The 1988 model year showed hardly any changes at all from the previous model year. Ford knew that the new MN12 chassis Cougar would debut in 1989, so they were content to let most things stay as-is. The LS model had virtually no changes made with either the trim options or the styling. All 5.0 V8 models now received a factory dual exhaust system for an added 5 hp.

However, the big news for 1988 was the XR7, which now featured a striking monochromatic exterior paint scheme. Trying to stay slightly ahead of the times with the stylish Cougar, marketing research showed that the "one-color" look was on the verge of popularity, and there was no better way to take advantage of this than during the last model year of a body style. It practically screamed "factory custom". Available in red, black and white, these Cats are perhaps the most recognizable of the Cougar models from 1983 to 1988. They featured body-colored (or optional argent-colored) wheels, body-colored side moldings and outside mirrors, blacked-out window trim, premium grade interior, and dual exhaust. The XR7's had special standard pinstriping on the outside, different from that found on the LS model. The suspension was given a few tweaks to give a sportier feel and to lower the car slightly. Popular options included keyless entry, power moonroof, and leather interior. The analog gauge cluster, gone since the 1986 XR7, was standard again (the full electronic cluster from the previous year was optional though).

The popularity of the XR7 soared in 1988; it accounted for a whopping 12.7 percent of total Cougar sales, way up from the usual 5 percent or so from previous years. However, smart Cougar buyers could order a fully-loaded LS model with the V-8 and dual exhaust and have a virtual XR7 clone, save for the paint scheme and wheels. This helped to save on insurance costs considerably--which was very important in the 1980's.

	LEFT: The base 3.8 V6 got an internal balance shaft and a new EFI fuel injection system for smoother operation and greatly improved throttle response. Power was still rated at 140hp but this version of the V6 definitely felt more powerful than its CFI predecessor.
	LEFT: The 1988 3.8 V6 featured an all-new intake plenum, lower intake, cylinder heads, valve covers, accessories and brackets, and air intake. Essentially the V6 started to stongly resemble the 5.0 V8 in layout, and a few parts were even shared between the motors.
	LEFT: Cougar's taillight at dusk, where the retro "electric shaver" look of past Mercurys--including the 1967-70 Cougar itself--is subtley viewed.

The era of the 1983-88 Mercury Cougar proved to be a very popular one. Not only did sales soar upwards throughout this period, but the era of the "aero" car was now in full swing, as other automakers scrambled to copy Ford's look on their automobiles. And, where GM gave up the rear drive segment to go front drive (Grand Prix, Cutlass, Regal, Lumina), Ford had a virtual lock in the midsize sport coupe market. It was, quite simply, the right car at the right time.

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