In 2004, the Mercury division replaced the discontinued Villager with its own version of the Freestar. Reviving the dormant Monterey name, the minivan was sized to compete directly against the Chrysler Town and Country and the newly introduced Buick Terraza. Differentiated from the Freestar primarily in trim options, the Monterey also came exclusively with the 4.2L V6.
Sales of the Monterey were very low as the design proved uncompetitive against stronger entries from other automakers, as well as an overall decline in the minivan market. Final sale numbers after a three year run totaled 32,195. After selling far under sales projections, Ford discontinued the Freestar and Monterey after the 2007 model year.