A step up from the base Pacer engine was a higher performance version-the E-31. It was also a two-barrel engine, but was bored .040-inch oversized to measure 250 ci and sporting a higher compression ratio and durability mods. This gave it a boost in output to 195 hp. The top Pacer engine option was the E-34, a breathed-on version of the new 245 Hemi 6. Like the E-31, it was over bored .040 inch to 250 cubes. It would draw its mixture through a Carter four-barrel carb on an all-new intake manifold, working with a hotter cam grind; the E-34 upped the power ante to 235 hp. To ensure reliability, the engine also received shot-peened connecting rods and crankshaft, a race harmonic balancer, tougher bearings, and a high-performance oil pump and windage tray. There was a dual-plate clutch to transfer the torque, but a four-speed manual transmission was not offered. No locally produced four-speed of sufficient capacity was produced to meet the local content policy. The Pacer made due with a three-speed, a situation that would seriously hamper Chrysler Australia's racing efforts for a number of years.
Beyond the hot engine option, the VG Pacer could be ordered with such racing hardware as the J-42 35-gallon fuel tank, complete with a relocated quick-fill fuel cap, or the A-84 Track Pack. The Track Pack featured a revised ratio transmission (three-speed manual), upgraded braking, suspension, and steering systems. Speed-rated tires and a limited-slip differential were among other factory available options. Chrysler Australia was ready to go racing.
Odd as it may seem at first glance, the focus of Chrysler's racing effort in Australia for the '70 season centered on the four-door sedan. With the introduction of the VG-series, the Pacer package was made available on the sportier two-door Valiant hardtop, a model very similar to the '67-'69 American two-door Dart hardtop. despite its sportier appearance, the two-door hardtop pacer carried nearly one hundred pounds of extra weight and measured nearly 7 inches more in length, with three inches more wheelbase. The true racing-orientated packages were not even available for the two-door body. Chrysler did not achieve an overall win at the Bathurst event with the VG Pacer, but did achieve victory in its class, with an E-34 Valiant taking the win in Class D.
In mid-1971, the totally redesigned Valiant range was released, and the previous resemblance to American A-Bodies gave way to a unique Australian design with the VH-series. The new Valiant was longer, with a wheelbase of 111 inches for the four-door sedans. the new models measured a substantial 411/42-inches wider than the previous car. The Pacer model of the four-door sedan carried on as a high-performance model. The top engine option grew to a new larger 265ci displacement, a gain made by increasing the bore size from 3.76 to 3.91 inches. Output for the Pacer's 265ci high-performance engine was 218 hp. Shortly after the new sedan hit the market, Chrysler Australia introduced the Charger two-door coupe in August 1971-a move that would ensure they would forever hold a place in performance-car history. The Australian Charger was based on the VH series design, as with the sedan, still bearing an A-Body related chassis. at 105 inches, the Charger's wheelbase was 6 inches shorter than the sedan's, and had its overall length clipped by over 13 inches. Though the sedan and Charger shared the same sheetmetal up front, from the windshield back, the Charger's unique styling was nothing short of sensational. The Charger looked like an exotic, retained five-passenger seating, and, as a final marketing masterstroke, Chrysler priced the base Charger lower than the Valiant sedan.
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