Mercury To Stop Production in 2010

Ford announced today that it will shut its Mercury brand and cease production by the fourth quarter of 2010. The move is meant to further streamline Ford’s portfolio; the company has sold off other nameplates, including Range Rover and Jaguar and most recently Volvo. Ford said it will refocus its attention on the premium Lincoln brand instead, mirroring efforts from Toyota with its Lexus line or Honda and Acura.

All current Mercury owners can have their vehicles serviced at existing Lincoln or Ford dealers, and all warranties will be honored, Ford says. If you’re looking for a bargain on a Mercury, the company says it will roll out incentives for new Mercury models throughout the summer.

Mercury’s sales were down 10.7% in May. Lincoln’s sales were down 9.5%, while Ford vehicles were up 27.9%.
 
As for Lincoln’s future, Ford said there would be seven new or refreshed models over the next four years, including the 2011 MKX but not the MKZ hybrid due out later this year. That leaves six new models, one of which will be based on the upcoming 2011 Ford Focus and will likely resemble the Lincoln C concept car.

Ford also revealed what it would add to future Lincolns to differentiate them more from Ford products, a factor that led to many complaints about Mercury simply being more expensive Fords.

Here is a list of the Lincoln plans, taken from Ford’s press release on the Mercury shutdown:

Ford Might Kill Lackluster Mercury Brand

We take our time when it comes to writing about web reports on major product changes because they usually don’t pan out. That’s why when Bloomberg first reported that Ford is considering ending the Mercury brand, we thought “ah, likely story” and kept looking for holiday gas prices.

Then CNBC’s Phil LeBeau followed up with his own sources who also say Ford is working on a phase-out plan for the midlevel brand that fits awkwardly between Ford and Lincoln marquees.

This is somewhat surprising news as Mercury products have always delivered cheap profits to the Blue Oval. Perhaps Ford has seen the relatively recent success GM had culling its brands from eight to four. It likely also has some support from Lincoln-Mercury dealers, who will be most affected by this move. There are 292 stand-alone dealers, and they likely don’t have the footprint to handle selling the volume of the Ford brand, which would replace Mercury.

If Ford does phase out Mercury, the only product that Lincoln doesn’t already have a version of is the Mariner compact SUV, which is based on the Ford Escape. Ford would have to expand Lincoln’s lineup with at least one less expensive or smaller product than the MKZ sedan that currently sits at the bottom of the brand’s lineup and starts at $34,225.

Perhaps a production version of the Lincoln C concept based on the new Ford Focus would work.

What types of new cars would Lincoln need to make up for the loss of Mercury?

Ford to Phase Out Mercury Model: Sources (CNBC)

Trucks and SUVs Cheaper to Insure

When involved in a crash, some vehicles are simply less costly to fix, and the affordability of those fixes is a strong factor in how much it will cost to insure a vehicle. Trucks and SUVs tend to have an edge, according to a government report that tallies losses of insured vehicles for 2007-2009.

For instance, a Mercury Mariner is 59% cheaper to insure than the average vehicle, while the Chevy Traverse is 57% cheaper, making them the insurance champs of this report (although the Ford Econoline van is actually the top vehicle at 61% cheaper).

Ford is touting the list because it has a number of vehicles toward the top. Ford Vice President Frederieck Toney attributed this strong showing to Ford’s engineering prowess, saying in a statement, “We design our vehicles to be easier and more affordable to repair.”

The only car to make the list was the Smart ForTwo, which was 52% cheaper to insure than average.

Other notable vehicles include the Ford Escape (50% cheaper to insure than average), Jeep Wrangler (53%), GMC Acadia (47%), Ram 1500 (45%), Ford F-150 Supercab (44%), Kia Sorento (44%), Dodge Grand Caravan (40%) and Ford F-250 (40%).

Trucks Dominate List of Cheapest Vehicles to Insure (DriveOn)

Recall Alert: 33,256 2010 Ford and Mercury Vehicles

Ford has issued a recall for 33,256 Ford and Mercury vehicles, according to the National Highway Traffic Safety Administration. The models include the Ford Explorer, Ford Explorer Sport Trac, Ford Fusion, Mercury Milan and Mercury Mountaineer from the 2010 model year.

The recall affects vehicles manufactured between Dec. 15, 2009, and Feb. 3, 2010, and equipped with front seat manual recliners. The recliner gear plate teeth for the head restraint may have improper dimensions and could result in “limited pawl to gear plate tooth engagement.” This means during a crash the seatback and head restraint may slip backward, which could increase the risk of injury.

Dealers will replace the manual recliners for power or manual seats. The fix will be free of charge.

Owners may contact Ford at 866-436-7332 or NHTSA’s hot line at 888-327-4236.

Mercury to Get New Small Model

Mercury will get a new small car model, according to Ford executives. It will be based on the same platform as the new global Focus going on sale early next year, but whether it’ll be a twin to the Focus, like the Mercury Milan is to the Ford Fusion, is unclear. We first heard of this addition to Mercury way back in July 2008, but it's always good to hear the company is following through.

