Car Show Classic: 1989 Merkur XR4Ti – Straight From Germany To A Footnote

1989 Merkur XR4Ti right front

The idea seemed so simple.  Ford could satisfy North Americans’ increasing appetite for sporty European cars by importing one already in production.  A popular Euro sports coupe could siphon off customers defecting to the likes of BMW and Audi, helping Ford compete in this hot market by taking advantage of the company’s global reach.  It didn’t work out that way.  Ford’s new car brand sputtered immediately, and within a few years was withdrawn from the US and Canadian markets.

Merkur survives mostly as a footnote in Ford’s long history, so it was quite a surprise to come across one at a local car show.  This rare survivor is from Merkur’s last year of production, and as an added bonus is a daily driver with a remarkable 280,000 miles.  Before we take a look at this car and the XR4Ti’s qualities, we’ll examine the Merkur brand’s origins.

Merkur was born out of one of the major themes in North America’s early-’80s auto market: the burgeoning popularity of premium European cars.  Customers – especially younger, affluent ones – increasingly preferred taut handling, compact size and functional interiors to the larger, more traditional American offerings.  A dose of snobbery that came with these cars didn’t hurt, either.  From 1980 to 1985, for instance, BMW’s US sales doubled.

American manufacturers responded, but the resulting models were often “European” only in marketing terminology.  Blacked-out trim and ads featuring driving gloves weren’t enough to dent the imports’ growing popularity.

1983 Ford Sierra ad

Ford, however, had a plan.  The company sold a different range of vehicles in Europe than in North America, so why not import some of its European cars?  Just such a plan was hatched when Ford of Europe replaced its aging Cortina with the Sierra in late 1982.  This compact car (offered in three body styles) charted a new course from a design standpoint, debuting a rounded, aero look that couldn’t have differed more from the stodgy Cortina.

1982 Ford Probe III ad

Sierra’s appearance had been foreshadowed by the Probe III concept vehicle a year earlier.  While the futuristic design may not have pleased everyone, that hardly hurt sales.  Sierra became one of Europe’s best-selling cars for 1983; Ford hoped its European sophistication could transfer across the Atlantic.

1983 Ford Sierra XR4i ad

Though most Sierras served as basic, family transportation, the XR4i performance variant received the most press adulations.  With a fuel-injected 2.8-liter V-6, sport suspension, higher-end interior appointments, and the Probe III’s biplane spoiler, this model’s performance matched its slithery looks.  Shortly after the XR4i was released in Europe, Ford announced it would sell a version in North America.

Surprisingly, Ford elected to create not just a new model, but a new brand… Ford’s first since Edsel.  The Sierra XR4i would be sold in the US and Canada as the Merkur XR4Ti (“T” because it would be turbocharged), and Ford announced that other European Fords would follow.  The cars would be sold at select Lincoln-Mercury dealerships.

Lincoln-Mercury Division General Manager Robert Rewey said about potential Merkur customers, that “We’re looking for people who are just on their way to European cars rather than people who are already in them.”  In other words, domestic or Japanese car owners who are contemplating buying something like a BMW.  Not a bad target market, though many of the XR4Ti’s characteristics, and Ford’s early marketing strategy, worked against this effort.

Brown's Lincoln-Mercury, Fairfax, Virginia

First, Lincoln-Mercury was an odd conduit through which to sell premium European cars.  Lincoln-Mercury’s average customers were in their 50s, and valued traditional domestic cars.  Meanwhile, Ford targeted Merkur to customers in their 30s, with college educations and incomes over $40,000 per year.  While we’d all like to think that disparate groups can get along, in the 1980s, these two demographics often eyed each other suspiciously.  A 35-year-old Yuppie wouldn’t be caught dead standing next to a Grand Marquis on the showroom floor.

The car’s name didn’t help, either.  Merkur means “Mercury” in German, so from that perspective it was clever.  But any product that needs a phonetic spelling faces an uphill battle in the US (it’s mare-koor, as shown above).  This alone wasn’t a deal-killer; after all, Acura and Hyundai debuted in the US at about the same time, and they’re still around.  However, Merkur sounded clunky, and did the car few favors.  Combined with an alphanumeric model name that looked like an algebra equation, “Merkur XR4Ti” didn’t exactly make a great first impression.

1985 Merkur XR4Ti ad

Another factor limiting Merkur’s success was that the cars Ford chose to sell didn’t match the configurations customers sought.  The XR4Ti came only in hatchback form, and the first shipments included mostly manual-transmission cars in silver or gray tones.  A sedan version, and a warmer color palette, would have broadened the car’s appeal.

