Mercury....on life support
02-08-08, 05:27 PM
#1
Guest
Posts: n/a
Mercury....on life support
http://www.motorauthority.com/cars/f...-mercury-brand
As we have been reporting for over a year, Ford’s Mercury brand is in dire straits. An ageing fleet, dying sales and lack of image is causing the Blue Oval’s middle brand to slowly wither away. However Ford seems defiant that the brand will survive, but fails to mention how it will manage to do so. Jim Farley, vice president of FoMoCo, said at the Chicago Auto Show recently, “its role is changing, but we’re not going to compromise Mercury.” However he also stated, “No doubt Lincoln and polishing up the Blue Oval is absolutely our priority.”
According to Bloomberg News, CEO Allan Mulally has been quoted saying that while Ford is committed to Mercury the company is studying exactly “what we want to do with all our brands.” It seems obvious that Lincoln is much more a priority to Ford right now, especially as its sales grew 9.1% last year in comparison to Mercury’s sales decline of 6.9%. Some industry experts describe Mercury as a ‘franchise on life support’ and believe that the brand could face the axe within four years, sighting the main reason being that Mercury cars have simply been rebadged Ford models for too long. Chrysler has just announced it plans to remove many of its badge-engineered vehicles so the decision wouldn’t be unprecedented.
Averaging just eight car sales a month per franchise - the lowest since 1960 - it seems highly likely that the Mercury brand will join Oldsmobile as just another automotive name of the past.
As we have been reporting for over a year, Ford’s Mercury brand is in dire straits. An ageing fleet, dying sales and lack of image is causing the Blue Oval’s middle brand to slowly wither away. However Ford seems defiant that the brand will survive, but fails to mention how it will manage to do so. Jim Farley, vice president of FoMoCo, said at the Chicago Auto Show recently, “its role is changing, but we’re not going to compromise Mercury.” However he also stated, “No doubt Lincoln and polishing up the Blue Oval is absolutely our priority.”
According to Bloomberg News, CEO Allan Mulally has been quoted saying that while Ford is committed to Mercury the company is studying exactly “what we want to do with all our brands.” It seems obvious that Lincoln is much more a priority to Ford right now, especially as its sales grew 9.1% last year in comparison to Mercury’s sales decline of 6.9%. Some industry experts describe Mercury as a ‘franchise on life support’ and believe that the brand could face the axe within four years, sighting the main reason being that Mercury cars have simply been rebadged Ford models for too long. Chrysler has just announced it plans to remove many of its badge-engineered vehicles so the decision wouldn’t be unprecedented.
Averaging just eight car sales a month per franchise - the lowest since 1960 - it seems highly likely that the Mercury brand will join Oldsmobile as just another automotive name of the past.
02-08-08, 06:24 PM
#4
Lexus Fanatic
It's a little early to jump on the dump-Mercury bandwagon. The brand is not Isuzu by any means. The Grand Marquis is still quite popular among seniors (and some not-so-seniors). The Montego/Sable offers a lot of the Grand Marquis' comfort with AWD for bad weather.
The biggest problem with Mercury is its image (just one more reason why I talk so often about image being such a negative and destructive thing in the auto buisness). While there is nothing wrong with its products, even as rebadged Fords, the perception, particularly among young people, is that they are stodgy cars for Grandpa/Grandma or schoolteachers. It's just not "cool" or "in" to have a Mercury. And because so many people foolishly BELIEVE this, it hurts the brand.
And part of it is Mercury's own fault. Their marketers and managers just won't get off their behinds and do anything. They could have done a new Cougar based off the Mustang....and haven't. They could also have done a new entry-level car off the Focus...and haven't (in fact, they dropped the old Cougar and entry-level Tracer, and never replaced them). And, like Ford, they have completely dropped their minivans. The fact, sadly, is that you cannot sell products you don't HAVE.
Still, Mercury is not quite ready for the axe. Look, for example, at how Cadillac came back in the last several years...and how Hyundai exploded after 2000 after almost leaving the American market.
The biggest problem with Mercury is its image (just one more reason why I talk so often about image being such a negative and destructive thing in the auto buisness). While there is nothing wrong with its products, even as rebadged Fords, the perception, particularly among young people, is that they are stodgy cars for Grandpa/Grandma or schoolteachers. It's just not "cool" or "in" to have a Mercury. And because so many people foolishly BELIEVE this, it hurts the brand.
And part of it is Mercury's own fault. Their marketers and managers just won't get off their behinds and do anything. They could have done a new Cougar based off the Mustang....and haven't. They could also have done a new entry-level car off the Focus...and haven't (in fact, they dropped the old Cougar and entry-level Tracer, and never replaced them). And, like Ford, they have completely dropped their minivans. The fact, sadly, is that you cannot sell products you don't HAVE.
