I have a 1989 Dakota Convertible 4x4 with auto trans in excellent condition. I recently acquired a 1990 Dakota with 5speed. I also located a 1989 Shelby Dakota with a V8 and auto trans. Im considering swapping the V8 block and the 5 speed into the 1989 Dakota Convertible. I found this on Google... "There are no factory 5 speed Shelby Dakota’s. The engine was not installed at the factory. It was swapped out at the Shelby facility in Whittier California. To put a 5-speed in with what was available in 1989 would require extensive modification of the transmission tunnel. When the front end was redesigned in 1991, it was to accommodate a V-8. At that time the transmission tunnel was also redesigned to accommodate a further set back and the 5-speed mounted to a V-8." So it looks like the Shelby V8 with the 5 speed would be too difficult.

Can the Shelby Dakota engine be swapped into the 1989 Dakota Convertible with a 5speed seamlessly? Has anyone done it?

 

The engine should fit just fine. The Shelby automatic may go in okay. The 5 speed will be the part that complicates things. I don't know if the Shelby crank will accept a pilot shaft for the manual transmission. Back in the 60's, all engines were machined for a pilot shaft. With the advent of almost ALL automatics, the extra machining isn't always done to reduce costs. You would have to cut the floor tunnel, if for no other reason than to fit the shifter. If you're lucky, most larger trucks have a panel bolted to the tunnel under the carpet. If the Dakota has the same set up, the one out of the 5 speed should work. I think the worst part is getting a transmission to accept the transfer case if you want to stay 4X4. I almost bought a soft top Dakota, but I needed a hard roof, otherwise I thought they were a neat solution to wanting the wind in my hair (that I had at the time).

These are all YOUR trucks so you do what you want. Personally, I'd keep the Shelby and the soft top intact as they will both be collectors vehicles down the road more so than now. Plus, the fabrication that will be required might get you in over your head fast.

 

Lots of bad info out there......
In short, the NV2500 transmission is not designed for a V8. Its a wide ratio transmission and would give up performace compared to the automatic with the higher stall converter that Shelby used.
In reality, there is not a lot special about the performance of the shelby. It used a 3.91 gear, higher stall converter, but a bone stock 318, (same as full sized truck) with the sole exception of taking the mechanical fan off and replacing it with dual electric fans in front of the radiator. Went from 170hp to 175hp.
The cross member was modified to move the engine back, but that was so they could squeeze the V-belt accessory system in the engine bay.

IMO, today, the best and easiest way to fit a 318-360 (5.2-5.9) in a 87-90 truck is to use a serpentine belt system. It will allow the engine to bolt up to the stock V6 mounts, and will clear the radiator. Of course you still have to use the electric fans in front of the radiator.

If you really want a 5 speed (I know I do!!) look at the NV3500.
Im in the middle of a similar swap, 5.9 magnum, carbed, nv3500 transmission. etc.

One last thought. Do a search for member Ragged89. He converted his 89 vert to a 5.2 5speed. Very detailed write up.
Also look up RobertMC converted his vert to a carbed 5.9 magnum with a automatic.

Good luck, and let us know how it goes!!