Ford Dumping the Mercury Brand
Looks as if the consolidation in the auto industry is continuing with Ford looking to dump the Mercury brand, according to a Bloomberg report. However, according to Edmunds.com, despite shutting down the Mercury brand, Ford won't have to worry about consumers jumping overboard and will remain loyal to the brand.
“Shutting down Mercury eliminates a distraction. Mercury is a brand that has lost its meaning in the American automotive marketplace and it isn’t worth trying to change that,” Edmunds.com CEO Jeremy Anwyl said in a press release.
Edmunds.com’s analysis indicates that 46 percent of Mercury shoppers currently consider Ford vehicles, and that Chevrolet and Honda are also popular alternatives.
Mercury currently represents 5.6 percent of total Ford Motor Company sales. In April, the brand’s True Cost of IncentivesSM was approximately $3,326 per vehicle sold, compared with $3,172 for the Ford brand.
“For years Ford executives have been asked why they keep Mercury, but they had been adamant about keeping the brand for reasons that are unclear and now, apparently, dismissible,” Edmunds.com Senior Analyst Michelle Krebs said in a release. “Clearly, it is more cost-effective to focus precious marketing dollars on fewer brands. Seemingly in preparation for this announcement, Ford had significantly cut back on Mercury marketing money of late.”