IMO . . . GM was still selling 3x2 engines in muscle cars during the 1966 model year: GTO and 442. The Camaro was to debut in Sept. 1966. There was no 396 option. Just the new 350 4bbl. A 3x2 option would offer higher horsepower which the Camaro would need to compete with the new restyled 1967 Mustang's 390/320 HP option.
Then the mandate came where only the Corvette would get 3x2 options and all other GM cars would lose their 3x2 engine options for the 1967 model year. And the SB 3x2 option was cancelled.
It had nothing to do with racing and everything to do with the growing muscle car market.
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