Since the 1994 model year brought so many changes to the Cougar, and since Ford was so fond of two-year cycles for the big Cat, 1995 was essentially a carryover year. In fact, about the only change was with exterior colors. Everything else---wheels, engine power, mechanicals, and exterior---was identical to the 1994 car. The car did shed a few pounds, however. The Cougar's instrument panel and steering wheel were just some of the outstanding "form-following-function" features so prevalent in these cars. Ergonomics was of the utmost concern when Ford engineers designed the new interior.

Sales were slightly lower than the breakthrough 1994 model year, but the Cougar still looked to be in safe territory. But at the end of the 1995 model year, rumors began to leak out about the future of the Cougar/Thunderbird program. It was becoming clearly evident that the sport utility market was skyrocketing, and the profit margin in that segment was extremely high. This, coupled with the shrinking midsize coupe segment, meant that Ford no longer had the time or the resources it once had to continue to upgrade its existing cars. The rumors ranged from conservative (still rear drive but on a modified Mustang Fox-4 chassis) to the outrageous (front drive, based on the new Contour/Mystique/Mondeo). Little did everyone know at the time that the decision had been all but made to go with the latter. Meanwhile, the uncertainty of Ford's wait-and-see policy meant that the Cougar would be around for a little while longer.