Ford hopes its new Mercury Tracer will appeal to younger buyers who never even thought of entering a Lincoln-Mercury showroom because they believe the division sells only big, conservative luxury cars.

The Tracer is intended to change that thinking, with Mercury advertising it as a small and economical car, but one possessing plenty of pep and interior room.Designed to attract buyers in their mid-30s now raising young families on about $35,000 a year, the Tracer is seen as the first step of a buying process under which owners move up through the ranks at each trade-in.

That, of course assumes unswerving brand loyalty, as well as a willingness to eventually find oneself potted behind the wheel of a luxury land schooner like the Lincoln Town Car.

The Tracer, completely redesigned for 1991, is chiseled from the same piece as Ford's new Escort, making them virtual twins-under-the-skins. Both are part of a $2 billion effort under which Ford's Japanese affiliate Mazda furnished the front-drive platforms and much of their running gear.

The Tracer is unique from the Escort in that it comes in a traditional four-door sedan, although the similar Mazda Protege shares that style as well. The Escort comes in either a three- or five-door hatchback. Wagon models are offered by both divisions.

Buyers should also know that the Tracer is built in Mexico by Ford, while the bulk of Escort production is done in Michigan.

Prices start at $8,969 for the base Tracer sedan; $9,990 for the wagon. Standard features include a domestically made 1.9 liter four-cylinder engine that delivers 88 horsepower at 4,400 rpm, a 5-speed manual transaxle, power disc brakes, tinted glass, AM-FM stereo and a split folding rear seat.

The fancier and more powerful Tracer LTS sedan starts at $11,219, although the model evaluated for this review cost an eye-popping $14,248, counting a $355 destination fee and nearly $2,700 worth of extras, many expected to be widely ordered.

Powering every Tracer LTS is a 1.8 liter, 16-valve four generating 127 hp at 6,500 rpm. Unlike the 1.9 liter version, this engine is a Mazda motor made in Japan.

All LTS models also have cruise control, adjustable steering wheel, AM-FM stereo with tape cassette and electric mirrors. Four-wheel disc brakes, larger P185/60R radial tires on 14-inch alloy wheels, sports suspension, and front and rear air dams are also standard.

A 4-speed automatic transaxle with overdrive ($732), air conditioning ($744), electric sun roof ($549), power windows ($306), power door locks ($205) and upgraded stereo ($138) were among the extra-cost options on the test car.

Conveniences abound, like a removeable cup and coin holder in the console, map pockets in the front doors and a height adjustment for the driver's seat. Head and legroom is generous up front, and either two adults or three children will find comfortable accomodations in the rear.

The 2,360-pound Tracer LTS is an impressive performer either on the freeway or a two-lane twister, its platform made even more capable by its sports suspension and rear disc brakes.

Its 1.8 liter 16-valve engine was found to provide ample power and response under all conditions while returning between 23 and 30 mpg when coupled with the automatic transaxle.

While its exterior is expensive looking for a small sedan, its interior does not give the same impression. The hard plastic window sills and extensive use of grained vinyl throughout its cabin gives it a cheap feel and look.

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Also, every Tracer is cursed with those motorized shoulder belts up front, which seem a poor choice for passive restraints these days.

The test model had a near perfect exterior fit and finish. But surprisingly, it was plagued with a cacaphony of interior rattles. Also annoying was a strong reverberation from its engine at idle when the air conditioner was on.

Ford hopes to sell between 70,000 and 100,000 Mercury Tracers each year, or about a quarter of what it hopes its high-volume Escort will sell.

Ford insists these two cars are not competitors because the Escort should appeal to a younger and less affluent crowd. But buyers are advised to compare the Escort unless one is set on a traditional sedan style. Even then, the Mazda Protege should also be considered.

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