Ford has axed Mercury in the US to devote more attention towards its other luxury sub-brand Lincoln.
Mercury sits between Ford and Lincoln in Ford’s model line-up, but its decline in sales and a migration from Mercury to Ford models by customers has led Ford to make the decision to axe Mercury from the end of this year.
Lincoln will benefit from seven new models over the next few years, including an all-new C-segment car, as Ford aims to compete with Lexus and Cadillac in the US.
Mercury’s sales have particularly suffered in the past three years. Ford has a market share of 16 per cent in the US; Mercury accounts for just 0.8 per cent of the market.
“Mercury’s customer profile, pricing and margins are almost identical to Ford, but Mercury’s incremental sales have been declining,” said Ford in a statement.
“The majority of current Mercury sales are to fleet buyers and customers purchasing through employee, retirees and friends and family discounts, which Ford anticipates largely can be satisfied by Ford-brand vehicles.”
In addition to the new C-segment Lincoln, Ford’s luxury arm will also benefit from exclusive new powertrains, including an all-new V6, and Ford’s Ecoboost engine technology in all of its models.