Revived Mercury, Ford/Lincoln-Mercury dealer consolidation?

[mikesright]

I don't understand why Ford keeps Mercury, especially if they are consolidating dealers. Ford was always at its strongest when it concentrated on itself, not when it was exploring and trying new things with its other brands. Mulally is now going back on his original promise to focus on the brand Ford and it disappoints me.

As an additional note, everyone should go to autolinedetroit.tv and watch the Mike Jackson interview as well as the extra portion, as it relates directly to this situation. He made a very good point about Chevy, as some other people have made as well, which is, GM should focus on Chevy to carry them through the turnaround. Along with that statement, he said (paraphrasing here) that near-luxury and "tweener" brands are on their way out, that everything between Chevy and Cadillac is irrelevant in this marketplace. As he is the CEO of the biggest dealer group in the US, he lends an expert opinion of the situation, even if I don't agree that most of GM's middle brands should be killed.

[gardnet1]

My take on this is that for right now Mercury is needed to keep volume up at L-M dealers. The mini-Mercury revival will be an interim solution as two things take place.

1. Lincoln gets more models and possibly passes Mercury in volume sales. MKS, MKX & MKZ are all selling well, so unless the next Milan/Hybrid gain considerable ground, this could happen as early as next year. Smaller Navigator/MKT on the way too. Also, the phase out of the youstabe volume cars: Gran Marquis, Mountaineer and Sable will be complete in another 12-18 months.

2. This is the big one: once the F-L-M dealership consolidation is around 75% complete, Mercury won't be needed anymore and they will be phased out. This will take time and it is expensive for Ford and the Dealers alike. I would say that gives Mercury 5-7 years.

However, if the sales nosedive continues in earnest next year, the dealership consolidations will be fast-tracked via chapter 11 filings (bill heard anyone?).

That would leave FMC with Ford, Lincoln, Volvo and 40% of Mazda.

When Mercury Spokesbabe/ hottie Jill Wagner moves over to Ford or Lincoln, that will be the equivalent of the Chubby Chik Mooing.

[johnstarnes]

If they bring over cars like the Capri and other very distinct looking cars, then Mercury could avoid the stigma of selling tweaked American Fords. I think killing the stand-alone Cougar was a mistake as it was a rebadged nothing plus had a history behind it. Maybe the Capri could be the new Cougar? Drawings of what the NEXT Capri might look like were awesome and could deserve the Cougar name plate.

[mikesright]

Originally Posted by wescoent

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...

Most F/L/M dealers are under one roof, for good reason. L/M has so few sales that few dealers could make a business case for a separate showroom. That being said, I think moving the brands together is a good thing, no one is mistaking Lincoln for a true luxury brand anymore. I think pairing the brands allows people who want to move up from Ford to a luxury brand an easy choice for 90% of their customers.

Mercury is just a mistake either with Lincoln or with Ford or with both brands, there just is not enough sales to justify the brand plus it is not well differentiated from Ford in pricing, style, or features. I don't buy the demographic argument at all, in my opinion, the reason that Ford doesn't seem to have female customers as big of a percentage as Mercury does is because Ford is a mainstream brand with a wide demographic. Most of those customers, in my opinion, would go back to Ford. The money spent reviving Mercury should be used to bolster a strong Ford brand.

[megeebee]

Originally Posted by gardnet1

1. Lincoln gets more models and possibly passes Mercury in volume sales.

It will. In fact Ford expects it to and has said as much.

[2b2]

Originally Posted by mikesright

...an additional note, everyone should go to autolinedetroit.tv and watch the Mike Jackson interview as well as the extra portion, as it relates directly to this situation. He made a very good point about Chevy, as some other people have made as well, which is, GM should focus on Chevy to carry them through the turnaround. Along with that statement, he said (paraphrasing here) that near-luxury and "tweener" brands are on their way out, that everything between Chevy and Cadillac is irrelevant in this marketplace. As he is the CEO of the biggest dealer group in the US, he lends an expert opinion of the situation, even if I don't agree that most of GM's middle brands should be killed.

^one of the best AutolineDetroit's I've seen
convenient direct > LINK

Of course Ford is going the ONE FORD route
but

Originally Posted by mikesright

...Mercury is just a mistake either with Lincoln or with Ford or with both brands, there just is not enough sales to justify the brand plus it is not well differentiated from Ford in pricing, style, or features. I don't buy the demographic argument at all, in my opinion, the reason that Ford doesn't seem to have female customers as big of a percentage as Mercury does is because Ford is a mainstream brand with a wide demographic. Most of those customers, in my opinion, would go back to Ford. The money spent reviving Mercury should be used to bolster a strong Ford brand.

I got this feeling back the beginning of 2008 -- while watching other AutolineDetroits btw, Those with Mr. Mulally & Mark Fields -- that Fomoco was thinking of Lincoln-Mercury as One Brand
& that's how I'm looking at the Small-Mercs strategy - just that Mercury will handle that part of LM's business (be interesting to see they start talking about combined sales numbers for LM),
PLUS I look at it as temporary...

