Our candidate for the modern five-speed transmission swap is this ’67 Mercury Cougar that’s still lugging around its original slushbox. Although it has it’s own unique look, the Cougar is mostly first-generation Mustang under the sheetmetal. Here, Roush Yates Performance Products shop manager, Jeff Paxton, and the crew from American Powertrain, are busy pulling the original transmission and driveshaft.
Modern automatic transmissions have come a long way over the last 20 years. They are more efficient, shift smoother, and are sportier than ever before. But there's still no substitute for sawing through the gears on a twisty mountain road or the occasional track day. And when you compare the fun of a modern manual transmission to what you get from a 45-year-old slushbox—well, that's not exactly a fair fight.
That's why outfitting classic cars with more modern suspensions and drivetrains is so popular. You can combine the great looking designs of the past with the handling, comfort, and performance of modern vehicles for the best of both worlds. But the hassle of either hunting down or fabricating all the adaptors, brackets, linkages, and assorted hardware required to swap a modern manual transmission into a classic car equipped with an automatic is often the biggest obstacle.
American Powertrain started engineering complete kits to do exactly that. With each package, the company has done all of the engineering work, completed all of the fabrication, driven the test miles, and generally sweated all of the details to make sure everything works exactly like you think it should. Because the only surprises you should get are on holidays and your birthday.

1. Here’s the original transmission...

1. Here’s the original transmission ready to earn a buck back for the owner on eBay or at the local swap meet. Paxton also pulled the heavy torque converter as well.

2. While the car was on the...

2. While the car was on the lift, Paxton pulled the original center section of unknown ratio and installed a new one built by C&R Racing South with a sporty 4.11 gear.

3. The foundation of the American...

3. The foundation of the American Powertrain (AP) kit is a T5 Tremec five-speed trans that has already been prepped with the correct shifter box to fit the transmission tunnel. The kit also includes AP’s own flywheel, clutch, pressure plate, and hydraulic throwout bearing. Everything is brand-new and built to spec.
To see exactly what is involved in making such a swap, we visited Roush Yates Performance Products when it was installing an American Powertrain five-speed transmission into a '67 Mercury Cougar. This is the same Roush Yates that builds all of the Ford engines raced in NASCAR's Sprint Cup Series (and several other series), and the company has recently expanded its operation beyond engine building to working on customer cars—both hot rods and race cars—as well as dyno tuning.
American Powertrain has a Mercury Cougar shop car that's been used to science out the conversion, but since this was the first customer Cougar to see the upgrade, three of the crew decided to make the journey down from Cookeville, Tennessee, to the heart of racing country to help out with the install. Although we had the advantage of the American Powertrain staff handling most of the work on the install, this is something most gearheads can perform in the driveway over a weekend. The kit makes it possible because—at least in our case—the only thing we needed to get was a new driveshaft because of the longer modern transmission.

4. AP also provided the correct...

4. AP also provided the correct bellhousing to match the 289 to the transmission without any finicky adaptor plates. Again, the bellhousing is new. That means there is no time wasted sandblasting away 100,000 miles worth of grunge, welding up cracks, or crawling through junkyards.

5. The new transmission is...

5. The new transmission is longer than the stock automatic unit, so the stock driveshaft will no longer fit. It usually takes a day or two to get a new driveshaft cut, so AP’s Gray Fredrick (left) and Daniel Silcox (right) mock up the bellhousing and transmission (without the clutch) so that they can get the correct measurement for the driveshaft and have a new one ordered up. Whenever you measure for a new driveshaft, make sure the rear end housing is sitting at ride height.

6. When doing a swap like...

6. When doing a swap like this, it’s easy to forget some of the little things like installing a pilot bearing in the crank (it’s not needed with an automatic transmission). But AP provides a new pilot bearing in the kit so you can pop it in and save a last minute trip to the parts store.
American Powertrain routinely works with both five- and six-speed aftermarket transmissions and also sources several different clutch assemblies to varying horsepower levels. American Powertrain matched everything for our subject vehicle's slightly modified 289 V-8, with plenty of capability left over to handle future horsepower upgrades.
Besides the obvious improvements that you would expect from swapping out an original automatic transmission for a modern manual unit—more fun to drive, fewer breakdowns, improved fuel mileage—Roush Yates Performance Products also did a little dyno testing and the new transmission made more power as well.
With the stock setup, the 1967 Cougar produced a peak horsepower rating of 160.86 hp, but after the new transmission and clutch were installed, that number jumped up to 183.55. That's an improvement of 22.69 hp, without adding any stress to the engine. And best of all, significant improvement was seen all the way through the rpm range. The average horsepower went up around 10, which will make for a much more enjoyable classic car.

