wish4newstang Posted July 17, 2008 Share Posted July 17, 2008 Ford just bought out and closed my Lincoln-Mercury dealership. They have been a Lincoln dealer for 54 years, and a Mercury dealer for around 50 years. The third generation owner is a pretty sharp guy, so if he was willing to sell out, he is reading something in the tea-leaves about the future. I noticed their inventory has dwindled, and ceased advertising in the last month or two. Dealer OKs Ford buyout Ron Rush Lincoln-Mercury closes; 35 workers lose jobs Tuesday, July 8, 2008 3:03 AM By Braden Lammers THE COLUMBUS DISPATCH Ron Rush Lincoln-Mercury has closed after 54 years in business, a victim of dealership consolidation by Ford Motor Co. The North Side dealership, in its third generation of operation by the Rush family, accepted a buyout offer from Ford, which owns Lincoln-Mercury. The move puts 35 employees out of work. The consolidation is in response to Ford's worsening profit margins. The company has been closing dealerships in metro areas where it has multiple car lots in close proximity. Ford purchased the remaining 26 vehicles on the Ron Rush Lincoln-Mercury lot, at 2350 Morse Rd., before closing the dealership. "There is not enough volume to go around to make dealerships profitable," said George Pipas, a Ford sales analyst. "Our dealers opened at a point in time when we had 20 (percent) to 25 percent of the U.S. market share. Now it's more like 14 (percent)." The combined market share for Ford and Lincoln-Mercury in central Ohio is 12 percent, said Marisa Bradley, spokeswoman for Ford. Sales at Lincoln-Mercury dealerships nationwide have been dismal. In June, sales were down almost 24 percent from last year, according to a Ford sales report. The year-to-date sales totals for the Lincoln and Mercury brands are down 23 percent, totaling just over 129,000 vehicles. "There is no target," Bradley said, on how many dealerships will close. "We match the demand with what the market share is … (and) figure out market by market." The process is a voluntary one for dealers, Bradley said. Even though Rush said he was still making a profit, faced with current market conditions and the offer of the buyout, he took the deal. "It's good business," he said. "If they ask a profitable store to close, they have to compensate us," Rush said. "Put it all together, it was a good financial decision for us." Citing a confidentiality agreement Rush signed with Ford, he declined to comment on any details of the agreement. The consolidation is the first for Ford in the Columbus area, Bradley said. "This is not something you take lightly," Rush said on the decision to accept the offer. I just moved from Columbus. While there Mark and his staff took care of our small fleet of Fords. I always enjoyed stopping there and chatting with the staff. As you said, the owner, Mark is a very smart man. He has a PHD, in buisness. Sorry to see him go. Quote Link to comment Share on other sites More sharing options...
snooter Posted July 17, 2008 Share Posted July 17, 2008 (edited) the figure of 2 billion is probably low...way low....for every auto worker layed off/permanetly idled..6 others also pay the cost...soooo..every autoworker supports the job of 6 others.....much as i detest the uaw...they do support quite a few jobs outside of the assembly plant Edited July 17, 2008 by snooter Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted July 17, 2008 Share Posted July 17, 2008 the figure of 2 billion is probably low...way low....for every auto worker layed off/permanetly idled..6 others also pay the cost...soooo..every autoworker supports the job of 6 others.....much as i detest the uaw...they do support quite a few jobs outside of the assembly plant Closing Mercury down would likely result in the net loss of 0 UAW employees. Quote Link to comment Share on other sites More sharing options...
