Ford Said to Plan End of Forgotten Mercury

[therealmrmustang]

Bloomberg

 

 

NNNNNOOOOOOOOOOOOOOOOOOOO!!!!!!!!!!!!!

[92merc]

While I'm disappointed, I'm not surprised. I love my Mercury car. But with the Fords going more and more upscale, I don't see the point.

 

Just do me one favor Ford. Put HID headlights in your top trim edition of each model. And I'm talking Taurus Limited, not SHO. F150 Lariat and Platinum, etc. I have a 2007 Montego and love the HID's. The rest of the differences I can get over...

[aneekr]

About time!

[ausrutherford]

We seen this before...and it didnt happen.

 

And ford said the plan for Mercury wasnt changing...and as of 2 summers ago, they said Mercury was to live.

[PREMiERdrum]

We seen this before...and it didnt happen.

 

And ford said the plan for Mercury wasnt changing...and as of 2 summers ago, they said Mercury was to live.

 

Wescoesnt says there is "plenty" of new product in the pipeline for Mercury. So long as they're bringing in money, they're not going anywhere. These stories pop up every 6 months or so, and yet Merc soldiers on.

[ausrutherford]

Wescoesnt says there is "plenty" of new product in the pipeline for Mercury. So long as they're bringing in money, they're not going anywhere. These stories pop up every 6 months or so, and yet Merc soldiers on.

 

And ill take Wescoents word over any rumor anyday.

[weiweishen]

Bloomberg

 

 

NNNNNOOOOOOOOOOOOOOOOOOOO!!!!!!!!!!!!!

Mercury is still essential for Ford in terms of quality and reputation. Mercury has the best quality along Ford product line. But why not target Mercury to the customer who like European car. Ford has good reputation in Europe and Ford can bring some good European car or SUV to US and sale them as Mercury brand. It's better to just put a different face on a Ford car. I wish its just a rumor. I remember some Ford excecutive said several monthes ago that Mercury brand will not be closed.

[ANTAUS]

Wasn't Mercury supposedly getting Euro Fords? We've also heard info that theirs a Mercury Focus being planned as well? Plus, Lincoln sales aren't good enough to allow for stand alone stores without the help of Mercury. I'm just not seeing enough evidence that says they really are...

[RichardJensen]

As Truby points out, businesses need to look at stuff like this periodically.

 

It doesn't mean anything more than what it means: Ford is doing a cost/benefit analysis on Mercury. It's not the first, and it probably won't be the last either.

[ausrutherford]

Wasn't Mercury supposedly getting Euro Fords? We've also heard info that theirs a Mercury Focus being planned as well? Plus, Lincoln sales aren't good enough to allow for stand alone stores without the help of Mercury. I'm just not seeing enough evidence that says they really are...

 

Tracer comes early next year and B-Max is being considered.

[jpd80]

Ford has actually started moving its whole product line up market so it is becoming more like Mercury and while that bran attracts value added sales, I can see the logic in using a single brand name like Ford to capture all of those low and mid sales. That would then give better differentiation between Ford and Lincoln.

 

Is the upheaval and realignment of dealers worth the effort?

Only Ford would truly know that....

Edited May 27, 2010 by jpd80

[RichardJensen]

Is the upheaval and realignment of dealers worth the effort?

Only Ford would truly know that....

The other factor: Those sales are gone.

 

Case in point: GM's 'surviving brand' sales have not increased faster than the industry average, indicating that people aren't trading in their Pontiacs for Chevys or their Saturns for Buicks.

 

Brand psychology doesn't work that way.

[PREMiERdrum]

And ill take Wescoents word over any rumor anyday.

 

And he chimes in...

 

No such decision has been made. Mercury still has friends in high places.

 

He's also added in the last few weeks that Mercury's relationship to Ford will mirror Lincoln's, though Mercury will have B and C segment vehicles and Lincoln will have C/D and larger.

[saintlaz1]

The other factor: Those sales are gone.

 

Case in point: GM's 'surviving brand' sales have not increased faster than the industry average, indicating that people aren't trading in their Pontiacs for Chevys or their Saturns for Buicks.

 

Brand psychology doesn't work that way.

 

Most people that buy Mercury's are not going to hull over to Ford nor are they going to go to lincoln due to price. Im sure some will, I myself would consider a Mustang if no Cougar were to happen again. But as a Milan driver i wouldnt want to trade in for a Fusion.

 

If the Tracer happens i would think we are safe.

[NLPRacing]

The other factor: Those sales are gone.

 

Case in point: GM's 'surviving brand' sales have not increased faster than the industry average, indicating that people aren't trading in their Pontiacs for Chevys or their Saturns for Buicks.

 

Brand psychology doesn't work that way.

 

The Ford & Mercury relationship is MUCH different than the Saturn & Buick or Pontiac & Chevy relationship. Does anybody buy a Mercury because they didn't want a Ford? All Mercury's are blatant re-badged Fords, most of which are sold along side Fords at a Ford-Mercury-Lincoln dealer. There are very few Lincoln-Mercury only dealers anymore.

