1977–1980 Lincoln Versailles: Slow-Selling, Cynical, But Very Profitable

Composite photo showing the front of a 1977 Lincoln Versailles, the right side of a blue 1978, the back of a gray 1979, and the left side of a turquoise 1980

Where the Continental Mark IV and Mark V of the ’70s were among Lincoln’s greatest hits, the Lincoln Versailles, a luxo version of the Ford Granada/Mercury Monarch, is often regarded as one of the brand’s most embarrassing flops. Yet, the Versailles was actually a lot more successful than is commonly assumed.

Lincoln badge on the vinyl-padded sail panel of a Dark Cordovan 1977 Lincoln Versailles
1977 Lincoln Versailles / Orlando Classic Cars

 

For a lot of auto enthusiasts, the only good thing about the 1977–1980 Lincoln Versailles is its rear axle, which for years was a fairly straightforward way to give a Mustang rear disc brakes. There are still a few Lincoln fans who drank the marketing Kool-Aid and insist the Versailles was a fine “little” Lincoln that’s just misunderstood, but that remains a minority opinion.

Tail badge of a Dark Cordovan 1977 Lincoln Versailles
1977 Lincoln Versailles / Orlando Classic Cars

 

There’s a common assumption that the Versailles was hastily contrived for Corporate Average Fuel Economy (CAFE) purposes, a way to help Ford balance the thirstier Continentals and Marks. In fact, the concept had originated in 1973, more than two years before the passage of the Environmental Policy and Conservation Act (EPCA), the federal law that established the CAFE requirements. The smaller Lincoln was a response to the Cadillac project that became the 1976 Seville, which Ford knew about well before it actually launched. By the time the automotive press began discussing the “mini-Lincoln” in mid-1974, months after the OPEC embargo, the project had been under way for at least a year.

High-angle front 3q view of a burgundy 1977 Lincoln Versailles
1977 Lincoln Versailles in Midnight Cordovan Metallic and Midnight Cordovan with orange accent stripes and a Cordovan vinyl top / Orlando Classic Cars

 

No one was very surprised to hear that the junior Lincoln would be based on the Ford Granada/Mercury Monarch — an all-new platform would have been prohibitively expensive for a relatively low-volume model — but before launch, most outside observers expected Ford would make a great effort to distinguish the Lincoln version from its cheaper siblings, as Cadillac had distinguished the Seville from the X-body Nova from which it was derived. “The body is a stretch-out of Granada/Monarch, but with major reworking so the relationship won’t be obvious,” Robert Lund confidently reported in the May 1976 Popular Mechanics.

High-angle front 3q view of a burgundy 1977 Lincoln Versailles
1977 Lincoln Versailles in Midnight Cordovan Metallic and Midnight Cordovan with orange accent stripes and a Cordovan vinyl top / Orlando Classic Cars

 

According to Gale Halderman, who headed the Lincoln-Mercury design studio during the development of the Versailles, the designers did propose such a reworking, but Ford Motor Company management didn’t want to make that big an investment. “Our first proposals had much more appearance change in them, but the company was nervous about the program,” Halderman recalled. “They agreed we should have a model to compete with the Seville, but they didn’t want to spend much time or money.”

Right rear 3q view of a burgundy 1977 Lincoln Versailles
1977 Lincoln Versailles in Midnight Cordovan Metallic and Midnight Cordovan with orange accent stripes and a Cordovan vinyl top / Orlando Classic Cars

 

Ford had backed itself into a corner: Before the Seville actually launched, they insisted on taking a wait-and-see attitude. Even after the OPEC embargo, it wasn’t clear if domestic luxury car buyers would actually accept a “compact” luxury car, and if the Cadillac stumbled out of the gate, Lincoln-Mercury didn’t want to trip over it. However, because Ford waited to see how the Seville performed before committing, there was only so much they could do with the basic package without delaying their launch even further. As it was, the Versailles didn’t debut until spring 1977, two years after the Seville. Chrysler got itself into similar pickles all the time, but it was an embarrassing lapse for Ford, a company that so prided itself on its market research.

