of owners prefer to maintain their XR7-Gs with OE-spec components, there are extensive opportunities to increase the output of all of the available engines, thanks to efforts by the automotive aftermarket.

TRANSMISSIONS

Mercury offered five transmissions--a three-speed manual, a heavy-duty three-speed manual and a four-speed "Toploader" manual, as well as the C4 and C6 three-speed automatics--contingent upon engine selection. For example, the C4 automatic backed the 302-cu.in. engines (only two were built with the code 6 engine, while 81 and 140 examples were mated to the F- and J-coded 302, respectively), while the C6 was mated to the 390 (62 and 296 cars produced with code X and S, respectively) and 428 (11 built). One item of note: XR7-G Cougars featuring an automatic received a special wooden shift knob with an inlaid gold running cat as part of the package.

Air conditioning was a commonly selected option on Cougars, particularly with the XR7-G.

As for the more muscular manuals, the standard three-speed--and heavy-duty three-speed used in conjunction with the 390--was seldom selected. In fact, documents reveal that just a single three-speed escaped the assembly line; it backed a 210hp 302. The highly prized four-speeds fared marginally better: Only three examples were built with the F-code 302; six with the J-code 302. Another 14 were matched up with the S-code 390, and only three were bolted against the 428. Manual transmission shifters were topped with a plastic knob with an engraved shift pattern.

Owner, Joe Valenti

DIFFERENTIAL

As with transmission selection, rear axle availability for the Cougar was influenced by the engine being used. Both the durable Ford 8-inch hypoid unit and the bulletproof 9-inch unit can be found installed in an XR7-G, though the higher-output engines demanded the stronger 9-inch differential. Additionally, the 428-cu.in. engine mandated the use of 31-spline axles. Ratios ranged from a highway-friendly 2.75:1 all the way up to a more performance-oriented 3.50:1. With the optional Traction-Lok differential in place, a 3.25 or 3.50:1 ratio was installed more often than not.

CHASSIS

Each XR7-G used the typical Cougar 111-inch wheelbase unit-body chassis that included an independent front suspension with coil springs, hydraulic shocks and an anti-roll bar. This arrangement was complemented by a semi-elliptic leaf spring rear suspension, all of which could have been upgraded with the same performance and handling package that was available on the base XR-7. As was the case with other mid-size and pony car performers of the day, the upgrade included stiffer front and rear springs, four heavy-duty shocks and, in this case, a larger 0.95-inch solid front anti-roll bar.

In a previous interview with Don Rush, owner of West Coast Classic Cougars in Salem, Oregon, he cautioned that despite the Cougar's solid build appearance, rust can be an issue. "Cougars were built with a sealed cowl and painted after welding--the bare metal in there is very prone to rust." He later added that repairing the cowl involves "intense labor to cut out and replace." There are two means by which you can check for cowl rust: by sliding the vent knob in and out to see if rust flakes come out of the vent, and by running a garden hose over the cowl and checking for drips, which most commonly occur where the front seat passenger's feet would be.

A common area of concern is the floorpan, although the shock towers can be prone to larger issues. Said Don, "They are weak and can develop horizontal cracks at the level of the exhaust manifolds. If they've been cut for suspension access or cracked, it's major structural work to correct."

BRAKES

The brake system is just like any other car of the period: four-wheel hydraulic with finned 10 x 2.25-inch drums up front and 10 x 1.75-inch rear drums. Power assist was optional, as was a power front disc system. Said rotors measured 11.3 inches and were paired up with single-piston calipers. Replacement and aftermarket upgrade parts are plentiful.

WHEELS & TIRES

Initially, the XR7-G package was to include a special set of spoked wheels produced by Trans American Products. Known as Rader wheels, they were constructed using an aluminum center section riveted to a steel rim; a red XR7-G badge was the focal point, covering the hub center. It's been reported that the first 200 or so copies of the G Cougar, including all 188 Hertz editions, came equipped with these wheels, wrapped with FR70-14 whitewall radial tires.

According to Royce Peterson, registrar for the XR7-G Registry, "The quality was very poor; they leaked air, were out of round and the lug-nut threads stripped out easily." Royce also provided a copy of a letter from Shelby Automotive general manager John Kerr (dated April 9, 1968) that states, "We have virtually every kind of trouble that can be associated with a wheel." The letter further outlines more specific problems with the Rader wheel, which eventually resulted in a fleet-wide recall.

Mercury then installed 14 x 6-inch G-badged five-spoke styled-steel wheels with the aforementioned tires, except for 428CJ-equipped models, which received Goodyear F70-14 bias plies. "Later in the run, the cars had a variety of tire sizes, depending on production date and engine option," said Royce. Although rare, it is possible to find a correct Rader wheel; prices generally exceed $500.

BODY & INTERIOR

No matter the appearance/performance package, the Cougar was produced in a single body style: the hardtop coupe. And while most of the upscale Cougar's trim packages tended to be subtle in appearance, the XR7-G was quite the opposite. From front to rear, external differences began with a unique front valance panel housing Lucas or Marchal fog lamps. Chrome locking hood pins complemented a wide, low-profile, faux dual-inlet fiberglass hood scoop, which was functional as part of the 428CJ engine option. Next on the list was a race-inspired, bullet-shaped, remote-controlled side mirror supplied by Talbot in England. Vinyl roof covering was also included, as was a rear valance with chrome-trimmed cutouts for the slash-cut "pipe-in-pipe" exhaust tips. Rounding out the visual package were special XR7-G badges on the passenger headlamp door, each C-pillar, the aforementioned wheel centers and the trunk lock cover.

