Just like I mentioned a few days ago, Ford has announced the closure of the Mercury brand.  Production of the four remaining Mercury models will end by the fourth quarter of 2010.  With this announcement came notice that Ford will renew focus on it’s core brands – Ford and Lincoln.  Particularly, Ford plans to expand the Lincoln lineup.  Current Lincoln-Mercury dealers must be glad to hear this, because they will see a volume dropoff with the closeure of Mercury.

So the question must be asked: Why did Ford decide to finally pull the trigger and shut down Mercury?

In any business, but especially the car business, it’s always about the sales.  In the case of Mercury, it was a lack of sales, specifically, that led to it’s demise.  Every Mercury model is a rebadged Ford – there is no  unique product.  In fact, there hasn’t been a unique Mercury product for eight years.

Once upon a time, decades ago, Mercury made sense.  Ford was for regular buyers, and Lincoln was an aspirational brand, something people worked for and hoped to own later in life.  Mercury bridged the gap between the two as a premium brand.  They were nicer than Fords, but not as fancy as Lincolns.

That was then. This is now.

However, that was then, and this is now.  Fords get pretty darn fancy these days.  There are on unique features on Mercury products – everything available on a Mercury is available on a Ford.  Lately, lower level Lincolns have even become close to Ford levels – the MKZ and MKX come to mind.  Both of these models share platforms with Fords.  Is there really room for a Mercury in the middle?  Absolutely not, and that’s why  Mercury is dead.

Without a clear focus, or a niche of any kind, Mercury is redundant.  Continuing to spend dollars re-styling Fords, and spending dollars marketing a 3rd brand is wasteful.  By axing Mercury, Ford frees up money to spend on the two brands that matter.  This puts them in a great situation – remember, companies like Honda, Toyota, and Nissan have run with two brands forever.  Their focus is clear, and there’s no distraction.  No one is fighting for marketing dollars.

This move puts Ford in an even better place then GM, which still has two redundant brands in it’s stable.  I’m not saying Ford will start outselling GM overnight… but it’s a fantastic step to becoming a more focused and more profitable carmaker.

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Mercury has been a failed brand for as long as I can remember.  Every Mercury model is a badge-engineered Ford.  The only changes are light sheetmetal differences, and sometimes slightly different packages and pricing.  There is no longer any illusion of a premium brand – Mercury only exists to help give Lincoln dealerships additional sales volume.

Fifteen Years of Failure

According to a neat little graphic at The Truth About Cars, Mercury sales have fallen for 15 years – drastically.  From roughly 440,000 units in 1995 to under 100,000 in 2009 – each year gets worse and worse for Mercury.  With no new models in sight, it’s hard to see how this trend will reverse course.  Think about it – do you even consider Mercury as a viable option when you’re car shopping?  Didn’t think so.

An anonymous source revealed to Bloomberg that Ford is quietly planning to kill the failed division.  A Ford spokesperson, of course, denied any such plans.  That’s hardly unexpected of course – if they make the announcement too early, Mercury could lose the few customers they have.

Following GM’s Lead

GM made a few rare good choices over the last few years- axing several of their brands from an extremely bloated portfolio.  Ford has been in a much better position from the beginning, with just 3 major brands.  (The niche Jaguar, Land Rover, and Aston Martin have already been sold off.)

However, Mercury serves no purpose.  It has no unique product.  It has no unique persona.  It doesn’t have a mission.  People don’t grow up dreaming of buying a Mercury one day.  Axing the brand will help Ford focus on the two core brands – Ford and Lincoln.  Hopefully with more focus, Lincoln can reverse its own sales slide.

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After going from the Sable, to the Mercury Montego, and back to the Sable, with all the costs and trouble involved, Ford is finally going to axe the Sable once and for all.  The official announcement is reportedly going to come this Thursday. 

Ford recently re-made the 2010 Taurus ( and if looks are any indicator, it should be a smash hit ) – but they didn’t do anything with the Sable.  Probably for the best – the Sable is just a Taurus re-badge, after all.  Why go through all the trouble of a re-skin, and split marketing money between the two competing models? 

Ford made a good call, axing a redundant model.  This move will only save Ford money and strengthen the Taurus’ position in the full-size family car segment.  No one will miss the Sable – they will simply by a Taurus instead.

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Even though Mercury is likely headed towards the same fate as Oldsmobile a few years ago, there will be a 2009 Milan. Click on the picture to your left to see the full-size shots. So what’s the big deal? Well, it’s just an update / refresh, so nothing much to get excited about. The grille and headlights are revised a bit, but not dramatically. The rear is hard to make out, so I’m not really sure what they’re doing back there. Really the only significant news is the availability of a Milan Hybrid version. The excellent 2.3 liter hybrid setup that current powers the Escape and Mariner Hybrid will make it’s way under the hood.

