1967 Mercury Cougar XR-7 – How Different Is Different Enough?

Left front 3q view of a Lime Frost Metallic 1967 Mercury Cougar XR-7 Dan Gurney Special with a black vinyl top, parked on a country road

1967 Mercury Cougar XR-7 in Lime Frost Metallic / Bring a Trailer

 

Auto enthusiasts talk a lot (and complain a lot) about badge engineering, where automakers slap a few bits of unique trim on a car or truck and try to sell it under a different name or a different brand. It’s easy to decry this practice as the height of corporate cynicism, but it raises a question: Exactly how different does a vehicle have to be before it can really be considered a new and different product? One of the best test cases is the 1967 Mercury Cougar, a gussied-up pony car that attempt to fill the gap between the popular Ford Mustang and the pricier Thunderbird.

Closeup of the Cougar grille badge on a 1967 Mercury Cougar XR-7

1967 Mercury Cougar XR-7 / Bring a Trailer

 

When the Mercury Cougar debuted in the fall of 1966, the Lincoln-Mercury Division proclaimed it not only a new car, but a new kind of car: “the personal luxury car with a sporty European flair,” allegedly offering “a new high in luxury features.” Lincoln-Mercury product planners trotted out their market research and demographic reports, showing that there was a sizable market for a compact, sporty luxury coupe, a Thunderbird-ish car at a Mustang-ish price.

Studio shot of the left front 3q of a white 1967 Mercury Cougar

1967 Mercury Cougar / Ford Motor Company

 

That was all very romantic, but the reality was more prosaic. The development and tooling budget for the T-7, as the Cougar was initially known internally during its development, was a modest $40 million, so it couldn’t really be that different from its Ford sibling. (For comparison, the budget for the 1965 Mustang was reportedly about $75 million.) Mercury had fewer than half as many dealerships as Ford Division did, which meant the Cougar also needed to be profitable at a smaller sales volume, and the easiest way to accomplish that was with a higher price.

Right front 3q view of a Lime Frost Metallic 1967 Mercury Cougar XR-7 with black vinyl top

1967 Mercury Cougar XR-7 / Bring a Trailer

 

This wasn’t a terrible proposition, all things considered. The Cougar did have to use the unitized Mustang platform, stretched a bit for a 3-inch-longer wheelbase, but there was enough money in the budget for almost entirely new sheet metal and a new dashboard.

Front view of a Lime Frost Metallic 1967 Mercury Cougar XR-7 with a black vinyl top

The headlamp covers of the 1967 Cougar were controlled by vacuum motors, activated by a solenoid-controlled air valve / Bring a Trailer

 

The higher price point ($284 more than a V-8 Mustang hardtop) was also enough to justify some additional styling gimmicks, including vacuum-operated concealed headlights and Thunderbird-style sequential turn signals.

Taillights and rear grille of a Lime Frost Metallic 1967 Mercury Cougar XR-7

The 1967 Cougar had sequential taillights, actuated by an electrical switching motor / Bring a Trailer

 

Also, since the Cougar was based not on the original 1965 Mustang, but rather the redesigned 1967 version, the Mercury shared in the updated platform’s mechanical improvements, including a better-isolated suspension. Lincoln-Mercury was able to further improve that platform’s refinement with a big dose of additional sound insulation, an articulated joint for each front drag strut (to increase the front wheels’ ability to shift fore and aft in response to vertical bumps), a voided bushing for the front shackle of each rear leaf spring, and longer rear springs. Many badge-engineering jobs and “twins and triplets” (as such platform-mates were sometimes called in Japan) have had far less to work with than that.

Front suspension of a 1967 Mercury Cougar XR-7, viewed from underneath with the car on a hoist

The red circles indicate the articulated joints of the Cougar’s front drag links — the 1967 Mustang suspension also had rubber-bushed drag links, but not these additional joints / Bring a Trailer

 

Still, for all the Cougar’s points of distinction — and it did have quite a few — I have a hard time believing that most contemporary buyers didn’t immediately recognize that it was related to the Mustang. Mustangs were everywhere in 1966 — 540,802 new ones were registered in the U.S. in the 1966 calendar year alone, a domestic market share of about 6 percent. If you happened to see a new Cougar on the street, there was a good chance there was a Mustang somewhere nearby to compare it to.

