Ford to Close Mercury’s Door: The End of an American Car Brand
Ford Motor announced this week that it will cease making Mercury brand vehicles later this year. While the demise of Mercury was much speculated, the end of yet another storied American car brand will close its doors at the end in the fourth quarter. Mercury had slowly decreased in models, with this year the production line consisting of just four, the Milan, the Mountaineer, the Grand Marquis, and the Mariner.
Ford said Mercury accounts for less than one percentage point of the company’s 16% market share. Ford noted that overall sales rose 23%, but those of Mercury vehicles, fell nearly 11%. The philosophy behind this move, Ford claims, is that they can better allocate resources to its core Ford and upscale Lincoln brands. Furthermore, Ford said it plans to introduce seven new or refreshed Lincoln models over the next four years to better compete against its rivals.
There are no stand-alone Mercury dealerships in North America, Ford said, adding that it is working with dealers to maintain “properly located” Lincoln-only and Ford-Lincoln dealers. Mercury, introduced in 1939, was conceived as a premium offering to Ford and was once an important source of incremental sales, Ford said. However, the better-known Ford brand often left Mercury in the shadows, despite marketing efforts to distinguish the brands. Today, the profile of consumers who buy Mercurys is largely indistinguishable from those that purchase Fords, the automaker said. Further, the majority of Mercury sales are to fleet buyers and others purchasing through discount programs.
Sales of Mercury peaked in 1978 at more than 580,000 vehicles but have declined ever since, to about 92,000 last year. It was among the last of a group of not-quite-luxury brands among U.S. automakers that included General Motors’ Buick, Oldsmobile and Pontiac lines. Buick is still around, but GM shut down Oldsmobile in 2004 and Pontiac was shuttered earlier this year.
Posted by reedman on Jun 3 2010 in Lincoln-Mercury News


