The (Lincoln) Continental Mark VII was arguably Ford’s best attempt at building a luxury grand tourer in the German sense, and for two model years (1984 and 1985), Ford brass figured that if you can’t beat ’em, you might as well buy an engine from them. In this case, it was BMW’s fine “M21” turbo diesel six.

When the Mark VII was introduced as a 1984 model, America was just coming down from its fascination with automotive diesels; General Motors still offered a 4.3-liter V6 diesel in some of its sedans, and the 5.7-liter Oldsmobile V8 diesel was still kicking around as well, but the clock was ticking. Ford must have decided that they needed a competitor for the diesel-powered Cadillacs, but rather than spending an enormous amount of money designing and tooling up for their own diesel, they bought BMW’s new 2.4-liter turbocharged inline six. It actually looks right at home under the Mark’s hood.

In 1984 and 1985, the Mark VII’s standard 5.0-liter V8 wasn’t the muscular “High Output” unit used in Mustangs (and later Mark VIIs), but rather the fairly pedestrian 140-horsepower version one would find under the hood of a Town Car or a Grand Marquis. It certainly takes up a little more space than the six, although the engine compartment required some shuffling of components to accommodate the diesel.

The engine itself was designed for a BMW, of course. In this case, it was the 524td, which Paul N. wrote about here. The M21 turbo diesel was an almost square design, with an 80 millimeter bore and an 81 millimeter stroke (3.15 inches x 3.19 inches), and with a 22:1 compression ratio, it produced 115 horsepower and 155 lb.-ft. of torque. Yes, that would make for a slower Mark VII, but it was only 25 horsepower away from the five-liter, and Lincoln compensated for that by specifying a 3.73:1 axle ratio in diesel cars (compared to a 3.08:1 ratio in other Bill Blass Mark VIIs).

The engine itself is based on the M20 gas six, and used a cast-iron block with an aluminum single-overhead-cam cylinder head, which had a swirl-inducing prechamber, which apparently quieted the racket that diesels are known for.

Ford even got its own valve cover so it wasn’t obvious to buyers that this was a BMW engine, not that that would have dissuaded anyone who was willing to pay more than $1200 for the option.

The turbo diesel Lincoln used a ZF four-speed automatic with the following gear ratios: 2.73:1 for first, 1.56:1 for second, 1:1 for third, and 0.73:1 for fourth.

Gas-engined Marks had Ford’s own AOD, which was also a four-speed automatic with the following ratios: 2.40:1 for first, 1.47:1 for second, 1:1 for third, and a taller 0.67:1 for fourth. Therefore, the diesel cars had extra ratio help in first in addition to their deeper rear gears, but it wasn’t enough. Hemmings reports that the diesel accelerated to sixty in around thirteen seconds, while the gas-engined car only took about 11. Neither were speedsters, but paying extra to go slower wasn’t a trade many were willing to make. The diesel’s mileage, however, was outstanding: the EPA rated it at 23 city and 29 highway, while the V8 cars were rated at 17 city and 27 highway. Anecdotal evidence online suggests that a diesel Lincoln can approach 40 miles per gallon on the highway.

One feature that all Mark VIIs had, regardless of engine choice, was “Electronic Air Suspension with automatic level control.” I’m old enough to remember more than a few Mark VIIs riding on the bump stops, an ignominious look for such a regal luxury car. Coil spring conversion kits are still available, but the air systems can also be repaired today if you are willing to put in the diagnostic time.
Diesel cars were introduced late in the model year, in December, according to the sales brochure. The extra money for the diesel paid for extra sound deadening, an oil cooler, fuel and engine block heaters, an “integral fuel filter/water separator,” and an upgraded charging system.

Bill Blass series cars were only available in one color combination in 1984: “Goldenrod Glamour Clearcoat Metallic over Harvest Wheat Clearcoat Metallic” with a “Flaxen Gold interior.” For those who don’t know, Bill Blass was a fashion designer, and Lincoln had a long association with various design houses, which is why you might stumble onto a Cartier Town Car or a Versace Mark VII in addition to a Bill Blass Edition car.

The Mark VII in any case was an extremely luxurious coupe, with leather seating, power everything, and standard electronic instrumentation. The interior didn’t have the same cold quality as a BMW; it was still a Ford all the way, with a traditional Ford-style dashboard and plenty of wood graining, but nobody would complain about the amenities.

