Ford preparing to kill Mercury brand

[Shelly Harris]

Bloomberg financial is reporting that Ford is preparing to kill Mercury and get approval in july. Here's the story:

http://content.usatoday.com/communities/driveon/post/2010/05/bloomberg-news-ford-preparing-to-kill-mercury-brand/1?csp=usat.me

[Mad Scientist]

The quote "Mercury is a forgotten brand," pretty much sums it up. As new cars go it is probably a nice enough car but there is nothing special about it that would make someone say "gee I've like to have one of those".

Although there was a time when if you wanted something unique you bought a Turnpike Cruiser.;)

[Don Henschel]

Even a regular Merc. was quite a difference compared to the Ford back then. I compare my 50 Merc. Sedan to a Ford and that little shoebox Ford is quite a cracker box compared to the Merc. My Merc. has hood hinges with springs, not a goofy cheap prop rod like the Ford. A larger car with a larger engine displacement as well. Ford also mentioned the Merc. used a truck power train in the Mercs and as a result I have an SAE bell housing and transmission like the trucks compared to the stamped steel bell housing the Fords had. Alot fewer mercs of this vintage up here compared to the Fords.

[Barry Wolk]

Mulally says it's not so. This rumor makes the blogs every six months.

[Barry Wolk]

Rumors of it's demise.................

http://cache.gawkerassets.com/assets/images/12/2010/05/500x_mercury_tombstone.jpg

[crystal59]

Loved the 1957 Turnpike Cruiser with the dual antennas coming out of the roofline. Too bad, but like most of today's vehicles, all look the same with little or no character, and if that is not enough, computer driven. Gary

[Pat Marshall]

I had a 1954 Mercury Sun Valley when I was in college. Wimbleton White (Not the normal green and yellow), Glass Top, Factory Continental Kit, Stick Shift, Dual Glass Packs, Rear View Mirrors out on the fenders, Fender Skirts, Over Drive, White Walls. Mamma Mia what a magnet.

[crystal59]

Hi Pat. I remember that car with great affection. One of the coolest guys in school had one and also was the best pool shooter. After school all the guys would gather at the pool hall if he were going to show up for a money game to watch him play. I stayed outside and stared at his car. Loved that glass top. His was also Wimbledon White with all the goodies that you mentioned. Gary

[Nick DeSpirito]

Just got this E-mail from Wayne L/M and thought I'd share it.

Dear Valued Customers,



We wanted to take a moment to respond to recent articles that you may have read in the papers regarding Ford’s plans for their Mercury brand line. Most importantly, you should know that Ford has no plans to phase out Mercury. They have stated that the recent articles are based on pure speculation and that no decisions on such matter have been made.



Ford has a laser focus right now on their most successful vehicle lines, which are Lincoln, Mercury, and Ford. They have made very aggressive moves in recent years in order to fortify their position in the marketplace and grow as a company. Ford’s move to capitalize several years ago and their actions of slimming down their operation, most recently through selling off brands such as Jaguar, Land Rover, Mazda, and Volvo, have turned Ford into a lean profitable operation successfully without any government aid. It has allowed them the ability to truly concentrate on their worldwide operations and build their current brands. Like all major corporations they are always looking at every aspect of their business and many times that means thinking outside of the box. That being said, speculations can sometimes leak and the recent media bursts were a response of just that.



On a positive note, production of the Mercury vehicles continues to be strong, especially on vehicles such as the Milan and Mariner whose production has increased recently due to high demand and increased sales volume. Residual values have also increased from years past. We continue to offer great lease deals on these vehicles as well as extremely aggressive retail programs.



We apologize for any misunderstandings and would be more than happy to answer any further questions you may have.



Sincerely,

Your Sales Team At

Lincoln Mercury of Wayne

[Barry Wolk]

Mulally says it's not so. This rumor makes the blogs every six months.

Like I said.

