Grinding the Rumor Mill
Monday, November 9, 2009
The rumor:
The rumor mill is quietly stirring up talk again that Ford may be considering dropping the Mercury brand. This time the speculation centers around the Mountaineer and whether it will survive when Ford introduces the new Explorer next year.
Rumors of Mercury’s demise have been circulating for several years. Its displays at the car shows are getting smaller and smaller. Ford is scheduled to end production of its large, rear wheel drive models (Crown Victoria, Grand Marquis, Town Car) in 2011. If the Grand Marquis and Mountaineer both leave, Mercury would be left with just two cars to sell and its future would look bleak.
On the other hand, axing a car brand can be painful and expensive, it might be cheaper to keep Mercury around. And Mercury dealers provide Ford with outlets in areas it might not otherwise have -- Ford is looking to grow its market share, not shrink it. And where will Grand Marquis buyers go when their beloved sedan is put out to pasture, the Taurus? Maybe, maybe not.
My take:
Too soon to put this one to bed. Watch the car shows next year. If you see a Taurus-based Mercury concept car or a cross-over or SUV, it might stick around a while. Otherwise: not with a bang but a whimper.
--M.D.

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