Deriving its nameplate from the French palace outside Paris, the Lincoln Versailles was offered solely as a four-door sedan; it is the final vehicle developed from the chassis architecture of the American Ford Falcon.

In 1966, during the development of what would become the Continental Mark III, Ford researched the suitability of multiple nameplates for the model line with potential consumers.

While competing with Cadillac, Imperial, and Lincoln in terms of price, the West German BMW 3.0Si and Mercedes-Benz 350SE/450SE and the British Jaguar XJ offered American luxury car customers a far different vehicle than produced by Ford, GM, or Chrysler.

Developed by GM (in only 16 months[9]) in response to both the fuel crises and in effort to match European luxury sedans, the Seville sourced its V8 engine from Oldsmobile and its chassis underpinnings from the Chevrolet Nova.

To further streamline development, the Versailles adopted the design features of the highest-trim Mercury Grand Monarch Ghia (which was discontinued for 1977).

Offered only as a four-door sedan, the Versailles shared many visible body panels with the Monarch and Granada, including the entire roofline.

Along with power-operated leather-trim seats and steering wheel, power steering and windows, the Versailles included features such as a digital LCD clock, dual map lights, lighted passenger vanity mirror, rear-seat map pockets, and plush carpeting with soundproofing.

Marketed as a compact car, the Versailles is closer in size to the mid-size segment of today, in terms of exterior footprint.

Bodywork received the first clear-coat paint on a regular production car.”[13] The Versailles shared its powertrain with the Monarch upon which it was based, with a V8 engine as a sole choice.