The Mondeo sat in the same slot that the BMW 3-Series sat in at the time. That segment exploded at about the same time the Mondeo came across the pond in Contour form.
Also, the Mondeo wasn't the only car Ford tried to bring over the pond to less than enthusiatic results; lest we forget the Scorpio, the Probe, the Aspire, the Festiva, the Sierra, the Fiesta and the Cougar. It doesn't matter why they failed in Ford's eyes, only that they failed.
1) Scorpio? I don't recall that one coming here, maybe Canada?
2) Probe? That car was rather successful if I recall correctly, and that was a Mazda, not a Ford UK model. Hell, it was good enough where they
almost replaced the Mustang with it...
3) Aspire? You do know that it was a Kia, right?
4) Festiva? Again, you do know that it was a
KIA, right?
5) Sierra? You mean Merker XR4Ti? The car was so awesome it wasn't even considered to be a Ford in America, funny enough, Bob Lutz was behind the program to bring it to America. Plenty of positive press, no positive public reaction (poor build quality as a cause...).
6) Fiesta? Two years in the US as a model
below the Pinto doesn't help much, but it did live-on as the Tempo (wOOt!)...
7) Cougar? Lets see, a Mondeo-based coupe sold as a Mercury? Did Mercury even think they were going to sell that many???
...Previous mistakes aside, Ford could have done a lot to get the right models here, and it has yet to be done. I'd continue to advocate for the assimilation of Ford North America and Ford Europe for as long as I can, but until the idiots in Detroit realize that people aren't going to keep buying the same Focus for 20 years, or that some name can make an otherwise sub-par car magically sell well, there is little hope for anything good at Ford...