Ford predicted first-year sales of 20,000-25,000 – and even more optimistically, that the Merkur brand (once other models were added) would sell 100,000 units by the decade’s end.  To put that in perspective, no premium European brand sold 100,000 units in the US at the time.  Ford was either bluffing or was outlandishly confident.

1985 Merkur XR4Ti ad

North American Merkurs weren’t quite identical to European Sierra XR4i’s.  The main change was that Ford swapped the European V-6 for the 2.3-liter turbo four used in the Thunderbird Turbo Coupe and Mustang SVO (though the engine did feature many improvements, including better noise and vibration control).  All told, the Merkur contained 800 different parts than the Sierra.  With so many different parts, and relatively low production numbers, it didn’t make sense to build Merkurs alongside other Sierras.  Instead, Ford contracted with Karmann to assemble these cars at its facility in Rheine.

The first Merkurs made their way across the Atlantic in early 1985, listing at about the same price as BMW’s 318i.  First-year sales underwhelmed.  Still, Ford put on a brave face.  Merkur’s Marketing Plans Manager admitted sales were disappointing, but insisted that momentum was starting to build, pointing to struggles that Audi had when it was a new brand in North America.  That was wishful thinking.  Overall, Merkur seemed stuck in an in-between land: Not refined enough to pry performance enthusiasts from their BMWs, but too European to attract a typically domestic clientele.

Merkur’s tepid reception left a trail of disappointing numbers.  By late 1985, Ford offered $1,000 cash rebates to Merkur buyers.  One year later, dealers had a 5-month supply of XR4Ti’s on hand.  During those first two years, Ford sold about 25,000 XR4Ti’s… within their initial target range for first-year sales alone.

1989 Merkur Scorpio ad

At that point, Ford hoped Merkur would be saved by a car other than the XR4Ti, since Ford planned for that brand to include multiple models from the outset.  In 1987, a second car – the larger, 5-door Scorpio joined the range as a 1988 model.  But by this time the Merkur brand was in serious trouble.  Scorpio helped a bit, but not nearly enough.

Source of data: Merkur Club of America


That early forecast of 25,000 sales building to 100,000 in a few years seemed like a fantasy.  1985’s XR4Ti sales topped off at 12,400, far below expectations.  The next year was slightly better, but then the bottom fell out.  Scorpio added 16,000 sales for ’88, but that didn’t help much.  In the fall of 1988, Ford announced it would discontinue the XR4Ti the following year.  That wound up being the end of the entire Merkur brand; in October 1989, Ford announced the Scorpio as well was being discontinued.

1987 Merkur XR4Ti ad

As for the XR4Ti, after an initial flurry of ads and promotions, the car was shifted to Ford’s back burner.  And while the car remained largely the same for four years, a trickle of detailed changes made each year identifiable.  1986 models gained the required third brake light.  For ’87 (shown above), 15” pie-spoke wheels replaced the original 14” telephone-dial design, lower body cladding was added, plus interior and mechanical upgrades.

1989 Merkur XR4Ti brochure

1988 and ’89 XR4Ti’s are easily identified because Ford replaced the biplane spoiler with an understated conventional one.  Additionally, bumpers were now body-colored and wheels were BBS-type alloys.

Seeking a quick way to identify 1989 models?  A few minor changes mark these cars as different, but look for these black bumper inserts – they were red or chrome for all other years.

1989 Merkur XR4Ti newspaper ad

For folks who didn’t mind buying an unpopular car facing poor resale value and questionable product support, 1988 or ’89 Merkurs became great deals.  Ford offered $4,000 rebates on 1989 XR4Ti’s.  Considering these cars listed for about $20,000, that was an instant 20% discount… and that was just the beginning of negotiations for most buyers.  Ads like this, offering $7,000 off MSRP, were common.

1989 Merkur XR4Ti right front

That brings us to our Radiant Red featured car.  With Ford having announced the XR4Ti’s demise before the model year began, original owners knew these cars would be orphans.  Accordingly, sales were very slow, with only 2,870 1989 models finding homes. 

We can walk around this example, and look at some of the Merkur’s features that highlight both its upsides and downsides.

