The 1981 Escort utilized a 1.6L CVH engine, which produced 65 horsepower. The standard package included a four-speed manual transmission, but that could be replaced with an optional three-speed automatic. The Escort was not known for it's speed, but the suspension more than made up for it.
Ford offered five trim levels: Base, L, GL, GLX, and SS. The Base model had no trim, and had a plain appearance. The L offered pinstripes and a chrome grille. The GLX added low-back bucket seats, center console, wood-tone dash trim, and interval wipers. The Escort SS featured blackout trim instead of chrome, tape graphics, full instruments, and a sport suspension. Mercury offered the L, which came only in automatic, the GS, which came with a four-speed manual, and the RS, which came with a five-speed manual transmission. Ford and Mercury only offered these cars in 3 door and 5 door wagon configuration.
In 1982, Ford decided to discontinue the Base and SS models from the Escort Wagon line. Mercury also Discontinued the Lynx RS. A four-door hatchback was added in thier place. A new 1.6L high output engine was released late in the year, producing a beefy 80 horsepower. The regular 1.6L CVH engine was boosted up 5 horsepower to give it an output of 70 horsepower. To go along with the new engine, the manual transmission's gear ratios were updated, to help the overall performance of the car.
In 1983, The Base model was scrapped altogether. The SS model was replaced by the new GT model. A new 1.6L fuel injection engine was used in the GT model, which boasted 88HP. A five-speed transmission, sport suspension, dark-tint taillights, front and rear spoilers, foglights and alloy wheels helped set the GT off from the rest of the Escort line. In the other models, the four-speed manual transmission was still used, but if you opted for the high output engine, you could option the five-speed transmission.
In 1984, Mazda's presents in the Escort was revealed when the optional 2.0L mazda Diesel engine was released. This engine was availible in all trim levels except for the GT. A 120 horsepower 1.6L turbocharged engine was also released just for the GT. The GLX trim level was replaced by the new LX, featuring the fuel injected 1.6L engine previously used only in the GT models.
The 1985 1/2-1986 Escort models came with all new engines. The 1.6L CVH engines were replaced with two 1.9L CVH engines. There was a 1.9L carbureted engine with 86 horsepower, and a 1.9L fuel injected engine with 108 horsepower. The fuel injected engine was standard in the GT model, and optional in the other models. Mercury released it's GT clone, known as the XR3.
The engines were not the only changes during this time. The exterior got a whole new face lift, including flush mount headlights, lower hood line, 3 slat grille, and updated taillights. The new "Pony" trim was introduced, which was a stripped down Escort, built as basic transportation. The GT was set apart from the other trim levels with 15 inch alloy wheels, improved sport suspension, sportier grille, and color matched body kit.
In 1987, Ford discontinued the 2.0L diesel engine due to lack of sales. The 1.9L carbureted engine was replaced with a 90 horsepower fuel injected engine. The GT engine gained 2 horsepower, to give it an even 110. The trim levels were reviesed to consist only the Pony, GL, and GT models. There were two new options added: a front center fold-down armrest and a split-folding rear seat.
In 1988, the Escort line went unchanged. However, Mercury discontinued the Lynx model. In it's place, Mercury released the new Tracer line, which shared a chassis with the Mazda 323. It came with a 1.6L SOHC Mazda engine, and offered either a three-speed automatic, or optional five-speed manual transmission. The Tracer came in 3 configurations, 3 door hatchback, 5 door hatchback, and station wagon.
Mid-way through 1988, the exterior of the Escort was changed once again. The front fenders, rear quarter-panels, taillights, and bumpers all got a new look. In all models excluding the GT, the 13 inch wheels were replaced with 14 inch. The GT got a new grille, and rear spoiler. The LX model came back to the Escort line, which offered more options than the lower Base and GL models.
There were no changes made in 1989 to the Ford or Mercury lines.
In 1990, Mercury did not release a Tracer model, and Ford trimmed it's lineup to the Pony, LX, and GT. The LX was the only trim level that offered a sedan or wagon for 1990. The other trims were only offered in Coupes.