P0732 on Mercury: How to Diagnose & Fix
Gear 2 Incorrect Ratio
1 Mercury model · 1 documented issue · 1 critical
P0732 on Mercury by model: symptoms, diagnosis and fix
Manufacturer bulletins on file with NHTSA describe several different CD4E transmission faults on 1999-2002 Cougars: no forward engagement (NHTSA items 605229 and 6091763), the ring gear side-loading the forward-clutch snap-ring retainer on 1999 models (item 607645), intermittent loss of first and second gears with code P0758 or P0740 (item 619324), and harsh or delayed shifts after speed-sensor service (item 630631). These faults share the CD4E transmission but do not point to one single valve-body or drum cause.
Common Symptoms
- No forward engagement in Drive (reverse may still work)
How to Fix
Preserve all transmission codes and freeze-frame data, identify which gears are lost, test line pressure and solenoid circuits, verify fluid level and condition, and inspect the transmission tag and prior repairs. Follow the symptom- and build-specific Ford procedure before choosing a sensor, solenoid, valve-body repair, hard parts or a remanufactured unit. Do not buy a transmission or rebuild kit until the failed part has been identified.
Sources for this issue (2)
P0732 code reference
General diagnostic-code context. The code alone does not confirm a cause for your vehicle; use the applicable issue card and its sources.
Frequently asked questions
What does P0732 mean on a Mercury?
P0732 stands for "Gear 2 Incorrect Ratio." This code means the transmission control module detected that the gear ratio in 2nd gear does not match what it expects when the transmission is commanded into that gear. The computer compares input (turbine) speed to output shaft speed; if the math for 2nd gear is wrong, it sets this code. It usually points to internal slipping or a hydraulic/electronic control fault rather than a sensor reading error. On Mercury it is documented across 1 model: Cougar.
What are the most common causes of P0732?
The most common causes of P0732 are: Low or dirty/degraded transmission fluid, Worn or slipping friction element (clutch or band) that holds 2nd gear, Faulty shift solenoid, Valve body or pressure control problems, Internal mechanical wear or damage in the transmission, Clogged transmission filter restricting flow, Faulty input/output speed sensor giving skewed data. The specific cause varies by vehicle.
How much does it cost to fix P0732 on a Mercury?
Repair costs vary widely with the root cause and Mercury model; each issue on this page carries its own estimate where one is published.
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Content compiled with AI assistance using NHTSA complaints, TSBs, and owner reports. May contain errors. Always verify with your vehicle's service manual.