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Mercury Production to Stop in September?

Tim Howard — Mon, 12 Jul 2010 15:07:37 +0000

A new report from Automotive News claims that production of all Mercury vehicles will cease by the end of October. According to three Mercury dealers familiar with FoMoCo’s plans, the wind-down will begin by the of September.

Production of the almost-antique Grand Marquis will stop on Sept. 30, the Mountaineer on Oct. 1, the Milan on Oct. 2, and the Mariner on Oct. 3. Ford has yet to make official dates given any dates on when any of these actions would be take place. Stay tuned.

Source: Automotive News

Breaking: Mercury is Dead

Kwame Owusu — Thu, 03 Jun 2010 15:00:51 +0000

After dropping a big hint about the impending termination of its Mercury sub-luxury brand, FoMoCo has officially confirmed that it will kill its 76-year old brand in the fourth quarter of 2010. This move will allow the Dearborn automaker to allocate Mercury’s financial, product development, production and marketing, sales and service resources towards growing its Ford and Lincoln brands.

“Profitably growing Lincoln in North America is an important part of our One Ford plan,” said Alan Mulally, Ford president and CEO. “Our Ford brand is gaining momentum and winning customers around the world. Now, we are going to use the same laser focus to further strengthen Lincoln and deliver even more products luxury customers really want and value.”

Ford said it will expand the Lincoln lineup with seven new or significantly refreshed models within the next four years, including the 2011 MKZ Hybrid, the 2011 MKX and the brand’s first-ever C-segment vehicle.

As for Mercury owners, Ford will continue to service their vehicles at Ford and Lincoln dealers. Current Mercury warranties and Extended Service Plans will be honored. To clear Mercury of its remaining units, Ford will offer big incentives through the summer.

PRESS RELEASE:

FORD TO EXPAND LINCOLN LINEUP AND BRAND EMPHASIS; MERCURY PRODUCTION ENDS IN FOURTH QUARTER OF 2010

Ford is expanding its Lincoln lineup with seven all-new or significantly refreshed vehicles in the next four years – including its first-ever C-segment vehicle

Lincoln’s plan accelerates with more investment and attention on standout product design, class-leading technology and powertrains delivering top performance and fuel efficiency

Lincoln product development, marketing, sales and service resources expanding as the brand competes with Cadillac and Lexus in the marketplace

Ford will end production of Mercury vehicles in the fourth quarter of this year to fully devote its financial, product development, production and marketing, sales and service resources toward further growing its core Ford brand while enhancing Lincoln

Existing Mercury owners to receive continued access to parts and service support at Ford and Lincoln dealers; current Mercury vehicle warranties and Extended Service Plans will be honored; special offers available on new Mercury vehicles through the summer

Affected dealers to receive specialized support during the transition, as the company continues its transformation to a more profitable dealer network

DEARBORN, Mich., June 2, 2010 – Ford Motor Company will expand and enhance its Lincoln brand lineup with seven all-new or significantly refreshed vehicles in the next four years as part of an aggressive growth plan focused on standout product design, class-leading technology and new powertrains – all aimed at competing with Cadillac and Lexus in North America.

Ford also will end production of Mercury vehicles in the fourth quarter of this year to fully devote its financial, product development, production and marketing, sales and service resources toward further growing its core Ford brand while enhancing the Lincoln brand.

“We have made tremendous progress on profitably growing the Ford brand during the past few years. Now, it is time to do the same for Lincoln,” said Mark Fields, Ford’s president of The Americas. “The new Lincoln vehicles will transform luxury for North American premium customers through an unexpected blend of responsive driving enjoyment and warm, inviting comfort. We will also offer our customers a world-class retail experience through a vibrant retail network.”

Lincoln’s hallmarks will be refined, modern design, the most fuel-efficient premium powertrains and industry-leading technology that create a unique driver experience both in the cabin and on the road.

“Profitably growing Lincoln in North America is an important part of our One Ford plan,” said Alan Mulally, Ford president and CEO. “Our Ford brand is gaining momentum and winning customers around the world. Now, we are going to use the same laser focus to further strengthen Lincoln and deliver even more products luxury customers really want and value.”