Still, Mercury is not quite ready for the axe. Look, for example, at how Cadillac came back in the last several years...and how Hyundai exploded after 2000 after almost leaving the American market.
Last edited by mmarshall; 02-09-08 at 06:50 AM.
02-09-08, 06:53 AM
#6
Lexus Champion
since each brand has it's own low and high end models, why have a completely seperate brand for just middle models?
if they want to keep mercury, they need to make it a completely differnt brand with their own goals and demographic targets; not just to try to fill in somewhere.
they need to focus on performance, quality and style.
why not make a small awd turbo hatchback between 25 and 30k bucks that looks good?
how about a rwd, high output v6 midsize 4 door with excellent balance and interior content for 32k?
they have to spend mnoney on r&d to make something happen. can't make money without spending money.
02-09-08, 06:56 AM
#7
Lexus Fanatic
However, you are correct to some extent. At GM, Buicks and Pontiacs are not necessarily just rebadged Chevys. They are in some cases (like the Cobalt-G5 and Equinox-Torrent twins), but in general, they are different vehicles that appeal to different car-shoppers. Mercurys, though they serve the same general step-up purpose, are essentially just rebadged Fords, with some equipment and trim differences.
Trending Topics
02-09-08, 07:50 AM
#8
Super Moderator
Mercury absolutely needs to become more distinctive with their vehicles. Maybe even Ford could get some of their European models to the U.S. under the Mercury namplate.
02-09-08, 07:56 AM
#9
Lexus Champion
Good idea. Saturn is doing it with some GM euro platforms. I don't know how successful they'll be, but they are making an effort to be a unique.
02-09-08, 10:25 AM
#10
Well.....yes, it does. Mercury serves more or less the same purpose that Buick and Pontiac do at GM...intermediate step-up brands between Chevy and Cadillac.
However, you are correct to some extent. At GM, Buicks and Pontiacs are not necessarily just rebadged Chevys. They are in some cases (like the Cobalt-G5 and Equinox-Torrent twins), but in general, they are different vehicles that appeal to different car-shoppers. Mercurys, though they serve the same general step-up purpose, are essentially just rebadged Fords, with some equipment and trim differences.
However, you are correct to some extent. At GM, Buicks and Pontiacs are not necessarily just rebadged Chevys. They are in some cases (like the Cobalt-G5 and Equinox-Torrent twins), but in general, they are different vehicles that appeal to different car-shoppers. Mercurys, though they serve the same general step-up purpose, are essentially just rebadged Fords, with some equipment and trim differences.
02-09-08, 10:59 AM
#11
The Green Grundel
Join Date: Sep 2003
Location: MN
Posts: 1,323
Likes: 0
Received 0 Likes
on
0 Posts
GM still has too many brands, they keep rebadging and duplicating models, fight with each other over the same budget to produce the same thing, its a cannibalistic cycle within the own company, and isnt the best way to do things. GMC has no purpose in GM anymore, they are just duplicates of everything else, its a waste
02-09-08, 11:05 AM
#12
Lexus Fanatic
Ford tried that back in the 1980's.....bringing German-designed Fords over here under the name Merkur. They were marketed as the XR4Ti and Scorpio.
Both turned out to be not only unreliable but a sales flop as well. Whether a similiar program would work under the Mercury nameplate today remains to be seen.
02-09-08, 12:40 PM
#14
Super Moderator
Ford tried that back in the 1980's.....bringing German-designed Fords over here under the name Merkur. They were marketed as the XR4Ti and Scorpio.
Both turned out to be not only unreliable but a sales flop as well. Whether a similiar program would work under the Mercury nameplate today remains to be seen.
Both turned out to be not only unreliable but a sales flop as well. Whether a similiar program would work under the Mercury nameplate today remains to be seen.
I personally like the Mondeo and the KA, along with the European Ford Fiesta, especially the turbocharged version, we get all 3 of those here in Mexico and they have a very good following. Even the small Brazilian-made Ford Ecosport SUV is quite popular down here, too, http://en.wikipedia.org/wiki/Ford_EcoSport
I remember the Merkur, I had a friend in high school with the XR4Ti, http://en.wikipedia.org/wiki/Xr4ti and it was a PITA to fix.
02-09-08, 01:10 PM
#15
Hacked CL to become a Mod
i dont see why they have so many brands when each of them is not that good...concentrate your efforts and funds on one brand and make that brand rule the world