Launched in March 1972, the Granada succeeded the British Ford Zephyr, and the German P7-series as Ford's European executive car offering, and completed the integration of Ford's British and German model ranges. The first-generation model was produced from 1972 to 1976 at Ford’s German factory in Cologne and at its British factory in Dagenham. In 1976, production switched entirely to Germany.

The car soon became popular for taxi, fleet, and police use. Initially the British Granada used the Ford Essex V4 unit in 2.0 L displacement, and the Essex V6 engine in 2.5 and 3.0 L capacities. German models employed a Ford Taunus V4 engine in 1.7 L displacement, or the 3.0L Essex V6, or, more commonly the Cologne V6 in 2.0, 2.3, or 2.6 L capacities. The V4 engine option was short lived - and was later replaced by the in-line Pinto unit in 1974.