Does the new direction send Lincoln down the same dead end road?
Ford Motor Company made the demise of Mercury official today by confirming that the production of Mercury vehicles will end in the fourth quarter of this year. (See Rest in Peace, Mercury)
Of Ford Motor Company’s 16% market share in the U.S., Mercury accounts for 0.8 percentage points or roughly 100,000 units, a level that has been flat or declining for the past several years.
With the impending cancellation of the Mercury Mountaineer sport utility this year and Grand Marquis sedan next year, the Mercury lineup would have been down to just four derivative products –the Mariner compact SUV and the Milan midsize sedan, along with hybrid versions of both. This is not enough to sustain dealers.
The decision to withhold from Mercury a version of the Ford Focus in 2000 started a product diet – critics say starvation plan – that resulted in Mercury’s paltry lineup today. As a result, Mercury’s customers, pricing and margins are almost identical to those of the Ford brand, but Mercury’s incremental sales have been declining, which led to the death sentence.
Now, Lincoln will get a version of the Focus – named the Irony or maybe Versailles? – in an attempt to increase transaction prices to higher levels than they would be if the compact car were a Mercury, given its tarnished image. While this might work in the short term, critics argue that it ultimately sends Lincoln down the same dead end road that Mercury is now parked on.
Ford claims that existing Mercury owners will receive continued access to parts and service support at Ford and Lincoln dealers. Current Mercury vehicle warranties and Extended Service Plans will also be honored. There will of course be special offers available on new Mercury vehicles through the summer as Ford dumps the inventory.
“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.
The majority of current Mercury sales are to fleet buyers and customers purchasing through employee, retiree and friends and family discounts. Ford is gambling they can largely can be satisfied by Ford brand vehicles.
The brand hasn’t had the “cool” factor since James Dean raced a ’49 or the Cougar prowled suburbia. Its demise is long overdue. I agree marketing a Focus version as a Lincoln may expand the profit margins on those units but it could tarnish the luxury image in much the same way that the perception of Cadillac declined after it adapted the Chevy Cavalier and called it the Cimarron. Never the BMW fighter, it was always an overpriced Cavalier.
What Lincoln needs in the future is not a re-badged Focus, but a unique product at the top end of the automotive spectrum. When the Lincoln Town Car is killed off little more than a year from now, the top-of-the-line will be the MKS, a mere re-badging of the Ford Taurus sedan. That’s not a Lexus or BMW or Benz fighter.
For starters, how ’bout a full-sized convertible off the MKS?
What Lincoln needs in the future is not a re-badged Focus, but a unique product at the top end of the automotive spectrum. When the Lincoln Town Car is killed off little more than a year from now, the top-of-the-line will be the MKS, a mere re-badging of the Ford Taurus sedan. That’s not a Lexus or BMW or Benz fighter.
For starters, how ’bout a full-sized convertible off the MKS?
NADA Statement on Mercury Phase-Out
WASHINGTON, June 2 — The following is a statement from Ed Tonkin, chairman of the National Automobile Dealers Association (NADA), in response to the news that Ford Motor Company will discontinue its Mercury brand and end production at the end of this year.
“It’s a sad day for this 70-year-old marque, and its loss is disappointing for the more than 1,700 dedicated dealers who sell the Mercury brand.
“NADA’s concern is that Ford treats each of its Mercury dealers fairly and equitably, especially the 276 of whom sell Lincoln and Mercury exclusively. Another important concern is that Mercury customers be reassured by Ford, and that all warranties will be honored and parts and service will continue to be available.
“Ford also needs to move quickly to take into account the millions of dollars that dealers have invested in facilities, equipment, personnel and training. They deserve fair compensation.”
About NADA: The National Automobile Dealers Association, founded in 1917, represents nearly 17,000 new-car and -truck dealers with about 37,500 franchises, both domestic and international.