Right side view of a Vintage Burgundy 1967 Ford Mustang hardtop with RWL tires

1967 Ford Mustang hardtop in Vintage Burgundy / Bring a Trailer

 

This familiarity didn’t do the Cougar any harm: 1967 production totaled a very respectable 150,893 units for the model year, which made the Cougar the best-selling car Lincoln-Mercury offered. (It outsold all the full-size Mercury models by more than 20 percent.)

Right side view of a Lime Frost Metallic 1967 Mercury Cougar XR-7 with a black vinyl top

1967 Mercury Cougar XR-7 / Bring a Trailer

 

If anything, the Cougar might have done the Mustang a bit of harm. Mustang sales were down about 22 percent for 1967, and while a lot of that was undoubtedly due to the new Chevrolet Camaro and Pontiac Firebird, I’m sure some Mustang buyers were lured away by the Cougar.

Ford 289 engine under the hood of a Lime Frost Metallic 1967 Mercury Cougar XR-7

The 289-2V was standard in the 1967 Cougar, but this car has the 225 hp 289-4V, a $52.95 option  / Bring a Trailer

 

Thirty percent of Mustang buyers in 1967 still chose a six-cylinder engine, which the Cougar didn’t offer. The Cougar also wasn’t offered as a convertible (although one had been considered) or a fastback. However, if you were considering a fully loaded Mustang with automatic, air conditioning, and all the trimmings, you might well be tempted by the Cougar, particularly following the launch of the fancier XR-7 in January 1967.

Dashboard of a 1967 Mercury Cougar XR-7 with green leather interior

1967 Mercury Cougar XR-7 had a woodgrain dash with full instrumentation; the console and clock were a $72.55 option / Bring a Trailer

Right side of the dashboard of a 1967 Mercury Cougar XR-7, showing the toggle switch light controls and oil pressure gauge

XR-7 toggle switches are for the map lights and courtesy lamps, while the oil pressure gauge is mostly for the passenger’s benefit; this car also has Whisper-Aire A/C ($355.95) and an AM radio with Stereo-Sonic tape player ($188.50), which contains an 8-track of The Carpenters’ A Kind of Hush / Bring a Trailer

Overhead console in a 1967 Mercury Cougar XR-7

XR-7 included an overhead console with map lights and warning lights for low fuel, parking brake, door ajar, and seat belts / Bring a Trailer

 

Some buyers may have been swayed by the Cougar’s styling. Even if you saw it as just a fancy Mustang, the concealed headlights and electric shaver front and rear grilles were rather cool. I like the look a lot, except that even slight misalignment of the headlamp doors can make the Cougar seem a bit snaggle-toothed. (It could have been worse — the full-size styling mockup shown below, photographed in 1964, shows how the Cougar might have looked with this grille and exposed headlights — yikes!)

Full-size styling model of a Mercury Cougar styling prototype outside the Ford Styling Rotunda

1964 Mercury T-7 styling prototype S-7406, photographed May 14, 1964 / Ford Motor Company

 

Since the Cougar was a fair bit more expensive than the Mustang, it was obliged to justify its higher price, which it mostly did: The extra 235 lb of curb weight didn’t do performance any favors with the 289 V-8, but the Cougar was quieter inside than a Mustang, it rode a little better, and the extra 3 inches of wheelbase got you 2.6 inches more legroom (0.7 inches in front, 1.9 inches in back). The XR-7, which cost an additional $231.41, gave you leather upholstery, woodgrain trim, full instrumentation, and some extra convenience items.

Back seat of a 1967 Mercury Cougar XR-7 with green leather/vinyl upholstery

1967 Mercury Cougar XR-7 back seat was still cramped, but had 1.5 inches of extra knee room compared to the 1967 Mustang hardtop / Bring a Trailer

 

As much as Ford and Lincoln-Mercury market research emphasized the critical mass of the Baby Boom generation, the Mustang was a big hit in part because it sold well with older buyers as well as younger ones. The Cougar was still the same kind of thing in concept, proportions, and size (although it was 6.4 inches longer than the Mustang), but it looked and felt a little more grown-up. That obviously had some appeal, even if the car ultimately wasn’t very different from the Mustang.

