The Mercury Monarch was developed as external circumstances outside of Ford Motor Company's control forced major changes in consumer buying habits.

To differentiate Granada/Monarch from the Maverick/Comet, Ford offered the new-generation compact-segment vehicles with a higher than usual level of equipment, comfort and convenience features.

Although General Motors had earlier introduced the Buick Apollo (later Skylark) and Oldsmobile Omega in 1973, the Granada/Monarch became one of the few vehicles that would break a long-standing tradition within American auto manufacturers of associating size with luxury.

In the front, the Monarch adapted much of the styling of Mercury's large full size Marquis (with the exception of single exposed headlights).

The rear featured horizontal wrap-around taillamps with amber reflectors and a color-keyed decorative trim panel with a fuel filler door.

While a feature associated with sporty cars at the time, the individual seats (from the European Ford Granada) were chosen for their support and range of adjustment.

Intended as a response to the Cadillac Seville, the Versailles adopted much of the content of the Grand Monarch Ghia with a slightly restyled exterior.