Transmission complaints by model year
Which parts fail
Components named in complaints (automatic and manual transmissions, CVT, axles, driveshaft, 4WD/AWD).
Mileage when the problem started
What owners report
Tl contact owns a 2002 Mercury Cougar. The contact stated that the vehicle began to lose power while driving, which made it difficult to steer the vehicle. He experienced difficultly pulling the vehicle to the side of the road. After approximately 15 minutes, the vehicle was able to be restarted and operated normally. He drove the vehicle home and later called the dealer. The dealer advised him to bring in the vehicle and they made repairs at the cost of $697. The failure was identified as being included in NHTSA campaign id number 04V421000 (fuel system, gasoline). The failure could cause engine hesitation, loss of power, surging, and other similar symptoms. Over time, the filter May become sufficiently blocked and cause the engine to stall. The failure mileage was 84,000 and current mileage was 86,000. Updated 07/16/08 the bushings and clutch were worn. …
I purchased this 2002 Mercury Cougar 9 days ago and the transmission started hesitating in overdrive, so I turned o/d off and it was fine. When I got home I tried to put it in reverse and it wouldn't move. I tried to put it in neutral and it moved forward. I recently discovered that I was not the only one, I have seen repeated accounts of this same a/t failure on this same year & model on the internet including this same complaint forum. I also discovered this was a result of Mercury's poor engineering in the overdrive gear, and the plastic valve box (used for gear selection) inside the trans axle. I would appreciate Mercury motor company paying for the repairs. I would not have purchased a vehicle to expect costly repairs due to engineering mistake or poor design.
There was no indication that there was a problem with the transmission until one day I went to pull out into an intersection and the car felt like it was in neutral. During that same episode, when at a stop light, the car would not move until it was put in 2 instead of drive. I took it to the dealership and was told that the automatic transmission needed to be replaced. The car only has 48,000 and the cost of the replacement of a new transmission was $3,256 + tax.
Bought car brand new in September 2001. Automatic transmission needs replacement at 43,000 miles (June 2005). No recourse as warranty only covered me for 3 years/36,000 miles. This is too soon for a transmission to fail. Although the car is automatic, I could feel the car lose power as it shifted automatically from 1st gear into 2nd gear. Took the card to Ford dealer who told me it would cost $3,000 to fix. I am appalled!
2000 Mercury Cougar v 6 auto -55000 mi - steady state cruising after 10 mi 'warm up' - a frequent , problem - like OK for 3 or 4 mile , then 2 or 3 times will jerk or shudder , then OK for 3 or 4 mi - hard jerk , engine tach jumps from 2800 > 4000 RPM , back to 2800. Seems mostly at steady 70 MPH or so , does do it sometimes at 40. Seems hardly ever on short drive , like 8 mi to work in morning. Trans can't find correct gear ? Computer ? Dealer , aftermarket shop couldn't find anything. New fuel filter , trans oil.
2000 merc Cougar, v6, auto transmission. Tranaxle light or o/d off light blinks, shifting of gear becomes violent. First started in sept/oct of 2002, problem still occurs in feb 2004. Numerous trips to repair shop. No fixes work.
The battery seemed low on the car, indicated by interior lights not being very illuminated, but then dashboard lights started flashing and windows rolled up very slowly. I charged the battery for many hours and it took a charge, so I could get to the Mercury dealer. It died when I got there and they were closed, so I had to jump it and move to a safe location to leave overnight. This had happened twice before in the past 2 1/2 years, so I new it was the alternator again! That's three alternators in 2 1/2 years. This time I am out of warranty and am expected to pay $550 for a recurring problem that clearly will happen again. The dealer can not tell me why this is occuring, and Ford "customer service" could care less. After researching this problem on the internet, it seems that many Cougar owners have experienced this problem continually. …
While the car is running, my 1999 Mercury Cougar will shift from drive to neutral, to reverse, without ever releasing the lock. All it takes is slight pressure on the gear shift to change gears unintentionally. The dealer I just bought the car from 2 weeks ago, and Ford tell me that it is normal for the gears to move from drive to neutral with no effort. The dealer said no harm is done. You are just driving down the road at 60 miles an hour when you bump the gear shift, and lose all acceleration until you move the gear shift back to drive. I can see a real safety issue there. And, considering that this is my 16 year old's car, I see a real safety issue. It also would shift from 2nd all the way to neutral without releasing the lock.
Frequently asked questions
Which Mercury Cougar years have transmission problems?
By NHTSA complaints, the 1999 (50), 1995 (23), 1997 (10), 2001 (10) and 2002 (10) model years. Transmission complaints make up 11% of all complaints for the 1999.
Is there a recall for Mercury Cougar transmission problems?
No. NHTSA lists no transmission & drivetrain recall for any Mercury Cougar model year. A widespread problem may still be covered by an extended warranty or a manufacturer service bulletin, so ask a dealer.
At what mileage do Mercury Cougar transmission problems start?
Across all years, half of the complaints with a recorded mileage happened before about 71,000 miles; 33% happened before 50,000 miles.
What part fails most often?
Owners most often name the automatic transmission (73 mentions), followed by the manual transmission (12).
Source: U.S. National Highway Traffic Safety Administration (NHTSA) — owner complaints through October 20, 2026, recalls and defect investigations; fuel economy from the EPA. Complaints are unverified reports and are not proof of a defect. How we rate model years.