• Aug 11, 2010
Mercury is two months away from execution, leaving the brand's 1,700 dealers in a pretty tough spot. Essentially, they've got three choices: Agree to Ford's terms and walk away, negotiate and walk away, or pick a legal fight with The Blue Oval. Automotive News reports that about 1,000 dealers still haven't signed FoMoCo's compensation agreement and some of those dealers reportedly stand to lose millions of dollars in the deal.

Dealer lawyers claim that compensation has ranged from between $100,000 and $800,000, depending on a number of factors, including the dealer's dependence on Mercury sales and the average amount of vehicles sold over a three year period. A princely sum, sure, but it won't help some of the dealers who count on Mercury for 50 percent of sales or more. AN reports that Ford acknowledges that some dealers are in markets that cannot support a Lincoln-only store, but the company claims to be working with dealers to get them to sell Fords or sell the remaining Lincoln store to an existing Ford dealer.

Ford will stop producing Mercury-branded vehicles in early October, and while some dealers are picking up as many vehicles as possible, others have stopped ordering vehicles altogether. And until they sell out of their Mercury stock, Ford won't cut dealers a compensation check.

[Source: Automotive News - Sub. Req. | Image: AP Photo/David Zalubowski]


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  • 22 Comments
      • 4 Years Ago
      "Agree to Ford's terms and walk away, negotiate and walk away, or pick a legal fight with The Blue Oval."

      I read that in the voice of the Lord Humungus, the ayatollah of rock and rollah.

      "JUST WALK AWAY."
      • 4 Years Ago
      Special Attn:
      WE ARE HERE FOR THE PURPOSE OF XMAS LOAN AND THOSE LESS PRIVILEGED WHO HAVE NO OF
      GETTING FUNDS ,BUT THERE IS HOPE AS WE ARE READY TO OFFER LOANS TO
      WILLING INDIVIDUALS WHO NEEDS THESE FUNDS FOR SOMETHING TO BETTER
      THERE LIVES. SO ALL YOU HAVE TO DO IF YOU ARE ONE OF THOSE IN NEED OF
      LOAN IS TO CONTACT THIS FIRM WITH THE BELOW INFORMATION SO THAT WE
      CAN HAVE A CLUE OF WHOM YOU ARE AND WHAT YOU NEED

      Note, That all response should be sent to this mail: goodlock.trustloanfirm@gmail.com

      INFORMATION NEEDED
      1YOUR NAMES.................
      2 YOUR LOCATION.................
      3 LOAN NEEDED..............
      4 DURATION (YEARS)..............
      5 PHONE.......................
      6 FAX...........................
      7 MONTHLY INCOME....................
      8 OCCUPATION....................
      9 HOME ADDRESS...............
      10 COUNTRY....................... .
      contact email:.........
      Thanks And Regards
      • 4 Years Ago
      Special Attn:
      WE ARE HERE FOR THE PURPOSE OF XMAS LOAN AND THOSE LESS PRIVILEGED WHO HAVE NO OF
      GETTING FUNDS ,BUT THERE IS HOPE AS WE ARE READY TO OFFER LOANS TO
      WILLING INDIVIDUALS WHO NEEDS THESE FUNDS FOR SOMETHING TO BETTER
      THERE LIVES. SO ALL YOU HAVE TO DO IF YOU ARE ONE OF THOSE IN NEED OF
      LOAN IS TO CONTACT THIS FIRM WITH THE BELOW INFORMATION SO THAT WE
      CAN HAVE A CLUE OF WHOM YOU ARE AND WHAT YOU NEED

      Note, That all response should be sent to this mail: goodlock.trustloanfirm@gmail.com

      INFORMATION NEEDED
      1YOUR NAMES.................
      2 YOUR LOCATION.................
      3 LOAN NEEDED..............
      4 DURATION (YEARS)..............
      5 PHONE.......................
      6 FAX...........................
      7 MONTHLY INCOME....................
      8 OCCUPATION....................
      9 HOME ADDRESS...............
      10 COUNTRY....................... .
      contact email:.........
      Thanks And Regards
      • 4 Years Ago
      This has been beaten to death but whatever.

      Mercury makes just a teensy portion of FoMoCo's total sales. Even Lincoln/Mercury dealers sold 90% Lincoln. I don't believe there exists even a single dealership out there that relies on Mercury for anywhere near 50% of total sales. It's just too small.

      Offer the dealers that don't already sell Ford cars the option. Those that (amazingly) sell Mercurys alongside Fords, offer the payout. Negotiable.

      Ford is working hard to help these dealers, and they are being nickel and dimed by the lawyers. No good deed goes unpunished, I guess.
        • 4 Years Ago
        I bought my 04 LS from a Lincoln Mercury dealer that had 90% Mercurys on the lots... mostly Grand Marquis and Milans and a few Mariners...

        It only had about 10 Lincolns on the lot, mostly town cars and 2 MKTs
        • 4 Years Ago
        I can't imagine a market which could support a Lincoln-only dealership. I seem to remember Mercury sales being about half of the sales at a typical Lincoln-Mercury dealership.