Foundation Set

The future of Lincoln is building from a strong base that includes the all-new flagship MKS large sedan, the all-new MKT seven-passenger crossover and a significantly refreshed MKZ mid-size sedan – all now in showrooms. The hybrid version of the MKZ will reach showrooms later this year and is expected to be the most fuel efficient premium sedan on the market.

Lincoln’s product actions continue later this year with the debut of the significantly refreshed 2011 MKX crossover, the first vehicle to feature MyLincoln Touch driver connect technology.

This will be followed by another six all-new or significantly refreshed vehicles within four years developed with Lincoln’s DNA of standout design, precise and confident driving experience, class-leading technology and powertrains delivering top performance and fuel efficiency.

Lincoln will be led by expanded product development and marketing, sales and service teams to support the brand’s growth plan and ensure it has a strong cadence of distinct products that are well positioned in the market. Plans for Lincoln include:

Lincoln’s first-ever C-segment vehicle

New Lincoln-exclusive powertrains, including an all-new V-6 engine and advanced fuel-efficient transmissions

EcoBoost engines available in all Lincolns – from the Navigator full-size SUV to the new C-segment Lincoln

Fuel economy leadership with each new vehicle – leading to Lincoln emerging as the most fuel-efficient luxury lineup on the market

More useful technology and features than any other competitor – with a special focus on comfort and convenience. New advanced features include: fully retractable glass roofs; adaptive computer-controlled suspensions; electronic, push-button gear-selectors; active noise control; and exclusive MyLincoln Touch driver connect technology

“Lincoln vehicles will reward drivers with smooth, effortless power complemented by agile handling and responsive steering,” said Derrick Kuzak, Ford’s group vice president, Global Product Development. “The cabin is a sanctuary with segment-leading quietness, genuine materials and intuitive, useful technology.”

Lincoln has started gaining traction with customers, as evidenced by market share gains during the past five years. Lincoln’s share of the retail U.S. luxury vehicle market has grown from 4.5 percent in 2005 to 6.3 percent through the first quarter of 2010.

In addition, Lincoln’s reputation with consumers has risen, with favorable opinion and purchase consideration reaching its highest level in the past five years. Lincoln’s long-term durability was second only to Porsche’s in the 2010 J.D. Power and Associates Vehicle Dependability Survey.

Mercury

Mercury originally was created as a premium offering to Ford and was an important source of incremental sales. However, the continued strength of the Ford brand – particularly during the past three years – has accelerated the migration from Mercury to Ford for many customers.

Today, Mercury’s customer profile, pricing and margins are almost identical to Ford, but Mercury’s incremental sales have been declining.

The majority of current Mercury sales are to fleet buyers and customers purchasing through employee, retiree and friends and family discounts, which Ford anticipates largely can be satisfied by Ford brand vehicles.

Of Ford Motor Company’s 16 percent market share in the U.S., Mercury accounts for 0.8 percentage points, a level that has been flat or declining for the past several years. That contrasts with the Ford brand, which has increased market share by 2.2 percentage points so far this year on the strength of new products and improved quality, fuel efficiency, safety, smart design and value.

Ford’s strengthening financial position – including the return to profitability and positive cash flow – allows the company to absorb short-term costs associated with the discontinuation of Mercury and to consolidate future product investments into Lincoln.

Today, there are no stand-alone Mercury dealerships in North America. Ford is working closely with dealers to maintain properly located stand-alone Lincoln or Ford-Lincoln dealers, which will offer dealers and the company the greatest opportunity for long-term profitable growth.

New operational standards developed with the company’s dealers will facilitate a Lincoln customer experience that exceeds the expectations of North American luxury customers.

Personal Attention

Ford will work closely with Mercury dealers and customers during the transition, including providing existing Mercury owners with continued access to parts and service support at Ford and Lincoln dealers and by honoring current warranties, including Ford’s Extended Service Plans.

