Mercury Dealers Offered Compensation for Brand Closure

1
Mercury Dealers Offered Compensation for Brand Closure

In the wake of Ford‘s announcement that it is eliminating the Mercury brand after 72 years, existing franchises that peddle the division’s offerings – a total of 1,712 dealers in the U.S. (276 of which are exclusive Lincoln-Mercury stores), are being offered cash compensation. Production of all Mercury vehicles will end in the fourth quarter of this year, meaning that it’s likely there won’t be any 2011 models for dealers to sell.

Although, according to Ford, Mercury’s total market share stands at a 0.8 percent, some Mercury models, notably the old Grand Marquis were still highly profitable. According to Ford’s U.S. Sales Supremo; Ken Czubay, the dealer compensation package is based on a three year sales average of Mercury branded vehicles in relation to the percentage of total vehicle sales at each dealership.

“We feel the compensation we’re offering them is reasonable and fair,” said Mark Fields, Ford’s President of the Americas. “It goes beyond what the franchise agreements state and well beyond what our competitors have done in the marketplace.” Ford has also stated that on the parts side, it will let the existing Mercury franchises keep their parts inventory and pay 10 percent of the value on those parts. Therefore, if a dealer had invested $1 million in parts inventory, it gets to keep all those parts and Ford will issue a check for $100,000.

However some dealers feel they’ve gotten the short end of the stick. One, who’s been offered $200,000 based on sales his store generates through Mercury sales, says that it’s still not enough, especially considering he invested millions of dollars building a brand new showroom in the last three years. Another, who says he sells about 350 Mercury cars and trucks a year – generating $2 million in revenue, has been offered $500,000, but says that the compensation is not enough, considering the loss of sales the brand closure is likely to bring, at least in the short term. “My property is also likely to be now worth less,” he stated.

[Source: Automotive News]

  • Dustin Munro

    HONDA USA
    Take the blue oval with the FORD name,take that name out and replace it with HONDA .That is what Ford is on the verge of becoming:instead of the Ford blue oval, it will soon be Honda blue oval.Most of all,Allan Mulally has done a great job turning Ford around from money losing to money making.However,he is making two major mistakes.
    1.The plan to eliminate the full size rear drive cars!Crown Victoria/Grand Marquis/Town Car in North America and considering eliminating the Falcon in Australia-or putting a FALCON badge on a Taurus.Ford should continue making the full size rear drive cars in Australia and in North America along with possibly ressurecting the Scorpio in Europe.Here is how Ford should do that:
    First step is to retrofit the Crown Victoria/ Grand Marquis /Town Car with the Duratech v6 as base engine-would improve weight distribution for good winter traction,probably give a fuel economy similar to the Taurus,and give great power.Use the coyote engine as optional and for the Police version.
    Second step is to close the St Thomas factory where those cars are made-not to discontinue but to retool for an improved Crown Victoria/Town Car.Make the 2012 Crown Victoria as a left hand drive version of the Australian built Falcon and the Town Car as a luxury version.Possibly make a European version as a ressurected Scorpio.I also recommend making a shrunken coupe version as a resurrected Thunderbird/Continental.Those vehicles were originally Unibody like the Falcon.For 2014,update those vehicles the same way Ford Plans to do with the 2014 Mustang.Make them all with front wheels in front of engine to have at least 50% weight in back for good traction in slippery conditions and have optional 4wd.
    2.The plan to eliminate the Mercury brand!.Ford should keep it’s Mercury brand and use it for Specialty vehicles,Retro style cars,and anniversary edition vehicles.Some examples could be to make a retro style car resembling a 1950 Mercury Coup and Mercury Sedan either as continuous production as a replacement of the Grand Marquis or whenever demand goes down,discontinue and replace with some other resemblance like a 1930’s Ford Coupe etc.That would make Ford and Mercury distinct frome each other.Possibly make one or more front drive Mercury cars too resembling possibly a 1930″s Citroen or a 1950’s Mini etc.
    3.Another mistake Ford is making is putting a rear drive badge-EXPLORER on a front drive vehicle.They should put a Front drive badge on it the same way the put a front drive badge on the front drive Mustang-The Ford Probe.A good front drive badge for the Front drive Explorer would be the Ford Oppertunity! Named after the highly successful solar powered Mars Rover oppertunity which has outlasted the nuclear powered Viking 1 and to date has driven over 12 miles on Mars.
    Ford could also do something else with the Mercury division-make it into a CUSTOMIZING DIVISION that could be run in a similar manner to Panoz.Panoz is a private company that makes their own cars while using some Ford parts like a v8 Mustang engine and transmission while making their own platform and car body.Mercury could be run by teams that like souping up cars and trucks,restoring old vehicles etc.while still owned by Ford.What could be the difference between Mercury and Ford/Lincoln is that Ford wouldn’t build the Mercury vehicles,but would supply the platforms,engines and transmissions while the teams would design and build the vehicles.Some would be retro style while using up to date technology (like Chrysler’s discontinued Plymouth Prowler)while others could be futuristic like helping Ford design a new all size universal rear drive platform etc.