Rear view of a burgundy 1977 Lincoln Versailles
1977 Lincoln Versailles in Midnight Cordovan Metallic and Midnight Cordovan with orange accent stripes and a Cordovan vinyl top / Orlando Classic Cars

 

Because of those limitations, Halderman said, “we ended up changing the interior more than the exterior. We put a formal Lincoln grille on it and a spare-tire shape on the back.” This flimsy disguise fooled no one. After the Versailles debuted, Road Test quipped that “if you’re the suspicious type you might be tempted to suspect that the Linc/Merc stylists were instructed to make the thing look just like a Lincoln Continental, but not to spend more than $4.98 to do the job.”

Graph showing the percent of respondents liking each name and the percent saying it seemed suitable, with cartoon images of a frowning dog in the lower left and a smiling dog in the upper right
Results of an October 1966 marketing study on possible names for the car that became the Mark III

 

The Versailles name, incidentally, was one of the names considered back in 1966 for the car that became the Lincoln Continental Mark III. The name had gotten a positive response in a marketing study, and while it wasn’t used for the Mark III, Lincoln decided it was worth revisiting, and it reappeared as the name of a trim package for the 1976 Mark IV.

Right front 3q view of a green 1976 Lincoln Continental Mark IV with a white vinyl top
1976 Lincoln Continental in Dark Jade Metallic with Versailles interior option / Primo Classics International
Front seat of a 1976 Lincoln Continental Mark IV with Jade Versailles velour interior
The 1976 Versailles interior option was available in four colors, including Jade / Primo Classics International

 

Lincoln-Mercury sent out press announcements for the new model in January 1977, although they were embargoed until March 28. The Versailles went on sale on April 15, 1977.

Driver's door trim of a 1977 Lincoln Versailles with a Cordovan interior
1977 Lincoln Continental with Cordovan cloth upholstery / Orlando Classic Cars

 

The one thing Ford seemed to have really taken to heart about the Cadillac Seville was that it was a fully equipped car with an ambitious price tag, so the Versailles arrived in a single trim level with extensive standard equipment, including four-wheel disc brakes, aluminum wheels, automatic climate control, power windows, a four-way power Flight Bench front seat, and an AM/FM/MPX radio.

Dashboard of a 1977 Lincoln Versailles
1977 Lincoln Versailles with Cordovan interior / Orlando Classic Cars

 

With a starting price of $11,500, the Versailles was $1,859 cheaper than a 1977 Cadillac Seville, but $104 more than the new, much bigger Lincoln Continental Mark V.

Illustration showing the mechanical layout of the 1978 Lincoln Versailles in plan view

Contrary to expectations, the Versailles was not meaningfully “stretched out” compared to the Granada and Monarch. At 200.9 inches overall, the Versailles was 3.2 inches longer than a Monarch, and it was a half-inch wider, but it rode the same 109.9-inch wheelbase and had the same 59.0-inch/57.7-inch track width. The Versailles was 378 lb heavier than a similarly powered Monarch. Most of that was due to its additional equipment, but the Versailles also had an extra 100 lb or so of sound deadening material.

Cloth bench seat in a 1977 Lincoln Continental
1977 Lincoln Continental with Flight Bench seat and Cordovan cloth upholstery / Orlando Classic Cars

 

Lincoln made a big deal of Versailles quality control, boasting that “major components are balanced to critical tolerances” and carefully inspected, although a cynic — and it’s very hard not to be cynical when talking about the Versailles — might wonder why Lincoln-Mercury and Ford Motor Company didn’t do that sort of thing as a matter of course. The Versailles did have a higher level of perceived quality than the Monarch, but its repair record was only average.

Back seat of a 1977 Lincoln Continental
1977 Lincoln Continental with Cordovan cloth upholstery / Orlando Classic Cars

 

The most interesting engineering feature of the 1977½ Versailles was that it was the first domestic car with clearcoat paint for a “maximum high gloss finish,” not exactly a high-excitement feature. The 1978 model then became the first Ford product with electronic engine controls, although the initial EEC-I system was only set up to manage ignition timing and exhaust gas recirculation. (Early rumors that the Versailles would have electronic fuel injection like the Seville never panned out.)