[depmike38]

It would be pointless IMO to do away with Mercury since it allows their Lincoln store to have a less expensive car to sell alongside the Lincolns. The way cars are built nowadays all the expense they're out is some badging and some bits of trim and it gets folks to come into the dealership that may consider a Lincoln at a future date.

[Barry Wolk]

Had dinner with a Ford friend tonight that has Alan's ear. Tells me Mercury's not going anywhere.

[Shawn Newcomb]

it doesn't seem anyone is considering a Lincoln these days. Their sales represent less than 1% of the marketplace...:(

[Nick DeSpirito]

it doesn't seem anyone is considering a Lincoln these days. Their sales represent less than 1% of the marketplace...:(

There are a fair amount of Navs, X's, Z's, T's. and S's on the road here in my area.

[Barry Wolk]

Just got this note from my Ford friend:

"I WAS WRONG!" "FORD announcing that we will end production of Mercury vehicles in the fourth quarter of this year. While Mercury served us well in the past, it now is time to fully devote our resources and attention to growing Lincoln – just as we have been doing so successfully with the Ford brand.

[Nick DeSpirito]

Yes, I saw a blurb on the net that they were having a press conference to announce it at 3PM EST. I was going to mail it to you, but I figured if you heard it from the top, it's probably just another rumor. But Fox just announced it. I do hope they expand the Lincoln line up to include some cars. I'm not a truck person. Hopefully, they will develop a Luxury Sport Coupe in the past Mark style, and maybe even a convertible. If Mercedes can do it, why not Lincoln too? I guess they don't tell their dealers much, judging by the E-mail I posted.

[Pat Marshall]

US NEWS & WORLD REPORT

After a 70-year run, Ford will be closing the doors on its Mercury Brand.

“According to two people close to the situation, Ford is winding down the Mercury brand for good,” writes Edmunds Inside Line. “With sales down 74% since 2000 and [Ford CEO] Alan Mulally's refusal to grant Mercury exclusive content or features, this news was certainly a matter of when, not if.”

And the cut may happen sooner than later. Bloomberg reports: “The automaker’s top executives are preparing a proposal to kill Mercury to be presented to directors in July, said the people, who asked not to be identified revealing internal discussions.”

Currently, Mercury only offers four models -- with two slated to be discontinued in 2011. Industry analysts expected Mercury to unveil a new vehicle, the 2012 Mercury Tracer, at this year’s New York Auto Show, but it never did.

“We can't say that this news comes as a shocker, as analysts far and wide have been predicting such an event for the last few years, but Ford has repeatedly denied any plans to cancel its interplanetary division when questioned,” says Autoblog. Now the news is all but official.

[Barry Wolk]

@ Ford Online Print
Ford to Expand Lincoln Lineup and Brand Emphasis; Mercury Production Ends in Fourth Quarter of 2010

Click here to view media coverage of the Lincoln and Mercury announcements.

DEARBORN -- Ford Motor Company will expand and enhance its Lincoln brand lineup with seven all-new or significantly refreshed vehicles in the next four years as part of an aggressive growth plan focused on standout product design, class-leading technology and new powertrains – all aimed at competing with Cadillac and Lexus in North America.

Ford also will end production of Mercury vehicles in the fourth quarter of this year to fully devote its financial, product development, production and marketing, sales and service resources toward further growing its core Ford brand while enhancing the Lincoln brand.

“We have made tremendous progress on profitably growing the Ford brand during the past few years. Now, it is time to do the same for Lincoln,” said Mark Fields, Ford’s president of The Americas. “The new Lincoln vehicles will transform luxury for North American premium customers through an unexpected blend of responsive driving enjoyment and warm, inviting comfort. We will also offer our customers a world-class retail experience through a vibrant retail network.”

Lincoln’s hallmarks will be refined, modern design, the most fuel-efficient premium powertrains and industry-leading technology that create a unique driver experience both in the cabin and on the road.

