Revived Mercury, Ford/Lincoln-Mercury dealer consolidation?

[megeebee]

Revived Mercury will focus on 3 segments
Rick Kranz
Automotive News | September 29, 2008 - 12:01 am EST

As Mercury is recast and new models arrive next decade, the brand will concentrate on three vehicle segments.

"What Mercury people told us is please stay in the core of the market," said Jim Farley, Ford Motor Co.'s group vice president of marketing and communications.

"And the core of the U.S. market right now, other than full-sized trucks and full-sized SUVS, is the C segment, the C-D segment and the crossover segment," Farley said in an interview last week at a Ford event in Detroit. "You add up those segments, and they are more than half of the industry."

That means Mercury's line will consist of a new small car on the redesigned front-drive Ford Focus platform, the Milan sedan and the Mariner crossover. A restyled, re-engineered Milan, along with a hybrid version, will be offered for the 2010 model year. The small Mercury will arrive in the 2011 model year.

Mercury also markets the Sable and Grand Marquis cars and Mountaineer SUV. Ford Motor is likely to discontinue those models.

Mercury's models will have unique sheet metal from the A-pillar forward along with a trunk lid and rear fascia that differentiate each model from a Ford. That strategy is currently applied to the Milan and Mariner.

"You can expect similar differentiation to what we have today," said Derrick Kuzak, Ford's product chief. "It has been reasonably successful."

Farley said Mercury's vehicles will need to have styling distinctive from Ford's because Ford Motor is pushing a dealer consolidation plan that puts Ford, Mercury and Lincoln under one roof.



SOURCE: http://www.autonews.com/apps/pbcs.dl...plate=printart

[megeebee]

It looks like the "New" Mercury will be very much like the old one.

There is one new car coming and two being dumped.

And they will be redecorated Fords, and not any more differentiated than the current crop.

This is a "revival"?

[Ach]

Originally Posted by megeebee

It looks like the "New" Mercury will be very much like the old one.

There is one new car coming and two being dumped.

And at least 2 of the 3 vehicles will be redecorated Fords, and not any more differntiated than the current crop.

Sounds more like a retrenchment that a revival.

What is there to revive? Mercury sold tons of cars in the '80's (and in previous decades) that were rebadged Fords with styling differences (Cougar, Sable, Marquis, Grand Marquis, Lynx, Topaz all sold well). The only difference now is that people aren't buying. But for the most part, they aren't buying the Ford equivalents either.

The question is, can the Ford brand recover sufficiently to lift Mercury as well?

[megeebee]

Originally Posted by Ach

What is there to revive? Mercury sold tons of cars in the '80's (and in previous decades) that were rebadged Fords with styling differences (Cougar, Sable, Marquis, Grand Marquis, Lynx, Topaz all sold well). The only difference now is that people aren't buying. But for the most part, they aren't buying the Ford equivalents either.

The question is, can the Ford brand recover sufficiently to lift Mercury as well?

They sold tons of cars, yes. Just like Oldsmobile and Plymouth. They sold tons because Honda, Toyota, Datsun/Nissan, Mazda, Kia, and Hyundai did not. Anyway, I've been reading of Ford's commitment to Mercury and how important they keep saying it is. And then we find only one new product coming. Making things more difficult is having all 3 brands under one roof. Obviously re-badged Fords in the same showroom may have the effect of diluting Fords chances of the recovery you mention.


.

[Buick61]

Ooooh, is the Lynx coming back? Hoo. Rah.

Looks like more of the same is in Mercury's future.

I think Mercury has, historically, been the least defined of all the automotive brands. It's just sort of put there as a bookmark. Sometimes it leaned more to the Ford side of things, others it was more on the Lincoln side, and at one point it was Edsel-tastic.

I fail to see how this is a "revival."

[Ach]

Originally Posted by megeebee

They sold tons of cars, yes. Just like Oldsmobile and Plymouth. They sold tons because Honda, Toyota, Datsun/Nissan, Mazda, Kia, and Hyundai did not. Anyway, I've been reading of Ford's commitment to Mercury and how important they keep saying it is. And then we find only one new product coming. Making things more difficult is having all 3 brands under one roof. Obviously re-badged Fords in the same showroom may have the effect of diluting Fords chances of the recovery you mention.


.

That's exactly my point. When was the last time Mercury had a unique lineup with substantive differences (i.e., unique platforms and powertrains) from Fords? Do you really think Ford can give them that when they can't even afford to give it to Lincoln? It didn't work for Olds in the late '90s, and it's a worse idea now.

Mercury exists to pad the volume of Lincoln dealers. Maybe that means that Mercury shouldn't exist at all. But I think people should adjust their expectations accordingly.

Buick61: I actually think that "Lynx" would be a pretty cool name for the obligatory Focus rebadge...

