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Re-activateFord Motor Company has announced that it will close down its Mercury brand in late 2010 and it will expand the Lincoln product portfolio. The 1,700 Mercury dealers will receive formal notification tomorrow morning, though there are no Mercury-only dealers in North America. Of those, 825 dealers also have Ford and Lincoln franchises, and 511 are Ford and Mercury.
Increased resources are being committed to Lincoln, company executives say. Lincoln will launch seven new models, increasing focus on comfort and quality – a shortcoming for the brand highlighted in our latest car reliability survey. Coming soon, Lincoln will add a hybrid MKZ sedan and the MKX crossover will be updated (as is the related Ford Edge). A C-segment vehicle is coming, sized like a Ford Focus. The company says it is specifically targeting Cadillac and Lexus, and will also focus on improving customers' dealer experiences.
Lincoln's reliability has been spotty, with only the MKZ and Town Car having above average reliability. After a poor start, the Navigator has improved to average, but the MKX and MKS are both below average. (See our full road tests.)
Bottom line
This is the latest step in Ford reshaping its long-term strategies, preceded by the Blue Oval selling off its Premium Automotive Group—Aston Martin, Jaguar, Land Rover, and Volvo—to overseas corporations.
It is sad to lose another decades-old American car brand to history, though the transition promises to be less painful for dealers and customers than with some other retired brands this past year. For owners, there may be limited direct impact. Cars can be serviced at the same dealership it was purchased at, or any other Ford or Lincoln store. This action will likely accelerate depreciation, but not nearly as much as seen with the shuttered General Motors brands.
Also read:
If Ford closes Mercury, what does it mean to you?
Ford may close Mercury
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