In order for this car to shift out of Park, the ignition switch needs to be turned to the On position and the button on the shifter handle (under the thumb) needs to be pressed. If the car is on and the button is pressed, remote the shifter handle first (pulling the u-clip out of the shifter handle in the notch facing the dashboard) and check for mechanical problems.
If the rod in the center of the shifter is functioning properly, you will need to check the connection within the ignition switch and then move on to transmission issues.
For Cougars produced between 1999 and 2002, you can easily unlock the shifter by using a screw driver to depress a tab on the passenger side of the console. Your owners manual details this process.
Check to see if linkage is broken or disconnected
Check to make sure that stop lights are working. Same fuse controls stop light and transmission interlock
Make sure the shifter is all the way in park, if it is not in park, the key will not come out. You might want to wiggle the shifter to make sure it is all the way in park.
Do you mean that the shifter is able to move from park to drive and back, but the transmission is still in park? Is it possible that the shifter cable is broken, or has come off at the transmission. You will have to jack up the car, on safety jacks, have someone move the shifter, while you look at the linkage right at the transmission. Should give you the answer. The shifter itself could also be broke. Good luck.
If the shifter will not come out of park, check the brake light fuse. The shifter release solenoid uses the brake light switch to unlock the shifter.
Key is designed to not come out unless the transmission is in the park position. If the shifter is in park but the transmission is not, then the linkage (which hooks the shifter to the transmission) has somehow come out of adjusment. It will need to be adjusted - I would suggest having this done by a professional.
The ignition switch on a 1996 Mercury Tracer might lock up and release only when the shifter is removed from park and then put in the park position again because the sensor is getting worn. This sensor lets the ignition know that the car is in park and it is safe to remove the key. Check the shift position sensor.
This is commonly cause when the transmission is replaced and the shift linkage is not hooked up properly. Find the shift cable on your transmission and disconnect it, then put your shifter into park. The transmission linkage needs to be put in park as well. Now that both the transmission and your shifter are in park, you can adjust the cable accordingly and reconnect it. This should solve your problem.
Turn the ign. key to the first position, the position before the ign. lites come on. Move the shifter into neutral and then you will be able to start the car and drive it to your local garage to have it fixed.
shifter control cable is probably come off @ linkage
possably the switch at the brake? do your brake lights work??