The first Mercury-brand vehicle since 1960 without a direct Ford counterpart in North America, the first-generation Tracer was developed by Mazda.

A fourth-generation of the model line was initially developed for a 2012 launch, but the project was stillborn following the 2010 closure of the Mercury brand.

[6] The first Mercury assembled outside of North America, all Canadian examples of the Tracer (three-door and five-door hatchbacks) were sourced from Ford Lio Ho in Taiwan.

[7] Vehicles for the United States (three-door and five-door hatchbacks, along with the station wagon) were sourced from Hermosillo Stamping & Assembly in Mexico.

The Tracer had nearly no United States parts content and as such did not count towards lowering Ford's Corporate Average Fuel Economy (CAFE).

[9] The Mercury Tracer is an American counterpart of the Australian-market Ford Laser KE, also sold in Japan, Asia, and South Africa.

The Tracer shared its exterior with the Ford Laser, distinguished by a Mercury grille, badging, and wheel covers.

The sole engine is a 110-horsepower (82 kW) 2.0-litre CVH Split-Port Induction (SPI) inline-four, paired with either a 5-speed manual or a 4-speed automatic transmission.

The third-generation Tracer again was offered in four-door sedan and five-door station wagon configurations; hatchbacks had been withdrawn entirely.

The Ford Escort ZX2 two-door coupe bodystyle (sharing the chassis, but no body panels of the sedan/wagon) was not offered as a Mercury Tracer.

As with the previous generation, the model line was distinguished from its Ford counterpart by its front fascia design, taillamps, and model-specific wheelcovers.

The station wagon shared much of its bodyshell from the previous generation (from the windshield rearward), with updates concentrated on the front fascia, sideview mirrors, door handles, interior dashboard, and exterior badging.

The LS trim was distinguished by alloy wheels, leather interior, keyless entry, power windows and door locks, and tachometer.