[5] The first Ford to combine round headlights with composite-style housings, the third-generation Taurus adopted oval shapes for multiple design elements of the exterior and interior, including the grille openings, taillamps, the rear window (for the Taurus sedan and Taurus/Sable station wagons), and side window openings for the Taurus/Sable.

[4] For 1997, the more conservatively redesigned Toyota Camry overtook the Taurus as the best-selling car in the United States (a position it has held ever since).

They eventually decided on a radical new styling scheme based upon oval derived design elements in April 1992 (final approval),[9] which would prove to be the car's Achilles heel in the marketplace.

Many competing cars were broken down and extensively tested in order for the Taurus to be designed to be superior to them in terms of comfort, performance, and refinement.

[6] Most notably, the Toyota Camry and Honda Accord were extensively tested, and the Taurus' suspension was designed to emulate these cars' ride and handling techniques.

The dashboard's design originated from a large number of complaints from customers that the previous Taurus' radio and climate control modules were cluttered with many small and similar feeling buttons, as well as small graphics, which caused the driver to have to look away from the road to be able to operate them properly.

[11] As a result, a large portion of the third generation's dash was devoted to the radio and climate control, with each button on these modules containing a unique design, making it easier for the driver to operate the radio and climate control without taking their eyes off the road.

[6][12] Ford's trim designers specially selected every one of the Taurus' interior materials, so that every surface, as well as every button and control, was pleasing to the touch.

Ford Chairman Alexander Trotman, who took part in the ceremonies, was joined by state and local politicians and union and plant officials in dipping their hands in yellow paint to "autograph" the hood of the first Taurus off the line.

Road & Track gave the Taurus a good review upon its release, and found its handling and refinement impressive.

[10] Motor Trend also gave the Taurus a positive review, although they found the oval styling awkward at first glance.

As the new-generation Taurus was aimed at a more mature, affluent customer base,[5] its exterior contained many upscale styling touches.

[18] In 1998, the exterior of the Taurus received a slight redesign to make the shape more mainstream, in order to appeal to a wider customer base.

The front bumper was redesigned to have a full-length opening, as well as moving the Ford logo down onto a chrome bar mounted in the grille, similar to that of the third-generation Taurus SHO.

The rear turn signal lenses were also changed from amber to red, to match the rest of the lightbar assembly.

The G and GL models (see below) were only available with steering column-mounted shifter, along with a cloth front bench seat and the "Flip-Fold" center console.

The LX, on the other hand, came standard with bucket seats that could be ordered with either cloth or leather upholstery, along with a center console and floor-mounted shifter.

Also, models equipped with the flip fold console could seat either six or eight people, depending on whether the wagons had a third row bench or not.

Ford also deleted some features for the 1999 model year, in order to lower the price about one thousand dollars, and possibly boost sales.

[26] Unlike the Taurus, sales of the Sable stayed steady with the previous model, and styling revisions for 1998 were limited to a new grille and headlamps.

In addition to being sold in the North American market, third-generation models were exported to many other countries, in left and right-hand drive configurations.

[30] Export models wore Mercury Sable headlamps and a unique front bumper cover to conform to these countries' regulations regarding automotive lighting.

The Taurus was poorly received in Australia due to its high price; a well-equipped, larger-engined, rear-wheel drive Ford Fairmont cost around the same amount.

Launched while Japan was in a recession following the 1991 collapse of the Japanese asset price bubble, this generation Taurus was exported to Japan in limited numbers, and sold at Japanese auto dealerships called Autorama (a joint venture with Mazda), where the sedan and wagon versions with right-hand driving positions were available until 1997.

The engine displacement also put operating costs for Japanese owners in a higher annual road tax obligation.

[7] However, the Taurus nameplate would later be revived in a matter of months due to the insistence of then-new Ford CEO Alan Mulally.