[nadepalma]

It says the lineup will "focus on 3 segments" - but does that mean the entire lineup will be made up of three products ONLY? Could we not see a coupe, like the European Ford Capri concept - make it to Mercury showrooms?

Originally Posted by megeebee

Farley said Mercury's vehicles will need to have styling distinctive from Ford's because Ford Motor is pushing a dealer consolidation plan that puts Ford, Mercury and Lincoln under one roof.

Wait one second - when did this happen?!?!?!?!

I know that there are a number of Ford/Lincoln-Mercury showrooms, but that has always been the exception to the rule. Typically the overwhelming number of Ford showrooms were stand alone and Lincoln-Mercury showrooms were always separate.

Now this? Are they SERIOUSLY looking to consolidate the dealership network that will sell all three under one roof?

If they do decide to do this, I hate to say it, but it will KILL Lincoln as a truly upscale brand.

Part of the only reaons Lincoln has not been subjegated to complete "also-ran" luxury status has been because it has its own dealer network - which means they usually treat their customers better and offer a better dealership network.

But if they look to consolidate all these brands under one roof, it will make Lincoln nothing more than a "slightly upscale" brand much like Buick and Chrysler are now. Look at Chrysler - they consolidated it with all their other brands, and now on a good day, it's the equivalent of Buick or Mercury. It has no cachet.

Doing this will mean that Lincoln's hopes of eventually chasing back up the ladder to re-establish their place alongside Cadillac in the luxury pecking order may be in doubt. I can't see selling $12K Ford Fiestas next to $38K Lincoln MKSs as helping them cement their image among luxury buyers.

But IF this is TRUE - then it also calls into question WHY they would need Mercury to begin with.

I'm a Mercury fan, and I truly believe the brand has value. But part of what makes Mercury a needed brand is that it helps offset volume to allow Lincoln-Mercury fanchises to continue. If FoMoCo consolidates Ford with Lincoln-Mercury stores --- then why would you even bother? Those dealerships will already have a "volume component" - the Ford brand itself. Wouldn't that call into question Mercury's position in the pecking order?

Just my 2 cents....

[vcs2600]

Originally Posted by nadepalma

If FoMoCo consolidates Ford with Lincoln-Mercury stores --- then why would you even bother? Those dealerships will already have a "volume component" - the Ford brand itself. Wouldn't that call into question Mercury's position in the pecking order?

Just a guess -- Because merging the dealership networks will take longer than one product cycle?

Just because Mercury lives for another day does not mean it's dead 5 or 10 years from now (and I'm convinced it will die eventually).

[wescoent]

Originally Posted by nadepalma

It says the lineup will "focus on 3 segments" - but does that mean the entire lineup will be made up of three products ONLY? Could we not see a coupe, like the European Ford Capri concept - make it to Mercury showrooms?

Wait one second - when did this happen?!?!?!?!

I know that there are a number of Ford/Lincoln-Mercury showrooms, but that has always been the exception to the rule. Typically the overwhelming number of Ford showrooms were stand alone and Lincoln-Mercury showrooms were always separate.

Now this? Are they SERIOUSLY looking to consolidate the dealership network that will sell all three under one roof?

If they do decide to do this, I hate to say it, but it will KILL Lincoln as a truly upscale brand.

Part of the only reaons Lincoln has not been subjegated to complete "also-ran" luxury status has been because it has its own dealer network - which means they usually treat their customers better and offer a better dealership network.

But if they look to consolidate all these brands under one roof, it will make Lincoln nothing more than a "slightly upscale" brand much like Buick and Chrysler are now. Look at Chrysler - they consolidated it with all their other brands, and now on a good day, it's the equivalent of Buick or Mercury. It has no cachet.

Doing this will mean that Lincoln's hopes of eventually chasing back up the ladder to re-establish their place alongside Cadillac in the luxury pecking order may be in doubt. I can't see selling $12K Ford Fiestas next to $38K Lincoln MKSs as helping them cement their image among luxury buyers.

But IF this is TRUE - then it also calls into question WHY they would need Mercury to begin with.

I'm a Mercury fan, and I truly believe the brand has value. But part of what makes Mercury a needed brand is that it helps offset volume to allow Lincoln-Mercury fanchises to continue. If FoMoCo consolidates Ford with Lincoln-Mercury stores --- then why would you even bother? Those dealerships will already have a "volume component" - the Ford brand itself. Wouldn't that call into question Mercury's position in the pecking order?

Just my 2 cents....

The showrooms will be seperate. Think BMW/Mini.

As for Kuzak's comments on Mercury, this is just the opening round of products. Redesigned Milan first, then new Mercury C-Car, then all-new Mariner based on the new Kuga/Escape. There will be more products to follow that.

Keep in mind, Ford has no money right now, hence only core products will recieve attention. Once the company is solidly profitable (CY2012), expect investment in new product to ramp up, and Mercury will get more B and C cars.

Another note... Focus 5-door and convertible are intended for North American consumption. Hint hint...

