Eyebrows went up a couple of years ago when Ford opted not to produce a Mercury-badged version of the much-anticipated Edge crossover SUV. The vehicle has been a strong seller for the blue oval and could have given the Mercury lineup a boost, analysts say.
As its product lineup has aged, so has the brand's customer base. The average Mercury buyer is 55, according to J.D. Power, well above the industry average of 47. The yacht-like Grand Marquis skews even older, with an average buyer age of 72.
Brand loyalty is flagging as well, with 35% of Mercury owners opting to buy the same brand of vehicle compared with an industry average of 45%, according to market research firm R.L. Polk & Co.
Ford insists that it has no plans to sell or scrap Mercury. Although there are no all-new vehicles on the drawing board for the brand, an updated version of the Mariner mid-size SUV is scheduled to be in showrooms this summer, and updated versions of the Milan sedan -- including a hybrid -- are due early next year.
"Rumors of Mercury's death have been greatly exaggerated," Ford spokesman Mark Schirmer said this week. "We've been very clear to the dealers that no decision has been taken to discontinue the brand."
The dealers, in fact, could be the key to Mercury's fate. Although there are no stand-alone Mercury stores left, about 1,900 dealerships sell the brand in combination with Ford or Lincoln or both.
Because of franchise agreements and state laws that protect car dealers, killing off a line of vehicles can be a real pain, as General Motors Corp. discovered when it pulled the plug on Oldsmobile eight years ago. GM set aside almost $1 billion to handle the transition and still spent more than five years battling dealer lawsuits.
"Discontinuing a brand isn't as easy as you might think," said Libby of J.D. Power. "It's a long-term process and it can be very expensive."
Given all of the other issues on Ford Chief Executive Alan Mulally's plate right now, the headaches that would accompany the demise of Mercury might help keep the brand alive -- at least for now, said Lonnie Miller, director of industry analysis for R.L. Polk.
"I think it's premature for Ford to cross that bridge when they have so much else to worry about," Miller said. "Beyond two or three years, though, anything goes."
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martin.zimmerman@latimes.com
