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Originally Posted by Deltona Couple
Not always true. Torque converters have an internal componenet called a stator that actually is capable of multipling the torqe, bringing it back to the power band you desire. It's not a perfect world, but yes, they do still aloow the HP to get to the wheels.
Of course personally I would MUCH rather have a manual in a V8 Mustang. I like the total control you have over the gear selection, not to mention a good driver can do some SERIOUS burnouts with a stick!
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Speaking practically, the difference between having an automatic transmission and a manual transmission in terms of power is very little. It's true that an automatic transmission can offer you more torque off a dead start, which actually makes it better for towing, since you would end up burning your clutch more from dead starts with a manual having all that weight.
But a manual transmission offers you better fuel economy and more power in the long run because the engine is actually transmitting it's power directly down the drive shaft; you're not pumping oil. Of course, automatics also get better if you have a lockup clutch. I would hope that automatics would be getting the axe soon with the fact that CVT's, planetary gear sets, and dual-clutch transmissions are all so awesome and can apply to lots of different markets. Automatics are the worst for fuel economy and arguably the most complicated to build/least reliable.