7. To ensure a proper fit,...

7. To ensure a proper fit, the clutch pedal is OEM hardware for a straight-drive model of the same car.

8. Silcox installs the pedal...

8. Silcox installs the pedal under the dash. It can be a pain to get the pedal to fit onto the mount with everything else under there, so plan to spend a little time working on your back.

9. Now, it is finally time...

9. Now, it is finally time to install the steel flywheel. The bolts are torqued to 65 ft-lbs.

10. Fredrick mocks up the...

10. Fredrick mocks up the bellhousing one more time to ensure the opening is centered in line with the crankshaft’s pilot bearing. This is a quick task with a dial indicator on a magnet mounted to the flywheel. Check at four points on the bellhousing 90 degrees apart from each other. If the bellhousing is off by more than a few thousandths, the problem is often with dowel holes in the block. The best fix is to use a set of offset dowel pins.

11. Fredrick found the bellhousing...

11. Fredrick found the bellhousing was centered up nicely, so off it came once again to install the pressure plate.

12. The AP clutch bolts up...

12. The AP clutch bolts up to the flywheel with the bolts torqued to 25 ft-lbs.
" American Powertrain matched everything for our subject vehicle's slightly modified 289 V-8, with plenty of capability left over to handle future horsepower upgrades
"

13. Now Fredrick is finally...

13. Now Fredrick is finally able to bolt up the bellhousing for the final time.

14. By placing a straight...

14. By placing a straight edge across the bellhousing, Fredrick measures to the end of the clutch fingers to help set throwout bearing clearance.

15. Fredrick installs the...

15. Fredrick installs the AP hydraulic throwout bearing onto the transmission and measures the distance between the throwout bearing face and the mating surface on the front of the transmission. This distance should be around 0.100-inch shorter than the distance between the bellhousing and the clutch fingers.

16. Extra clearance can be...

16. Extra clearance can be taken up by adding shims over the input shaft collar as necessary.

17. This stud threads into...

17. This stud threads into one of the bolt holes on the transmission’s input shaft retainer. It slots into a notch on the hydraulic throwout bearing to keep it from spinning on the input shaft.

18. Here’s the throwout bearing...

18. Here’s the throwout bearing correctly installed on the input shaft. AP has obviously tried to make everything as foolproof as possible. The throwout bearing arrives pre-bled with hydraulic fluid to reduce the chances of air bubbles giving you a squishy pedal.

19. Now the Tremec transmission...

19. Now the Tremec transmission can be slid into place. AP has already installed the correct shifter box at the factory, so the shifter mount lines up perfectly with the existing hole in the transmission tunnel. Here, the included crossmember is bolted up.

20. A little electrical work...

20. A little electrical work is required. Here, Silcox solders the reverse light switch into the wiring harness. On older cars like this Cougar, you can never be sure what work has already been done, so it is always a good idea to use an Ohmmeter to test and make certain you have the correct wires before you begin cutting and soldering.

21. To help ease mounting...

21. To help ease mounting the master cylinder in a variety of locations and/or angles, AP came up with this locking swivel bracket that’s fabricated from high strength steel.

22. The master cylinder still...

22. The master cylinder still needs to be plumbed, but here you can see how the bracket mounts to a hole cut in the firewall.

23. To fit properly, the clutch...

23. To fit properly, the clutch master cylinder must be mounted low on the firewall and directly underneath the brake booster. But a remote reservoir can be mounted high on the firewall for easy access.

24. Paxton and Silcox install...

24. Paxton and Silcox install the new driveshaft and the exhaust.

25. Here’s the new clutch...

25. Here’s the new clutch pedal right where it should have been all along.

26. The owner will need to...

26. The owner will need to install a shifter boot, but here you can see how the new shifter sits within easy reach of the steering wheel.

27. Besides, being more fun...

27. Besides, being more fun to drive, the new transmission kit actually helps get more horsepower to the rear wheels. Before-and-after tests on the dyno showed that the AP kit helped put an extra 22 horsepower to the rollers.