This engine was mated to Ford's AOD 4-speed automatic transmission regardless of trim level from the 1989 to 1993 model years. Rated at 140 horsepower (100 kW) at 3,800 rpm and 215 lb⋅ft (292 N⋅m) of torque at 2,400 rpm, however many felt the V6 engine was somewhat underpowered for a car that weighed over 3,500 pounds (1,600 kg) in base trim (heavier when equipped with available options). The base and LX models were powered by Ford's 3.8 L Essex OHV V6. Engine options fell to only two for 1989 as Ford dropped the V8 option for the new Thunderbird which would return later for the 1991 model year. This setup was significant as it made the Thunderbird, the Lincoln Mark VIII, and the Cougar the only rear-wheel drive North American domestic cars other than the Chevrolet Corvette to offer a four-wheel independent suspension at the time.

The car featured four-wheel independent suspension, with short-and-long arms (SLA) and a spring strut assembly in the front and multiple links in the rear, that offered excellent handling and ride quality.

1997 ford tbird