Mercury Cougar GT-E: See The 700-hp Surprise Under Hood!

Check out the 772-Horsepower 427 ci Beneath the Hood of the 1968 Mercury Cougar GT-E Sleeper

The 1968 Mercury Cougar GT-E stands as a captivating chapter in automotive history, born in the wake of the Mustang’s triumph. Distinguished by its refined design, unique badging, and quad exhaust layout, the GT-E earned its place among classic car enthusiasts. What truly sets it apart is the powerhouse beneath its hood—the legendary 427-cubic-inch side-oiler engine, a nod to racing prowess. With only 394 units crafted in 1968, this Cougar is a rare gem, surpassing its more famous 1969 successor in scarcity. Today, as a testament to its enduring allure, the 427-powered GT-E commands a substantial value, beckoning restoration enthusiasts to breathe new life into this iconic piece of automotive heritage.

There is lots of work ahead for this restoration, but it will pay off in the end. (Photos: American Mustangs)

In the wake of the Ford Mustang’s success in 1964, Mercury seized the opportunity to craft its own interpretation of the pony car, resulting in the introduction of the Cougar in September 1966. Positioned as a V8-exclusive, more refined offering between the Mustang and the Thunderbird, the 1967 Cougar surpassed sales expectations, with nearly 151,000 units sold, prompting Mercury to expand the lineup with new equipment and powerplants.

Before the renowned Eliminator made its debut in 1969, 1968 saw the emergence of the GT-E. Distinguished by a redesigned grille, unique badging, and a quad exhaust layout, the GT-E boasted a distinctive feature — the 427-cubic-inch (7.0-liter) side-oiler engine. Originating in the early 1960s, this powerhouse had previously propelled vehicles like the 427 Cobra, Thunderbolt, and the race-spec GT40.

Related: For a much older Ford-family build, see this Ford Model A snowmobile.

In 1968, the 427 FE engine delivered an impressive 390 horsepower to the Cougar, outperforming its successor, the 428-cubic-inch Cobra Jet (335 horsepower). A rarity among classics, only 394 1968 GT-Es were produced, a smaller number compared to the 1969 Eliminator (2,250 units). Of these, 357 were equipped with the 427 engine before the introduction of the Cobra Jet, and just 37 GT-Es featured the latter.

The 427ci side-oiler was dyno’d at 772 horsepower. (Photos: American Mustangs)

Today, the 427-powered GT-Es hold substantial value, often exceeding $100,000 in restored, original condition. However, not all have weathered the years unaltered, as exemplified by this particular GT-E in need of extensive restoration. While presenting signs of a rough history, with missing components and original Grecian Gold paint only on the front clip, the car stands as a testament to potential restoration projects.

Despite the challenges, the GT-E showcased here retains its rare 427 side-oiler engine, housed in the original block. Although the engine has undergone a modern rebuild and boasts an impressive 772 horsepower on the dyno, the Cougar is currently non-operational. American Mustangs has posted the restoration for sale with hopes to get $50,000 from the project. With options ranging from completing the restoration to its original specifications or embracing the potent modified engine, this Cougar, with its nearly rust-free body and complete interior, holds promise for a second chance as a formidable sleeper on the road.

Note To Reader: Car Nut Chronicles is reader supported. We may post content which contains links to affiliate sites such as Amazon where we may earn a small commission. This helps us keep the lights on and the articles you enjoy being produced. Thank you for your readership, we appreciate you!