How will Ford save Mercury? - John McElroy's Autoline September 22, 2008, 08:06:20 AM http://www.autoblog.com/2008/09/20/autoline-on-autoblog-with-john-mcelroy/HOW FORD WILL SAVE MERCURYWhen Alan Mulally came to the Ford Motor Company two years ago he finally forced the company to face reality. It wasn't going to go anywhere, he told his executive team, unless it put all its resources into resuscitating the Ford brand on a global basis.So Jaguar and Land Rover were given the heave-ho, and Volvo was put "under review." The decision was made to let Mercury slowly die, and Lincoln's turn-around was put on the back burner until the Ford brand revived.But as the company formulated its turn-around plan, it slowly dawned on everyone involved that there was a real opportunity to save Mercury. They figured out a way to give the brand a unique line-up of vehicles without breaking the bank. So in April of this year they took their ideas to Mulally, and after extensive studies they got the go-ahead in June to save it.John McElroy is host of the TV program "Autoline Detroit". Every week he brings his unique insights as an auto industry insider to Autoblog readers. Follow the jump to continue reading this week's editorial.Mercury was worth saving for a couple of reasons. Even though Mercury sales have been sinking for a decade, Lincoln-Mercury dealers still need the volume that the brand provides. Many, if not most, Lincoln-Mercury dealers couldn't survive without it. Second, Mercury brings in younger buyers than the Ford brand does, and a more diverse group of buyers at that, especially women.Historically, Mercury's sales volume was never enough to justify the cost of tooling up unique models for the brand. Most Mercury models are nothing more than re-badged Fords. The fact that it's still alive shows there's a lot of power in that brand. But how to give it a terrific line-up of unique models?Back to the plans to resuscitate the Ford brand. The company determined that it was going to build its product portfolio around C-segment vehicles. After all, it's the biggest segment in the world. And where there's volume, there's economy of scale. That's how mass marketers make money in this business.Ford has a slew of C-segment vehicles in Europe. There's 3-door, 4-door, 5-door and station wagon versions of the Focus. Then there's the C-Max and Kuga that are built on the same architecture. Mazda and Volvo use that platform, and the B-class Fiesta shares a lot of it, too. With a little bit of modification they can bump it up to the C/D segment, where they have three different body styles of the Mondeo, plus the S-Max crossover and Galaxy people mover. Talk about manufacturing volume!Up to now it didn't make much sense to build small cars in the U.S. Sky-high UAW labor rates were twice as much as Toyota or Honda had to pay their American workers. But last year's UAW contract changed all that. Now the Detroit Three have a fighting chance to build compact cars profitably in their home market, and Ford is going at it with a vengeance.The plan is to retool a number of its U.S. plants with flexible manufacturing lines that can build just about any of these C-segment vehicles. The company is going to put six of these models (including the Transit Connect) in Ford showrooms in the next few years. But that leaves a lot of other models to choose from, and that's where the company realized it could sell some of them as Mercurys.After all, if the cars are already designed and they've got the plants to build them in, the financials just became attractive enough to justify giving Mercury a unique line-up of models. For example, why not give Mercury dealers the 5-door version of the Mondeo, and the S-Max and the Kuga? OK, so they're still re-badged Ford's, but to most Americans they'll be completely different than anything they'll see on the lot at a local Ford dealership.Ironically, the plan to save Mercury rose directly out of the plan to kill it off. And so a brand that was literally on its last legs will finally get a shot at proving what it can do. Quote Selected
How will Ford save Mercury? - John McElroy's Autoline Reply #1 – September 22, 2008, 11:13:14 AM Heh, saving Mercury is a "what have we got to lose" scenario now :hick:Maybe I will get to buy that 50th Anniversary Cougar after all :D Quote Selected
