Debate: Did Ford pull the plug on Mercury prematurely?

[old_fairmont_wagon]

I think that previous administrations at Ford had so terminally screwed Mercury that Mullaly and Co. saw that it would be a poor investment to try to revive the brand.

 

I do so dearly hope that Ford can see to it that the Lincoln Escape is out very quickly.

 

Also, as a stop gap to try and recover some of the lost Milan volume, Ford could offer a MkZ with the PIP D30 at a lower price point, coupled with making the other MkZ engine the TiVCT D35. There's good performance separation there and would allow them to match up better against base level CTSs, G25s, IS250, A4s, etc. It will still have a smooth, competent V6 under the hood, still get decent mpg, just offer less performance. At least do that until the EB 2.0L engine package is ready to go.

[jpd80]

I think that previous administrations at Ford had so terminally screwed Mercury that Mullaly and Co. saw that it would be a poor investment to try to revive the brand.

 

I do so dearly hope that Ford can see to it that the Lincoln Escape is out very quickly.

 

Also, as a stop gap to try and recover some of the lost Milan volume, Ford could offer a MkZ with the PIP D30 at a lower price point, coupled with making the other MkZ engine the TiVCT D35. There's good performance separation there and would allow them to match up better against base level CTSs, G25s, IS250, A4s, etc. It will still have a smooth, competent V6 under the hood, still get decent mpg, just offer less performance. At least do that until the EB 2.0L engine package is ready to go.

Or drop the 300 hp TiVCT 3.7 into a higher level MKZ and make the D35 the base model....

With AWD and the 300 hp 3.7, the MKZ would be a pretty interesting ride,

almost as much fun as a heavy Ecoboost MKS....

[akirby]

Mulally doesn't make decisions like this on a whim or by himself. This was a team decision with a clear plan in place - that's how they operate now. It was either dueling plans where one finally won out over the other, or a new plan presented itself recently and was rushed through.

 

My personal guess is they want to revamp the Lincoln showrooms to compete with Lexus including separate showrooms for Lincoln in F/L dealerships. They started that a decade ago but stopped. Mercury was allowing these marginal L/M dealers to survive so getting rid of it accomplishes 2 things - fewer, better dealers and less distractions for the product and marketing teams to rebuild Lincoln.

[NickF1011]

Last time I checked they still make a Ford ranger - selling over 6K/month in fact.

 

I don't think Ford will walk away from the Ranger - I just think that they haven't figured out how to do a replacement efficiently. Apparently the global ranger isn't suitable.

 

Well, that's the problem.

 

1. The Ranger needs a replacement soon due to new regulations.

2. The T6 Ranger apparently won't be imported here.

3. Volume at TCAP is too low to justify continued production there.

4. NA Ranger volume is too low to justify its own new platform.

5. There are no other NA platforms that would be suitable for a Ranger replacement.

 

Add all those up and the future of the Ranger in NA doesn't look too good in the near term.

[RichardJensen]

Mulally doesn't make decisions like this on a whim or by himself.

So one hopes.

 

I would like to believe that Ford is moving to the separate show room model, but I have my doubts. A lot of that was 'built in' with the Lexus dealership franchise contracts, and Ford can't retroactively enact it in the Lincoln contracts.

 

Dumping the Mercury overhead into the Lincoln brand, I think, isn't going to yield much in the way of funds for showroom improvements or extra ad dollars.

[NickF1011]

So one hopes.

 

I would like to believe that Ford is moving to the separate show room model, but I have my doubts. A lot of that was 'built in' with the Lexus dealership franchise contracts, and Ford can't retroactively enact it in the Lincoln contracts.

 

Dumping the Mercury overhead into the Lincoln brand, I think, isn't going to yield much in the way of funds for showroom improvements or extra ad dollars.

 

The last Lincoln-Mercury dealership I was in was attached to a Mazda dealer. The layout was somewhat amusing. It had a separate showroom for Mazda and a separate showroom for Lincoln. ALL of the Mercury vehicles were parked outside.

[akirby]

I would like to believe that Ford is moving to the separate show room model, but I have my doubts. A lot of that was 'built in' with the Lexus dealership franchise contracts, and Ford can't retroactively enact it in the Lincoln contracts.

 

Dumping the Mercury overhead into the Lincoln brand, I think, isn't going to yield much in the way of funds for showroom improvements or extra ad dollars.

 

It would have to be done with incentives of course. Dumping Mercury simply reduces the number of Lincoln dealers, improving volume for the remaining ones and reducing the number of dealers that Lincoln has to revamp.