Ford 351 engine under the hood of a 1977 Lincoln Versailles
1977 Lincoln Versailles with 351-2V engine / Orlando Classic Cars

 

Although the 1977½ Versailles had come with the two-barrel 351 engine except in California and high-altitude areas, the 302 became the sole engine for 1978 and later models, with nearly the same horsepower (133 hp versus 135 for the 351), but less torque (243 lb-ft versus 275).

Ford 302 engine under the hood of a blue 1978 Lincoln Versailles
302-2V engine became standards on Versailles for 1978, with EEC-I controls / Mecum Auctions

 

Neither the U.S. Granada nor the Monarch was noted for their performance or road manners, and the heavier, soggier Versailles was no better. It was impressively quiet, but Car and Driver noted that on anything but completely smooth freeways, “the Versailles’s wheels dance over the road while the isolated body undulates up and down.”

Left front 3q view of a blue 1978 Lincoln Versailles
1978 Lincoln Versailles in Diamond Blue Metallic / Mecum Auctions

 

Both Consumer Guide and Road Test felt that the excessive suspension compliance was enough to compromise stability — Road Test called the Versailles “a real handful to drive briskly.” Acceleration was okay with the 351, only adequate with the 302, which had an optimistic EPA combined rating of 18 mpg. (Around 16 mpg overall was a more typical real-world figure, although that was better than a Mark V or a Town Car.)

Front seat of a 1978 Lincoln Versailles with blue leather upholstery
1978 Lincoln Versailles with Wedgewood Blue leather and vinyl upholstery / Mecum Auctions
Back seat of a 1978 Lincoln Versailles with blue leather upholstery
The blue leather is the only thing I like about this car aesthetically / Mecum Auctions

 

For 1979, the 302 engine got more elaborate EEC-II controls (now managing air-fuel ratio, secondary air injection, idle speed, and evaporative system purge as well as EGR and spark timing — try to contain your excitement), but no more power. Car and Driver needed 12.7 seconds to reach 60 mph; Consumer Guide quoted more than 15 seconds.

Ford 302 engine under the hood of a 1979 Lincoln Versailles
1979 Lincoln Versailles 302-2V engine now had EEC-II controls / Primo Auction Group

 

The more visible 1979 change was a new roof, accompanied by wider rear doors with larger side windows.

Right side view of a gray 1979 Lincoln Versailles
1979 Lincoln Versailles in Medium Gray Metallic / Primo Auction Group

 

This new roof was a surprisingly crude semi-aftermarket modification. Lincoln-Mercury sent partially completed cars to the American Sunroof Corporation (ASC), which riveted a vinyl-covered fiberglass cap to the steel roof.

Padded vinyl roof on a 1979 Lincoln Versailles
1979 Lincoln Versailles in Medium Gray Metallic with gray vinyl top / Primo Auction Group

 

ASC also added a vinyl covering over the simulated spare tire hump:

Vinyl-covered spare tire hump of a gray 1979 Lincoln Versailles
1979 Lincoln Versailles in Medium Gray Metallic / Primo Auction Group

 

The new roof went a bit further in distinguishing it from the Monarch, and the revised doors made rear-seat entry and exit a bit easier. Lincoln diehards insist that the new roof was a great visual improvement that the Versailles should have had from the outset, but it just looked cobbled-together, and the additional vinyl trim over the fake spare tire hump was a particularly nauseating detail on an already-overdecorated car. Car and Driver editor Don Sherman, looking for the silver lining, suggested that the revised styling had “maybe just the right combination of big bucks and grotesquerie to convince Lincoln buyers that smaller cars are for real.”

Right rear 3q view of a gray 1979 Lincoln Versailles
1979 Lincoln Versailles in Medium Gray Metallic / Primo Auction Group

 

As it turned out, the new roof didn’t move the needle on Versailles sales. Model year production rose from a grim 8,931 for 1978 to 21,007 for 1979, but actual calendar year new car sales stayed pretty flat:

  • 1977: 13,490
  • 1978: 15,747
  • 1979: 13,586
  • 1980: 4,219

(These figures are only for U.S. sales; the Versailles was also exported in limited numbers, principally to Canada. Total Versailles production was 50,156.)

