Mercury ever closer to getting the axe
The writing's on the wall for Ford's pseudo luxury brand Mercury, which is now tipped to face extinction within the next couple of years. Flagging sales and no major new products in the pipeline mean Ford execs are likely to close the book on Mercury for good, and it could happen as early as 2012. Both industry experts and Mercury's own dealers are predicting the brand won't be around much longer. In fact, a recent survey of 125 dealers found that nearly four out of every five dealers were concerned that Ford is planning to dump Mercury.Sales for Mercury last year totaled 180,848 units in the U.S., less than eight vehicles a month per franchise and the lowest total for the label since 1960. Remember, Chrysler killed the Plymouth brand because its sales dropped to 246,000 units per year and GM said goodbye to Oldsmobile when its annual tally dropped to 289,000 vehicles. So where does that leave Mercury? According to one expert, it leaves Mercury on life support. Of course, we've heard similar reports before, and yet Ford brass continue to pledge support for Mercury with their words. Too bad they refuse to do so with decent products.
[Source: Automotive News - Subs. Req'd]
Reader Comments (Page 1 of 5)
Nick Dasko 5:58PM (9/03/2007)
How about the fact that Mercury has been dead in Canada since 1999. The only Mercury that Canadians could buy for almost a decade has been thr Grand Marquis.
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Barney 9:36PM (9/03/2007)
I can recall the Mercury pickups (of which the Americans never had) but were sold by your local Ford & Mercury dealer.
DriverG 5:39PM (9/03/2007)
Lincoln only sold about 120,000 cars in 2006 and that's with a reasonably distinctive product line - how is that nameplate any more viable than Mercury? For that matter, why is a resurgent Cadillac that is only going to sell about 200,000 units this year any safer? Sure, they make a few more bucks per car than Olds or Plymouth did - but those are hardly big-time sales numbers
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L.A.G. 6:54PM (9/03/2007)
Luxury nameplates don't have to move as much volume as mainstream nameplates, nor are they expected to.
bw 5:56PM (9/03/2007)
Yea, Lincoln sells considerably less, and yet they are safe from the axe?
far jr 9:24PM (9/03/2007)
Isuzu, Suzuki, Mitsubishi, Land Rover, Volvo, Jaguar, Audi, Saab, VW, Hummer, Acura, Lincoln, Subaru, and many other makes would also be on the chopping block in the American market if "US sales" was the only indication of success or death of a marque. Many brands support dealerships in the US while only moving 200,000 +/-.
The number of dealerships, and the fact that there is little to differentiate a Ford from a Mercury. There-in lies your problem.
Good Bye Mercury! Godspeed.
blogged to death 12:12AM (9/04/2007)
Don't confuse brands that are meant for high volume, low margins (Mercury) versus luxury brands that are meant to provide lower volume, higher margins (Lincoln / Cadillac, etc.). If Mercury was something unique (such as Pre GM Saab or Subaru) and sold with higher margins then they can survive.
But from since I've known Mercury (since the 80's) it's just a knock a rebadged Ford with the same quality woes and pitiful depreciation.
Gary 8:47AM (9/04/2007)
This is not to mention the fact that - as far as I know - there are no "Mercury" dealers, only Lincoln/Mercury dealers. Seeing as how the Mercury side of the showroom is responsible for 50% more sales than the Lincoln side, those MK-whatevers are going to have to make some siginificant strides in sales in order to convince the dealers to give up their volume leaders. Given that the rumor says it'll be five years before Mercury gets the plug pulled, this is probably what Ford is hoping for - but we'll see how that works out for them.
LCN 5:52PM (9/03/2007)
Ford should just rebadge their European cars as Mercurys and bring them here (with any changes necessary to pass US safety standards)
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John 12:27AM (9/04/2007)
Re-badging European or Aussie Fords as Mercurys doesn't do anything for Ford's globalization plans. Fords that warrant a global role should be Fords everywhere, and where they are sold only in one country, then they should have a local brand (like Mercury), and if they can't cut it on their own, then dump them, and the brand.
500 8:46PM (9/03/2007)
Yes, lack of product is a major part of the problem, but Ford's marketing for the Mercury division has been a disaster. Whoever made the decision a few years ago to aim Mercury exclusively at single women should be fired. Sure, they may have noticed that 60% of their buyers were women, but as any car guy can tell you, you can sell a guy's car to a woman, but you can't sell a chick car to a man. Overnight, they turned off 40% of their buyers.
That kind of strategy may work with razors, but not with cars.
ebm14 12:28PM (9/04/2007)
I agree. Just take a look at the UK line up and the stuff from down under. It would be great idea to sell what they already have and save on R & D.
Also, I like the Mercury Mariner so much better than the Escape.
Tool 6:10PM (9/03/2007)
180,000 units = 1 pt market share.
It's probably a good idea to get rid of Mercury, but Ford better have a plan in place so that it doesn't lose those customers, too.
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Joshua 6:48PM (9/03/2007)
New Cougar plz, kthxbye.
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Larry 6:47PM (9/03/2007)
I am quoting a post I saw here months ago "Lincoln is now MERCURY, and that leaves Merc even more superfluous than ever." What a shame.... what a shame what has happened to FOMOCO!
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R Wiggler 8:23AM (9/04/2007)
Ford has set the stage for the elimination of this brand with the consolidation of many Lincoln and Mercury dealers into Ford dealers. There is now no reason for Mercury to exist as they are sold on the same lots as Fords.
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SPG 7:20PM (9/03/2007)
For over ten years now industry experts and car fans have been saying that Mercury should be a modern day Saturn.
Take some of the good Euro Fords as Saturn does with Euro GM's and rebadge them.
We all know the Contouor (SVT Contour rocked) and Mystique did not work and maybe that's why Ford is not doing this.
I really want to see some Euro Ford's over here and it's an excellent way to revive Mercury which used to mean at least a little somthing.
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geo.stewart 8:55PM (9/03/2007)
I have said the same thing and firmly believe this is a better path for Ford than killing off an established nameplate.
Ford has always been against Chevy. Lincoln vs Cadillac. Mercury has kind of been fumbled around as the nice Ford.
GM has been smart and listened to the wails for Euro-product here and is using the Saturn network with its terrific dealer experience reputation. Ford should use Mercury to bring over the kinetic design. The big arguement that Euro Ford costs more can be answered by branding as Mercury. Want a little better than the US Ford Focus, how about the Mercury Tracer (Euro Focus)?
Ford is still iving in the past, thinking of geographies as niches instead of geography as global, allowing for niche vehicles in multiple geographies.
goat 9:50PM (9/03/2007)
They could also bring in some of the Aussie Fords as Mercurys. Fairlane LTD, Falcon, Territory. And, while I'm no fan of hybrids, whatever happened to the Meta One?
Jeff R. 7:33PM (9/03/2007)
A "bold move" by Ford Motor Co. would be the elimination of Mercury. Lots of money can be saved, FoMoCo.'s other brands can hopefully be improved too as a result. Given its sales have dropped so sharply (180,000+/- sales are pretty pathetic for a non-luxury label) and the brand has no unique products, why is Ford even bothering to keep the brand?
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