Ford shoots messenger

Ford announced last week that it would cease production of its Mercury product range with effect from the fourth quarter of this year.

In its press release, Ford acknowledged that the premium brand, basically marketing Ford clones for much of its 71-year history, was a victim of "declining" sales. The majority of sales in recent times had gone to fleets or buyers availing themselves of employee discounts, according to the release. Mercury's heyday was arguably long past

"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," said Mark Fields, Ford's president of The Americas.

"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 products are sold through dealerships also selling either Fords or the Lincoln range, Lincoln being Ford's competitor to Cadillac and Lexus. Ford seems to anticipate little fall-out from disbanding the Mercury brand. Mercury owners will continue to enjoy parts and service support for their vehicle through Lincoln or Ford dealerships, the company explained in the release.

The end of the Mercury brand frees up capital for Ford to expand the scope of the Lincoln division, with seven new or updated models to be introduced over the next four years, including a Lincoln-branded small car based on the Focus. Ford anticipates this new model initiative will aggressively take the fight up to Cadillac and Lexus in North America.

"Profitably growing Lincoln in North America is an important part of our One Ford plan," said Alan Mulally, Ford president and CEO. "Our Ford brand is gaining momentum and winning customers around the world.  Now, we are going to use the same laser focus to further strengthen Lincoln and deliver even more products luxury customers really want and value."

The new Lincoln models include a new MKS flagship sedan, a new MKT seven-seat crossover model, a "refreshed" MKZ mid-size sedan (with a hybrid variant to follow later this year) and an update of the MKX Crossover.

While the Mercury name means little to Australians, there is a connection. The first generation of Mercury Tracer was a small hatchback model based on the Aussie-designed KC/KE 'Bubbleback' Laser, but built in Mexico. Mercury was also the division tasked with selling the Australian-manufactured Capri convertible in the US during the late 1980s and early 1990s.

The end of the Mercury brand is Ford's parallel to GM's closure of its Pontiac division. In both cases, the entry-level brand was cannibalising sales of the upmarket brand -- Chevrolet with Pontiac in GM's case.

Key to pics: 1967 Mercury Cougar (red) based on the Ford Mustang of the time, 2004 Mercury Marauder (black) based on the Ford Crown Victoria

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