“We are 100 percent committed to supporting Mercury owners through Ford and Lincoln dealerships and working hard to keep them as valued customers in the future,” Fields said.

“At the same time, we will work closely with our dealers to phase out Mercury franchises and continue to build a healthy, growing Lincoln with strong new products and a profitable dealer network that delivers a world-class customer experience.”

Mercury owners will receive additional details in the coming days explaining the transition and assuring them that Ford and its dealers will continue to provide all necessary parts and service support for Mercury products.

Ford has notified Mercury dealers of the decision and provided details of a financial package that includes payment in exchange for resigning the franchise.

Ford today also informed dealers of special offers on new Mercury vehicles that will be available through the summer to support the sell down of current Mercury inventory and remaining Mercury vehicle production.

“We are taking decisive action and moving into the future with the right plan to deliver profitable growth for all stakeholders,” Fields said. “These moves position us to continue building momentum through strong brands, great products and an unwavering focus on the customer.”

Ford Has been Planning Mercury’s Death for Years?

Kwame Owusu — Tue, 01 Jun 2010 15:00:55 +0000

We recently reported that FoMoCo is working on a plan to terminate its Mercury brand. Now a new report is suggesting that Ford has been trying to euthanize the obscure brand for years. This begs the question: why didn’t the Dearborn automaker just outright shutdown the brand? The reason is pretty interesting…

The company has purposely been reducing Mercury to nothingness by starving it of products, consolidating stores and merging dealer councils .

“Understand, when you kill a brand, dealers sue and win big settlements (unless you go bankrupt),” said Jerry Flint of Forbes.com “But you can get away with it if you starve the brand and then say there’s just no business left.”

Sources say that when a plan to kill Mercury is proposed, executives will say that they can no longer justify the cost of supporting the brand because of the brand’s declining volume.

Source: Automotive News

BREAKING: Mercury to be Killed

Kwame Owusu — Fri, 28 May 2010 15:00:08 +0000

We have been expecting this news for quite a while now. While it made a lot of business sense for FoMoCo to sell Jaguar, Land Rover, Aston Martin and Volvo, it made little sense that its Mercury brand didn’t get the same treatment. Afterall, Mercury is FoMoCo’s version of Pontiac and Oldsmobile. And where are those brands? That said, the time for Mercury’s bye bye is long-over due. But apparently we may not need wait that much more longer.

According to sources familiar with the plans, the Dearborn automaker’s top executives are currently working on a proposal to kill Mercury. The plan will be presented to directors in July.

“Mercury is a forgotten brand,” John Wolkonowicz, an auto analyst with IHS Global Insight in Lexington, Massachusetts told Bloomberg. “Many Americans probably already think it has been discontinued. Mercury was too similar to Ford from the very beginning.”

Mercury’s death is inevitable — when it will die depends on how fast executives can convince directors and dealers to shutdown the unprofitable brand.

Source: Bloomberg

Next Mercury Tracer Based on the New Ford Focus

Tim Howard — Wed, 17 Feb 2010 15:45:18 +0000

There have been news floating around that Mercury will be getting a new a small car. Up until now, there weren’t many hints on what this car could be. However, a new report claims that FoMoCo would revive the Tracer name for the small Mercury, which will share the same platform as the 2012 Ford Focus.

The next Tracer will be one of several upcoming small vehicles in Mercury’s lineup that will fill the void between mainstream Ford and Lincoln branded vehicles. Dealers were told on Sunday that it would go on sale in 2011, the same year the Focus launches. In fact, it was two dealers who attended the meeting that confirmed the Tracer name.

As many people see it, Mercury is a dead brand walking, one that is starved of unique and inspiring products. Let’s just hope that FoMoCo does enough to distinguish the “Tracer” from the next Ford Focus.