[battyr]

If you only want to sell a cheap sedan and an expensive sedan it makes more sense to sell the expensive sedan as an new high market brand. Also if you are a rich automaker with a large number of competitors, you can buy market share just by having more brands.

 

In todays market you need to produce as many models as possible at the lowest costs. This must be done with a laser focus. You don't want to develop many versions of the same car, you want to develop as many different types of vehicles as possible and be able to deliver them to as many peoples as possible through one common dealer network.

 

Ford could have dumped Mercury last year, but that would make them look like they were in the same financial trouble as the other companies that were dumping brands.

 

For the fans that want to keep Mercury, it is time to move up to a Lincoln. Not buy a re-badged ford and pretend it is a Lincoln.

[silvrsvt]

Anyone have the figures for how many independent L-M dealerships are out there...without any other brands? I know a couple of the local LM dealers sell Mazda or Mitsubishi, that aren't part of Ford dealerships....

[RichardJensen]

Anyone have the figures for how many independent L-M dealerships are out there...without any other brands? I know a couple of the local LM dealers sell Mazda or Mitsubishi, that aren't part of Ford dealerships....

 

That would be a very difficult number to come by.

 

You would basically need a site survey or comparison of addresses or corporate officers to determine if a LM dealership is dualed, or part of a dealership group.

 

---

 

But as a practical matter, I can't see how there could be more than 50--if that. The volume is just too small.

[silvrsvt]

But as a practical matter, I can't see how there could be more than 50--if that. The volume is just too small.

 

 

Exactly the point...I don't think many dealerships can cut it just on LM alone..

 

 

[boominup]

I'm pissed!! Last year I thought I did the right thing by buying a fully loaded Milan Premier thinking that Ford could use the help with the Mercury division. I could have just as easilly bought a Fusion and have gotten a near identical twin but to me the Milan looked better. Now what will happen to the value of my car after production ceases??? Will it drop like a lead balloon or will it stay on track like a similar Fusion. Man!! I've bought nothing but brand new Ford products since 1967 and now this. Maybe I'm barking up the wrong tree but I will make noise with this. That's 18 NEW Ford products I've bought in my lifetime and this happens. Have I told you I'M PISSED??? Brian

[2b2]

^ Boominup,

don't know if you saw Transpower's post:

You can voice your concerns to Ford Motor Company about the Mercury shutdown by calling (888) 333-7813. I did, and it felt good to let loose....

 

 

&

I think that previous administrations at Ford had so terminally screwed Mercury that Mullaly and Co. saw that it would be a poor investment to try to revive the brand...

no offense, old_fairmont

but I COMPLETELY disagree with that

 

Merc with only 2 modern vehicles outsold Lincoln with an even newer lineup of 4 (FOUR!) modern models

 

In fact,

my claim is that FoMoCo HAD TO Murder Merc NOW

cuz

IF "They" allowed the promised new small Merc to come out next year

- it would have doubled Merc's sales

- made it impossible at AXE them without open-n-shut lawsuits from the dealers

[jpd80]

Cancellation of Mercury in isolation looks odd until we realize what Ford is doing behind the scenes.

 

BOF Explorer and BOF panther are both being replaced by CAP products.

By closing down two BOF production lines and supporting Taurus and Explorer,

Ford gains a big reduction in production capacity and increased efficiency at CAP.

 

When you take the Grand Marquis away from Mercury sales, there's only basically

Milan and Mariner left. Both of those cars could be reabsorbed back into Ford

numbers or possibly Mariner shared with Lincoln, improving numbers there.

 

- Less internal competition on several fronts,

- Cancellation of BOF Panther and closing of STAP

- Cancellation of BOF Explorer and retooling of LAP

- Increases in D3 Production volume at CAP.

Edited June 18, 2010 by jpd80

[2b2]

^ you see, Jpd

it took me quite a while but I acclimated to the Small-Mercs-Theorem.

 

I was even willing to embrace it so that Mercury could survive until it will be desperately NEEDED - about 4 years from now imho.

 

Under that PLAN / LIE,

even the Milan was a bit large but still OK since the midsize sedan segment is The MAIN One here in the US

AND

with the C3 platform just about to come online (with 3 versions: short Focus-C-Max, long wlb Grand C-Max, & tall KuGa) there was the opportunity for significantly differentiated models for each of the 3 Brands - - tho imho Lincoln would have had to "nail" their attempt(s) = Bullseye Or Failure.

plus

the Mercury C557 (no point to call it Tracer anymore) was going to be MY NEXT CAR

which

I've been COUNTING on since the C1 Focus came out

and

"THEY" KILLED IT!!!

