Dealers Worry About Mercury

[ANTAUS]

LINK-Detroit News

[PREMiERdrum]

I see the dealers concerns, but how soon would we see "new products" in the pipeline if they were there? We know that the new '10 Milan (including the Hybrid) is coming soon, and the Mariner was just redesigned, then getting more upgrades for 2009. What does that leave? The Mountaineer will soldier on through this Explorer's product cycle. The Sable (who's sales have been rather insignificant) is also questionable as the next new Taurus comes out, but what would we expect to have seen? All we know of the Taurus is that it made Big Al cry and in the fuzzy picture it looks pretty good. Mercury still serves a purpose in the L/M showroom. I don't see the current situation as pointing to Mercury's demise. It is doing exactly what it is intended to do, and might get some attention once the Ford and Lincoln brands are through their makeover.

[mettech]

The hand writing is on the wall. It looks like they may have only two vehicles in the lineup within 4 years or less.

 

The L/M dealerships had better be looking for a Mazda and/or Volvo soon....

 

That wouldn't be a bad trade.

Edited May 27, 2008 by mettech

[PREMiERdrum]

The L/M dealerships had better be looking for a Mazda and/or Volvo soon....

 

That wouldn't be a bad trade.

 

I think Mercury still serves a purpose paired with Lincoln. People always want more car than they can afford. With Mercuries in the showroom, a customer can be shown the "similar" Milan when the payment on an MKZ comes back to high for them. Someone aspiring to get into a Navigator might be able to drive a Mountaineer off the lot. Would those customers have "settled" for a Mazda? Certainly a similar Volvo wouldn't save the customer any money.

 

I think a Lincoln/Mercury/Volvo dealership would be neat though.

[saintlaz1]

LINK-Detroit News

 

I guess we wait and see come septemeber, maybe ford has a trick up thier sleave?

 

 

COUGAR!!!!!!!!!!!! Its Time!!!!!!!

[NickF1011]

The hand writing is on the wall. It looks like they may have only two vehicles in the lineup within 4 years or less.

 

The L/M dealerships had better be looking for a Mazda and/or Volvo soon....

 

That wouldn't be a bad trade.

 

Well, with the increase in model count for Lincoln, they very well could survive as a solo franchise. Overall, their portfolio size will be about the same as it was 7-8 years ago, even without a Mercury in the showroom. With the increased transaction prices on Lincolns also, they wouldn't need as much volume to bring in the same revenue.

 

Heck, I still see plenty of standalone Acura and Infiniti dealerships, and we know what their volume looks like these days.

[ANTAUS]

It wasn't too long ago, in the mid-late 90s that Lincoln survived which just 2 products...Navi and TC. (I believe that was 98, when the Conti/Mark8 were dropped). I dont see it as impossible for L/M dealers to survive. Problem is, 3 main products in that dealership...Panther TC and GM, and Mounty will probably be dropped soon because of fuel prices increase. If you look at it, L/M dealership doesn't really have much of a fuel efficient line if your looking at it...Maybe Mariner Hybrid and Milan might be the only 2. It's harder for Ford to justify that business case unless they wish to throw in some B/C Segment vehicles onto them.

 

Maybe the only thing to appease the L/M combined dealerships might be the introduction of more Lincoln vehicles that might alow for higher profit margins for them, to compensate for the loss of Mecury vehicles. And in this economy, I dont think the luxury brands will be fairing too well either...

[NickF1011]

It wasn't too long ago, in the mid-late 90s that Lincoln survived which just 2 products...Navi and TC. (I believe that was 98, when the Conti/Mark8 were dropped). I dont see it as impossible for L/M dealers to survive. Problem is, 3 main products in that dealership...Panther TC and GM, and Mounty will probably be dropped soon because of fuel prices increase. If you look at it, L/M dealership doesn't really have much of a fuel efficient line if your looking at it...Maybe Mariner Hybrid and Milan might be the only 2. It's harder for Ford to justify that business case unless they wish to throw in some B/C Segment vehicles onto them.

