For the 1995 model year, the Continental was substantially updated with more rounded lines similar to the Mark VIII; the interior also saw a major overhaul. Production commenced at Wixom Assembly in November 1994. While the body was all-new, the new Continental shared underpinnings with the previous generation. In a departure from the previous generation and its Ford/Mercury counterparts, the Continental was given back its V8 engine for the first time since 1987; thus, it more closely matched the Northstar V8 engine that Cadillac was using for its DeVille and Seville sedans at the time. The base price for the new Continental was $40,750 ($65,446 in current dollars).
The sole engine for the Continental was the Modular/InTech 32v DOHC 4.6L V8 shared with the Lincoln Mark VIII, but slightly de-tuned for front wheel drive use. It produced 260 hp (190 kW) and 265 lb⋅ft (359 N⋅m) torque; 0–60 mph (0–97 km/h) was reached in 7.2 seconds. Inside, the Continental featured a plush leather interior with many amenities and advanced electronics for the time. Some of the options included JBL sound system, 6-CD changer, power moonroof, heated seats, onboard cellular phone, anti-theft alarm system, traction control, and chrome wheels. As before, buyers could choose between five and six-passenger seating, offering Bridge of Weir leather on upper trim packages. A March 1992 customer clinic video features a final design prototype of the 1995 Continental.
1995–1996 Continentals had air ride suspension on all four wheels while the 1997 model had rear air suspension and traditional steel coil springs up front. An increasingly competitive luxury market and de-contenting of the 1997 Continental saw its base price decreased by 10% that year.
1998 facelift
The Continental was updated again in late 1997 for 1998 with redesigned front and rear end styling. The front-end also held a strong family resemblance to the newly redesigned 1998 Town Car. Also new for 1998 was a dashboard redesign, though still keeping the reflective dash cluster. Despite these notable changes, pricing on the Continental was up only slightly over the 1997 model which itself had seen a price reduction from the year before.
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