Right front 3q view of a turquoise 1980 Lincoln Versailles
1980 Lincoln Versailles in Medium Turquoise Metallic / Mecum Auctions

 

Lincoln-Mercury had hoped to sell 20,000 cars in the 1977 calendar year and 30,000 in 1978, but the Versailles obviously never came close to that level. Surprisingly, the Versailles didn’t even sell very well in 1979, when a second oil crisis resulted in lines at gas stations and a sharp slump in big-car sales.

Right rear 3q view of a turquoise 1980 Lincoln Versailles
1980 Lincoln Versailles in Medium Turquoise Metallic / Mecum Auctions

 

Gale Halderman said the Lincoln-Mercury studio did prepare a “very nice looking” new Versailles for 1981, but the company wasn’t interested, so the Versailles expired in May 1980, about two months before the demise of the elderly Falcon-based Granada/Monarch platform. However, for 1982, Lincoln-Mercury launched a new Fox-platform Continental to fill basically the same role.

Left front 3q view of a two-tone blue 1982 Lincoln Continental
1982 Lincoln Continental in Dark Blue Metallic over Medium Light Teal Metallic / ClassicCars.com

 

The Fox Continental was actually a half-inch longer than the Versailles, although wheelbase shrank by 1.3 inches. Style-wise, it was another of Detroit’s early ’80s bustleback horrors, but it was marginally more palatable than the appalling contemporary Seville, it didn’t look like a gussied-up Ford Fairmont, and its modern underpinnings were less mushy than the old Versailles. Despite much higher prices, the Continental sold better, though still not spectacularly.

Front view of a turquoise 1980 Lincoln Versailles
1980 Lincoln Versailles in Medium Turquoise Metallic / Mecum Auctions

 

The 1977–1980 Lincoln Versailles was hardly a smash hit, and Lincoln-Mercury’s swift abandonment of the nameplate suggests a certain institutional self-consciousness, probably related to the model’s mostly terrible critical response. American automotive reviewers of the ’70s generally tiptoed around Detroit’s platform-sharing tendencies, but the fact that the Lincoln-Mercury had done SO little to differentiate the Versailles from the much cheaper Granada and Monarch really seemed to arouse editorial contempt.

Rear view of a turquoise 1980 Lincoln Versailles
1980 Lincoln Versailles in Medium Turquoise Metallic / Mecum Auctions

 

On the other hand, because Ford had spent so little money on the Versailles, it ended up being surprisingly successful financially despite its mediocre sales. “Not a great car, but it was a very profitable program,” Halderman said. Since most of the differences between the Versailles and the Monarch or Granada were in interior trim and equipment, per-car margins were very high, and Lincoln-Mercury kept raising prices: to $12,529 for 1978, $12,939 and then $13,446 for 1979, and $14,674 for 1980. “It was a moneymaker while it lasted,” added Halderman.

Right side view of a burgundy 1977 Lincoln Versailles
1977 Lincoln Versailles in Midnight Cordovan Metallic and Midnight Cordovan with a Cordovan vinyl top / Orlando Classic Cars

 

Often, me-too efforts like the Versailles end up being mediocre sellers. (How many domestic “small car” projects have been undermined by their makers’ tendency to treat them as half-hearted placeholders?) Unlike the 1976 Cadillac Seville, Ford hadn’t tried to make the Versailles a styling leader, and it was hardly class-leading in technology, engineering, or performance.

Left side view of a turquoise 1980 Lincoln Versailles
1980 Lincoln Versailles in Medium Turquoise Metallic / Mecum Auctions

 

Instead, Ford gambled that at least some Lincoln-Mercury buyers would pay a hefty premium for a quieter Monarch with a fancier interior and a handful of Lincoln styling cues, and, miraculously, they found just enough takers to put the whole program firmly in the black — one of those rare exceptions that proves the rule.

Related Reading

Curbside Classic: 1977 Lincoln Versailles – Pig In A Poke (by Paul N)

What If: Some Less Granada-esque Versailles Proposals (by Tom Klockau)

Vintage Ad: The 1978 Lincoln Versailles – An Investment In (Badge) Engineering (by Paul N)

Back Row Classic: 1980 Lincoln Versailles – Mixed Messages (by Tom Klockau)