 

Maybe the only thing to appease the L/M combined dealerships might be the introduction of more Lincoln vehicles that might alow for higher profit margins for them, to compensate for the loss of Mecury vehicles. And in this economy, I dont think the luxury brands will be fairing too well either...

 

Last I checked, several other luxury automakers get by just fine without any B/C-segment offerings. Lexus comes to mind.

[Edstock]

Mercury started as a long wheelbase Ford model. Maybe it should return to that status, and all FoMoCo dealers should sell Ford, Mercury and Lincoln.

 

It seems we'll all know in September.

[NickF1011]

Mercury started as a long wheelbase Ford model. Maybe it should return to that status, and all FoMoCo dealers should sell Ford, Mercury and Lincoln.

 

It seems we'll all know in September.

 

I disagree on all counts. Mercury no longer has the volume to afford using its own wheelbases of platforms. Even using completely unique sheet metal is a stretch these days.

 

And sharing dealerships is a bad idea as well. Many people buy Lincolns and Mercurys because of the dealership experience. Do you really think the same guy who is used to selling Focuses and F-150s is going to know how to handle someone looking for a Lincoln MKS? The same extends to the service department. L-M consistently ranks near the top of the list in service experience -- Ford? Not so much.

[battyr]

Ford has to take a good look at Mercury and figure out who they want to sell cars to.

 

To me it looks like they are selling cars to people who want a Ford but don't like the 3 bar grill.

 

Ford can't afford to carry too many lines. They need the Ford line that sells everything. Mazda is independant enough so I won't look at them. And they need one luxury brand. Now should that luxury brand be Mercury, Lincoln, or Volvo. I would argue that the one luxury brand could be 2 brands if they are sold in the same dealer network, served different auto markets but served people in the same demographics. To be clear, two doctors belong to the same demographics, but a doctor who wants a BMW coupe is a different market than one who wants a Mark LT truck.

 

Here is the problem. Mercury sells cars to the working class. This is the same as Ford. Lincoln sells to professionals, the rich and want to be rich. Lincoln buyers might want a second cheaper car, but a rebadged Ford with the Mercury name on it is the wrong class.

 

Next problem, both Lincoln and Mercury should become brands sold world wide. This is needed if Ford is going to spend money on unique engineering from the Ford version. Lincoln could do it with design input from Europe. Mercury, forget it!

 

Volvo's problem. The cars are too expensive! Americans don't know what they are, so they need to be marketed by americans in the US. Sales are too low. The marketing solution is to sell with a high class American brand. The danger is to sell them in a dealership that sell to the wrong demograghics, or sell cars that compete against it. In Canada, GM has put Saturn, Saab, and Isuzu in the same dealer network. It works well. Most of their customers want small, fuel efficient, premium cars with a European, or Foreign taste. If you want a small premium truck, you get an Isuzu. If you want an premium economy car, you get a Saturn. If you want a premium sports car you get a Saab.

 

If Ford really want to sell global brands, and sell Up-market cars in Lincoln dealers, they should kill off Mercury and merge Volvo with Lincoln. Volvo to sell mostly small FWD cars, Lincoln sell mostly large RWD cars. Sell them world wide in the same dealer network. It won't hurt to sell Ford Foci and some trucks in Lincoln dealerships, but don't make them Ford dealerships.

 

Note that Volvo will not have to sell anywhere near as many cars as Mercury does now because they are more expensive and have more markup. The lost Merury sales will go to Ford sales. New Volvo sales will be picked up from the competition.

 

Looking at the big picture, Ford could make major profit if they can turn a Lincoln/Volvo brands into a Lexus and sold them world wide.

[mettech]

Well, with the increase in model count for Lincoln, they very well could survive as a solo franchise. Overall, their portfolio size will be about the same as it was 7-8 years ago, even without a Mercury in the showroom. With the increased transaction prices on Lincolns also, they wouldn't need as much volume to bring in the same revenue.