How will Ford save Mercury? - John McElroy's Autoline Reply #2 – September 22, 2008, 11:26:45 AM lol ill buy it if it looks like our cars just "redefined for 2009" like the mustang and challenger.... i think it would look sick! Quote Selected
How will Ford save Mercury? - John McElroy's Autoline Reply #3 – September 22, 2008, 11:38:39 AM As of mid-2007 there are no Mercury only dealers. I don't think there are any Lincoln only dealers so the decision to keep Mercury makes sense. Ford does not really want to sell Lincolns at Ford dealers, although a few do as they are Ford/Lincoln-Mercury outlets. Lincoln needs the volume.So, finally Mercury will get it's unique models that are not just re-grilled Fords.It sounds like a plan to me. :D Quote Selected
How will Ford save Mercury? - John McElroy's Autoline Reply #4 – September 22, 2008, 12:53:59 PM A rebadged cougar off the mustang would be cool as well. I think the new mustangs are the best looking mustangs EVER. My opinioon on that is the only one that counts for me anyway. It's all about preference. Quote Selected
How will Ford save Mercury? - John McElroy's Autoline Reply #5 – September 22, 2008, 01:11:49 PM Quote from: tbirdsps;236939As of mid-2007 there are no Mercury only dealers. I don't think there are any Lincoln only dealers so the decision to keep Mercury makes sense. Ford does not really want to sell Lincolns at Ford dealers, although a few do as they are Ford/Lincoln-Mercury outlets. Lincoln needs the volume.So, finally Mercury will get it's unique models that are not just re-grilled Fords.It sounds like a plan to me. :DAll dealerships in Canada are Ford-Lincoln. Mercury went bye-bye here a few years ago, with the exception of the Maurader and Grandma MarquisQuote from: yellow86coogr;236943A rebadged cougar off the mustang would be cool as well. I think the new mustangs are the best looking mustangs EVER. My opinioon on that is the only one that counts for me anyway. It's all about preference.Personally I'd rather see a new Cougar sharing the Mustang's drivetrains and platform, but with modern styling. Give retro to the Mustang, let a new Cougar be modern. Perhaps even use the Mustang's platform but with IRS and drivetrains aimed more at the "tuner" crowd, such as the Ecoboost 4 and V6. Price it accordingly and go hunting for potential Genesis Coupe buyers... Quote Selected
How will Ford save Mercury? - John McElroy's Autoline Reply #6 – September 22, 2008, 08:29:35 PM i used to be very brand loyal to Ford until i bought an 01 Focus wagon for my wife. it was the worst piece of i've ever owned. when i went to get it( i had it shipped to holland) the door jambs were still painted yellow primer, the wheels were covered in undercoating and the radio face plate was missing. it's first trip to france the fuel pump went and it burned up the converter and o2 sensor. Next trip the wheel bearing literally exploded causing the wheel to nearly fall off. Ford should change it's logo to Quality....NOT!! i'm tired of their pathetic excuses while puppiesan kicks their ass into yesterday. And now they cry to the government for $80 BILLION in bailout money so they can create alternative energy cars...never mind that they've had the technology forever and coward down to big oil. Screw em all, i wont shed a tear if they go under...same with the greedy unions and the blind sheeple that are killing the industry from the other end.whew!!! Man, I feel better now... Quote Selected
How will Ford save Mercury? - John McElroy's Autoline Reply #7 – September 22, 2008, 09:42:27 PM All Licoln and Mercury dealerships are Ford Dealerships too. Quote Selected
How will Ford save Mercury? - John McElroy's Autoline Reply #8 – September 23, 2008, 06:21:55 AM Quote from: lakenheath24;236973i used to be very brand loyal to Ford until i bought an 01 Focus wagon for my wife. it was the worst piece of i've ever owned. when i went to get it( i had it shipped to holland) the door jambs were still painted yellow primer, the wheels were covered in undercoating and the radio face plate was missing. it's first trip to france the fuel pump went and it burned up the converter and o2 sensor. Next trip the wheel bearing literally exploded causing the wheel to nearly fall off. Ford should change it's logo to Quality....NOT!! i'm tired of their pathetic excuses while puppiesan kicks their ass into yesterday. And now they cry to the government for $80 BILLION in bailout money so they can create alternative energy cars...never mind that they've had the technology forever and coward down to big oil. Screw em all, i wont shed a tear if they go under...same with the greedy unions and the blind sheeple that are killing the industry from the other end.whew!!! Man, I feel better now...Did you buy it used, because I've never heard of a Ford product with poor paint from the factory, or missing interior pieces. The undercoating would be your dealership's fault. For the rest of it, that's crazy. You got a lemon. Even still, it sounds like you got a car with the life burned out of it before you laid hands on it. Quote Selected