...for the next 5(?) years, since:

Originally Posted by mikesright

...no one is mistaking Lincoln for a true luxury brand anymore.

...not many are thinking of Lincoln as a true luxury brand YET,
it may be the best-possible plan for now
but
I believe All mid-premium-lux-ish brands have a BIG opportunity coming
&
I'm glad Merc will be around (in some form) so their potential at least has a Chance of being fulfilled

[96_impala_ss]

Originally Posted by vcs2600

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?

My understanding is Chrysler was grouped with Plymouth, Jeep with Eagle and Dodge was the stand alone or grouped with Plymouth/Chrysler. Eagle was killed in 98 and Jeep becomes stand alone. Plymouth dies in 2001, Chrysler is stand alone.

Im not sure how they are grouped now because I live near 2 Dodge dealers. One is stand alone, the other is Dodge & Jeep

As far for the Mercury Grand Marquis being killed, I thought that they werent going to kill the Grand Marquis and would make it past 2012

[FoMoCo Fan]

Reasonably successful. LOL.

[kenman923]

All they are doing is delaying the inevitable.

[vcs2600]

Originally Posted by 96_impala_ss

As far for the Mercury Grand Marquis being killed, I thought that they werent going to kill the Grand Marquis and would make it past 2012

Yeah, but the Marquis is irrelevant from a product planning standpoint. Ford pulled the trigger on the Panther cars 10 years ago, and the only question now is when they stop selling.

Dodge will eventually start winning the Police contracts and that will be it for the CV/GM.

[Bravada]

I think this is the first time we hear officially that:

1. Sable will be killed w/o a replacement
2. A Focus-based Mercury will come

I guess this means Mercury will be around longer than the original plan provided for (2012), as the Focus-based car, even if it suddenly came next year (based on the oldest of Ford's platforms but the Panther), it would only live 2 years until 2012, which makes it rather unsound.

I don't think the Mercury Focus would be a success. I can't possibly imagine a good-looking NA Focus with a waterfall, except if they mean the NEXT Focus, but that would delay the death of Mercury even further.

OTOH, the Escape is a dying breed, kept around only because of the hybrid conversion. This might mean the next Mariner will be Kuga-based, but then again, a waterfall would look inexplicably stupid and ugly on a Kuga...

I think this is a stupid way of killing Mercury, and also that killing Mercury is stupid. Mercury has a new-Saturn-like upscale/import appeal, and reasonable prices. Lincoln or Ford have neither. I don't think Sable buyers would flock to Lincoln MKZ or MKS (one is too small, the other too large and expensive), the GM buyers will simply die with the brand, but will there be any takers for a glorified Focus?

[wescoent]

Originally Posted by Bravada

I think this is the first time we hear officially that:

1. Sable will be killed w/o a replacement
2. A Focus-based Mercury will come

I guess this means Mercury will be around longer than the original plan provided for (2012), as the Focus-based car, even if it suddenly came next year (based on the oldest of Ford's platforms but the Panther), it would only live 2 years until 2012, which makes it rather unsound.

I don't think the Mercury Focus would be a success. I can't possibly imagine a good-looking NA Focus with a waterfall, except if they mean the NEXT Focus, but that would delay the death of Mercury even further.

OTOH, the Escape is a dying breed, kept around only because of the hybrid conversion. This might mean the next Mariner will be Kuga-based, but then again, a waterfall would look inexplicably stupid and ugly on a Kuga...

I think this is a stupid way of killing Mercury, and also that killing Mercury is stupid. Mercury has a new-Saturn-like upscale/import appeal, and reasonable prices. Lincoln or Ford have neither. I don't think Sable buyers would flock to Lincoln MKZ or MKS (one is too small, the other too large and expensive), the GM buyers will simply die with the brand, but will there be any takers for a glorified Focus?

It will be the next Focus, on C2. The next Mariner will also be on EUCD, since it will be similar to the new Kuga Escape.

[Cortazzo]

Originally Posted by 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.

I just drove in a recent vintage grand marquis, (2004 i think), and it was pretty bad. It's better they not offer this car than offer something RWD that is junk. It just brings down the brand image. The new sable is actually quite a nice car and handsome looking. With FWD and AWD, modern handling and ammenities, i think it is enough to cover the large car market for mercury. If Ford wants to develop a legit RWD luxury car, i'm all for it, but don't pollute your dealerships with subpark product just to fill a segment.

[Rocket 88]

Originally Posted by ausrutherford

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

Yeah, Good Freakin' luck convincing a dealership this is a good idea. Think of the investment needed to build a new building and how many dealerships just happen to have that much spare room laying around?

And are consumers really going to feel that much seperation? Probably not. This may work for BMW-Mini, but the products are quite different. With Ford-Lincoln-Mercury your looking at entire vehicle lines.

Bad idea and sounds like a pretty weak plan for Mercury... So typical of Ford.
Or course Ford thought renaming the 500 the Taurus was "brilliant."

[GMusa]

I wouldnt mind this if they made the Mercurys totally differernt from the Fords. meaning totally different exterior and interior! Then it could work. But when Fords and Mercurys look pretty much the same inside and out, it isnt going to work.