 

Heck, I still see plenty of standalone Acura and Infiniti dealerships, and we know what their volume looks like these days.

 

 

I don't see the local L/M dealership making it here in a small city 58K. Mercury is the brand that ankers the local L/M dealership.

 

BTW, the local Ford dealership closed last month...... A city of 58K is unable or unwilling to support a Ford dealership... sad

[NickF1011]

I don't see the local L/M dealership making it here in a small city 58K. Mercury is the brand that ankers the local L/M dealership.

 

BTW, the local Ford dealership closed last month...... A city of 58K is unable or unwilling to support a Ford dealership... sad

 

In a locale that small, one wonders how much money a dealership from any brand could really make. Some dealerships probably sell more vehicles in a year than your town's total population.

[mettech]

Like Penske Automotive Group?

[NickF1011]

Like Penske Automotive Group?

 

I know the Koons Automotive Group in the Mid-Atlantic sells a crapload of vehicles as well. I think I recall them running an ad campaign a few years ago when they were trying to deliver 20,000 vehicles in ONE MONTH from both their Ford and Chevy franchises.

[saintlaz1]

The lost Merury sales will go to Ford sales.

 

 

This is were you are incorrect most Mercury buyers wont buy a Ford, they want the mercury brand appeal and elegance compared to the poor mans ford.

[silvrsvt]

Thats one thing I don't get about auto dealerships, I know in my area, there are several Lexus only dealers, and there is a big dealership in NNJ that sells AM,Jag,Porsche, BMW and MB all at the same location. If these L/M dealerships are worrying about Mercury, why don't they bring in Mazda or some one else to pick up the slack? Another local LM dealership sells Mitsubishi at the same site they sell Lincoln's and Mercuries out of! There is another dealership that sells Ford and Iszuz together and where I got my car they do Dodge, Ford and Subaru...

[silvrsvt]

This is were you are incorrect most Mercury buyers wont buy a Ford, they want the mercury brand appeal and elegance compared to the poor mans ford.

 

In all seriousness, is there even a demographic for that? I know the only reason my parents got a Sable was they didn't care for the tribar grill on the Taurus and they wanted something "nicer" even though its not all that different from a Taurus.

 

A Ford lineup not worried about stepping on the toes of Mercury due to options would go along way in fixing the poor man image that ford may or may not have....

[NickF1011]

This is were you are incorrect most Mercury buyers wont buy a Ford, they want the mercury brand appeal and elegance compared to the poor mans ford.

 

Many say they wouldn't, but when it comes down to it, what else would they buy? It's easy to say you wouldn't buy something else as long as Mercury is still available, but if it was gone, what would they REALLY buy? Maybe a Buick? I don't see most of them suddenly turning to import makes....or even other non-Ford American makes.

 

Besides, the days of Ford being a "poor man's brand" are long behind us. There used to be a time when there was definite distinction in the images offered by brands. Ford was the bottom. Chevy was the bottom. Today there aren't many "bottom" brands being marketed. Maybe Scion. But the mainstream brands are just that. They offer up more content and quality now than they ever have in the past, pretty much negating the need for all of the 'tweener' brands like Mercury, Buick, and Oldsmobile.

Edited May 27, 2008 by NickF1011

[battyr]

Thats one thing I don't get about auto dealerships, I know in my area, there are several Lexus only dealers, and there is a big dealership in NNJ that sells AM,Jag,Porsche, BMW and MB all at the same location. If these L/M dealerships are worrying about Mercury, why don't they bring in Mazda or some one else to pick up the slack? Another local LM dealership sells Mitsubishi at the same site they sell Lincoln's and Mercuries out of! There is another dealership that sells Ford and Iszuz together and where I got my car they do Dodge, Ford and Subaru...

