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Ford Eyes More Cuts

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Old Apr 23, 2008 | 05:19 PM
  #1  
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Ford Eyes More Cuts

Looks like Mulally is planing to sell Volvo and kill Mercury.

http://online.wsj.com/article/SB1208...onsub_page_one
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Old Apr 23, 2008 | 06:39 PM
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I don't care so much about Volvo , but please not Mercury ! The Mercury brand has been around since 1939 ! I'm not a Mopar fan , but when Chrysler dropped Plymouth , I felt a little sad. The same for Oldsmobile at GM . Whether you like them or not, they were a part of our automotive culture.
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Old Apr 23, 2008 | 06:49 PM
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Great article. Thanks for the link. I'm always keeping up with the way the Ford Company is doing. Their stock has been performing great in the last couple of weeks and things are really looking up with Mulally. They still have a LONG way to go though.

I don't know if I agree with cutting Volvo though. I think they are a stable brand that has many good cars to offer.

The Mercury brand has been stagnant and stale for a while. I don't really see anything in Mercury that is worth keeping. Everything in Mercury can be had in another Ford brand.
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Old Apr 24, 2008 | 02:49 AM
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Mercury is a badge-engineered fixed cost that Ford neither needs, nor can afford anymore.

If you're not going to differentiate the Mercury brand with different vehicles, then let it go and focus on the core brand.

Volvo I'm not so sure about - leveraging its technology could still be valuable.

Last edited by Hollywood_North GT; Apr 24, 2008 at 02:51 AM.
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Old Apr 24, 2008 | 09:03 AM
  #5  
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Originally Posted by kh765
Great article. Thanks for the link. I'm always keeping up with the way the Ford Company is doing. Their stock has been performing great in the last couple of weeks and things are really looking up with Mulally. They still have a LONG way to go though.

I don't know if I agree with cutting Volvo though. I think they are a stable brand that has many good cars to offer.

The Mercury brand has been stagnant and stale for a while. I don't really see anything in Mercury that is worth keeping. Everything in Mercury can be had in another Ford brand.
+1 I think Volvo is definitely worth keeping....
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Old Apr 24, 2008 | 02:35 PM
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Really great article. Thanks for the post. Unfortunately, in regards to Mercury, anything that is offered in their cars right now should really be offered in a Ford. I just dont see Mercury doing anything spectacular either....like a total repositioning of the brand (which is what they should do) I just hope whatever they do, they do it efficiently and quick. Time is something that Ford really doesnt have right now.
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Old Apr 24, 2008 | 03:29 PM
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Mercury is cheap to build since they share all their parts with Ford and their sales of 200,000 are not that low either.
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Old Apr 26, 2008 | 09:09 AM
  #8  
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V10
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The Mercury brand is on pace to sell LESS than 140,000 vehicles in 2008. YTD in 2008 the Mercury brand sales is only 7% of the Ford brand sales The fixed costs associated with maintaining the Mercury brand are too high for such a small sales volume.

The entire reason for having multiple brands such as the Ford, Mercury, Chevy, Pontiac, Olds, Buick, Saturn, etc. is obsolete vestige of what the automotive business was like in the 1930s, 1940s and 1950s.

Back in those days there was essentually one Ford model, yes there were coupe, sedan, convertible models, but they were all built off the same mechanicals. Mercury served a purpose as a Merc. was a distinctively larger car built on a larger frame with a larger engine and features not available on a Ford.

That all changed in the 1960s when the proliferation of models within a brand started. When you have a small Ford, a mid-sized Ford, a full-sized Ford, a pony car Ford, 3 different CUV Fords, 2 different BOF SUV Fords, etc., etc. why in the world do you need to duplicate ANY of those models with different grilles, tail-lamps and Mercury badges? To paraphrase Mually in the WSJ article: can you imagine Boeing coming out with a new airliner nameplate where Boeing takes a 737 then changes the nose-cone, winglits, rear flaps then hires more sales & markeing people to sell that "new" model airplane as a Douglass? Such an idea sounds pretty stupid, doesn't it.

Mercury needs to either have models that are distinctly different from Ford models, or the brand needs to be killed. Unfortunately given the proliferation of models within the Ford brand, the first option (distinctive models) cannot be done with making a profit. The only rational option is killing the Mercury brand.

Last edited by V10; Apr 26, 2008 at 09:10 AM.
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Old Apr 27, 2008 | 03:22 AM
  #9  
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Originally Posted by V10
The Mercury brand is on pace to sell LESS than 140,000 vehicles in 2008. YTD in 2008 the Mercury brand sales is only 7% of the Ford brand sales The fixed costs associated with maintaining the Mercury brand are too high for such a small sales volume.

The entire reason for having multiple brands such as the Ford, Mercury, Chevy, Pontiac, Olds, Buick, Saturn, etc. is obsolete vestige of what the automotive business was like in the 1930s, 1940s and 1950s.

Back in those days there was essentually one Ford model, yes there were coupe, sedan, convertible models, but they were all built off the same mechanicals. Mercury served a purpose as a Merc. was a distinctively larger car built on a larger frame with a larger engine and features not available on a Ford.

That all changed in the 1960s when the proliferation of models within a brand started. When you have a small Ford, a mid-sized Ford, a full-sized Ford, a pony car Ford, 3 different CUV Fords, 2 different BOF SUV Fords, etc., etc. why in the world do you need to duplicate ANY of those models with different grilles, tail-lamps and Mercury badges? To paraphrase Mually in the WSJ article: can you imagine Boeing coming out with a new airliner nameplate where Boeing takes a 737 then changes the nose-cone, winglits, rear flaps then hires more sales & markeing people to sell that "new" model airplane as a Douglass? Such an idea sounds pretty stupid, doesn't it.

Mercury needs to either have models that are distinctly different from Ford models, or the brand needs to be killed. Unfortunately given the proliferation of models within the Ford brand, the first option (distinctive models) cannot be done with making a profit. The only rational option is killing the Mercury brand.
Very well said.

Time to dissolve the marque.
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