Mercury Dead, Lincoln Lineup to Expand

[PREMiERdrum]

FORD TO EXPAND LINCOLN LINEUP AND BRAND EMPHASIS; MERCURY PRODUCTION ENDS IN FOURTH QUARTER OF 2010

 

* Ford is expanding its Lincoln lineup with seven all-new or significantly refreshed vehicles in the next four years – including its first-ever C-segment vehicle

* Lincoln's plan accelerates with more investment and attention on standout product design, class-leading technology and powertrains delivering top performance and fuel efficiency

* Lincoln product development, marketing, sales and service resources expanding as the brand competes with Cadillac and Lexus in the marketplace

* Ford 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 Lincoln

* Existing Mercury owners to receive continued access to parts and service support at Ford and Lincoln dealers; current Mercury vehicle warranties and Extended Service Plans will be honored; special offers available on new Mercury vehicles through the summer

* Affected dealers to receive specialized support during the transition, as the company continues its transformation to a more profitable dealer network

 

DEARBORN, Mich., June 2, 2010 – 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."

[saintlaz1]

i CANT BELIEVE THIS $HIT!

[NickF1011]

This is the part that sealed it as the right decision for me:

 

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.

 

The Ford brand has expanded by more than double Mercury's entire market share so far this year.

Edited June 2, 2010 by NickF1011

[jpd80]

New Lincoln-exclusive powertrains, including an all-new V-6 engine and advanced fuel-efficient transmissions

 

Anyone know what all new V6 engine they're talking about?

 

Could it be the fabled 2.7 EB V6?

[PREMiERdrum]

* 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

 

I like the sound of this.

[tzach]

It is a sad day, I see why it had to happen and agree with the decission, but it is still a sad day. Goodbye Merc you had a good run. As long as there are Merc's on the road no one will forget. I will keep my 69 Marquis convertible out there to help carry the Flag. RIP MERCURY!

[tzach]

It is a sad day, I see why it had to happen and agree with the decission, but it is still a sad day. Goodbye Merc you had a good run. As long as there are Merc's on the road no one will forget. I will keep my 69 Marquis convertible out there to help carry the Flag. RIP MERCURY!

[NickF1011]

Anyone know what all new V6 engine they're talking about?

 

Could it be the fabled 2.7 EB V6?

 

I would guess a direct-injection 3.7.

[jpd80]

I'll be interested to see what deal is worked out with Lincoln - Mercury dealers, one of their franchises gone means Ford will have to guarantee that their extended Lincoln and Ford product line improves sales for its dealers. I guess we'll know soon enough...

[saintlaz1]

I just cant believe i will never see a Cougar come back. I really wish the last car left standing was a Cougar thats how i could have dealt with this better.

[NickF1011]

I just cant believe i will never see a Cougar come back. I really wish the last car left standing was a Cougar thats how i could have dealt with this better.

 

Unfortunately, a new Cougar would have been pretty dependent upon the rest of the Mercury lineup being in pretty good shape, as it would likely would have been the lowest volume model in the entire lineup, and thusly probably the first to get canned when things went south. Just how it usually goes.

[Ovaltine]

The worst thing of ALL, about this?

 

NO MORE JILL WAGNER ADS!!!!!!!!!!

 

 

 

 

 

 

-Ovaltine

[NickF1011]

The worst thing of ALL, about this?

 

NO MORE JILL WAGNER ADS!!!!!!!!!!

 

Not necessarily. After all, I would imagine that she was under contract with Ford Motor Company, not Mercury. Would love to see her do some Ford ads alongside Mike Rowe. Sort of that 1-2 "All-American" punch.

[jpd80]

Unfortunately, having a Ford level brand for people who would never consider

buying a Ford product is seen as yet another distraction to Ford's core business.

[NickF1011]

Unfortunately, having a Ford level brand for people who would never consider

buying a Ford product is seen as yet another distraction to Ford's core business.

 

Fortunately, those people who like Ford products but wouldn't consider a vehicle with a Ford name on it constitute less than 1% of the market.

[buddysystem]

I really like this part from the press release

 

"electronic, push-button gear-selectors"

[NickF1011]

There is no need to panic. Mulally said "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."

 

Let's bring on the picture! :lol:

Edited June 2, 2010 by NickF1011

[AlRozzi]

Who knows? Maybe a year from now there will be announced a new brand, perhaps one focused on electric and hybrid cars and sold in Ford showrooms?

[Anthony]

Customer letter: http://www.ford.com/doc/20100602_customer_letter.pdf

Customer Q & A: http://www.ford.com/doc/20100602_m_faq.pdf

[sonofford]

It was the right thing to do.

 

Just a factoid for the obituary: while more recently Mercury has been touted as being more attractive to women, it was not historically seen as a "woman's" car.

 

Check out some of these old ads, particularly this one:

 

http://multimedia.detnews.com/pix/photogalleries/autosgallery/FordMercuryAds/index51.html

[FordBuyer]

Fortunately, those people who like Ford products but wouldn't consider a vehicle with a Ford name on it constitute less than 1% of the market.

 

Ford said today that much of the Mercury sales now are fleet and to Ford employees and their family members. So that means maybe .3% of the market. Just think...if the Fiesta sells well it will more than make up for lost sales from Mercury. Add in new models for Lincoln and Mercury volume will be history in short time.

[akirby]

I would guess a direct-injection 3.7.

 

That would make sense although I don't know if that would qualify as "all-new". Maybe an ecoboost 3.7L for the MKR? Or a smaller premium V6 for the C segment "vehicle".

[artandcolour]

very sad day.

 

at 16 my dad bought me a 4 year old '69 Mercury Comet 2 door pillarless coupe, the bottom rung of the Montego lineup by then. it was highly optioned though, with a 302V8, AC, auto trans/power steering/brakes and an electric trunk opener. and it had rubber/vinyl "carpeting" instead of real carpet, lol, an odd "cheap" touch given Mercury's upscale pretensions. great car without many miles at all.

 

i've been 'chopping' Mercurys in photoshop for years, hoping someone would see 'em and breathe new life into Mercury, but alas. twasn't to be.

 

RIP Mercury, 1939-2010. : (

[timmm55]

Ford might as well toss Lincoln into the garbage too. Lincoln has never met it's potential either. It was never a Cadillac (or Lexus or BMW or ....) fighter.

 

Really, just make it "ONE FORD" and be done with it.

 

This really pisses me off. Mercury was squandered for the last 10 or 20 years. This is Ford's fault. They could have done so much with the Mercury brand. When they ditched PAG I had hopes they'd invest in new products for their "lost brand." The only reason it was lost is my their own neglect.

 

They basically lost a company that produced 500,000 cars a year. That's inept......maybe Ford shouldn't be in business either.

[630land]

Looks like Grand Marq dies this calender year. It was time to pull the plug, and Ford brand comptes globally.

 

Lincoln only dealers can now fully compete with luxury makes, and no need to have money losing cars like Topaz or Mystique sitting in the same showroom.

 

You don't see Scions in Lexus dealers, and to younger buyers, [under 60]. Mercury = old fart in Grand Marq going 45 in left lane on Interstate, with blinker on.