Source: Automotive News

Ford Bucks the Trend: July 2009 Sales up 2%

Kwame Owusu — Tue, 04 Aug 2009 19:46:00 +0000

Ford Motor Co. – including Ford, Lincoln, Mercury and Volvo brands – is quickly turning itself into a success story, announcing good news after good news ever since both Chrysler and GM filed for (and emerged from) bankruptcy. The good news continue – FoMoCo announced a sales increase of 2.4 percent for July 2009 over the same period last year. “The U.S. government’s Car Allowance Rebate System (“Cash for Clunkers”) enabled Ford to post the first sales increase of any major manufacturer in 2009,” said the company in its press release.

By “first sales increase of any major manufacturer“, we’re betting that Ford is talking about GM, Toyota, Honda, Chrysler and Nissan which all posted sales drops for the month. But Subaru, Hyundai and Kia all saw higher increases than FoMoCo.

The Ford brand posted a sales increase of 3 percent mainly due to great sales by the fuel-efficient Fusion and Milan (up 66 and 60 percent), Escape and Mariner (up 94 and 71 percent), Focus (up 44 percent) and Ranger up 65 percent.

On the downside, the much-vaunted Taurus saw it sales drop by a disappointing 57 percent compared to last July’s sales of the outgoing model. The Flex is also down, selling only 3,631 units, breaking the model’s steady growth since its debut. The Ford Mustang, which has enjoyed steady sales, was down 37.6 percent to 6,686 units. Ford Edge sales were down by a small 7.7 percent. The perennial top-seller the, F-Series truck, was down 19 percent.

On the luxury front, Lincoln sales were down 24 percent to 6,672, compared to 8,819 units sold in July 2008. The only model that saw a sales increase was the Town Car, which was up 95 percent to 1,841. The MKX was the second highest sales, selling 1,642 units (down 18 percent). The Mercury brand saw its sales increase by 7 percent thanks to the strong sales of the Milan and Mariner. But the Sable (-84.8 percent to 345 units) and Mountaineer (-30 percent to 403 units) were dark spots.

Volvo recorded the highest increase, with sales rising by 26 percent. The S60 is up up 257 percent to 1,461 units.The V50 and C70 were also bight sports with sales increasing by 50 percent) and 27 percent, respectively are hanging. The XC90, down 45 percent, is the biggest loser.

Source: Ford(PDF)

Ford’s Renaissance: Feb 2009 Monthly Recap

Kwame Owusu — Sat, 07 Mar 2009 20:15:00 +0000

Can Ford rebuild itself into a competitive and highly-respected automaker? I believe it can, and that is the reason for the “Ford’s Renaissance” feature here at AutoTribute. The purpose of this feature is to keep track of Ford as it rebuilds itself.

February was a very cold month for the Ford Motor Company (which consists of Ford, Lincoln, Mercury and Volvo). The automaker’s U.S. sales fell by 40.2% in January when compared to the same month last year. Although this is indeed grim news, the automaker fared better than its Detroit brethren. As with almost all other automakers and as a side-effect of the global recession, Ford is expecting similar drops in sales in the coming months.

There wasn’t much product news for the automaker, although it did start a pre-launch promotion for its Fiesta hatchback and sedan. It also reopened its Cleveland plant to begin production of its EcoBoost V6 line of engines. Ford’s biggest and most promising future products are still the Fiesta and the 2010 Taurus.

In regards to the Government’s bail-out, ford is not a relevant player. If you recall the automaker is the only one of the Detroit automakers not asking for government aid. As good and promising as this may sound, I believe the company is just being stubborn — it needs government aid, arguably, just as badly as its Detroit Brethren. Even if it really doesn’t need the money now, it will need it in the future. At the moment, the government is just a cash reserve for Ford.

On a good note, although Ford’s performance was dismal in virtually all its global operations, its European operations brought in profits of roughly $1 billion in 2008, which did a little to offset its staggering loss of $14.6 billion in 2008.

As it stands, Ford looks the healthiest and most capable of turning itself around. Although its future product lineup doesn’t look as promising as GM’s line-up, it isn’t far behind. As with GM, the automaker still has a lot of work to do. Not only does it Ford need to sustain its current momentum, its needs to build on it. It still has a whole slew of products that need replacing.

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