Mercury had plenty of news under that hood as well, with the introduction of the 312-cu.in. Y-block V-8 for 1956. Only a couple of years removed from Ford's flathead era, by 1956, Ford's Y-block was doing yeoman service for all of the Blue Oval's divisions. Within the fenders of every Montcalm was a version of a 312-cu.in. Y-block overhead-valve, push-rod V-8.
The base level, when coupled with a three-speed manual, featured 8.0:1 compression to produce 210 hp, though very few Montclair buyers had any interest in shifting their own gears. Merc-O-Matic-equipped cars came with 8.4:1 compression and made 215 hp. The optional engine, with 9.0:1 compression, was good for 225 hp. The best part for all Montclair buyers in 1956 was that even the lowest-spec engine produced quite a bit more power than 1955's 292-cu.in. variant of the Y-block.
Late in the 1956 model year, during the spring, Ford engineers added a hotter camshaft to the higher-compression engine, with a Mercury-specific part number no less. Along with either a Carter or Holley carburetor, the updated engine made 235 horsepower, earning it the M235 moniker from Mercury.
To distinguish the M235 from lesser 312s, they also specified argent silver gray valve covers, still stamped with the word "Mercury" in blue letters, but also featuring a long, horizontal Thunderbird-esque decal that had "M235" written on it as well.