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 |  Jun 16 2009, 12:14 PM

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The 2011 Ford Mustang looks like it will get a boost in performance, while at the same time a drop in displacement. According to a report on The Mustang News, Ford is about to replace the aging 4.0-liter V6 with a new 3.7-liter unit.

A Mustang with the new 3.7-liter engine was put on display recently at an employee town hall event at Ford’s Dearborn Development Center.

Currently the V6 makes just 210hp and 240 ft-lbs of torque – a far cry from the 265hp in the new Dodge Challenger and a far, far cry from the 300hp of Chevy’s new V6 Camaro.

Output for the new 3.7-liter unit in Lincoln’s new MKS is an impressive 273hp and 270 ft-lbs of torque. It isn’t likely to be that high in the Mustang for several reasons. Primarily, the cost associated with building a more powerful engine and the fact that those numbers are getting a little too close to the 315hp output of the V8-powered GT. Additionally, the Mustang doesn’t need all that power to keep up, as in V6 trim it already weights several hundred pounds less than cars like the Camaro.

[Source: The Mustang News]