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The 221cid V-8 was introduced in 1962 for the midsize Fairlane models.It was enlarged to 260cid in 1963,and lasted through the 1964 model year for Fairlanes,Falcons,and the '64 1/2 mustangs.This engine then was enlarged to the familar 289cid engine.The 260&289 were both around in 1963&1964.You could get either V-8 in any of the models listed,and the 289 was first made available for the fullsize Ford cars in 1964.
I used to own a 1963 Mercury Meteor (Fairlane basically) that had a 221 v8. These were the 1st mid-size Mercurys, and were built in 1962 and 1963. They could be had with a 6 or the 221 or the 260. According to the factory shop manual the 221 had yellow valve covers and air cleaner and the 260 was all black, when the 289 came out in 1964 it had gold valve covers and air cleaner. If I remember right the heads had very small valves and were only used on the 221 and 260, new heads were designed for the 289. These engines may have also been available in the smaller Comet of the same years. In 1964 the Meteor name was dropped and and the Comet became a mid-size like the Fairlane. But there was a full-size Meteor sold in Canada in the 50s and 60s, 1967 is the last year I know of.
My moms aunt bought it new from the dealer in Plymouth, MI. I was there when she took delivery and I bought it from her in 1981. wish I still had it, it was a cool looking car.
Check out the cool tail lights. http://www.crazyformercurys.com/Brochure%20Page%204.htm