old_fairmont_wagon Posted July 17, 2008 Share Posted July 17, 2008 Do any of you think it would be possible to relaunch mercury as an all hybrid (or at least, fuel efficient with hybrid option) lineup that can be made to compete with the new "prius" sub-brand from Toyota and Honda's new hybrid lineup? Given Mercury's extensive dealership network, its already got all the market penetration that it needs. The other is to do a complete swap of Mercury for an all new fuel economy focused brand such as (just pulling a name out of my ass, please don't mind the smell) "Eco-Life" or something similar? Given the "profound" and "fundamental" "structural" market shifts that have occurred (all quotes borrowed from Ford execs) such a brand might have a chance and be able to carry a green image from the get-go. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted July 17, 2008 Share Posted July 17, 2008 Do any of you think it would be possible to relaunch mercury as an all hybrid (or at least, fuel efficient with hybrid option) lineup that can be made to compete with the new "prius" sub-brand from Toyota and Honda's new hybrid lineup? Given Mercury's extensive dealership network, its already got all the market penetration that it needs. The other is to do a complete swap of Mercury for an all new fuel economy focused brand such as (just pulling a name out of my ass, please don't mind the smell) "Eco-Life" or something similar? Given the "profound" and "fundamental" "structural" market shifts that have occurred (all quotes borrowed from Ford execs) such a brand might have a chance and be able to carry a green image from the get-go. Worth noting: Three Mercury products have a future--the Sable, Mariner, and Milan. One has a hybrid available already, the other gets a hybrid in a few months, and the third is strongly rumored to get a hybrid in a year or two. Granted, Ford could make all three models 'hybrid only', but it would make all three models immediately $2000 more than their competitors, and it would not necessarily be clear to Joe Customer that this was because all three were hybrids. It would require an extensive ad campaign to educate the public, and that ad campaign would cost money that would need to be recouped by additional Mercury volume. Given that Ford is apparently still supply constrained to a certain extent, I don't think Ford could meet any extra demand generated, making the campaign a money loser, and as it would cast no shadow on the larger Ford brand, also difficult to write-off as a brand building exercise. == I think there are some neat possibilities for "Choose the hybrid that's right for you" advertising, if more than 2 Mercury products have hybrid powertrains, but I don't think a major reinvestment would pay for itself at this time. Quote Link to comment Share on other sites More sharing options...
2b2 Posted July 17, 2008 Share Posted July 17, 2008 (edited) Do any of you think it would be possible to relaunch mercury as an all hybrid (or at least, fuel efficient with hybrid option) lineup... maybe but I'm thinking more that when the euro-global stuff arrives, Fords will hafta be decontented (a bit) & Merc could be The Reeaaal Thing < linkage plus waterfall grilles of course Edited July 17, 2008 by 2b2 Quote Link to comment Share on other sites More sharing options...
armadamaster Posted July 21, 2008 Share Posted July 21, 2008 The fair thing about Mercury, from where I stand, is that it has a different uphill battle than its competitors. Buick? Staid. Lincoln? Right now, still a geezer's car. Mitsubishi? Heh, us young folks went that route a while ago and learned what crap cars they build. Mercury, though... ah Mercury isn't labeled as anything. Mercury is, well, a Mercury. It's basically nothing but an upscale Ford and doesn't say much of anything except for being a piece of transportation that is slightly different than the crowd. So, with that said, Mercury actually can turn heads. What I'm wondering is what kind of turnover Mercury has in finding new buyers. Repeat customers, conquest sales and the like. Anyone know? As of 2006, the GMQ was number one in customer loyalty in the large/fullsize car segment at 31% percent. http://www.automotivedigest.com/view_art.a...rticlesID=18105 Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted July 21, 2008 Share Posted July 21, 2008 As of 2006, the GMQ was number one in customer loyalty in the large/fullsize car segment at 31% percent. http://www.automotivedigest.com/view_art.a...rticlesID=18105 Yes, fleets typically replace outgoing vehicles with the same vehicle if they can. :D Quote Link to comment Share on other sites More sharing options...
Ford Jellymoulds Posted July 22, 2008 Share Posted July 22, 2008 I don't think Ford will close Mercury come Thursday. http://www.cnbc.com/id/25791257/for/cnbc/ Quote Link to comment Share on other sites More sharing options...
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