AUTOMOTIVE INSIGHT: Is Mercury the Next to Fold?

February 23rd, 2008 at 3:00pm

As heard on
WWJ Newsradio 950

Listen to this story:

Mercury Logo?General Motors got rid of Oldsmobile and Chrysler got rid of Plymouth, so will Ford get rid of Mercury?

Last year sales at Mercury fell below 170,000 units. In fact, it’s entirely possible that Lincoln will sell more vehicles this year than Mercury will. And when you ask the top executives at Ford what they’re going to do with the Mercury brand in the future, you don’t get much of an answer. And that tells me that we’re going to slowly see Mercury get phased out.

The good news in all of this is that the Ford and Lincoln brands are going to get more investment in new products. In the long run that will make them stronger and maybe help them gain back some market share.

But as GM and Chrysler learned, when you phase out a brand, those customers don’t automatically move to your other brands, and you end up losing share.

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