Lincoln Continental, Seventh generation (1982–87).

Following the downsizing and adoption of the Panther platform for the 1980 model year, the Lincoln division was faced with a critical issue. After the discontinuation of the compact Lincoln Versailles early in 1980, Lincoln was left with two full-size sedans. Although each brand-new for the model year, the Lincoln Continental and Continental Mark VI were functionally identical vehicles. Aside from the "Continental tire" trunklid and hidden headlamps of the Mark VI, the two vehicles offered little differentiation.

The Lincoln Continental made its return in early 1981 as a 1982 model. To further separate Continental from the Town Car, Lincoln designers shifted the car into the mid-size segment. Though again marketed against the Cadillac Seville, the 1982 Lincoln Continental was never officially considered by Lincoln as the replacement for the Versailles. Marketed solely as a four-door sedan, the Continental shared its wheelbase and powertrain with the Mark VII introduced for the 1984 model year.

Using the lessons learned from Lincoln Versailles and badge engineering, Lincoln stylists took great care to differentiate the expensive Continental from the Ford Thunderbird and Mercury Cougar XR7 sharing a common chassis with it; unlike the Versailles, no visible body panels were shared.

Chassis

Shifting from the Ford Panther platform to the Ford Fox platform, the Lincoln Continental became a mid-size car for the first time. In its redesign, the Continental would lose nearly 9 inches in wheelbase and 18 inches in length, along with over 400 pounds of weight.

Although it would be the shortest-wheelbase Lincoln ever (at the time), the Continental would use a stretched 108.5" wheelbase version of the Fox platform used by the Ford Thunderbird and Mercury Cougar. In marked contrast to its Cadillac Seville competitor, which switched to a front-wheel drive GM platform, the Continental retained the use of rear-wheel drive.

The 1982 Lincoln Continental was fitted with two different engines. The standard engine was a 131 hp carbureted version of the 5.0L V8. At no cost, a 3.8L V6 (shared with the Ford Thunderbird and Mercury Cougar[63]) was an option; it was the first non-V8 Lincoln since 1948. Both engines were discontinued for the 1983 model year, replaced by the fuel-injected 5.0L V8 from the Town Car. All three engines were fitted with the 4-speed Ford AOD overdrive transmission. As a response to the diesel engine options available in Cadillacs and a number of European luxury brands, Lincoln introduced an optional 114-hp 2.4L turbodiesel inline-6 sourced from BMW (with a ZF 4-speed automatic transmission) for 1984. WIth only 1,500 sold, the diesel-powered Continental was rarely ordered and discontinued after the 1985 model year.

The seventh-generation introduced two features as industry firsts: gas-charged shock absorbers and self-sealing tires.

Body

For the first time on a Lincoln-badged Continental, its namesake "Continental spare tire trunk" seen on the Mark Series was used as a decklid design feature. In addition, the decklid was lettered "CONTINENTAL" instead of "LINCOLN" (as was the Versaillles, the first Lincoln to do so). As Ford Motor Company intended for the Lincoln Continental to compete against the Cadillac Seville, the rear half of the car was designed with a sloping "bustle-back" decklid, drawing inspiration from the Lincoln-Zephyr of the late 1930s. The decklid design of the Continental proved less extreme than that of the Seville. The addition of a horizontal brushed-chrome strip that ran along each side of Continental, along with plentiful two-tone color combinations, gave it a more conventional appearance in comparison to the Cadillac.

Coinciding with the introduction of the two-door Continental Mark VII, the Lincoln Continental was given a styling update for the 1984 model year. The body was fitted with flush-fitting front and rear bumpers and revised taillamps. While not fitted with the composite headlights of the Mark VII, the front fascia of the Continental was revised with an angled grille flanked by recessed quad headlamps and larger wrap-around marker lights incorporating cornering lamps. On the inside, the doors and dashboard were fitted with satin-black trim (accented with low-gloss genuine walnut veneer for the 1986 model year only). Other changes through the rest of production run were primarily limited to paint colors and upholstery pattern details. All models were also fitted with Ford's door-mounted Keyless Entry System, not to be confused with a Remote Keyless Entry System.

Trim

For 1982, the Continental was offered in base trim, Signature Series, and Givenchy Designer Series trim. For 1983, the Signature Series trim was discontinued and given to the Town Car and Mark VI; the Valentino Designer Series was added. After the 1985 model year, the Valentino Designer Series was discontiuned in favor of the Givenchy Series. Including many additional standard features, the Signature Series, Valentino, and Givenchy Designer Series Continentals added $3,100 to $3,500 to the price of a standard model. Fully optioned Signature and Givenchy models would top out at over $26,500 ($67,200 in current dollars).