Which parts fail
Components named in complaints (automatic and manual transmissions, CVT, axles, driveshaft, 4WD/AWD).
Mileage when the problem started
Owner reports
Selected complaints filed with NHTSA by 1998 Ford Contour owners, lightly cleaned up (personal details are redacted by NHTSA).
Was driving down route 322 on day and had to hit the break and all of a sudden they went to the floor. I pulled over and checked my break fluid resivour and it was empty. I think the passenger side drum break is leaking fluid.
My daughter drove my 1998 6 cyl Contour automatic on route 95 from stoneham to wakefield, ma (one highway exit). The car was behaving normally and had behaved normally until that point. A servo cover fell off of the transmission. That allowed all of the transmission fluid to pour out of the transmission in seconds. The servo cover, a three inch diameter piece of heavy metal shaped like a frisbee, nearly hit a motor cyclist. The car coasted to a stop near 128 Ford of wakefield, ma. Their service writer, ludlow, told me that this is a relatively common occurrence with the Ford Contour. That opinion was reinforced by two employees of fna transmission repair of wakefield. I called Ford. I was told that they have no knowledge of this ever happening to a Contour. I asked the customer service rep to file a report, and I told him that I would as well. …
Transmission began to downshift (3->2) hard recently, and I brought it to an automatic transmission specialist who performed several tests and gave it a clean bill of health. ~5,000 mi later while gently slowing to turn left from a major street, it felt as though I had run over some walnut shells. As I began to ease open the throttle to complete the turn, the engine bogged and the car lurched, making some crunching sounds. I coasted to a stop on the side of the road, but the car would not move under its own power or by pushing by hand. Local transmission shops have said the cd4e transmission is notorious for early failure, and that I was lucky to get 102,000 miles from it because many fail by 40,000 miles. They have quoted me repair prices ranging from $1500 to $3500. …
Dt*: the contact stated the vehicle stalled several times immediately after being started and the check engine light illuminated constantly. Therefore the vehicle was taken to an independent repair shop where the battery, on-board computer, and alternator were replaced. A rebuilt transmission was also installed. After the work was performed, the problems continued. There is a NHTSA recall campaign # 98V233000, regarding the power train: automatic transmission: lever and linkage: floor shift related to the make and model of the vehicle, however the vehicle was not included in the recall due to the VIN. The water pump and thermostat was replaced. Updated 05/03/06.
Vehicle intermittently jerks when shifting, sometime very violently. Vehicle has also stalled when negotiating a turn in an intersection. Vibrates often at low speeds (30 MPH), as though it's in too high of a gear for the terrain. Check engine light on intermittently, usually for several days then goes off for a few days before coming back on again. I've gotten two estimates for the repair, both in the neighborhood of $2,500 for a rebuild of my transmission or installation of a re-manufactured transmission. Recently had to have coolant sensor and fuel pressure regulator replaced as a result of regularly occurring check engine light.
1998 Ford Contour se 4cyl VIN [redacted] - 4speed transmission. My wife was driving home from work when the transmission made sudden, erratic, jerky shifts on its own causing the car to pull from side to side and losing control and leaving the road and finally stopping in a field. I had to tow her out. The car now does not move forward, but does has reverse. Further research on the net has revealed other Ford/Mazda owners have experienced the same transmission failures. I am surprised the NHTSA has not done anything about these transmissions.
1998 Ford Contour 4 door sedan bought 10/15/99; since then many incidents of car cutting off suddenly - sometimes only once in months, sometimes several times in one day; many close calls; nearly rear-ended, etc. Frightening to be powerless in traffic. Many repairs tried, computer analysis, electrical check ups only help is to replace idle air control - computer chip with which can go nearly a year without random shut off. Many Contour owners have same problem, which is potentially fatal. Have had 4 shut downs in traffic in last 2 weeks and have another iac - but Ford needs to find permanent solution to deadly error.
Tl* the contact owns a 1998 Ford Contour. The contact was driving 30 MPH when the vehicle suddenly shifted into first gear. The contact referenced NHTSA campaign id number: 98V233000 (power train:automatic transmission:lever and linkage:floor shift) but the manufacturer stated that the vehicle was not included in the recall. The contact was concerned that the sudden downshift could cause a crash. The failure mileage was 22,000. Updated 06/10/11 updated 2/08/2012 the consumer stated the defect ECM/PCM engine control computer and replaced at the tune of $750 with a part used part.
Tl*t he contact owns a 1998 Ford Contour se. The floor shift automatic transmission control was damaged after it was subjected to certain interior cleaning products. The gear position indicator deteriorated , and did not correctly indicate the actual gear position. While driving 50 MPH in 2nd gear the vehicle shifted out of gear. The contact's vehicle had the same failure as listed in recall# 98V233000. The manufacturer was not notified. The failure mileage was 103,000, and the current mileage was 106,000. Left message 10/16/07
Tl contact owns a 1998 Ford Contour. While driving approximately 35 MPH, it became difficult to shift gears. The mechanic stated that the torque converter was clogged and needed to be replaced. The contact was advised to replace the torque converter before it damaged the engine and transmission. The manufacturer stated that the warranty doesn't include the torque converter. The contact is responsible for paying the repair cost and he is unable to drive the vehicle. The failure mileage was 49,800.
Related recalls
Power train › Automatic transmission › Lever and linkage › Floor shift
Vehicle description: passenger vehicles. The floor shift automatic transmission control can be damaged if subjected to certain interior cleaning products. The gear position indicator can deteriorate and not correctly indicate the actual gear position.
Remedy: Dealers will replace the automatic transmission floor shift control.
NHTSA investigations
Incorrect gear indication
There is no summary currently available
Transmission complaints in other Contour years
Frequently asked questions
How common are transmission problems on the 1998 Ford Contour?
NHTSA has 128 complaints about the transmission & drivetrain of the 1998 Ford Contour, 15% of the model year's 846 complaints. The component named most often is automatic transmission (74 mentions).
Is there a recall for 1998 Ford Contour transmission problems?
Yes — NHTSA recall 98V-233 (floor shift, Sep 18, 1998). Recall repairs are free at authorized dealers.
At what mileage do 1998 Ford Contour transmission problems start?
Half of the complaints with a recorded mileage happened before about 84,000 miles, and 14% before 25,000 miles.
Is it dangerous?
Owners linked 3 crashes, 0 fires and 0 injuries to transmission & drivetrain problems on this model year. If you notice symptoms, have the car checked before driving further.
Source: U.S. National Highway Traffic Safety Administration (NHTSA) — owner complaints through October 20, 2026, recalls and defect investigations; fuel economy from the EPA. Complaints are unverified reports and are not proof of a defect. How we rate model years.