Left front 3q view of a Lime Frost Metallic

This 1967 XR-7 is a Dan Gurney Special, a not-very-rare, not-very-special cosmetic package to commemorate Dan Gurney’s Cougar Trans-Am efforts; 19,783 1967 cars had this option, which included the wheel covers, F70-14 whitewalls, a Dan Gurney signature decal, and some chrome engine dress-up/ Bring a Trailer

 

The Ford Mustang was still so popular in 1967 that Lincoln-Mercury could probably have sold just about as many cars by simply offering a Mustang clone with Cougar emblems in place of running horses. (Imagine a Mercury version of the Mustang deluxe “Pony Interior,” with vinyl trim embossed with stalking cougars — the Kitty Interior?) I’m sure Ford Division wouldn’t have appreciated that very much, but the corporation would probably have been happy enough to sell one of its most successful contemporary products through an additional 2,500 dealerships.

Left front 3q view of a Vintage Burgundy 1967 Ford Mustang hardtop

1967 Ford Mustang hardtop / Bring a Trailer

 

Conversely, if the Mustang had been a lukewarm seller, or an outright flop like the Rambler Marlin or Plymouth Barracuda, the Cougar probably would have been too. Whatever its actual virtues, I think the main reason the Cougar worked commercially was that it was a variation on an already-popular theme. In America, there’s often a market for products that are a little different, but not too different. A little different can be sign of discernment; too different is risky, and might just brand you as a weirdo. The Cougar managed to walk that line well.

Right rear 3q view of a Lime Frost Metallic 1967 Mercury Cougar XR-7 with a black vinyl top

1967 Mercury Cougar XR-7 / Bring a Trailer

 

Conventional wisdom in nearly every discussion of Mercury insists that Ford should have done more to differentiate Mercury products from Ford ones, to better cement a Sloanian brand hierarchy of a kind that was already basically obsolete by the 1960s.

Left front 3q view of a black 1986 Mercury Sable LS sedan parked in front of scenic arches

1986 Mercury Sable LS in black / Ford Motor Company

 

However, if you set aside this fixation on the platonic ideals of Brand Integrity, it’s clear that the products that Mercury dealers were best able to profitably sell during the brand’s 72-year run were variations on popular Ford models: the Comet, the Sable (above), the Grand Marquis (below), later the Mountaineer. They were a little bit different from their Ford equivalents, enough to make them distinguishable at a glance, but not so different to turn off buyers who liked the Ford versions — or to put their prices too far out of reach for Ford customers.

Press front 3q view of a light brown 1992 Mercury Grand Marquis sedan

1992 Mercury Grand Marquis in Patel Alabaster / Ford Motor Company

 

The original 1967–1968 Mercury Cougar stands out not because it was unusually distinct from the Mustang on which it was based (it wasn’t), or because it offered dramatically more than the Mustang (it really didn’t), but that it had a clear idea of HOW it was supposed to differ from the Mustang, and it mostly delivered on that promise, within the realistic limits of its price. (The original list price of the air-conditioned Lime Frost XR-7 pictured below was around $4,400.)

Left side view of a Lime Frost Metallic 1967 Mercury Cougar XR-7 with a black vinyl top

1967 Mercury Cougar XR-7 / Bring a Trailer

 

The Cougar wasn’t a budget Aston Martin or a poor man’s Jaguar, whatever the marketing people or stunt-happy buff books would have you believe, and it wasn’t yet a Mercury version of the Thunderbird, which it became later. However, considered as a posher, more grown-up Mustang, the original Cougar was very appealing, and it still is today.

Related Reading

Vintage Review: Car Life’s 1967 Mercury Cougar – Finesse In Fabrication (by Rich Baron)
Curbside Classic: 1967 Mercury Cougar GT – Wild & Beautiful (by Joseph Dennis)
Vintage Comparison Test: 1967 Jaguar 420 Versus Mercury Cougar XR-7 – Which Fabulous Feline Would Be Belle Of The Ball? (by GN)
Vintage Car Life Review: 1967 Ford Mustang 390 Fastback – All The Toppings, Not Enough Mustard (by me)