 

It would be more like Plymouth. I doubt many die hard Plymouth fans wrote off all Chrysler products because they couldn't get a Voyager or Breeze. I'm willing to bet most Plymouth owners stayed in the Chrysler family.

 

IMO, Mercury could go away and Ford would absorb most of those sales back into Ford or Lincoln.

[RangerM]

For what it's worth, I just heard on the radio (KRLA 870) that Ford's Board of Directors was asked for approval to kill the Mercury brand. I don't know who would make such a request, unless it was Mulally, but maybe others would know.

 

No other details were given, but I know what I heard the newsperson say. Anyone else hear this?

Edited May 27, 2010 by RangerM

[focus05]

All I can say is finally... Focus the extra money on making Lincoln truly great.

[silvrsvt]

http://www.autoblog.com/2010/05/27/report-ford-said-to-be-shutting-doors-at-mercury/

 

I like Autoblogs' posting...nothing but Jill Wagner Photos :P

[AlRozzi]

To me, this is not good news at all. Yes, I own two Mercurys, but there is more to this as I see it. Ford has no money. With over 30 billion dollars in debt, they can't afford to fund anything but debt. After selling off all the foreign brands at a huge loss and dumping rear-wheel drive cars, Ranger and now Merc, it seems they must sell a zillion Fiestas for the next five years to pay down debt.

 

All the while Chrysler is adding brands and GM is broadening Buick and other brands, including a Colorado replacement.

 

Bankruptcy was a brilliant move. Debts gone and taxpayer cash to fund new models.

 

Hey, I'm a Ford guy all my life and I'm not a basher. I have an MBA so I understand finances. What I see is a company struggling. Analysts are mostly bullish on Ford, so maybe I'm missing something? But what new product does Ford have after Explorer?

[Edstock]

IMHO, it's a slow news day.

 

Mercury offers Ford a second marketing channel, similar to VW and Audi. Now, the cost of top hat and/or wheelbase differentiation could mean that it makes sense to fold the brand, but that also depends on whether Ford wants to produce Mercury models that have no Ford counterparts. For example, the Escape is a traditional-looking SUV shape that a lot of people like, so maybe the Kuga should be a Mercury.

 

IIRC, the Comet was very successful, as a stretched Falcon with a different top hat.

[Fordowner]

Interesting the initial Bloomberg story had more detail, then with the addition of the spokesperson's denail they've scared it back

 

Relative to the original story, and CNBC's story I wondering why they talk about the various models but not the Tracer. That does seem to be a big issue, but guess writers don't know enough about past ford announcements to ask about that. I'd like to see them keep Mercury I thought the mountaineer looked better than the Explorer, but I'm also a shareholder and buy Fords so if the business model argues for elimination I guess I would get over it.

 

But based on the spokesperson's quote it looks like media following one misleading statement and as others say, chalk it up to a slow newsday.

[RichardJensen]

The Ford & Mercury relationship is MUCH different than the Saturn & Buick or Pontiac & Chevy relationship. Does anybody buy a Mercury because they didn't want a Ford?

 

Mercury buyers are, on average, wealthier, better educated, and more often female than Ford buyers.

 

This is borne out by Ford's own research. Mercury buyers ARE different.

 

And, since the DetNews article that provided that data is now archived, here's Warren Brown's anecdotal experience with Mercury:

 

http://www.washingtonpost.com/wp-dyn/content/article/2007/05/10/AR2007051000949.html

 

---

 

Rule number one of brand management: brands mean things.

 

Procter & Gamble hasn't pulled the plug on Cheer & Era, despite the lack of any meaningful difference in cleaning power.

 

There -used- to be more of a difference between Cheer, Era, and Tide, just like there used to be a meaningful difference between Ford & Mercury.

 

So, if P&G realizes that they can't increase Tide volume by dumping Cheer & Era, Ford undoubtedly realizes they can't dump Mercury and increase Ford sales by a corresponding amount.

 

And if you don't want to look at detergent, look north of the border.

 

Ford axed Mercury in Canada, and it did not generate increased Ford volume.

 

-----

 

Bottom line, people buy Mercuries instead of Fords for a REASON. They may not be able to articulate it, but they do it.

[2005Explorer]

I'm confused... Isn't there a new Tracer coming?

[mike_in_va]

I'm confused... Isn't there a new Tracer coming?

 

Ford had all but made an official announcement of the Tracer early this Spring. They were even tweeting about it. Suddenly, the Tracer was pulled from the NY Auto Show That should have been our clue that something was up.

[BORG]

I think Ford is now financially secure enough to close-up Mercury, time to take that opportunity to continue cleaning house. Mercury's status may also be important at this point because they are planning the next small CUV and I bet they want Lincoln to have it, not Mercury.