Truly, the Mark VII was about as close as America got to a true grand touring coupe in the 1980s, especially as its performance improved over the course of the decade. It’s possible, however, that the short-lived diesel example was more representative of the genre. It’s certainly a footnote in automotive history, and its rarity (no more than 2,500 were built in 1984, and probably fewer than that) does not equate to high prices on the collector market; this one sold for just over $6,000 in 2021, and it had 55,000 miles on it.
It is, however, one of those cars that you vaguely remember, one of those cars that sends you to your childhood brochure collection to check. It was a good idea; it just came at the wrong time. Who knows. If Lincoln would have offered a BMW diesel in 1980 or so, maybe things would have turned out a little differently for the oil burner in America. But probably not.
Related CC Reading
Curbside Classic: 1989 Lincoln Mark VII Bill Blass Edition – Who Are You Wearing? (by Brendan Saur)
Curbside Classic: 1985 BMW 524td – The Ultimate Diesel Driving Machine (by Paul N.)

























Wasn’t this the point where Ford was making its second attempt to position Continental as a separate brand?
That’s a good point, Aaron. In 1984 and 1985, the Mark VII was badged as a Continental Mark VII and not a Lincoln Mark VII. I’ll add Continental to the title.
I would love to have this car.
I remember reading about these when they came along, and recall thinking how un-Lincoln this was. I think you are right that if it had come in 1980-81, Lincoln would have sold a tolerable number of them. But 1984 was past the sell-by date for a large American car with a diesel. And of course, the GM diesel debacle gave diesels in anything American a real black eye.
It is amazing that any survive! I can’t say that I’ve ever heard of a fervent fan base for these among the Lincoln faithful (in the fanatical way of VW diesel people).
Any attempt “at building a luxury grand tourer in the German sense” is immediately undone on this one with the ghastly fake wire wheel hubcaps and cheesy little mud flaps, I can’t tell if those are original Ford Motor Company accessories or just from Autozone. They also turn off other buyers perhaps considering the model alongside something a 6-series coupe or whatever that’s actually a European grand tourer just like a dealer installed vinyl top on something like a 1992-2004 Cadillac Seville STS turns off many “conquest” shoppers. Thankfully the hubcaps and mud flaps are the two things most easily undone.
What I find most interesting is that no German (or European?) grand tourer coupe actually offered a diesel engine in Europe that I am aware of. I don’t believe the W123 Coupe was available with a diesel in Europe although it was over here (I could be wrong on that in regard to Europe) and neither BMW nor Jaguar offered a diesel in their 6 or XJ coupes. Diesels (even TurboDiesels) weren’t really considered any kind of “performance” engine and people buying grand touring coupes were generally looking for power and smoothness as opposed to saving money on fuel.
An interesting experiment, it just didn’t seem from what I recall that there would really have been much of a market for this. There are a number of Ford models at the time that might have made more sense to put a diesel into, starting with the Crown Vic.
I think those wires are actual wire wheels that were originally offered, unlike the awful wire wheel covers that were seen on Town Cars of that vintage. A quick check of the brochure shows that there were 4 wheel options for the Mark VII in 1984, and none of them involved a wheel cover on a steel wheel. I cannot say whether the mud flaps were factory or aftermarket.
I will agree with you that the wire look was not very much in keeping with the “Euro grand tourer” vibe (not to mention the mud flaps).
You may be correct now that I spy the large Lincoln logo on the center of them, and if so then Ford has a talent for making real wire wheels that look like $10.99 covers from Autozone. 🙂 Thankfully the faux spare tire hump (another non-Euro-like affectation) precluded the mounting of a chromed luggage rack on the trunk.
It does make more sense to put a diesel in a Ford sedan, but the $1200 additional cost would have been a steep hurdle.
The Mark VII sold well even with its very American touches, and diesels had been very popular in GM cars just a few years before, so I don’t think putting it in this coupe was an issue as such, but the problem was that it was about 3-5 years too late. The timing was totally off.
I suspect Ford’s heart really wasn’t in this; they signed the contract when diesels were still hot here but by the time it arrived it was DOA.
An anecdote online that may or may not be true is that Ford had a ton of these engines left over that they were stuck with after they canceled it in ’85, and they finally scrapped them around the turn of the millennium.
Almost certainly it would have been cheaper to do that with all of them. 🙂
Can you imagine the loss they took? It probably was nothing in terms of a big corporation, but still…