1989 Merkur XR4Ti

Appearance: Since first impressions are important, we’ll start with a brief discussion of the car’s looks.  While the Sierra sold well in Europe, the XR4Ti’s styling never caught on in North America.  It’s not that the aero design was too far out of the mainstream – Ford’s Taurus and Thunderbird caught on with this look.  But the Merkur’s design appeared less integrated than those cars.  The front and rear fascias looked a bit droopy, and the rear quarter windows split by a wide C-pillar – especially with the original biplane spoiler – put the car over the edge for most North Americans’ tastes.  In some ways, this car must have looked like a love child of a Ford Tempo and Saab 900, and its performance virtues didn’t compensate for these appearance quirks.

1989 Merkur XR4Ti engine

Performance: The 2.3 turbo was fast – but the engine wasn’t well matched to Ford’s intended target market.  Turbocharged sport models added a nice halo to many 1980s car lines, however these power plants had their downsides with peaky power delivery and minimal low-RPM strength.  The Merkur’s engine was no exception.  A V-6, even if not as fast as the turbo, would have been better suited to the first-time import buyers the company tried to attract, and would have also paired better with an automatic transmission.  While the 2.3 turbo was spirited with a manual, the optional three-speed automatic sapped a good bit of its liveliness.

1989 Merkur XR4Ti left rear

The Merkur handled well – as one would expect of a rear-wheel drive European sporting car.  Purists tended to criticize its handling as too soft, but still this was Ford’s fastest, and likely best-handling, family-type car of its day.  Incidentally, the North American version of this car was 280 lbs. heavier than the European XR4i.  About 80 lbs. of that was due to the 2.3 engine… with its iron block and turbo hardware it was heavier than the V-6.

1989 Merkur XR4Ti rear

Hatchback: Hatchbacks were popular in the 1980s, but notably sparse in the premium field.  In the US market, only Saab offered hatchbacks in this price category – so probably not the best choice for luring first-time import buyers.  One wonders if Ford had brought the Sierra sedan to North America instead of (or in addition to) the hatchback, whether Merkur would have achieved greater success.  Of course, hatchbacks do have their advantages.  In the XR4Ti’s case, the car could hold over 30 cu. ft. of storage with the rear seat down, and even with it up, could hold ample luggage.

1989 Merkur XR4Ti interior

Interior: Overall, the interior’s design – both dash and seats – strikes a good balance of functionality and uniqueness.  The uniqueness comes through both with lots of rectangular shapes and some interestingly placed controls.  Climate controls are the vertical sliding controls to the instrument binnacle’s right.  Rear defroster and wiper controls are rocker switches to the binnacle’s left.  This car’s owner has made some modifications by replacing the digital clock/calendar with round auxiliary gauges, which actually look like they were born there.  XR4Ti’s came well equipped, though Ford did offer a few options.  This Merkur features leather interior (at $890, the costliest option for 1989) and a moonroof, while heated seats and an automatic transmission were left unchecked when this example was built.  The interior’s expanses of hard plastic betrayed the Sierra’s pedestrian origins, though the overall impression was sophisticated-looking, unique, and of decent quality.

1989 Merkur XR4Ti left front

While this car’s very survival is impressive, even more extraordinary is that it likely achieved the top percentile for total Merkur mileage, with over 280,000 miles on the odometer.  I spoke with its owner at the car show – he bought it used, and has had a few other Merkurs previously, so he’s well-versed in these cars’ intricacies.  This is his daily driver, as well as his long-distance cruiser.  He told me that he recently drove from Virginia to Colorado (and back).  Given its mileage and daily use, this car is in outstanding condition.  If an award existed for mileage champions of orphan cars, this Merkur’s owner ought to win a medal.  This was a great car through which to reacquaint myself with a model I hadn’t seen in nearly a half-decade.

Overall, the Merkur episode was an outlier in an otherwise good decade for Ford.  While a good car for the times, it wasn’t good enough to overcome the obstacles thrown in its way by clumsy marketing and misreading consumers’ interest.  If given a better chance to make a positive impression on North American consumers, the Merkur brand could easily have succeeded with a steady flow of European Fords.  And if that had happened, the brand wouldn’t have been relegated to footnote status, and just maybe could have outlasted Mercury itself.

 

Photographed at the Labor Day Car Show in Fairfax, Virginia in September 2024.

 

Related Reading:

1985-89 Merkur XR4Ti – Too Close To The Sun by William Stopford
1986 Merkur XR4Ti – What’s In A Name? by Jeff Nelson
1989 Merkur XR4Ti – Last Merk Standing by Paul Niedermeyer