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Swapping to a T56 Magnum XL requires Magneride delete?

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So I don't have a GT350 yet but I'm trying to get a PPI on one right now. Long term I'd like to swap the 3160 for a T56 but I started doing some research on it and apparently the 3160 as some sort of extra wiring in it that tells the ECU what gear the trans is in? I'm wondering if anyone knows more details on that. Is it a simple circuit that needs to be completed per gear or a variable resistance sent back to the ECU depending on the gear you are in? This seems super dumb to me but I don't know enough about Magneride to know if this really makes any sense at all. Is this something that can be circumvented by installing an aftermarket programmable Magneride controller? From what I was able to gather this is something inside the ECU itself and has something to do with 4th gear? I've been googling around but I haven't been able to find much info. I figured if it is just a simple 12v signal, maybe I could work with MGW to get a shifter setup that can have switches for the gears where needed and then feed the car the signals it needs in each gear to keep the ECU happy.

From what I read, if you don't have the trans connected to the system with that plug the car goes into a limp mode and limits speed to 80mph. Is this really something to worry about or could I just disable this PID in the tune and not worry about feeding the system the signal from the trans to keep everything working properly.

In case you are wondering, why I want to swap to a T56 over the 3160, long term it wouldn't be until the car saw serious track time, but the reason is because 1:1 in the 3160 is 5th gear and in the T56 it is 4th gear. That means down shifts don't cross gates in the T56. Less chance for a major oopsie at high speed/revs and quicker back and forth shifts from 3 <--> 4 vs 4 <--> 5. Then again I've never driven a 3160 so maybe the shift gates are setup so you don't have to cross? The other reason is the T56 is a direct mount shifter instead of a remote mount shifter which I much prefer. Maybe I'm just being too old school on that one and there isn't much of a difference. I can say the feel of the factory shifter on my MT82 is terrible. I haven't put my MGW in the car yet though. Maybe that will remove the super vague feeling the MT82 remote mount shifter has.
 
I own a GT350 and a Mustang Race car with a Magnum XL, I've also owned 2 mustangs that had MT82s.

The MT82 is an awful, dreadful transmission out of the box, sloppy shifting, lockout pains - I can't find a single positive thing to say about it stock other than it offered 6 forward gears.

The 3160 and MagnumXL/TR6060 (and T56 before it) are very different animals from each other, until you drive them. The Magnum XL is a very beefy transmission - the direct shift is like a rifle bolt especially with some brass upgrades in the box and a decent shifter (the one they supply should go in the parts bin and a MGW in its place). That said, the ratios aren't necessarily ideal (I have a 2.66 box with a swapped .80/.63 5th/6th - which is now I believe how they offer all of them). Its quite robust for road racing, but I'm not sure it would be my choice for daily driving. All that beef comes with a price, weight - especially with a steel SFI bellhousing and steel tail mount.

The 3160 is much more similar to the TR6060 but I'd argue it handles high RPM shifts better out of the box (again stock for stock). Its light years ahead of the chinese-finger-trap MT82 in terms of shift quality and speed. I have had two GT350s, one with a MGW shifter, and the current 2019 I have has the stock shifter. My only complaint is the stock shifter can buzz between 1st and 2nd due to the spring-driven reverse lockout design of the shift knob. That said, I will get a MGW for it, but its not a priority because the stock shifting assembly is that good. The remote mount shifter is more mounted to the transmission than the rearward mount, unlike in MT82 where the mount provided most of the support for leverage. The 3160 at least on all 2017+ GT350 and track pack (late 2015.5/2016) cars also had an integrated cooler which is very effective. I had to add one to my 2016 tech pack car, and it was quite the hassle to plumb.

If I were you, I wouldn't bother with all the expenditure that likely wouldn't result in faster or more consistent laps. While I think my magXL is the nicest trans I have here, I've spent significant money on it (REM polishing, brass bushings throughout, a replaced/modified 3rd gear and 3-4 synchronizer assembly, modified 5th/6th gears, fork pads, carbon blocker rings where possible) to make it shift basically as reliably as my 3160's have. You also don't have to worry about the complexity of tach signals and taking advantage of something that was enginereered to work together by people who were passionate about what they built. For whatever reason, Ford Performance was at the top of their game building the S550 platform cars - I'll die on the hill that the GT350 was the most polished mustang built to date. Spend the money on a MGW shifter and you'll have 99.95% of what you'd get with the MagXL, and I'd argue you'd like the gearing better. I never use the 5th and 6th gears on my MagXL, and my racecar could rev above 8,000 rpm if asked, using the same 3.73 final drive - only at COTA briefly, or at roval tracks like daytona or charlotte would it come into play.
 
I've had an S197 for a long time and recently picked up a GT350. MGW shifter is mandatory IMO to help improve the absolutely terrible feeling of the MT82. Naturally, I planned on getting one for my GT350 but the 3160 shifter is actually pretty good...months later and I still haven't changed it. MGW is still the best for that bolt-action feel, so I guess more of a luxury on GT350s instead of a requirement.
 
I have a T56 Magnum in my 03 Mach 1. I'm not sure how different the regular is from the XL internally but I know the shifter mechanism is very different. I've spoken to MGW many times about it and their official answer is now they will NOT make a shifter for the T56 Magnum. That said, I LOVE the way my T56 Magnum shifts (with the aftermarket shifter I've got, had to go through 2 to find a good one) and I am hoping to get a similar experience in the GT350 if I end up getting it.

Now for informational purposes only, does anyone have any details on the Magneride/transmission interoperation. I may never try to swap the trans if I like the 3160, but now I'm very interested in how it works from an engineering standpoint.
 
Briefly Capn Distraction has explained it all and having had two T3160 Tremecs ( GT 350 and Mach 1 ) I wouldn't bother changing them, they stand up to track use very well and it is a nice tight pattern -- damn near perfect after you order an MGW shift kit!!
 
The rev range of the 350 stretches the gears very nicely. 2nd goes to 77, 3rd goes to 103, and 4th will redline (8300) around 135-137 depending on tire diameter . That's about all the car can pull hp wise at many tracks. 90% of the time you will be cruising 3-4, with the occasional dip to 2nd. It shifts very well above 8000, but I did have to change the clutch assist spring for a steeda(less assist) one to solve a clutch sticking issue when shifting fast.

Enjoy the car as is first, its super capable and fun. Mine from NCM a few years ago.
 

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