 

I'm actually naturally logical BUT have No Intention of being rational about this MURDER...

 

...EVER.

 

And

as I find myself saying to various Aussies,

think about how you would/will feel if/when "They" cancel your Falcon?

 

Except

the Falcon never sold 400,000 - 500,000 per year

 

MERCURY DID (10 years ago not 30) & COULD AGAIN.

 

g'nite

Edited June 18, 2010 by 2b2

[jpd80]

^ you see, Jpd

it took me quite a while but I acclimated to the Small-Mercs-Theorem.

 

I was even willing to embrace it so that Mercury could survive until it will be desperately NEEDED - about 4 years from now imho.

 

Under that PLAN / LIE,

even the Milan was a bit large but still OK since the midsize sedan segment is The MAIN One here in the US

AND

with the C3 platform just about to come online (with 3 versions: short Focus-C-Max, long wlb Grand C-Max, & tall KuGa) there was the opportunity for significantly differentiated models for each of the 3 Brands - - tho imho Lincoln would have had to "nail" their attempt(s) = Bullseye Or Failure.

plus

the Mercury C557 (no point to call it Tracer anymore) was going to be MY NEXT CAR

which

I've been COUNTING on since the C1 Focus came out

and

"THEY" KILLED IT!!!

 

I'm actually naturally logical BUT have No Intention of being rational about this MURDER...

 

...EVER.

 

And

as I find myself saying to various Aussies,

think about how you would/will feel if/when "They" cancel your Falcon?

 

Except

the Falcon never sold 400,000 - 500,000 per year

 

MERCURY DID (10 years ago not 30) & COULD AGAIN.

 

g'nite

 

I would have been happy to see Mercury given an almost complete line of vehicles

from Fiesta through to Sable, Mariner through to "Expedition and F150 variants....

 

But it was not to be and that's sad to see as I think Ford could have

really left GM lying in the dust with a strong Mercury range.......

 

 

And you ask me how Aussie Ford fans would feel if or when the Falcon is canceled?

We have been living with its imminent cancellation of the for the past 40 years,

 

1970 - US Maverick/British MK3 Cortina

1976 - British Granada

1982 - Fox platform shit

1988 - Ford Sierra

1994 - Taurus

2000 - Taurus

2004 - CD3 Fusion/EUCD Mondeo

2010 - Taurus/CD4 Fusion

 

Yes, I wonder how US Ford fans would feel if their favorite car

was continually under the axe for that amount of time...

[fou_bleu]

And you ask me how Aussie Ford fans would feel if or when the Falcon is canceled?

We have been living with its imminent cancellation of the for the past 40 years.

 

Amen!

 

Also, this would be much more disastrous than Mercury's death anyway - a) it would close Ford Australia as a manufacturer and B) put the local suppliers in trouble as they are just able to operate with the Falcon/Territory, Commodore and Aurion as it is! That many people at risk of loosing jobs would send VIC / SA into a apocalypse! lol

 

Back to Mercury...

 

I agree with akirby, because as I have tried to explain before someone - yes, you, 2b2, tried to cry so called "murder"

 

I guarantee there is a much bigger and well thought out picture here that we aren't privy to and killing Mercury now gets them to the end goal quicker.

 

Mulally is the man that has stopped Ford from imminent bankruptcy in 2005 / 2006 and has put us back on track for ultimate profit (ie: COMPLETELY out of debt in a few years). I highly doubt that he would just close Mercury because he and his board members were too lazy to fix her up.

 

Here's an example for what everyone has tried to explain for 4 pages:

 

Let's say it would cost FoMoCo $2bn to give Mercury a refresh - ie: Tracer, new Mountaineer (Kuga based), Ranger based model and a Cougar, but only $750m to add the "MKC" (Focus) w/ new features and bodies for the rest of the range. I sure know as hell which I'd choose when my company still has, what, about $30bn (?) in debt.

 

Just look at it like than then you'll see why Mercury had to be the one to take the bullet to ensure another 107 years of FoMoCo...

 

/rant

Edited June 18, 2010 by Aussie_Ford

[fou_bleu]

the Mercury C557 (no point to call it Tracer anymore) was going to be MY NEXT CAR

 

That's nice...

 

So since when was your ~$20k going to be the make or break for MERCURY

 

Sorry mate, the universe DOESN'T revolve around you (believe it or not!).