Mark Fields, president of Ford’s American operations, dropped the news to Lincoln Mercury dealers when they met at the National Automobile Dealers Association in Orlando. Some sources are saying that the car will be a version of the Focus and even bare the name Tracer but that seems like a lot more information than Ford typically gives out to dealers.

Currently, the Mercury lineup has no compact car, and Ford has been thinking about bringing an upscale compact to Mercury. The new Focus makes sense, especially given its glowing reception when it debuted at the 2010 Detroit Auto Show, but previous attempts at selling an upscale small sedan at Mercury have never panned out. We’d much prefer to see Mercury get a convertible or coupe based on the new platform, much like Europe has of their previous Focus.

Lincoln Mercury Dealers to Get a New Small Car to Sell (DriveOn)

Navigation Standard With MyFord Touch

We didn’t know but could’ve guessed that the high-tech MyFord Touch system that debuted today would only be available with navigation included, but now Ford has confirmed that fact. When you check off the option box for MyFord Touch in the 2011 Ford Edge or 2012 Ford Focus, it will come with navigation.

An interesting note is that the Lincoln version, called MyLincoln Touch, will be standard in the 2011 Lincoln MKX, meaning that the SUV will have navigation standard. Few models of any make, even luxury brands, come with standard navigation.

No pricing for the MyFord option or the MKX itself has been announced. We’d guess that MyFord Touch will have to run similar to or more than the current Sync-powered systems in cars such as the Ford Fusion, whose navigation system costs $1,775.

Ford also revealed the front end of the MyFord media hub, with its two USB ports, SD slot and RCA inputs. That picture is below. All navigation updates will be downloaded via an SD card, the company says.

MyFord Touch Revolutionizes In-Car Displays

We don’t make bold statements lightly, but Ford’s new interactive controls, called MyFord Touch, are a gigantic leap for the industry.
 
To state it simply, MyFord Touch will allow drivers to customize how they use systems like climate control, music, navigation and the phone. Besides that, the new system is wedged into radically redesigned center stacks with an impressive level of sophistication.

The new technology will roll out this summer in the 2011 Ford Edge and 2011 Lincoln MKX. The system will be called MyLincoln and MyMercury in those respective brands.

There is a lot to learn about MyFord, and we do our best to break down the most important aspects below, along with a lot of images. We’ll also have a separate post on the interiors of the new Edge and MKX, which were revealed a bit early with this technology rollout. The MKX will debut next week at the Detroit auto show.

Ford's Sync Adds Wi-Fi

When the next generation of Sync rolls out in select 2011 model Ford, Lincoln and Mercury vehicles, it will have a new feature, Wi-Fi capability. The interesting thing about Ford’s solution is that it uses its existing hardware with Wi-Fi products people already own. There is no extra charge to what Sync costs on its own as an option or as standard equipment on certain trim levels.  

Instead of having a dealer install a bulky wireless router in the trunk or other cargo area like systems from GM and Chrysler, Sync allows users to plug-in their USB mobile broadband modems, those dongles you see sticking out of laptops at the airport.

Every wireless provider sells a version for a monthly fee.

When plugged into a compatible Sync system, drivers will be able to stream password protected Wi-Fi inside the car. When someone tries to log on to the system, the driver must authorize the use. That may be a downside, as drivers could be getting alerts as they drive through congested, computer-friendly neighborhoods.

Otherwise, it looks like Ford’s Sync system continues to be in front of the competition.

No specific models have been announced yet but we expect to learn more in the next week or so as Ford will unveil more Sync-related news at the Consumer Electronics Show in Las Vegas and at the Detroit auto show next month.

Jaguar and Mercury Top J.D. Power's Sales Satisfaction Survey

Jaguar and Mercury salespeople have apparently been smiling overtime this year because the two brands topped the list for sales experience satisfaction at luxury and mass market brands, according to J.D. Power and Associates.

Overall, the experience of buying a new vehicle improved in 2009 from the previous year, but automakers still lost 12% of new-vehicle sales to other brands—mostly as the result of poor customer treatment. The study found that one in five customers who left a dealership did so due to poor treatment from the salesperson. On average, customers visit three dealers or fewer and will make a purchase at the first if they have a good experience, according to the study.

J.D. Power’s Sales Satisfaction Index measures five factors: the dealership facility, salesperson, the paperwork process, delivery process and the vehicle’s price. The information comes from 48,000 new-vehicle buyers who purchased or leased in 2009.

Other luxury brands to do well in the index were Cadillac, Lexus and Mercedes-Benz, while mass market brands that scored high included Smart, Buick and the now-defunct Pontiac.

Check out the full numbers after the jump.

Mileage Challenge 5.5: Final Thoughts

Beyond the numbers that we so diligently broke down yesterday, driving four different cars for six hours can be telling in many more ways than just fuel economy. Our editors share their thoughts on the cars and pick which car they’d log another six-hour trip in.