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As Ford Motor Co. sales continue to flounder, its Mercury nameplate may be "Found On the Road Dead." On-going sales troubles have prompted rumors amongst dealers suggesting that the mid-level brand could follow rival marques Oldsmobile and Plymouth into the garage for good. Ford's overall sales — including Jaguar, Land Rover, Lincoln and Volvo — were down 14% in the month of August, according to Bloomberg. Ford was the biggest loser last month, but it was in good company considering Toyota lost 2.8%. However, earlier in the year, Ford lost its number two sales position in the U.S. to Toyota, where it has remained stalled in third place for most of the year. Ford, which is amidst a restructuring that includes a sale of its Jaguar and Land Rover brands, blames the sales declines on its attempt to cutback reliance on fleet sales. However, rival General Motors Corp., which also is restructuring, saw its sales increase 6.1% for the month.
Perhaps Ford's sales problems are really related to uninspiring vehicles. Add in the lack of differentiation between Ford and Mercury models, and the problem amplifies. For example, the biggest difference between a Ford Fusion mid-size sedan and its Mercury Milan sibling is the $1500 starting sticker price. A pullback of the Mercury brand after a sale of Jaguar and Land Rover would leave Ford with three distinct brands with clearly differentiated models leaving the company more nimble and resembling its rivals Chrysler and Toyota, which also only offer three nameplates with clearly differentiated models. Finally, the closure of the Mercury brand is not unprecedented. As stated earlier, rivals Chrysler and GM have axed nameplates — most recently Plymouth and Oldsmobile respectively. However, Ford also has killed poorly received marques — most notably the Edsel. —Matthew Wurtzel See Mercury story from AutoBlog Tags: Ford, corporate restructuring, automobiles Categories Deal Video
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