The connecting rod is one of the most important parts in automotive engines, transforming the reciprocal motion of a piston generated by internal combustion into the rotational motion of a crankshaft. Recent advances in high performance automobile engines demand corresponding technological breakthroughs in the materials for engine parts. In the present research, the powder metallurgy (P/M) process was used to replace conventional quenching and/or tempering processes for mass production and ultimately for more cost-efficient manufacturing of high strength connecting rods. The development of P/M alloy powder was undertaken not only to achieve the improvement in mechanical properties, but also to enhance the machinability of the P/M processed connecting rods. Specifically $MoS_2$ powders were added as lubricants to non-normalizing Fe-Cr-Mn-V-C alloy powder to improve the post-sintering machinability. The effects of $MoS_2$ addition on the microstructure, mechanical properties, and machining characteristics were investigated.