-Available in Europe with more engine choices IIRC, and the 4-banger perhaps the most popular in the land where Gas is priced about 3 times higher than here.
-No SUV fad to deal with over there, for the same reasons. Europeans just can't justify huge vehicles. One reason Ford stopped production in the US was to gain more production capacity for SUVs.
-Sedan sales in the US were in steep decline at the time. There may be a resurgence, now, but it's too late for the Contour.
-Other reasons already cited: Ford US has terrible marketing, which made the back seat issue come to the fore. The back seat in the 'Tour is bigger/better than BMWs of the same period, but nobody cares about the back seat in a BMW. They're in it for the a)prestige, or b)driving experience. Ford sold the car in NA as the mid-size family car in their lineup, competing against Honda, Toyota, and Chrysler (Cirrus/Stratus). The best "driving enthusiast" marketing tag line they could come up with was "I'd rather pass than be passed." Weak. And yet, how many Americans in 1995 really shopped for a sedan based on handling prowess and fun-factor? Well, I did, and that's why the Contour won my dollar over all those other cars. But most people wanted an appliance, in which case the Contour had a few shortcomings.
-Speaking of BMW: In Europe, you can get a BMW with a 1.6L 4 cylinder, cloth interior, no A/C, no cruise control, no power accessories, etc. In other words, BMW is not necessarily the "prestige" brand it is here in the states. Over there, the German-built Fords compete on a much more level footing with the other German-built brands.
-etc., etc., ad infinitum.