Is Mercury headed for the junkyard?
Speculation is mounting that Ford Motor Co., preoccupied with reviving its Ford and Lincoln brands, might decide to retire the Mercury nameplate rather than spend scarce resources trying to restore its former luster.
Despite denials from Ford, the conjecture got a boost last week when Jerome York, a former auto executive and advisor to billionaire investor Kirk Kerkorian, said shedding the brand would be a smart move for the struggling automaker.
York's opinion carried some weight, considering that Kerkorian's Tracinda Corp. recently revealed that it owned 4.7% of Ford and said Friday that it might raise its stake to more than 5.5%.
An even more influential vote on Mercury's future is being cast in auto showrooms across America.
After regularly selling half a million vehicles a year during the mid-1980s, Mercury sold only 168,000 cars and sport utility vehicles last year. Its U.S. sales are down 23% this year -- the biggest drop for any brand except Chrysler and Hummer.
"Mercury has one more product cycle left in it, and then will almost certainly be retired as a brand," analyst Aaron Bragman of market researcher Global Insight wrote in a report this year.
It would be a sad end for a marque that had generated its share of automotive history. Launched in the 1939 model year as a "step-up" car for buyers between economy Fords and upscale Lincolns, Mercury was known for its powerful V-8 engines and became popular with hot rodders.
James Dean drove a black '49 Mercury Club Coupe in the 1955 movie "Rebel Without a Cause," cementing the brand's place in American pop culture.
"It became an icon for teenagers," said Gary Richards of Sun City, Calif., a member of the International Mercury Owners Assn. "James Dean was cool; he drove a Mercury; ergo, Mercury was cool."
Mercury cruised through the '60s and '70s on the momentum of popular cars such as the Cougar. But by the late 1980s, the brand was suffering an identity crisis. Most products were "twinned" with nearly identical Ford models, and beyond the badge and distinctive grille (it resembles a waterfall) there was little to differentiate a Mercury from a Ford except for the higher sticker price.
"It's hard to sell a Mercury when it looks just like a Ford that's priced at $4,000 less," said Tom Libby, an auto industry analyst at J.D. Power & Associates.