“Profitably growing Lincoln in North America is an important part of our One Ford plan,” said Alan Mulally, Ford president and CEO. “Our Ford brand is gaining momentum and winning customers around the world. Now, we are going to use the same laser focus to further strengthen Lincoln and deliver even more products luxury customers really want and value.”

Foundation Set
The future of Lincoln is building from a strong base that includes the all-new flagship MKS large sedan, the all-new MKT seven-passenger crossover and a significantly refreshed MKZ mid-size sedan – all now in showrooms. The hybrid version of the MKZ will reach showrooms later this year and is expected to be the most fuel efficient premium sedan on the market.

Lincoln’s product actions continue later this year with the debut of the significantly refreshed 2011 MKX crossover, the first vehicle to feature MyLincoln Touch driver connect technology.

This will be followed by another six all-new or significantly refreshed vehicles within four years developed with Lincoln’s DNA of standout design, precise and confident driving experience, class-leading technology and powertrains delivering top performance and fuel efficiency.

Lincoln will be led by expanded product development and marketing, sales and service teams to support the brand’s growth plan and ensure it has a strong cadence of distinct products that are well positioned in the market. Plans for Lincoln include:
• Lincoln’s first-ever C-segment vehicle
• New Lincoln-exclusive powertrains, including an all-new V-6 engine and advanced
fuel-efficient transmissions
• EcoBoost engines available in all Lincolns – from the Navigator full-size SUV to the
new C-segment Lincoln
• Fuel economy leadership with each new vehicle – leading to Lincoln emerging as the most fuel-efficient luxury lineup on the market
• More useful technology and features than any other competitor – with a special focus on comfort and convenience. New advanced features include: fully retractable glass roofs; adaptive computer-controlled suspensions; electronic, push-button gear-selectors; active noise control; and exclusive MyLincoln Touch driver connect technology

“Lincoln vehicles will reward drivers with smooth, effortless power complemented by agile handling and responsive steering,” said Derrick Kuzak, Ford’s group vice president, Global Product Development. “The cabin is a sanctuary with segment-leading quietness, genuine materials and intuitive, useful technology.”

Lincoln has started gaining traction with customers, as evidenced by market share gains during the past five years. Lincoln’s share of the retail U.S. luxury vehicle market has grown from 4.5 percent in 2005 to 6.3 percent through the first quarter of 2010.

In addition, Lincoln’s reputation with consumers has risen, with favorable opinion and purchase consideration reaching its highest level in the past five years. Lincoln’s long-term durability was second only to Porsche’s in the 2010 J.D. Power and Associates Vehicle Dependability Survey.

Mercury
Mercury originally was created as a premium offering to Ford and was an important source of incremental sales. However, the continued strength of the Ford brand – particularly during the past three years – has accelerated the migration from Mercury to Ford for many customers.

Today, Mercury’s customer profile, pricing and margins are almost identical to Ford, but Mercury’s incremental sales have been declining.

The majority of current Mercury sales are to fleet buyers and customers purchasing through employee, retiree and friends and family discounts, which Ford anticipates largely can be satisfied by Ford brand vehicles.

Of Ford Motor Company’s 16 percent market share in the U.S., Mercury accounts for 0.8 percentage points, a level that has been flat or declining for the past several years. That contrasts with the Ford brand, which has increased market share by 2.2 percentage points so far this year on the strength of new products and improved quality, fuel efficiency, safety, smart design and value.

Ford’s strengthening financial position – including the return to profitability and positive cash flow – allows the company to absorb short-term costs associated with the discontinuation of Mercury and to consolidate future product investments into Lincoln.

Today, there are no stand-alone Mercury dealerships in North America. Ford is working closely with dealers to maintain properly located stand-alone Lincoln or Ford-Lincoln dealers, which will offer dealers and the company the greatest opportunity for long-term profitable growth.

New operational standards developed with the company’s dealers will facilitate a Lincoln customer experience that exceeds the expectations of North American luxury customers.