 

Selling Mazda in Lincoln dealerships would work. Mazda uses the same platforms as Ford, but look and act different. Mazda also does not compete with Lincoln.

 

Adding an association with Lincoln could raise the price of the Mazdas and maybe increase sales. The Mazdas will go a long way in bringing new non-Ford customers into Lincoln dealerships. Then Ford could kill Mercury and save money on having to do major product development on Mercury.

 

Only problem is that Ford only owns 30% of Mazda. They will have profit flowing to Japan and staying there.

[NickF1011]

Selling Mazda in Lincoln dealerships would work. Mazda uses the same platforms as Ford, but look and act different. Mazda also does not compete with Lincoln.

 

Adding an association with Lincoln could raise the price of the Mazdas and maybe increase sales. The Mazdas will go a long way in bringing new non-Ford customers into Lincoln dealerships. Then Ford could kill Mercury and save money on having to do major product development on Mercury.

 

Only problem is that Ford only owns 30% of Mazda. They will have profit flowing to Japan and staying there.

 

There is already some pairing of Mazda and L-M dealerships. There's one up the road from me where I originally test drove the Mazda3 and Mazda6.

 

Rich Morton Lincoln Mercury Mazda

Edited May 27, 2008 by NickF1011

[battyr]

This is were you are incorrect most Mercury buyers wont buy a Ford, they want the mercury brand appeal and elegance compared to the poor mans ford.

 

This will apply to a few customer. They will likely buy anything that the Lincoln dealer will sell them, whether it is a cheap Lincoln, Volvo, or Mazda.

 

Ford has tried to sell Mercurys as more elegant. Most people see them as just re-badged Fords.

 

My dad always bought Mercurys only because the local Lincoln dealer gave him a better deal than the local Ford dealer.

[saintlaz1]

This will apply to a few customer. They will likely buy anything that the Lincoln dealer will sell them, whether it is a cheap Lincoln, Volvo, or Mazda.

 

Ford has tried to sell Mercurys as more elegant. Most people see them as just re-badged Fords.

 

My dad always bought Mercurys only because the local Lincoln dealer gave him a better deal than the local Ford dealer.

 

There is still a strong community of people that perfer Mercury over a Ford sure the number has dwindle but its there. If Mercury was no longer around if I could afford it I would go to Lincoln otherwise I see myself with a Mazda.

 

My family has always bought Mercury, its a custom I guess I also Kept and yes I still see Mercury as a better class compared to Ford. Ill take a rebaded anyday.

 

Keep in mind rebadges arent hurting anyone, they cost no money and just add income, so whats the problem?

[NickF1011]

Keep in mind rebadges arent hurting anyone, they cost no money and just add income, so whats the problem?

 

They don't cost as much as a full-fledged independent brand, but they are hardly free. You still need to spend money on engineering to make them a step above Ford. A different badge doesn't automatically make it a step up. You also need to spend on marketing and advertising independent of the parent brand. Then there is the issue of dealership floor space. And then lots of little things like brochures, training guides, etc. None of that is free.

[retropia]

When I think of Ford dealers, I think of F150 pickups and Explorers, Toby Keith and Alan Jackson, and subprime customers who have difficulty qualifying for a loan on a Focus. I think of younger, less experienced salesmen and finance managers who push hard for "extras" like life insurance on the car loan. I think of goofy local ads that insult my intelligence and appeal to the lowest common denominator. I think of service departments with high turnover and hard "upsales" of stuff I don't need.

 

When I think of a Lincoln Mercury dealer, I think of a low-key, low-pressure sales experience with respectful sales and service personnel.

 

With Mercury, Ford has a chance of appealing to me with a nicer dealer experience than I'm going to receive at a Ford dealership. I'm willing to spend a little more to buy a Mercury to receive the better experience and slightly more upscale nameplate. Unless Lincolns are going to be offered at Mercury prices, I'm not going to shop Lincoln.