One of the most trusted sources in the automotive press is claiming that Ford will cease producing and selling Mercury brand automobiles after the 2012 model year.  Ford is denying the report.  What's going on? 

Edmunds Inside Line, the automotive news division of automotive press giant Edmunds.com, published a story this morning headlined "Mercury Dead by 2012."  The article claims, "Although Ford officials still won't confirm the impending death of Mercury, supplier sources tell Inside Line that the midlevel luxury brand has no products planned after the 2012 model year."  They claim that the Mercury Milan will be "the last model standing," receiving "a midcycle refresh early next year along with the Ford Fusion. Other models like the Montego, Grand Marquis and recently refreshed Mariner will continue until roughly the 2011/2012 model year as well."

But a Reuters report carried in this morning's New York Times says the brand will live on.  Mark Fields, president of Ford's American operations, tells Reuters that Mercury is "an important part of the stable of brands," and that Ford "is continuing to invest in the nameplate."

Is it? 

No.

Jalopnik reports, "The dirty little secret at Ford is that Mercury's already dead, it's just that nobody can actually say it."  They speculate that Ford doesn't want to announce the end of the brand yet, for fear of "a rear-attack in the west from legions of Lincoln-Mercury dealers pissed off they'll be losing half their sales channel."

We see the same problem.  Sales were down to lows not seen in a decade in May, but Ford was hit harder than the industry average.  CEO Allan Mulally recently told the Wall Street Journal "that he is still unsure when the auto maker will return to profitability after the company abandoned its earlier pledge to return to black ink in 2009."  Shedding underperforming brands is a logical step in recovering from crashing sales, but yes, Ford would be inviting a fight with its own dealership network. 

But, as Edmunds says, they don't appear to be planning any new Mercury vehicles, so apparently, Ford is girding for that fight.  In the long run, cancelling Mercury would probably not hurt the automaker.  After all, few buyers are pining for Oldsmobiles after that brand's 2004 death at the hands of GM.

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