        Will Lincoln dealerships be allowed to bring in another non-Ford brand into their available space? Mazda and Volvo are fairly closely related. I could also see a rural dealership branching out into another luxury brand like Lexus or Infiniti. Those luxury brands typically only have dealerships in urban areas.
        • 4 Years Ago
        "Lincoln/Mercury dealers sold 90% Lincoln"

        Then how you explain Mercury vehicles have consistently outsold Lincoln vehicles?

        "I don't believe there exists even a single dealership out there that relies on Mercury for anywhere near 50% of total sales. It's just too small."

        Believe it, brother. You might want to go look up actual data before shouting off something false.
      • 4 Years Ago
      Why pay them anything? Just stop shipping them cars. Problem solved.
      • 4 Years Ago
      Dealers want more money for losing Mercury? I would not have expected that, but then I just heard water is wet.
        • 4 Years Ago
        They were offered a generous amount from FoMoCo to begin with, I can't believe they want more. Good luck with that....
      • 4 Years Ago
      No one has expressed the obvious: Lincoln is next. Watch and see. This new world order that we have cannot sustain the usual re-badging of cars we have. Ask Plymouth, Saturn and Pontiac.
        • 4 Years Ago
        the lincoln mkS is VERY different than the ford taurus... even the mkZ and the mkX, which are somewhat similar to their ford counterparts are still at par with other luxury brands that rebadge their cars like lexus and infiniti...

        but back to topic, ford was lazy and decided to discontinue the brand... if it was selling more than lincoln, it should've invested to make it profitible, like GM did with buick, not do away with... imagine having a profit with a high volume of sales... that would mean more money coming in...
      • 4 Years Ago
      Oh here we go again.

      Typical dealers being their typical slimy selves.
        • 4 Years Ago
        "Also, the whole inventory thing sounds a little sketchy... a dealer might have $X worth of inventory on hand, but I don't believe for a second that the dealer actually pays for it until the car is actually sold."

        Its called floorplan and yeah its a big loan. But you can't have a big floorplan without big credit and without putting up some of your own cash to back it up. Maybe you wouldn't have such a hard time feeling sorry for them if you actually knew how the business works. Some of these are family owned and have been in the business for decades. IF someone comes along and arbitrarily and effectively puts you out of business for a reason you don't agree with you are going to put up a fight, plain and simple.
        • 4 Years Ago
        This is not some NEWSFLASH.

        Mercury has been on the downswing for ages now, so none of these dealers can say that "oh, this is a big shock, we never expected it."

        Ford has for years now been pushing their dealers to combine into Mercury/Lincoln in anticipation of them killing off Mercury altogether. If they are too weak to only sell Lincoln then how the heck do you expect them to pay for dealer upgrades that a true luxury brand will need moving forward? If Ford is going to push Lincoln into a true "premiere" position, they are going to need high-end dealers just like Cadillac, Jag, Lexus and others have. Some Lincoln-only dealer that is just "getting-by" is not going to be able to make those necessary upgrades which will look badly on the entire Lincoln brand in that region.

        Also, the whole inventory thing sounds a little sketchy... a dealer might have $X worth of inventory on hand, but I don't believe for a second that the dealer actually pays for it until the car is actually sold. In which case, the dealer is not losing out on those cars.

        I'm sorry, but I have a hard time feeling sorry for dealerships... time and again they have proven to be a rather sleazy, and with their rather strong local business laws protecting them, I simply do not see them really losing out no matter what offer Ford gives them.
      • 4 Years Ago
      GM had the advantage of bankruptcy to kill brands more easily.
      • 4 Years Ago
      Yeh they'll be a number of dealers who may close up shop saying it is because they lost Mercury, but in reality...

      1). they saw this coming for years and should have adjusted their long-term business plan..maybe added a lower end import franchise
      2). they had plenty of time to grow their used car sales and service business. I know of one Lincoln-Mercury dealer who did just that in a smaller market and will survive the Mercury loss just fine
      3). maybe it is time they give up their Lincoln franchise and sell it to a Ford store and retire. this could prove to be the out many actually needed
      4). they go out of business because, just like all other industries in the US.. certain situations weed out the weak among the rest. the auto industry is no different
      • 4 Years Ago
      maybe ford should just take the mercury small SUV escape twin and make a cheap Lincoln out of it , to give those dealers some thing cheap to sell in the markets that can't handle a Lincoln only dealership . Call it The Lincoln Mercury . This way ford has to do nothing but put a Lincoln name plate on the small SUV , just leave the same styling and change nothing except, maybe add a upgraded interior with better leather seats and a better stereo system
        • 4 Years Ago
        Luis tell me what main brand does not copy their cars for their upper end cars, besides Hyundai's genesis which stands on it's own legs and Cadillac which only uses the platforms of gm cars, Toyota's Lexus are re-baked Toyota's, Nissan's infinities are re-baked Nissan's , Honda's acura's are re-baked Honda's in some some cases, the acura's here are re-baked Honda accords across the sea! Every car manufacture does this so your point is not that big!
        • 4 Years Ago
        and further show that Lincolns are nothing more than lightly/cosmetically altered cheap Fords? Sounds like a winner to me!
        • 4 Years Ago
        farmer, that's just not a good idea at all.
        • 4 Years Ago
        your a winner to luis , :)
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