How will Ford save Mercury? - John McElroy's Autoline Reply #9 – September 23, 2008, 08:27:41 AM QuoteDid you buy it used, because I've never heard of a Ford product with poor paint from the factory, or missing interior pieces. The undercoating would be your dealership's fault. For the rest of it, that's crazy. You got a lemon. Even still, it sounds like you got a car with the life burned out of it before you laid hands on it.It had 11 miles on the clock. Seriously though and i dont mean to hijack the thread, but why should we bail out a company that sells polished turds...and i'm a ford guy :toilet: . if your going to do something do it right... redo the cougar ala 68 and make the stang and cougar sisters again...same chassis different styling. and for god sake get rid of that 80 year old man, no power having, no handling thunderjunk, and replace it with a NASCAR useable body. then Mercury needs to do the same and bring back cool names like the Marauder and Cyclone. The whole company is run by a bunch of mamby, pamby sissy boys who go to freaky clubs to wear diapers and get spanked by their "mommy" while sucking their thumbs. I feel ill thinking about it Quote Selected
How will Ford save Mercury? - John McElroy's Autoline Reply #10 – September 23, 2008, 02:36:16 PM you remind me of this guy...http://maddox.xmission.com/ Quote Selected
How will Ford save Mercury? - John McElroy's Autoline Reply #11 – September 23, 2008, 02:48:39 PM Quote from: lakenheath24;237015It had 11 miles on the clock. Seriously though and i dont mean to hijack the thread, but why should we bail out a company that sells polished turds...and i'm a ford guy . if your going to do something do it right... redo the cougar ala 68 and make the stang and cougar sisters again...same chassis different styling. and for god sake get rid of that 80 year old man, no power having, no handling thunderjunk, and replace it with a NASCAR useable body. then Mercury needs to do the same and bring back cool names like the Marauder and Cyclone. The whole company is run by a bunch of mamby, pamby sissy boys who go to freaky clubs to wear diapers and get spanked by their "mommy" while sucking their thumbs. I feel ill thinking about itI have no idea what you're talking about with the Thunderjunk comment. Do you mean Taurus? They are getting rid of it. As for Mercury looking to the past to save them, in case you haven't noticed, the retro T-bird, GT, Mustang aren't really pulling Ford out of the fire. Why would it do so for Mercury? Mercury needs to be differentiated from Ford. Honestly, catering to the NASCAR crowd is what's killing the company. They need to cater to the people buying new cars, not those fixing up old ones because 'no one makes a car for ME' (V8, four seat, two door, RWD, and carbed). Ford and Mercury really need to let go of the past to survive. The lashing they got for the live rear retro Mustang should spell that out. It's cars like the next Taurus, Flex, and Fiesta that will save them. Quote Selected
How will Ford save Mercury? - John McElroy's Autoline Reply #12 – September 23, 2008, 03:38:25 PM thunderjunk=thunderbird. Ford hires people to do market research, perhaps they should be fired or something. Mercury was always a small, niche market anyway and with puppiesanese makers flooding the market maybe they have filled those gaps. they are going the way of oldsmobile. Quote Selected
How will Ford save Mercury? - John McElroy's Autoline Reply #13 – September 23, 2008, 04:13:08 PM Dude, Ford doesn't make a Thunderbird. Quote Selected
How will Ford save Mercury? - John McElroy's Autoline Reply #14 – September 23, 2008, 07:18:08 PM what!!!!!! then who's the wiseguy that stuck a blue oval on my car! Quote Selected
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Topic: How will Ford save Mercury? - John McElroy's Autoline (Read 3236 times)
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