Personal Attention
Ford will work closely with Mercury dealers and customers during the transition, including providing existing Mercury owners with continued access to parts and service support at Ford and Lincoln dealers and by honoring current warranties, including Ford’s Extended Service Plans.

“We are 100 percent committed to supporting Mercury owners through Ford and Lincoln dealerships and working hard to keep them as valued customers in the future,” Fields said.

“At the same time, we will work closely with our dealers to phase out Mercury franchises and continue to build a healthy, growing Lincoln with strong new products and a profitable dealer network that delivers a world-class customer experience.”

Mercury owners will receive additional details in the coming days explaining the transition and assuring them that Ford and its dealers will continue to provide all necessary parts and service support for Mercury products.

Ford has notified Mercury dealers of the decision and provided details of a financial package that includes payment in exchange for resigning the franchise.

Ford today also informed dealers of special offers on new Mercury vehicles that will be available through the summer to support the sell down of current Mercury inventory and remaining Mercury vehicle production.

“We are taking decisive action and moving into the future with the right plan to deliver profitable growth for all stakeholders,” Fields said. “These moves position us to continue building momentum through strong brands, great products and an unwavering focus on the customer.”

[Shawn Newcomb]

I have fond memories (and a scrapbook) of driving cross-country in a '65 Comet Caliente with my Dad. From San Diego to NH we zig-zagged thru most all the major cities and tourist traps along a 2 week route. Including a fuel pump that went out in a national park in Moab,UT on 4th of July weekend which meant no parts for days so we rented a Jeep and found dinosaur tracks off the beaten trail.

That said, they really haven't made more than a couple interesting models in the last 50 years (the last one I cared about was the German made early-70's Capri) opting instead for redundancy in the Ford line. Mercifully that is over.
There is no shame in being a retired mark, more have gone out of business than ever made it quite this long. Rest in peace Mercury -and welcome to the orphan car shows!

[Shelly Harris]

THe sales team at Wayne L/M are left with egg all over their faces.

WHen I was in High School (1955-59) it was soo cool to have a Merc, and I mean the pre 1950 ones. The later ones were tanks. But the '49 ( I think) black merc that James Dean drove in "Rebel Without A Cause" was really the nuts.

Meanwhile Ford has an uphill climb to re-establish Lincoln ==== they look nothoing more than ordinary Fords with different badging.

[Dave Harris]

Mercury's response during the muscle car's golden era included the Cougar Eliminator. In the 1970 for example, standard was the 351 Cleveland. It could also be ordered with the classic 428 Cobra Jet. Original examples go for pretty high dollars these days.

As for Ford the company, I think they're in a pretty good position at this point. Closing out the Merc is a good move. Ford's got a great new Ecoboost engine (I have it in the Flex). The '10 Fusion won Motor trend car of the year. New Fiesta looks like a nice compact for today's economically minded family. I think they make nice cars and trucks. People should buy more Fords.

[linmk2]

I've owned two Mercurys in my life. A 1969 Cougar XR7 and a 1973 Cougar XR7. Both were nice looking cars. While working for the dealership, I had a number of Grand Marquis Demos along with a few Town Cars. Sorry to see Mercury go. I'm not surprised by the announcement. Mercury really was starved for product. I was hoping that Ford would have made a new Cougar based on the Mustang, but alas, that will never happen. To be honest, I would not be shocked to see Lincoln leave the automotive landscape. It's sales are poor and currently, at least IMO, does not compete with Cadillac, which seems to be on a roll of late. Just how many SUV type vehicles does Ford think Lincoln needs?

[depmike38]

I think Ford lost their way with Lincoln when they made an obvious, IMO, attempt to try and move in on BMW, Mercedes, etc with the LS & LS-V8. They never made equivalent power to their competitors and while they were decent looking there was nothing to make them stand out in a crowd. One thing about the Caddy's is that they definitely have a character of their own. There needs to be a 2011 brother to the Mark II!