To this day, I still love diesel cars. I’ve owned several GM 5.7L diesels and love them. Purchased every one with high miles and never had a lick of trouble. I also had a Buick Century with the 4.3L diesel. Again, great car. And I’ve owned one MB 300D (non turbo) and although the transmission gave me issues, the engine did not. Over the years, I’ve searched for a Lincoln diesel and the few times I’ve found them, I was always warned to run from it. Having been in the car business for over 30 years now, I’ve also had rare occasions where I encountered one Lincoln diesel and several BMW’s with it.
The reputation of this engine is not good. So when the author started the article with “In this case, it was BMW’s fine “M21” turbo diesel six”, I ask where the “fine” part comes in? I know car guys who love diesel engines that will tell you to run from this one.
I’ve never worked on one of these or known anyone who has, so I tried to visit as many BMW marque-specific forums about this engine as I could. The problems people mentioned were timing belts (a maintenance item), head gaskets (possibly the same if the cooling system isn’t maintained), and injector pumps, but the general consensus seems to be that the engine is good if it’s maintained properly. I’m not discounting what you’re saying, but I didn’t see anything that told prospective buyers to run; however, marque forums are obviously frequented by people who like their cars and are willing to work on them.
That is very interesting that you are a fan of GM Diesels, not a group of folks one encounters often. Do you also like the early 78-79 models that one hears about being the most troublesome? Are the problems with those ones something that can be overcome by a knowledgeable and proactive owner?
There’s others. And yes, they can be fairly reliable. Here’s a detailed look at that:
https://www.curbsideclassic.com/curbside-classics-american/curbside-classic-1978-oldsmobile-delta-88-diesel-in-defense-of-the-olds-350-diesel-v8/
Jon: The 79-80 early GM 5.7L diesel did have way more issues. In 1981 model year, the engine was worked over and made much better. Yet they still could have issues. I grew up on a farm in the mid-west and understood diesel engines. From that perspective, what I can say is too many city folks who probably had no business buying a diesel. These same people didn’t understand them as well and many would start them and drive 5 minutes to the grocery and turn them off. Then start them and drive to the (whatever) and shut them off. They didn’t understand the unique maintenance they can require or changing over to winter blend fuel (or adding the bottle of stuff to help keep the fuel from gelling). I could go on, but it’s been talked about many times before.
The GM diesels I’ve had all gave me great service. I knew others who drove their car well over 200K on original engine and trans. I even knew one guy with a Riviera diesel who had over 400K and was still driving his. It was a 1982 if memory serves me well. For the pre 1981 engines, it really took more care and even then you were assured a head gasket fix at some point. As for the 4.3L V6? That was a very good engine. The one I picked up with over 100k (Buick Century) ran fantastic and it ended up going to my nephew who really needed a cheap car at that time. He drove the wheels off it with well over 200K by the time the tin worms got the best of it.
Lastly about this Lincoln/BMW diesel. What I had been told over the years was about what Aaron65 said above. But more than that, was the overall costs to work on them was so much higher than the GM cars. But that’s par for that brand. Anyhow, I sure do miss my diesel engines clacking under the hood of my big road warriers.
A neighbor had one in the same combo as the photo. A horrible sounding machine that sounded like a diesel locomotive at idle and very much like a tugboat entering Lower New York bay though the Narrows. He unloaded it after a year for a non diesel version that he was totally satisfied with, but in 1988 he bought a Merkur Skorpio. That like they say is another story.
I agree that the bed had already been pooped with regard to American diesels by then; but I can’t help wondering if this had been a ploy to cater to the import-intender Ford seemed to be aiming at by moving away from prior-Marks broughamtacular styling? Someone cross-shopping a Merc diesel would’ve not given a second thought had that been a Ford engine under the hood. Fellow Germans? Now they know diesel so let’s not be so hasty…
I’m sure that was part of the original intention; it just didn’t work out…at all.
Not sure about the M21 turbo engine being fine, a friend had one and the head cracked at 2 yr old, so he promptly dumped it. Over time this weakness became evident, the turbo’s heads had a common tendency to heat soak and crack, while the na versions did not. Quite a flaw in that version of this engine, a poor design that BMW’s earlier gas M30 also exhibited. My ’71’s M30 head cracked twice, and it turned out they would if the head was not re-torqued every 5k, the kind of frequent maintenance that the typical US driver would never suspect would be required. Took them a long time to correct that design flaw, and put me off BMWs forever. Later 6s were better it seems but I didn’t stick around to find out.
“It is, however, one of those cars that you vaguely remember, one of those cars that sends you to your childhood brochure collection to check. ”