Edited June 20, 2010 by Aussie_Ford

[jpd80]

Here's an example for what everyone has tried to explain for 4 pages:

 

Let's say it would cost FoMoCo $2bn to give Mercury a refresh - ie: Tracer, new Mountaineer (Kuga based), Ranger based model and a Cougar, but only $750m to add the "MKC" (Focus) w/ new features and bodies for the rest of the range. I sure know as hell which I'd choose when my company still has, what, about $30bn (?) in debt.

 

 

 

Information has been posted that the slight differentiation Mercurys have over Ford models costs about $50 million per vehicle. So even if Mercury received a new Tracer, mariner, Milan, "Edge variant", Mustang, Mountaineer and "F150 Variant, that would cost approximately $350 million to bring to market.

 

I can see how Ford feels that its own brand is now up to Mercury level and that more can be achieved by introducing high series Titanium trim level across probably every Ford vehicle in Nth America. Obviously, that $350 million goes further in pre existing Ford vehicles...

 

Having no Mercury between Ford and Lincoln allows Ford to continue its growth upwards without the need for Lincoln to really come down market. I just hope Ford goes full tilt making Lincoln something really special and give people cars that instill a fresh and exhilarating view of Lincoln

Edited June 18, 2010 by jpd80

[lfeg]

Mercury has been on the bubble for at least 4 years. The writing was on the wall when they closed it down in Canada. Then they started encouraging consolidation among Ford and Lincoln/Mercury dealers. The good thing is that they did not drag out the final decision. Do it quick, sort of like pulling a bandage off your hairy arm.

 

I am already seeing stand alone Lincoln/Mercury dealers close up shop. One made an announcement on Monday, and by the end of the day Tuesday all inventory, new and used, was at a Ford dealer about 8 miles away.

[NickF1011]

Merc with only 2 modern vehicles outsold Lincoln with an even newer lineup of 4 (FOUR!) modern models

 

Mercury outsold Aston Martin, Ferrari, Maserati, and Lamborghini too. What's your point?

 

All of Mercury's products cost significantly less than Lincoln's. Of course they're going to sell more of them!! (Considering how much cheaper they are though, they really don't outsell them by much.)

Edited June 18, 2010 by NickF1011

[jpd80]

Mercury outsold Aston Martin, Ferrari, Maserati, and Lamborghini too. What's your point?

 

All of Mercury's products cost significantly less than Lincoln's. Of course they're going to sell more of them!! (Considering how much cheaper they are though, they really don't outsell them by much.)

Year to date sales:

Lincoln: 37,444

Mercury: 41,680

 

Transaction prices:

Lincoln: $34,000 to $54,000

Mercury: $22,000 to $30,000

[F250]

Mercury has been on the bubble for at least 4 years. The writing was on the wall when they closed it down in Canada. Then they started encouraging consolidation among Ford and Lincoln/Mercury dealers. The good thing is that they did not drag out the final decision. Do it quick, sort of like pulling a bandage off your hairy arm.

 

I am already seeing stand alone Lincoln/Mercury dealers close up shop. One made an announcement on Monday, and by the end of the day Tuesday all inventory, new and used, was at a Ford dealer about 8 miles away.

 

Thank you for proving my point, existing U.S. Lincoln/Mercury dealers are screwed because Lincoln alone cannot pay the bills.

[F250]

That's nice...

 

So since when was your ~$20k going to be the make or break for FoMoCo?

 

Sorry mate, the universe DOESN'T revolve around you (believe it or not!).

 

Since when does a customer get treated like that? That sort of attitude is part of the problem.

I bought new F-Series, a vehicle that pays the bills in this company so does that mean the Ford universe revolves around me?

[jpd80]

Thank you for proving my point, existing U.S. Lincoln/Mercury dealers are screwed because Lincoln alone cannot pay the bills.

Please, the number of cars that Mercury dealers sell on average each month hardly adds up to shop rental, wages and utility costs. It's the service bays that make the money. Take a drive by sometime and check out how many Fords get serviced over at Lincoln/mercury dealerships...

 

Of the 1700 odd L/M dealerships, less than 300 are stand alone with no franchise for a nearby Ford dealership,

Most of those that saw the writing on the wall have already married up with nearby Ford Franchises.

 

Edit,

In all honesty, I believe that most Lincoln/Mercury dealerships knew this was coming and they partnered up with local Ford franchisees. The fact that Ford chose not to give Mercury a full line of products sent alarm bells for years. Ford could have offered Mercury from Fiesta to Sable, Mariner to Explorer and of course a Cougar but they chose not to.

 

So now we wait for their Titanium series Fords and their improved Lincoln line up.

Edited June 19, 2010 by jpd80