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Inside the rear of the alternator

Generally speaking, this is true. However, I believe that your 89 Mercury, like mine, will have an external voltage regulator located on the driver's side wheel well in the engine bay. It will be a square silver box about the size of a coaster. It may say motorcraft on it if it is OEM. By the way, if it is not connected, your alternator will not charge the battery :(.

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Q: Where is the voltage regulator located in a 1989 Grand marquis?
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