Ford’s Gran Torino Elite and Mercury’s Cougar XR-7: Ford Undercuts Mercury Again For 1974

Comparison image of green Ford Gran Torino Elite and blue Mercury Cougar XR-7 in profile

It’s little wonder that Mercury was never quite able to catch a break—just when they had a good thing going, the mother brand at the Blue Oval swooped in and undercut them with a similar product. Such was the case with the 1974 Ford Gran Torino Elite, which cost several hundred dollars less than the comparable Cougar XR-7.

Tan 1974 Mercury Montego MX Brougham from passenger front three-quarter view
Photo Credit: That Hartford Guy/Wikimedia Commons

But first, make no mistake about it, the Gran Torino Elite wasn’t really a Torino at all, and perhaps that’s why Ford dropped the “Gran Torino” epithet for 1975 and 1976. In fact, both the Cougar XR-7 (there was no base Cougar in 1974) and the Elite descended from the Montego MX Brougham shown above, a car that sold only 20,511 units in coupe form in 1974, despite being priced over a thousand dollars lower than the Cougar XR-7. Sure, the Montego came standard with a smaller 302 (compared to the Cougar XR-7 and Gran Torino Elite’s standard 351), manual transmission (automatic only in the other two), and manual front disc brakes (the others had standard power discs), but it’s clear that the Cougar and Elite hit the market bullseye more accurately than the comparatively hapless Montego despite the price differences.

Driver's front three-quarter image of 1974 Mercury Cougar XR-7
Photo Credit: Mecum Auctions

Most important was the styling: Ask almost anyone if they’d rather have the Cougar XR-7 or the Montego, and the answer is obvious. The nose, with its upright hood ornament, looked more rich, the bodyside moldings visually lowered the Cougar, and the opera window in the C-pillar was right at the bleeding edge of fashion. With just a few upgrades, the Cougar looked as if it were worth its $4,706 base price (compared to the Montego MX Brougham’s $3,646), and this played out in sales, as 91,670 Cougar XR-7s were built in 1974.

Image of green 1974 Ford Gran Torino Elite from driver-side front three-quarter view
Photo Credit: Mecum Auctions

But then, halfway through the model year, Ford came in and stole Mercury’s thunder, just as they had done with the LTD in 1965, by releasing the Gran Torino Elite, which used the same body as both the Montego and the Cougar XR-7. By swapping a little trim here and there, and giving the Elite a baroque, upright wraparound grille and imposing hood ornament, Ford had a competitor for Chevrolet’s Monte Carlo. Unfortunately for Lincoln-Mercury dealers, the Elite undercut the Cougar XR-7 in price by a fairly significant amount: $4,374 to the aforementioned $4,706. This allowed the Elite to outsell the Cougar with 96,604 units sold, even though the Cougar had a several-month head start (the Elite was introduced in February 1974). Of course, Ford’s more expansive dealer network certainly had something to do with that as well.

Nose of 1975 Mercury Cougar XR-7 in gold
Photo Credit: Hemmings.com

Things got even worse for the Cougar XR-7 in 1975, when the car pictured above was built, as the Elite (now sans the Gran Torino moniker) outsold it 123,372 to 62,987. It didn’t take long for Ford fans to realize that the Elite was the better bargain by far, but with that being said, I can’t help noticing that the Cougar’s nose has aged a little better, as its vertical bar theme is continued across nearly the entire width of the nose.

Nose of 1974 Ford Gran Torino Elite in Copper
Photo Credit: Bring a Trailer

In contrast, the Elite’s imposing upright grille is flanked by single headlights on each side, with parking lights that appear to jut out farther than those on the Cougar XR-7. The Elite’s front bumper seems as if it would add a little length, but it’s an illusion: the Cougar is just a bit longer (214.2″ vs. 213.6″).

74 Monte Carlo 2 BaT
Photo Credit: Bring a Trailer

If aping the Monte Carlo was the goal, however, there’s no denying that the Elite did a better job of it than the Cougar did, as the single headlights (per side), wraparound grille, and standalone parking lights were at least in the style of Chevrolet’s personal-luxury coupe, if not exact copies.

Tail of blue 1974 Mercury Cougar XR-7
Photo Credit: Mecum Auctions

Things were far more homogenous in the rear between the Cougar XR-7 and Gran Torino Elite, as they were almost identical.

Tail of red 1974 Ford Gran Torino Elite
Photo Credit: Bring a Trailer

As you can see, Ford changed the taillight panel and little else. A quick tell for identifying a 1974 Gran Torino Elite: the fuel door cover in the center of the panel says “Torino” in cursive font, while 1975 and 1976 models say “Elite.”

Brown interior of 1975 Mercury Cougar XR-7
Photo Credit: Hemmings.com

Even the interiors were fundamentally the same; they shared the same dashboard, the same gauge cluster, the same basic layout. The 1975 Cougar XR-7 shown above may have had slightly more luxurious upholstery, but not enough to make someone buy an XR-7 over an Elite if they could have saved roughly $400.

Green interior of 1974 Ford Gran Torino Elite
Photo Credit: Mecum Auctions

By contrast, here’s the 1974 Elite, where you’ll find more velour and a little more fake woodgraining, but in essence, if you’ve driven one, you’ll know where the controls are in the other.

Rear three-quarter passenger view of blue 1974 Mercury Cougar XR-7
Photo Credit: Bring a Trailer

I will say that Ford and Lincoln-Mercury stylists were able to make the two cars look surprisingly different simply by changing the C-pillar opera windows and the location of the side trim. The Cougar’s rub strip was mounted down low above the bodyside crease, where it made the car look lower but limited its effectiveness in combating door dings.

Rear three-quarter passenger view of green 1974 Ford Gran Torino Elite
Photo Credit: Mecum Auctions

The Elite’s molding offered more protection that the Cougar’s and somehow added a more luxurious look. (I’d also like to give a shout out to the original owner for ordering this particular example in Pastel Lime; this person was a car buyer after my own heart.)

74 Cougar BaT 1
Photo Credit: Bring a Trailer

And that may be the main difference between the Cougar XR-7 and the Gran Torino Elite: The Cougar emitted just a whiff of sportiness, while the Gran Torino Elite did not. I could get nostalgic and prefer the Elite, as I was brought home from the hospital in a brown 1974 model, but if I had a choice between the two, I’ll take the Cougar XR-7. Especially if it were painted Pastel Lime.

74 Monte Carlo 1 BaT
Photo Credit: Bring a Trailer

Internecine squabbles aside, however, Ford and Mercury both failed to deal effectively with the General Motors squadron of personal luxury cars, with the Chevrolet Monte Carlo’s sales alone (312,217) outstripping the Cougar XR-7 and Gran Torino Elite combined by a wide margin, and those numbers don’t include the popular Grand Prix, Cutlass Supreme, and Regal. It’s no matter, as Ford would make up for lost time in 1977 with its less-expensive Thunderbird. And unfortunately for Lincoln-Mercury dealers, who must have looked at the Gran Torino Elite’s (and the 1977 Thunderbird’s) introduction with a red mist in their eyes, they would have to deal with being upended by the Ford Division…again.

Related Reading

Curbside Classic: 1976 Ford Elite – A Highfalutin’ Hash (by JP Cavanaugh)

Vintage Ad: 1974 Mercury Cougar – Now That’s More Like It (by Paul N)