[nadepalma]

Originally Posted by vcs2600

Just a guess -- Because merging the dealership networks will take longer than one product cycle?

Just because Mercury lives for another day does not mean it's dead 5 or 10 years from now (and I'm convinced it will die eventually).

If there is a consolidation, you are right, it will take longer than a single product cycle.

However, why even go through this entire excercise then? Why not just kill Mercury now and speed up the consolidation?

Thats almost what Chrysler is doing. They've basically said, "We are not killing brands, but if you want an SUV, you MUST carry Jeep. Do you want a crossover, you MUST carry Dodge, etc". This way it forces one to buy out the other.

I dont know - but regardless, this isn't good for Lincoln...or Mercury.

[nadepalma]

Originally Posted by wescoent

The showrooms will be seperate. Think BMW/Mini.

Wait - so we'll get a consolidated dealer network --- but they will house Ford and Lincoln-Mercury in separate show rooms? Doesn't that mean it wont really be "consolidated" then?

Originally Posted by wescoent

As for Kuzak's comments on Mercury, this is just the opening round of products. Redesigned Milan first, then new Mercury C-Car, then all-new Mariner based on the new Kuga/Escape. There will be more products to follow that.

Keep in mind, Ford has no money right now, hence only core products will recieve attention. Once the company is solidly profitable (CY2012), expect investment in new product to ramp up, and Mercury will get more B and C cars.

Another note... Focus 5-door and convertible are intended for North American consumption. Hint hint...

I hope that there is more in store for Mercury than just those three products. However, as long as they make them distinct and attractive, I guess its acceptable for now.

However, IF they decide to sell them all on the same showroom floor, then this REALLY stresses the importance of differentiation. They say they are going to follow much of what they currently do to set Ford branded products from Mercury branded vehicles by changing them from the A-pillar forward and the rear fascia. They do this now - so I'm kinda scratching my head on this.

However, if they dont change the way the interiors look, then they'll fool no one. Its one thing to change a bit of sheet metal and say the products you are selling on the same showroom floor are different. Its another thing entirely to do that and leave the interiors looking exactly the same.

I hope they address this.

[ausrutherford]

Originally Posted by nadepalma

Wait - so we'll get a consolidated dealer network --- but they will house Ford and Lincoln-Mercury in separate show rooms? Doesn't that mean it wont really be "consolidated" then?


I hope that there is more in store for Mercury than just those three products. However, as long as they make them distinct and attractive, I guess its acceptable for now.

However, IF they decide to sell them all on the same showroom floor, then this REALLY stresses the importance of differentiation. They say they are going to follow much of what they currently do to set Ford branded products from Mercury branded vehicles by changing them from the A-pillar forward and the rear fascia. They do this now - so I'm kinda scratching my head on this.

However, if they dont change the way the interiors look, then they'll fool no one. Its one thing to change a bit of sheet metal and say the products you are selling on the same showroom floor are different. Its another thing entirely to do that and leave the interiors looking exactly the same.

I hope they address this.

By consolidated they mean ownership, not land. They will be sold on the same land lot but there will be two buildings.

[skylark68]

Killing the Grand Marquis without a true RWD replacement is a massive mistake. The Milan cannot possibly fill in.

I still say it would be a good idea to bring back the Cougar on a stretched Mustang chassis. Mercury needs some type of "halo" car.

[BrickTamland]

Earlier this year, a Lincoln-Mercury dealer was consolidated with a Ford dealer here in Toledo. Rouen Lincoln-Mercury was closed and was sold to Brondes Ford Maumee about 1.5 miles down the road. Consolidating the dealers makes Mercury easier to kill. I wish they would have a thriving Mercury, but a much more intensive plan needed to be started about five years ago to ensure a long future. My will to keep Mercury around fades day by day as for too long, the news concerning Mercury was "We are exploring our strategic options." New vehicle info was ambiguous and often limited to the mid-cycle update of the Milan.

With Kuzak saying they are satisfied with Mercury's current level of differentiation, I think such language suggests Ford is not going to invest in Mercury for the long term. It seems they are going to throw a few vehicles at Mercury in a half-hearted attempt to see "where that takes the brand", to put it in PR terms. If the brand continues to decline, then Ford can better justify the decision to close Mercury.

[vcs2600]

Originally Posted by nadepalma

If there is a consolidation, you are right, it will take longer than a single product cycle.

However, why even go through this entire excercise then? Why not just kill Mercury now and speed up the consolidation?

Thats almost what Chrysler is doing. They've basically said, "We are not killing brands, but if you want an SUV, you MUST carry Jeep. Do you want a crossover, you MUST carry Dodge, etc". This way it forces one to buy out the other.

I dont know - but regardless, this isn't good for Lincoln...or Mercury.

If I understand correctly, Chrysler started merging their dealers long ago, before they killed Plymouth. Maybe Ford is going to try the carrot before they try the stick?