Camelback LINCOLN

Mercury originally was created as a premium offering to Ford and was an important source of incremental sales.  However, the continued strength of the Ford brand - particularly during the past three years - has accelerated the migration from Mercury to Ford for many customers. 

Today, Mercury's customer profile, pricing and margins are almost identical to Ford, but Mercury's incremental sales have been declining.

The majority of current Mercury sales are to fleet buyers and customers purchasing through employee, retiree and friends and family discounts, which Ford anticipates largely can be satisfied by Ford brand vehicles.

Of Ford Motor Company's 16 percent market share in the U.S., Mercury accounts for 0.8 percentage points, a level that has been flat or declining for the past several years.  That contrasts with the Ford brand, which has increased market share by 2.2 percentage points so far this year on the strength of new products and improved quality, fuel efficiency, safety, smart design and value.

Ford's strengthening financial position - including the return to profitability and positive cash flow - allows the company to absorb short-term costs associated with the discontinuation of Mercury and to consolidate future product investments into Lincoln.

Today, there are no stand-alone Mercury dealerships in North America.  Ford is working closely with dealers to maintain properly located stand-alone Lincoln or Ford-Lincoln dealers, which will offer dealers and the company the greatest opportunity for long-term profitable growth.

New operational standards developed with the company's dealers will facilitate a Lincoln customer experience that exceeds the expectations of North American luxury customers.

Ford will work closely with Mercury dealers and customers during the transition, including providing existing Mercury owners with continued access to parts and service support at Ford and Lincoln dealers and by honoring current warranties, including Ford's Extended Service Plans.

"We are 100 percent committed to supporting Mercury owners through Ford and Lincoln dealerships and working hard to keep them as valued customers in the future," Fields said. "At the same time, we will work closely with our dealers to phase out Mercury franchises and continue to build a healthy, growing Lincoln with strong new products and a profitable dealer network that delivers a world-class customer experience."

Mercury owners will receive additional details in the coming days explaining the transition and assuring them that Ford and its dealers will continue to provide all necessary parts and service support for Mercury products.  

Ford has notified Mercury dealers of the decision and provided details of a financial package that includes payment in exchange for resigning the franchise. 

Ford today also informed dealers of special offers on new Mercury vehicles that will be available through the summer to support the sell down of current Mercury inventory and remaining Mercury vehicle production.

"We are taking decisive action and moving into the future with the right plan to deliver profitable growth for all stakeholders," Fields said. "These moves position us to continue building momentum through strong brands, great products and an unwavering focus on the customer."

Q. What is the company doing for Mercury customers?
A. Ford will send each Mercury customer a letter to advise them Mercury is being discontinued and to assure them that they can continue to receive warranty and other service at their Ford or Lincoln dealer. We also plan to provide support for all Mercury customers on the purchase of their next Ford or Lincoln vehicle. Details on that will come later.

Q. Will you continue to honor warranty coverage and Extended Service Plans (ESP) for Mercury vehicles?
A. Absolutely. We appreciate our Mercury owners and stand ready to continue to serve them. We will honor Mercury customers' warranties. We also will provide parts and service support for Mercury customers for the life of their vehicle.

Q. What is the last day dealers can order and sell Mercury vehicles?
A. Final orders for Mercury vehicles will be due in early August to support the
completion of Mercury vehicle production in the fourth quarter. Dealers will be selling Mercury products to customers as long as the inventory lasts.

Q. How long will you lease Mercury vehicles?
A. We will continue to offer our normal lease programs until sales of new Mercury vehicles cease.

Q. I financed my vehicle through Ford Credit. Does this affect my contract?
A. No. Ford Credit will continue to handle your financing contract until the end of its term.