Inside was pure, plush XR-7, complete with leather bucket seats, woodgrain dash inserts and a full complement of gauges: tach, trip odometer, oil and ammeter. Also included were leather door-pull straps, a roof-mounted console with provisions for fog lamp and sunroof switches, a vinyl-wrapped steering wheel (with a gold Cougar emblem), and a gold XR7-G dash badge. The package also included a third extra-loud horn under the hood.

RESTORATION & PERFORMANCE PARTS

When it comes to a restoration, the Cougar lags a bit behind its Mustang counterpart in terms of available body parts. For instance, our quick search revealed limited reproduction panels, including trunk and floorpans, rocker panels, torque boxes and front fender patch panels, although XR7-G-specific trim items are more abundant. The same can be said for basic XR-7 interior upholstery, consoles and trim.

Thanks to the Cougar's corporate ties with Ford and close relationship to the Mustang, though, a plethora of aftermarket parts will enable you to upgrade engine output, braking ability and suspension performance.

HERTZ EDITIONS

Unlike the Shelby Hertz editions, the XR7-G version of the rent-a-racer was not limited to a small number of colors or slathered with telltale rocker decals. That said, the company did request specific, uniform build traits that began with the (S-code) 320hp version of the 390-cu.in. engine, backed by an automatic transmission and a 2.75:1 final drive ratio. Also included were air conditioning, radio, power steering, tilt steering, power front disc brakes and a sunroof. All other standard XR7-G features--hood pins, fog lamps, badges, mirror and aforementioned Rader wheels--were included. The easiest way to identify a Hertz edition is to examine the DSO code on the driver's side door tag: The six-digit code will end with 8050.

Owner's View

I love Cougars; of the seven I own, the XR7-G is the most unusual and most unknown model ever conceived. It's the Shelby of the Cougar fleet, assembled on the same line as the Shelby. These one-year-only cars are just beginning to get recognized for their uniqueness, performance, comfort and style.

If you're going to shop for one, it's best to look for as much of a complete car as possible; some trim, and especially rust-free body panels, are getting harder to obtain. The car also gives you plenty to talk about when you bring it to a car show.

-- Joe Valenti

Engine

Domestic buyers were afforded the opportunity to equip their XR7-G with anything from a 302-cu.in. V-8 to a drag strip-ready 428 Cobra Jet. Each of the 188 Hertz editions came with a 320hp 390.

Brakes

The XR7-G was equipped with four-wheel hydraulic drum brakes as standard equipment. The option chart featured power front disc brakes, which were mandatory on Hertz editions.

Transmission

Although standard equipment included the three-speed manual throughout much of the XR7-G production, just one actually ended up in a customer's hands so equipped. The overwhelming favorite among customers was a three-speed automatic.

Interior

A leather-clad version of the XR-7 interior was the basis of the XR7-G interior. The $666.95 G package added a steering wheel wrap, overhead console with fog lamp and sunroof switches, special badges, door-pull straps and a unique automatic shift knob.

Chassis

The unit-body foundation under the XR7-G is not unlike all the other Cougars, including independent front suspension and rear leaf-spring suspension. A factory option upgraded springs and shocks to heavy-duty status with a larger anti-roll bar.

Body

Along with typical quarter-panel concerns, rust is known to develop on the hood and decklid lips from the inside out. Unlike corporate cousin Mustang, reproduction panels are lacking and very limited. Replacements will have to be obtained from parts cars.

CLUB SCENE

Cougar Club of America

28 West Eighth Street

Duluth, Minnesota 55806-2515

757-587-5498

www.cougarclub.org

Dues: $30/year • Membership: 1,200

XR7-G Registry

www.theclassiccougarnetwork.com/xr7g

roycegte@earthlink.net

WHAT TO PAY

1968 Cougar XR7-G

Low -- $13,500

Average -- $21,000

High -- $32,500

Note: Documented XR7-G Hertz examples carry an estimated high value of $100,000.

Add: Ram Air, 15%; four-speed, 10%; sunroof, 10%; air conditioning, 5%; 280hp 390-cu.in. V-8, 25%; 320hp 390-cu.in. V-8, 15%; 335hp 428-cu.in. V-8, 35%.

PARTS PRICES

C-pillar emblem, XR7-G -- $39

Cowl panel, lower -- $175

Dash emblem, XR7-G -- $29

Emblem, "Mercury" -- $35

Exhaust tips, XR7-G (pair) -- $385

Firewall -- $220

Floorpan, complete -- $459

Front valance, XR7-G -- $170

Hood scoop, XR7-G -- $150

Patch panel, fender -- $70

Shift handle, auto, XR7-G -- $160

Shock tower -- $125

Trunk lock cover, XR7-G -- $63

Wheel, styled 5-spoke -- $175

Wheel center cap, XR7-G (set) -- $285

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