The hybrid version is good, but with the Fusion Hybrid also set to be available, why bother? No one really seeks out Mercury anymore. Maybe Ford is only letting Mercury limp along until Lincoln gets big enough to support it’s own dealerships. Could you imagine a Lincoln store without Mercury today?

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Some savvy spy photographers managed to get a couple shots of the 2009 Milan, which you see to your left.  ( Click the picture for the rest of the set ).  Updates aren’t expected to be major, since it’s more of a mid-cycle update than a redesign.  Ford is slated to introduce the hybrid powertrain from the Escape Hybrid in the 09 Milan though, which makes it at least slightly interesting.

I guess the problem with this update is that, well, no one cares.  When’s the last time you considered the Milan for your next car?  Or any Mercury, for that matter?  They can redesign the Milan all they want, but I don’t think it will spell more sales for Mercury.

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The 2007 Mercury Milan is proof that Ford can built a good car when it wants to.  For now, we’ll ignore the fact that Mazda designed the platform that the Milan rides on.  The question some are asking is whether the Milan is just a Fusion in Mercury clothing?  Well, yes.  And that’s not such a terrible thing.

I hate badge engineering – I say it all the time, and you are probably tired of reading it from me.  But I do, I hate it and think it’s worthless.  In that light, Mercury doesn’t really have much right to exist - all models are badge engineered Fords.

But if Mercury is going to exist, then the Milan is a perfect example of what kind of car should wear the badge.  The Milan looks like the Fusion’s older, more mature brother.  It’s stylish, classy, and has a great interior.  The front and rear of the Milan really look like they belong together ( something that’s not quite so in the Fusion ), and really create a good looking family sedan.  Add in the good handling and decent ride quality, and you have all the makings of a nice car.  I still don’t think it’s different enough from the Fusion to justify a whole new model, but that doesn’t take away from the fact that it’s a solid offering, and deserves a look if you’re in the market for a fun-to-drive family car.

2007 Mercury Milan Specs

• 160 HP 2.3 liter 4 cylinder engine
• Available 221 HP 3.0 liter V6 engine
• 5 speed manual with available 6 speed automatic transmission
• FWD or AWD ( available on V6 models )
• Side and curtain airbags standard
• ABS standard
• Seating for 5
• EPA Says : 23 / 31 mpg ( 4 cylinder auto )

2007 Mercury Milan Reviews

TTAC reviews the 2007 Mercury Milan and writes – ‘The Milan’s interior is proof positive that the domestic auto companies know how to design and assemble a comfortable, graceful and ergonomic interior. OK, the panel gaps around the dash top cubby were inspired by the Land Rover Discovery. And most of the luxury stuff that should be basic (automatic climate control, heated seats, leather wrapped steering wheel with secondary controls, etc.) is optional and, therefore, bumps the price towards the Lincoln Fusion homonym. But there are some nice touches.’

Edmunds reviews the 2007 Mercury Milan and writes – ‘With responsive steering and a quiet ride, the Mercury Milan is one of the sportier and more luxurious vehicles in the midsize sedan segment. It demonstrates a willingness to corner and change directions at speed with enthusiasm. Ride quality is acceptable, especially considering the above-average handling. Wind and road noise are effectively quelled at highway speeds, and the transmissions offer crisp upshifts and downshifts. The engines are the only real disappointment, as neither the four-cylinder nor the V6 offers the kind of low-end response and refinement now expected in the family car class.’

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The Hollywood Extra has pics of the new Ford Mondeo Hatchback – and some thoughts on what Ford should do with it – ‘ The Mondeo could be sold at a competitive price in the US if Ford really wants to. But they don’t.
I don’t think they could sell it for $18 000, but how about $22 000 and make it truely more upscale than the Fusion.
Compete with Passat instead of Altima/Accord/Camry.’

Indeed, the new Mondeo looks like it would make a good Mercury. Mercury is a brand that has so many issues and so little relevance, it could use a booster shot. Maybe go the route that GM went with Saturn. If GM can turn Saturn into the US Opel, then why can’t Ford turn Mercury into the US version of Ford Europe?

Hi there - could you help spread the word about Houston Cars? This is a new site, and I could really use your help in getting my work out to new readers. If you would send someone a link, email, or even mention it to your friends, I would appreciate it. Ford Mondeo Hatchback is a post from: Houston Cars, home of the best darn car reviews around.