I've got a friend with a merkur that is getting tired. He's wanting to keep it Ford, but isn't against something else. After I told him about RWD Zetecs, he's interested in that, although I told him a VQ35 and 6 speed from a 350z would be much cooler.
Think outside das box!
Keep it ford?
Straight six with an australian cylinder head and a turbo. That should be interesting.
MZR/Duratec engine with a miata or ranger transmission.
All Ford? Budget? If it is near the GDP of a small 3rd-world country, I might suggest a Kasse 820 CID BOSS Hemi. It has about 1800 HP.
http://www.jonkaaseracingengines.com/products/engines/820-ford-hemi/66-820-ford-hemi.html
You have to call for pricing, which means that if you have to ask, you can't afford it. I did notice that the 700 CID non-hemi came in at only $45K.
Turbo SHO.
400+ whp.
It doesn't HAVE to stay Ford, but he's pretty blue oval proud. He has shown disinterest in the LSx engines, however.
2.3 Duratec is a cool engine. Turbo kits available. Big power can be had.
The obvious choice is the best. 
Don't forget to change the rear diff, and while you're at it, upgrade the rear drums to discs if you're looking at alot of power...
Here are some LSx swaps (I know you said Ford only): http://www.shoforum.com/showpost.php?p=1238536&postcount=27 http://ls1tech.com/forums/conversions-hybrids/945106-ls2-xr4ti.html
Ford 2.3 Duratec: http://forum.merkurclub.com/forum/viewtopic.php?f=37&t=19846 (David Godfrey)
Ford 3.8: http://www.merkurtech.com/merkurtech/picturepages/main.php (look for David Godfrey's name)
Ford 351W Turbo: http://jalopnik.com/5544824/merkur-xr4ti-reliability-problem-solved-turbo-ford-351w-v8
And, just for argument's sake, a tired XR4 just needs more boost 
:
http://grassrootsmotorsports.com/reader-rides/437/ 30psi makes for a wild ride, and this is on a stock block and head with over 180k miles on it...
Zetec! I've done lots of research on making them rear wheel drive. The couple pieces of weird American Ford parts you would need are the bellhousing, flywheel, pressure plate, and starter from a 4 cylinder, 4 speed* from a Pinto. The gearbox is sometimes called a Rocket or FOG gear box but Ford's internal name is Type-E.
You should be able to use the Type-9 5 speed since the pinto bellhousing bolts up. If you have some machining skills and/or can weld aluminum, it would be cheaper just to modify the Merkur bell and use flywheel and what not from the Xr4ti.
*The Mustang II got the Borg Warner SR-4 and it's not the right one.
I've got more info, just PM me if you're interested.
The 2.3 turbo can make LOADS of power. Why not just refresh it? IMO it's a step down to go to a Zetec from the 2.3T unless you do a lot of work to the Zetec. If he just has the itch to swap, I'd go 5.0+T5 or Duratec+T5. The Duratec has eclipsed the Zetec in terms of performance (both out of the box and potential).
In reply to Winston:
Damn, reasoning and logic. 
Tell him to wait a couple of years for the new Ecoboost 4 banger to be available from wrecked Explorers, Focus ST's, and the new SVO (if it's as we've been hearing). The 2.0 Ecoboost should be a stout little bastage! Forged internals, direct injection, turbo, coated pistons, oil squirters, blah, blah, blah.
That or pull a 3.5L Ecoboost out of a wrecked 2011-2012 F150 and get after it...
The 2.3 lima is a hell of a motor. It gives decent economy, is tough, can handle a lot of boost, and already fits in the car. Unless he's wanting to go for massive power, why change it?
rotard wrote: The 2.3 lima is a hell of a motor. It gives decent economy, is tough, can handle a lot of boost, and already fits in the car. Unless he's wanting to go for massive power, why change it?
Because it sounds like a diesel tractor and has the sex appeal of a watermelon-sized cold sore?
F2T? 
It came in Probes.
I don't know that i'd swap out a Lima for one, though. It also sounds somewhat like a tractor, and power levels on stock motor are probably about equal to what the Lima is capable of.
Javelin wrote:rotard wrote: The 2.3 lima is a hell of a motor. It gives decent economy, is tough, can handle a lot of boost, and already fits in the car. Unless he's wanting to go for massive power, why change it?Because it sounds like a diesel tractor and has the sex appeal of a watermelon-sized cold sore?
I take back my statement. Tell him to put the incredibly sexy 5.0 HO in it and let his inner mullet flap in the wind.
rotard wrote:Javelin wrote:I take back my statement. Tell him to put the incredibly sexy 5.0 HO in it and let his inner mullet flap in the wind.rotard wrote: The 2.3 lima is a hell of a motor. It gives decent economy, is tough, can handle a lot of boost, and already fits in the car. Unless he's wanting to go for massive power, why change it?Because it sounds like a diesel tractor and has the sex appeal of a watermelon-sized cold sore?
I was thinking more like SHO V6, or Ozzie cross-flow I-6, or some modern DOHC I-4...
The 5.0 Coyote would be a nice swap...
i happen to like how the limas sound. you can't really hear the engine over the turbo
Cossie YB with a very large turbo?
Or he could just refresh the 2.3, grab an Esslinger head, and feed it a lot more boost.
V10 out of an Econoline :)
Javelin wrote:rotard wrote: The 2.3 lima is a hell of a motor. It gives decent economy, is tough, can handle a lot of boost, and already fits in the car. Unless he's wanting to go for massive power, why change it?Because it sounds like a diesel tractor and has the sex appeal of a watermelon-sized cold sore?
We're talking about a Merkur... "sexy" shouldn't ever enter the discussion unless we're talking about the purely animalistic hotness of a rally car.
12 ROTOR!!!!!
With turbo(s) of course.
I'd go with what Winston said.
OR if there's more budget to be had, the Ranger uses a RWD setup of the Mazda 2.3L... find a turbo 2.3L from a Mazdaspeed3 or 6, bam, presto, still "Ford", still turbo 2.3L, but now all modern'n'stuff.
Conquest351 wrote:
The second that thing starts up everyones fuel gage will drop at least a quarter tank!
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