Ford’s Mercury division announced at the Chicago motor show that the company intends to build a yet-to-be named crossover-utility vehicle, as a part of the division’s attempt to resuscitate the ailing brand, Dow Jones reported.
Go deeper with GlobalData
The news agency noted that, over the last several years, Ford has let the Mercury division age and lose market share, while it built up its sport-utility vehicles and truck platforms. At one time, Mercury had 7% market share, and now it struggles to hang on to 2%.
According to Dow Jones, many have speculated that the next step for Mercury would be to close down, like General Motors did with Oldsmobile, but this week’s announcement bolsters Ford’s argument that it’s not giving up on the brand — the company will expand the range from four to seven vehicles by the end of next year and its also unveiled the Mercury Montego, a lightly reworked Ford 500 sedan, at Chicago.
Dow Jones noted that the brand was founded by Edsel Ford in the 1950s as an alternative for Ford customers who wanted to go upscale, but who couldn’t afford Lincoln cars. The company hasn’t wavered from that marketing strategy – each new Mercury car and truck on the way is on a Ford model, and looks it, but has classier looking exterior and interior detailing, better upholstery, often leather, and the more powerful engines from the equivalent Ford line.
Mercury’s rear-drive, body-on-frame Grand Marquis, beloved of loyal older buyers, outsold its Ford Crown Victoria equivalent last year by several thousand units.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataA spokesman told Dow Jones it’s key that the company offer something for those buyers. He added that there is very little crossover between the Ford customer and the Mercury customer; the latter represent the second oldest demographic among car buyers, averaging 60, and second only to Lincoln buyers, who average 63 years old. Many of those customers like that Grand Marquis and Mercury has said it won’t be getting rid of that model any time soon.
“Everybody wants to appeal to the youth market,” Jim O’Connor, Ford’s vice president of North American marketing, sales and service told Dow Jones, adding: “But there are a lot of grey-haired wealthy people who like the Grand Marquis, and we make money.”
In fact, Ford division president Steve Lyons reportedly said, Ford is going to drop the Crown Victoria from its retail lineup while keeping the Grand Marquis.
According to Dow Jones, Ford will continue to sell the Crown Victoria for police and taxi fleets and will allow the odd retail customer who really wants to buy one to obtain it from a dealer – the 500 will take the Crown Victoria’s place on showroom floors.