This is so true! 1984 was the year I started collecting brochures as a kid, and I definitely have 84 and 85 Lincoln brochures. I do in fact vaguely remember from the brochures that they had an odd Diesel option that I never noticed any examples of in the real world.
Diesel was a poisoned concept in the U.S., as you mentioned, which is probably more the reason it failed to catch on than that a modern FI straight six was a foreign format to most Lincoln customers (and the price, of course). It is interesting to think about if Lincoln had offered a gasoline BMW 6 with similar or better power output to the V8, would it have been any more successful?
IMO, the H.O. V8 should have been offered from the get-go. It was the most natural engine for this car.
Obviously, the later 225-horsepower LSCs were the ones to have. I remember sitting in the back seat of one that my dad test drove for some reason. It didn’t feel all that fast, about as fast as his ’87 302 Thunderbird or a little faster, but the Mark VII would have been several hundred pounds heavier. I can imagine that a diesel or 140-horsepower 302 Mark VII would have been pretty underwhelming, but maybe not in comparison with anything else available at the time.
It is interesting to think about if Lincoln had offered a gasoline BMW 6 with similar or better power output to the V8, would it have been any more successful?
The V8 was a major positive selling point in the MkVII. It was a car specifically oriented to those that appreciated the key aspects of American cars (fairly big V8, reasonable cost, American styling, reliability) in contrast to expensive and very often not-so-reliable European coupes with their high-strung sixes or such. Putting in a more expensive but lower-torque gas BMW six would have been a big mistake.
The MkVII very much had the same appeal on the market as did its smaller brother, the Fox Mustang 5.0. It too was a sharp counterpoint to import coupes with their little four cylinder engines.
Apparently, this color probably didn’t give Bill Blass an autoimmune reaction to gluten. There’s only one thing missing from this Lincoln: that it runs on wheat germ oil.
Too bad biodiesel wasn’t really popular back in ’84. 🙂
The wheels featured on this car are some of my favorites. They are an alloy wheel with laced spokes built into the front face. The look of real spokes, but with the rigidity of an alloy wheel. Besides the association with Classics from the 1930’s, wire spoke wheels were also a nod to the Post War sports car craze. Most European sports cars of this era sported wire spoke wheels, either as standard equipment or as an option. Yeah, Pep Boys and other outlets sold some pretty cheesy, cheap looking “spaghetti strainer” style wire caps, but OEM wheel covers were of much better quality. When my ’77 Cad had it’s wheel covers stolen, the insurance company laid out 500 bucks for replacements, I know that they are not to everyone’s tastes, but most OEM caps looked pretty good, at least to me.
I think that the Mark VII was a very good looking car, better than the following model.
You can definitely tell the difference between OEM wire wheelcovers and aftermarkets! At least car guys can, regular people who replace their cars’ wheelcovers with Pep Boys specials probably think people won’t notice and they are probably right for the most part.
I should have, but didn’t, know that these Lincolns were actual wheels and not hubcaps. Guess I should just put Pep Boys on my car and go home…
I have only encountered this engine in the bustleback Continental, it’s not for me but it’s interesting, definitely a more pragmatic approach to diesel than GM’s folly
Fun fact these used a very thick radiator core for improved cooling(as you’d imagine). Later on when SVT would produce their limited production track oriented Cobra Rs in 93, 95, and 2000 they recycled this radiator core for them.
I find that curious, about the radiator, as diesel engines are inherently more efficient which means less heat to throw off.
My diesel Oldsmobile’s all had thicker radiators than their gas counterparts. The oil is cooled through the radiator and gets quite hot even under lighter loads, so maybe that is why. I would suspect that the extra heat rejection from a turbo diesel when working hard might contribute as well.
In my case, the only Olds diesel that didn’t have the oil cooler was a ’79 Cutlass with the 260 V8 diesel.
Looking into it a bit suggests that even though diesels are of course more efficient and convert more of the fuel energy to output and less to heat, diesels reject more of the heat through their cylinder heads than gas engines, and gas engines convert a higher percentage of their heat though their exhaust. That makes sense, as diesel exhaust is significantly cooler than gas engine exhaust.
So I can see why some diesels have larger radiators. Although I have also read that in Europe, small diesel cars were known to be slow to provide adequate heating in the passenger compartment. That may also reflect the fact that diesels are particularly efficient in city driving and therefore generate less heat inn that environment.
I worked at a old school type of Lincoln/Mercury/Jeep dealer in the mid-eighties, and they hated these cars. As far as I know they never ordered one, and when one came through the service department with any kind of engine problem it got sent to the local foreign car specialist. A common rumor was you had to pull the engine to change the starter,