Ford to stop Mercury production

Posted by on Jun 03, 2010 | Leave a Comment

Ford Motor Co. decided to shut the Mercury brand down to concentrate on luxury Lincoln line. Ford Motor Company founded Mercury in 1939 The name “Mercury” is derived from the “messenger of the gods” of Roman mythology, and during its early years, the Mercury brand was known for performance.

The most recent model of Mercury is Mercury Sable(2008-09), and company is selling  four old models until now named as Mercury Grand Marquis , Mercury Mariner, Mercury Milan  and Mercury Mountaineer. 1960 & 1978 was the best year for Mercury when they sold 580,000 vehicles. 20 million vehicles are sold in life of Mercury.

Last month most of American Auto companies posted double-digit sales gains as a sign of recovery from recent crisis. But ford is not able to save its 5% profit share of Mercury division. Ford is planning to design and marketing of its more upscale Lincoln brand. They wants to launch compact Lincoln sedan as well as other fresh models in next four year to recover loss of the dealers of Mercury line.

Ford’s American president Mark Fields said “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,” Mercury have only 1% share in American market in compare to ford’s overall 16%.

There are no stand-alone Mercury dealers left in the U.S. But 276 are paired only with Lincoln, and Fields acknowledged some may have a hard time surviving alone. Ford said it will work to consolidate those with nearby Ford dealerships.

“It’s going to have very little impact on me,” said Carl Bilsky, vice president and general manager of Southwest Lincoln Mercury in Houston. “We’ll lose the Mercury sales, but we’ll still do maintenance for all our Mercury customers.”

Overall industry sales came in at an annual pace of about 11.6 million vehicles, about on track for the 11.5 million to 12 million autos most of the industry estimates will be sold this year.

Through the first five months of the year, automakers have sold just under 4 million vehicles, up 17.2% from the same period a year ago, according to Autodata.

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