Added to Cougar’s V-8 only line this year was a 390 HP hydraulic lifter 427, ostensibly sourced from Ford Division’s marine product line. Its price of admission was over $700.00, relegating it to rarity – especially with the arrival of the famous 428 CID Cobra Jet.

In another strong effort to move upstream from the Mustang, only Cougar models were available with an electric sunroof – and in fact were the only Pony car with this one-year option.

XR-7 Model 65B – The XR-7  had rocker panel moldings, special wheel covers, deck lid medallions and XR-7 plaques on the rear roof pillars to set the top-of-the-line Cougar apart from the basic coupe. Standard equipment included included the Coupe model’s features plus an overhead console (with map and warning lights), deep loop pile carpeting, tachometer, trip odometer, full gauges, leather-trimmed vinyl seats, and walnut tone instrument-panel.

GT Package – Available for both the standard Cougar and Cougar XR-7, was the GT option package. This was designed to give each model a sportier version of the Cougar. Significantly, standard was the “Marauder GT” 390 CID V-8 with 320 horsepower. Also added was an upgraded heavy-duty suspension system, larger brakes, wheels, and tires, and also a low-restriction exhaust system.

GT-E Performance Package –  The GT-E was also a performance package, but it was the heavyweight compared to the Cougar GT. It included a 390 HP 427 V-8 borrowed, surprisingly from Ford’s Marine Division, paired only with the 3-speed Cruise-O-Matic automatic transmission. The Package included special badging, quad exhausts, argent lower body paint set off by chrome trim, and a specially designed grille. Power front disc brakes were standard. As a running change in April 1968, the 427 engine was replaced by the 428 Cobra Jet. A total of 394 GT-E models were manufactured – of which 357 were equipped with the 427 and 37 were built with the 428 CJ. With the change to the 428 CJ engine for the GT-E, the 4-speed manual transmission was also made available.

The Dan Gurney Special was an option package available for the Standard Cougar models only in 1968 – not available on the XR-7. It had been introduced in mid-model year 1967 to commemorate Dan Gurney’s Cougar team racing in the SCCA Trans Am Series. It was a dress-up package added to the car either from the factory, or the dealership. It was also equipped with Turbine wheel covers, F70 x 14 wide-oval nylon cord whitewall tires, chromed engine dress-up kit with chrome air cleaner lid, chrome valve covers, chrome oil dipstick, chrome radiator cap, and Dan Gurney signature decal. Standard powerplant was the 289 CID V-8.  The Dan Gurney Special is NOT the XR7-G.

XR-7G – Available On XR-7 models Only – Famous race car driver, Dan Gurney, signed with Lincoln-Mercury to promote and race Cougars – and this special model, available in March 1968, was  a way of celebrating that activity. It was NOT a Dan Gurney Special – which is a completely different car – the XR-7G did stand for “Gurney”. The XR7-G. The 1968 XR7-G option package was based on the XR-7 with equipment added to or in place of the XR-7 equipment. The price of the XR7-G Option package was $823.35 and included these required items: Power Steering and AM Radio with Antenna. When added to the $3,231.91 price of the XR-7 the total was a hefty $4,055.26.

The XR7-G was intended to be Mercury’s equivalent to a Shelby Mustang. Like the 1968 Shelby Mustang, vehicles were delivered to the A.O. Smith facility in groups for conversion. A.O. Smith fabricated the fiberglass hood scoops in-house, but other parts were sourced from outside suppliers, including aluminum “Rader” wheels made by Trans American Products, emblems were sourced from ASCO, the fog lamps were made by Lucas or Marchal, and the outside rear view mirrors were made by Talbot. Documents show that there were cars ordered both with and without a sunroof, and those with the sunroof were shipped to American Sunroof Corporation for installation.

There were 622 XR7-Gs produced, of which 188 were for Hertz rental and 434 were non-Hertz. All 188 Hertz cars had a sunroof, and 252 non-Hertz cars had sunroofs. The XR7-G could be had with the 302 and 390 CID V-8s only. Toward the end of the run, 14 of the XR7-G models were equipped with the 428 Cobra Jet engine, and those featured a black functional hood scoop and black hood stripe.

XR7-G features included Lucas fog lamps, unique hood-locking pins and lanyards, a fiberglass simulated air scoop, racing-type outside rear view mirrors, and used the GT exhaust extensions. Also included were XR7-G Trunk Emblem, special XR7-G lower front and rear valance, unique XR7-G emblems on the C pillars, trunk latch, head light door, dashboard, and wheel center caps, a unique console with Shelby-type shifter handles, and Rader spider-webbed wheels . It should be noted that Lincoln-Mercury later recalled these wheels, replacing all XR7-Gs with the five-spoke style steel wheels.

