We have one in the family, I converted my sister's 87' ranger to diesel a couple years ago. I'll give you as much info as I can remember.
86Hp
134 ft/lbs of torque
Name: 4D55-T
Optional 1985-1987
This is a mitsubishi engine (look closely on the glow plugs and you will see the 3 diamond logo where they are painted green), and is not related to any ford engine.
Don't know the bore to stroke, but I think its slightly under square. Compression ratio is comparable to a 7.3 IDI and this is also an indirect injected engine. Stock power is 86 Hp, and torque is about 130 ft/lbs I think, but they can be built up.
It uses a single overhead cam (not cross flow head), with adjastable tappets and everything is timing belt driven. No chains or gears. The engine is also an interference design so a failed belt usually results in blown out cam bearings and broken rockers. Good news is because the valves are strait down against the pistons, the damage is usually limited to the upper valve train and can be repaired quickly.
Block is iron with press in sleeves that are replaceble with the correct rebuilt kit. I think they can also be bored out once before reaching the service limit. 2 bolt main bearing caps, but the bottom end seems to be good enough for an inline engine.
Mitsubishi designed this to be used in passenger cars, so it has silend shafts that are intended to smooth everything out. Silent shafts have their own timing belt. Some of you might remember higher end chrysler cars of the 1980s had the option of a mitsubishi engine. Well, that engine is a cousin to this diesel. Its the mitsubishi Astron series of engine.
Head is aluminum instead of cast iron. Replacement heads are no longer in production, but updated versions are available that use a better casting. The original head uses slider rocker arms, while the later ones are rollerized. We have the newer head on ours. Heads use bolts that are actually stronger than what the 6.9 uses so blown head gaskets are NOT the result of stretching head bolts. Usually its an EGT problem or overheating event.
Glow plugs system is light years ahead of what we are used to. Its PCM controlled with ceramic glow plugs that get hotter faster than anything we have access to. This is the only part of the engine that the PCM controls, so its still very much a "mechanical" diesel. I couldn't find the original GPs so I swapped to a kubota dual coil glow plug (REAL DC PLUGS!!!) and they work well enough. If at all possible, the original glow plug system should be preserved because the afterglow function makes a big difference in cold weather warm up performance.
The mitsubishi turbocharger is smaller than a garrett T3, but it spools like an SOB right off the line. Sounds cool too. I once disconnected the wastegate on this thing and holy crap it would haul but the engine has a blow off valve from factory that limits boost to about 14 PSI I think. Rebuild kits for this turbo can be found.
The injection system uses a bosch VE rotatry injector pump with a fuel aneriod. When it works, its Ef-ing genius! it never smokes and always has best possible combo of power, torque and economy. This means the lugging it with smoke rolling out the tailpipe is almost impossible because the engine only gets the fuel it can burn. A vacuum leak at the fuel aneroid will kill the power though, and rotted lines make this likely for that age of truck (its a really easy fix though). The fuel aneroid is also adjustable, but a pyro is mandatory if you want to increase fuel response. Rebuilding the pump is not hard, but finding injectors can be (I ordered nozzles from australia and paid way too much in the process).
The fuel screw on the IP is also exposed just like on a cummins 12 valve engine so if you want to turn it up, you can do so very easily. I can't stress enough that you must have an EGT gauge for anything other than bone stock settings. This is a small displacement engine that runs much closer to the material limits of the parts use in it compared to our heavy iron engines.
The low pressure fuel system uses a model 80 stanadyne filter (same as the chevy 6.2s) so filter elememts are not a problem to find. I had no problem buying oil and air filters, but be careful with stant thermostats. The ones I got tended to fail in the closed position after about a month. Fuel pump is electric, mounted on the frame rail, so self priming can be done with the ignition on. There is no mechanical lift pump.
It is factory equipped with an external oil cooler that has a cold weather bypass. These lines tend to leak after a couple decades.
The engine has lots of external oil and coolant plumbing that makes it complicated compared to a 6.9. Remember this was a flagship engine in its day so being hard to maintain was not a concern (similar to a GM 6.5 turbo). Lots of potential for leaks if you don't follow assembly instructions properly. Bolts are small, and easy to break. Lots of cadmium coated parts and brackets makes it vulnerable to rust so patience is needed to work on an old one. Having small hands can help to some degree
The later 4D56 engine is to the 4D55 what the 7.3 is to the 6.9. The "T" designation for either engine relates to having the optional turbocharger. Externally the 56 almost identical with many improvements. This is where the newer head comes from. The later engine is also available with a water cooled turbo and intercooler. The 4D55 can accept the later upgrades for a significant improvement in power. For that matter any intercooler would help.
Driving impressions:
Ok, the 87 originally had a peppy non EGR 2.9L EFI (I would say, the best gasser the rangers had back then) and we had a hard time noticing a drop in power even though the 2.9 has much more power on paper. The diesel has a nice wide, flat torque range anywhere above 1500 RPM I would guess. Warmup time is also very short thanks to the aluminum head. Where you notice the drop in power is at 70 MPH and up, this is where the wastegate likely runs open almost all the time. So far I think it has done 80-85 MPH on flat ground.
This ranger is also geared rather tall and has 235 tires, so steep driveways can be a problem if you can't get the turbo to spool for you before getting on the incline. Before reaching operating temp, the engine will have a harder time spooling that turbo. Once the turbo spools, it will haul fine.
Fuel economy can easily reach 30 MPG on our slightly taller, 4wd ex cab ranger. BUT! for short trips of 5 miles or less, MPGs are much closer to that of a gasser (low 20s). I would say that a lower, 2wd, single cab ranger that is empty could probably reach 40 MPG with some cautious driving style.
One last thing to warn you about, is this isn't a cheap engine. It was high end in its day and can be pricy to find parts now. Don't start messing around with the fuel and turbo boost unless you expect to spend some money on repairs. Used engines like this often cost more than a running 6.9 in markets where they are popular.
Oh, and it seems to really like eating fresh snow. Not sure if that matters.