I agree with gtsr515 that the suspension is key here. My twin's '85 GT goes 12.50's @ 109MPH consistently with a 306, on drag radials. His setup is a little different though as he's running dual edelbrock 500 cfm carbs instead of fuel injection and '69 351 heads that he ported and polished instead of the expensive aluminum aftermarket pieces. Dynoed HP to the rear wheels was 290. A centerforce dual friction clutch, T-5, aluminum driveshaft, 8.8 with 4.30 gears, southside machine lift bars, rear air bags, and drag struts and shocks round out his combination. Just remember, Horsepower isn't everything! I've seen plenty of cars that have more HP than his and he still spanks them! Good luck!
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