302 CID 2-Barrel V-8.  Overhead valves. Cast iron block. Five main bearings.
Displacement: 302 cubic inches.
Bore and stroke: 4.00 x 3.00 inches.
Compression ratio: 9.0:1.
Horsepower: 210 @ 4600 RPM.
Torque: 300 @ 2600 RPM.
Valve lifters: Hydraulic.
Camshaft timing: Intake: 256 degrees, Exhaust: 254 degrees, Overlap 34 degrees. Lift: (Intake) 0.426″ (Exhaust) 0.425″.
Carburetor: Ford Autolite 2-barrel (manual transmission) Model C8AF-9510-AK; (automatic transmission) Model C8ZF-9510-G.

302 CID 4-Barrel V-8. (Code “J”) Overhead valves. Cast iron block. Five main bearings.
Displacement: 302 cubic inches.
Bore and stroke: 4.00 x 3.00 inches.
Compression ratio: 10.0:1.
Horsepower: 230 @ 4800 RPM.
Torque: 310 @ 2800 RPM.
Valve lifters: Hydraulic.
Camshaft timing: Intake: 256 degrees, Exhaust: 254 degrees, Overlap 34 degrees. Lift: (Intake) 0.426″ (Exhaust) 0.425″.
Carburetor: Ford Autolite 4-barrel (manual transmission) Model C8ZF-9510-C; (automatic transmission) Model C8ZF-9510-B.

390 CID 2-Barrel V-8. Overhead valves. Cast iron block. Five main bearings.
Displacement: 390 cubic inches.
Bore and stroke: 4.05 x 3.78 inches.
Compression ratio: 10.5:1.
Horsepower: 280 @ 4400 RPM.
Torque: 403 @ 2600 RPM.
Valve lifters: Hydraulic.
Camshaft timing: Intake: 256 degrees, Exhaust: 266 degrees, Overlap 36 degrees. Lift: (Intake) 0.427″ (exhaust) 0.430″.
Carburetor:  Ford Autolite 2-barrel (manual transmission) Model  C8AF-9510M, (automatic transmission) Model  C8OF-9510K.

390 CID 4-Barrel V-8.  Overhead valves. Cast iron block. Five main bearings.
Displacement: 390 cubic inches.
Bore and stroke: 4.05 x 3.78 inches.
Compression ratio: 10.5:1.
Horsepower: 325 @ 4800 RPM.
Torque: 427 @ 3200 RPM.
Valve lifters: Hydraulic.
Camshaft timing: Intake: 270 degrees, Exhaust: 290 degrees, Lift: (intake) 0.481″ (exhaust) 0.490″, Overlap 46 degrees.
Carburetor: Ford Holley 4-barrel Model  C8OF-9510C (manual transmission), Holley 4-barrel Model  C8OF-9510D (Automatic transmission). Non-Emission Control  Ford Holley 4-barrel (manual transmission) Model  C7OF-9510D, Holley 4-barrel (automatic transmission) Model  C7OF-9510D.

428 CID Cobra Jet V-8. Engine Code “P” Overhead valves. Cast iron block. Five main bearings.
Displacement: 428 cubic inches.
Bore and stroke: 4.13 x 3.98 inches.
Compression ratio: 10.6:1.
Horsepower: 335 @ 5400 RPM.
Torque: 440 @ 3400 RPM.
Valve lifters: Hydraulic.
Camshaft timing: Intake: 270 degrees, Exhaust: 290 degrees, Lift: (intake) 0.481″ (exhaust) 0.481″, Overlap 46 degrees.
Carburetor:  Ford Holley 4-barrel( manual transmission) Model  C8OF-9510AA, Holley 4-barrel (Automatic transmission)  C8OF-9510AB .

NOTE: This engine superseded the 427 CID 390 HP V-8 in March 1968.

427 CID V-8 Automatic Transmission Only. Engine Code “P” Overhead valves. Cast iron block. Five main bearings.
Displacement: 427 cubic inches.
Bore and stroke: 4.23 x 3.78 inches.
Compression ratio: 10.9:1.
Horsepower: 390 @ 5600 RPM.
Torque: 460 @ 3200 RPM.
Valve lifters: Hydraulic.
Camshaft timing: Intake: 270 degrees, Exhaust: 290 degrees, Overlap: 46 degrees. Lift: (intake) 0.481″ (exhaust) 0.481″.
Carburetor: Ford Holley 4-barrel Model (automatic transmission ONLY) C8OF-9510AB .

NOTE: This engine was only available as an option on the GT-E and the XR7-G. It was later superseded by the 428 CID Cora Jet.