Instigated in 1986 (just before its Sierra predecessor received a major facelift), the design of the car cost Ford US$6 billion.

A large proportion of the high development cost was due to the Mondeo being a completely new design, sharing very little, if anything, with the Ford Sierra.

Over-optimistically, the floor pan was designed to accept virtually any conceivable drivetrain, from a transverse inline-four engine to a longitudinal V-8.

The car was launched in the midst of turbulent times at Ford of Europe, when the division was haemorrhaging hundreds of millions of dollars,[citation needed] and had gained a reputation in the motoring press for selling products which had been designed by accountants rather than engineers.

The fifth-generation Escort and third-generation Orion of 1990 was the zenith of this cost-cutting/high-price philosophy, which was by then beginning to backfire on Ford, with the cars being slated for their substandard ride and handling, though a facelift in 1992 had seen things improve a little.

Previously loyal customers were already turning to rival European and Japanese products, and by the time of the Mondeo's launch, the future of Europe as a Ford manufacturing base was hanging in the balance.

[5] Safety was a high priority in the Mondeo design, with a driver's side airbag (it was the first-ever car sold from the beginning with a driver's airbag in all of its versions, which helped it achieve the European Car of the Year title for 1994), side-impact bars, seat belt pretensioners, and antilock braking systems (higher models) as standard features.

Other features for its year included adaptive damping, self-leveling suspension (top estate models), traction control (V6 and 4WD versions), and heated front windscreen, branded Quickclear.

Higher-specification models had leather seats, trip computers, electric sunroof, CD changer, and alloy wheels.

The mid-cycle facelift, launched in October 1996, addressed three of the original Mondeo's biggest criticisms: its bland styling, the poor headlight performance, the reflectors of which quickly yellowed, and the cramped rear legroom.

The lowering of specification levels around that time, such as air conditioning and alloy wheels, became optional on the UK Ghia models.

Safety specification was improved, with the car gaining a full-sized driver airbag in place of the smaller 'euro-bag' fitted in the Mk I Mondeo.

The Mk II gained a 'flagged' three-star rating in Euro NCAP testing, which was average for rivals of its time (the same as the Vauxhall Vectra, better than the Citroën Xantia and Peugeot 406, and worse than the Nissan Primera).

The cars' structure suffered excessive footwell intrusion in the frontal impact and a disturbing B-pillar displacement in the side test.

Strangely, the diesel-powered vehicles could easily be distinguished by dint of their having a slightly redesigned grille so that more air would flow to the top mounted intercooler.

This engine, first unveiled in the Mondeo's North American cousin, the Ford Contour, is characterized by its smooth operation, chain-driven camshafts, and additional butterflies in the lower inlet to close of the inlet path to one valve, giving better torque at low engine speeds, this was vacuum operated on the Mk1 and electronically controlled on the Mk2.

The power of the engine stayed at 170 PS (130 kW), the same as other 2.5 L-engined models (so was slower than a Mk I 24v), but the ST featured unique cabin trim (half-leather seats), unique 16-inch alloy wheels (that were originally only available on a Ghia X Estate), and a full Rally Sport Appearance Pack body kit as standard.

Rear disc brakes eventually became available in North America on certain Contour and Mystique models, although some customers bemoaned the reduced level of feel over the original sport drums.

The ST200 was released to the public in Imperial Blue (All Countries due to receive the ST200) and additionally in Europe, Stardust Silver, Panther Black and Radiant Red.

[9] While officially classified a mid-size car, the Contour was among the smallest sedans in the segment, with its interior dimensions becoming a point of criticism.

The SVT Contour was produced from 1997 to 2000, with a major running change during 1998 (effectively making a 1998.5 model year for the variant).

Both the Contour and Mystique were praised for their handling and ride quality, and were described as a "fun four-door sedan that offered European moves at American prices" by Edmunds.

The head, neck, and chest were all well protected and the dummy movement was well controlled, but excessive footwell intrusion contributed to high forces on both legs and a "Marginal" structural rating.

In the United States and Canada, the Contour suffered from market incompatibility with the preceding Ford Tempo, which by the end of its production run was an outdated design from the early 1980s which was sold primarily to lower-end customers and fleets on account of its low price.

The similarly priced Chrysler Cirrus, which was launched for the 1995 model year, matched the Contour in design, performance and driving dynamics, but had more features and a larger interior.

It struggled against Japanese midsized models such as the Honda Accord and Subaru Liberty, as well as the Holden Vectra, also imported from Europe, although unlike the Mondeo, briefly assembled locally.

One theory was advanced by some motoring journalists; because the Mondeo was developed in Europe with limited input from Ford's North American and Australian operations, executives at both operations were unenthusiastic about the car and had no qualms about letting it fail in the marketplace to allow for the continued success of their locally developed models.

The redesigned Mondeos, due to their larger size, better prices, increased development input from Australian and American operations, and changing market demographics, proved successful in both continents.

In Australia, the 1995 to 2000 Ford Mondeos were assessed in the Used Car Safety Ratings 2006 as providing "significantly better than average" protection for their occupants in the event of a crash.

Styling was partly addressed by an Aspen model, which featured 15-inch alloy wheels, front fog lamps, and full leather trim.