In The Truth About Cars, writer Tom Anderson speculates why Ford Motor Co. continues to insist in keeping what he considers “…fractionally ritzier but still blander-than-John-Kerry- eating-vanilla-ice-cream Fords with waterfall grilles.” He points, of course, to the now defunct Oldsmobile as the “solution” to dealing with the brand. Comments on the article support his suggestion.
I can’t believe how stupid enthusiasts can be.
In The Truth About Cars, writer Tom Anderson speculates why Ford Motor Co. continues to insist in keeping what he considers “…fractionally ritzier but still blander-than-John-Kerry- eating-vanilla-ice-cream Fords with waterfall grilles.” He points, of course, to the now defunct Oldsmobile as the “solution” to dealing with the brand. Comments on the article support his suggestion.
I can’t believe how stupid enthusiasts can be.
The reason why Ford continues to pump money into Mercury is Oldsmobile. What do I mean? When you read Anderson’s article and the comments, there’s this underlying presumption that if the Blue Oval tossed Mercury to automotive heaven (or, grumble enthusiast, to the junkyard), that consumers would flock the company’s Ford and Lincoln brands. They point that, aside from some style differences, there’s nothing mechanically different between the two brands.
They’re only partially right. While the underlying chassis, engines, and technology are different, the brands are perceived different.
That was Ford’s original intent. Mercury was established as a brand aimed at the near-luxury market for those who found Ford vehicles too basic or “blue collar” and the Lincoln brand either too expensive or, until recently, too “stodgy”. Currently, the brand’s aimed at “young, hip” urban professionals who, no matter how identical is the less expensive Ford model, would never buy anything the “F” badge or blue oval. Perception and reputation of an item, not just its makeup, make or break sales.
Do you know what happened when General Motors closed Oldsmobile? There was not a sudden surge of buyers to the automaker’s Buick and Cadillac brands. The buyers, instead, bought Toyota Camrys or Avalons. GM lost–not gained–marketshare when it closed a brand. Worse, Toyota find a new niche once occupied by Oldsmobile.
That’s why Ford won’t shut down Mercury any time soon. The automaker, which saw its marketshare drop again last year, doesn’t want to lose even more. Until its absolutely sure consumers could perceive its Ford and Lincoln brands, for instance, comparable to Toyota and Lexus, management won’t risk losing such buyers. They must have calculated that the cost of losing those consumers, converting Lincoln/Mercury dealerships, and paying union workers to only build one brand instead of two, to be too high.
Enthusiasts like to think they see the “obvious”, that simply making a great product will attract buyers. But when you ask such a person what makes a great product, you immediately see they don’t see eye-to-eye with the consumer. The Toyota sedan is the number one selling four-door in the U.S., yet most enthusiasts lambast it as a “toaster” while lusting after niche vehicles like the Mazda MX-5 or Corvette.
Which automaker is laughing (or crying) on their way to the bank?
5 comments so far
I agree with you. I am one of those people who really like Mercurys. I’d love to pick up a 2004 Marauder.
Besides … what about Steve Miller’s song?
January 5th, 2007 at 3:04 pm
The decision to keep a brand is as much an immediate cost issue as it is a long term strategy. The immediate costs to shut down a brand can be exorbitant thanks to franchise laws; dealership buy-outs and dedicated plant shut downs– just ask GM regarding Oldsmobile. But, Mercury is to Ford more like Plymouth was to Chrysler in the sense that there are no stand alone dealers selling just the one brand, they are all dueled with Lincoln (as Plymouth was with Chrysler). This would make shutting it down just a little easier in regards to the dealer body costs.
Long term the question remains should the limited resources of Ford be used in sustaining a brand that is very similar to its main line Ford vehicles. The money spent on marketing alone is substantial, let alone engineering differentiation. I tend to think that long term it would be wiser to spend those extra resources on FoMoCo’s core products and brand, namely Ford cars and trucks. Or, at the very least, that money could be spent to revitalize Lincoln, which is in dire need of good product. Either way, I don’t think it makes sense to continue with Mercury in the long term, especially considering the constraints the Ford finds itself in today.
January 5th, 2007 at 3:36 pm
A certain level of differentiation is necessary between brands, but most consumers aren’t educated or sophisticated enough to know or care. Lexus continues to sell plenty of ES 350s, even though it’s nothing more than a tarted-up Camry. Same with the Acura TL and the Accord.
The bottom line is that consumers are looking for style, comfort, and reliability. Some may be looking for more specific attributes like economy or performance, but if you nail those three “fundamentals” then you’ve got a potential winner.
If you’re starting with a boring car and just doing superficial badge-engineering, you’re right, you’re not going to get many customers. But if you’re willing to invest a little in differentiation in terms of sheetmetal, interiors and features, there’s no reason you can’t have many successful models off the same platform.
January 5th, 2007 at 5:55 pm
Does Mercury really cost Ford much money, anyway? Mercury doesn’t have it’s own dealerships ( they’re all tied to Lincoln as far as I know ), and certainly there are no engineering costs. Just a bit of marketing and some sheetmetal changes. I’m not a fan of Mercury myself, but I don’t see a reason to drop them.
January 5th, 2007 at 9:42 pm
The thing about Mercury that makes it unnecessary now is that they have always sold slightly plusher Fords and had some sucess while the Lincoln brand sold distinctly upscale cars in the same showroom.
Today though, both Mercurys AND Lincolns are only slightly plusher versions of Fords so Mercury is really obsolete unless Ford is willing to truly re-build the Lincoln brand with its own unique products.
Lincoln’s line today consists of:
MKZ: rebadge of the Ford Fusion
MKX: rebadge of the Ford Edge
Mark: LT rebadge of the Ford F-150
Navigator: rebadge of the Ford Expedition
Town Car: rebodied Crown Victoria
Given the current lineup of Lincolns, there is no place for Mercury to fit between Ford and Lincoln. Essentially Lincoln has taken over Mercury’s historic role and abandoned their previous market position.
If it were up to me, I would build one totally unique, high style, high quality car and call it a Lincoln and let all the Ford derivitives be called Mercurys. Even if Lincoln only sold one lone product, it would be better than today’s situation where the brand has been allowed to become a joke.
January 5th, 2007 at 11:08 pm
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