A 1967 Mercury Cougar XR-7 that has undergone a comprehensive refurbishment and performance build is showcasing a modernized take on Mercury’s original upscale pony car.
Introduced in 1967, the Cougar was positioned as a more refined alternative to the Ford Mustang, pairing sporty styling with additional comfort and upscale detailing. The XR-7 trim represented the top-tier model, distinguished by wood-grain interior accents, toggle-switch instrumentation, a full-length center console and hideaway headlamps. Sequential rear turn signals further separated the Cougar from its competitors and became one of its signature features.
This example, originally built in Dearborn, Michigan, left the factory as an XR-7 hardtop equipped with a 289 cubic-inch V8. It now carries a rebuilt 347 cubic-inch stroker V8 based on a 302 block bored .030 over. The balanced and blueprinted engine features aluminum cylinder heads and intake, flat-top pistons, roller rockers, a performance camshaft, headers and dual exhaust. Fuel delivery comes from an Edelbrock AVS2 carburetor, supported by a fuel pressure regulator and H.E.I. ignition system. Cooling is handled by an aluminum radiator paired with a six-blade fan.
Power is routed through a Stage 2–spec AOD automatic transmission conversion, bringing overdrive capability to the classic platform. The suspension system has been refreshed, and a front disc brake conversion with new lines and a power brake booster enhances stopping performance.
Finished in Charcoal Metallic Grey following a bare-metal repaint, the Cougar rides on 17-inch American Racing Shelby-style wheels wrapped in staggered Cooper tires. Electronic headlamp covers and upgraded rear lamps add subtle modern touches.
Inside, a custom two-tone black and tan interior replaces the original configuration, featuring modern front bucket seats, white-face gauges, a wood-rim billet steering wheel and an Alpine audio system. New carpeting, headliner, wiring and trim components were installed during the restoration.
With approximately 82,400 miles indicated and extensive documentation detailing the build, this modified XR-7 reflects both its luxury-oriented roots and a thorough mechanical transformation designed for contemporary performance driving. See it here.