    Honda has no full size rear drive cars,to my understanding no rear drive vehicles at all and their Acura division is Honda twins.Do we want Ford to be another Honda?Many companies now realize that it was a mistake to get rid of their rear drive cars.Allan Mulally should learn from other companies mistakes.

« Back
SWEEPSTAKES – OFFICIAL RULES, TERMS AND CONDITIONS

AutoGuide.com’s Monthly Overlay Newsletter Signup – By subscribing to our email newsletter, Entrants are eligible to win one (1) Amazon.com Gift Card (value of $100.00 USD). One (1) winner will be chosen every month at random and contacted by VerticalScope Inc.’s staff. *Amazon.com is not a sponsor of this promotion. Except as required by law, Amazon.com Gift Cards ("GCs") cannot be transferred for value or redeemed for cash. GCs may be used only for purchases of eligible goods at Amazon.com or certain of its affiliated websites. For complete terms and conditions, see www.amazon.com/gc-legal. GCs are issued by ACI Gift Cards, Inc., a Washington corporation. All Amazon ®, ™ & © are IP of Amazon.com, Inc. or its affiliates. No expiration date or service fees.

1. NO PURCHASE OR PAYMENT OF ANY KIND IS NECESSARY TO ENTER OR WIN THIS SWEEPSTAKES. AGE/RESIDENCY RESTRICTIONS, VOID WHERE PROHIBITED.

2. PRIZE: One (1) Winner will be randomly selected every month to each receive: one (1) $100.00 Amazon.com Gift Card (the “Prize Supplier”). Total approximate retail value of all prizes is approximately $100.00 USD. Prizes are not transferable and no cash or prize substitution is allowed. Prize package is awarded "as is" with no warranty or guarantee, either express or implied.

3. ELIGIBILITY: From the time of entry through the final date of prize fulfillment, each contest entrant and selected entrant must be a permanent lawful citizen and resident residing in the 50 United States or the District of Columbia or in Canada, and be twenty one (21) years of age or older. VOID IN PUERTO RICO, THE U.S. VIRGIN ISLANDS, IN ALL FOREIGN COUNTRIES OUTSIDE OF THE UNITED STATES, AND ALL OTHER U.S. TERRITORIES OR CANADA AND POSSESSIONS AND WHERE PROHIBITED OR RESTRICTED BY LAW. Employees, officers, directors, agents and representatives, of the Sponsor and the Prize Supplier and each of their respective parent companies, affiliates, subsidiaries, advertising and promotion agencies, promotion partners and any entity involved in the development, production, implementation, administration or fulfillment of this Sweepstakes, and the immediate family members (e.g., spouse, mother, father, sister, brother, uncle, aunt, nephew, niece, grandparent, in-law, daughter and son, regardless of where they live) and persons living in the same household (whether or not related) of such individuals are not eligible to participate or win. Only one selected entrant per household. All decisions of the Sponsor with respect to this sweepstakes are final. The Sponsor shall have the right at any time to require proof of identity and failure to provide such proof may result in disqualification from the Sweepstakes.

4. ENTER BY INTERNET: You may enter this sweepstakes via the Internet by logging onto AutoGuide.com and subscribing to our email newsletter via the pop-up overlay.

5. SELECTION OF WINNER: One (1) Entrant will be selected by random selection who have subscribed to our email newsletter. The winner may be announced publicly on AutoGuide.com and will be contacted by VerticalScope Inc.’s staff. The winner will be required to provide a mailing address (that is not a P.O. box) to receive the prize which will be shipped free of charge.

6. ODDS OF WINNING: Odds of winning a prize are determined by the total number of eligible entries received.

7. RESTRICTIONS: The prize package consists of one (1) Amazon.com Gift Card with an approximate value of $100.00 USD. If prize cannot be awarded due to circumstances beyond the control of the Sponsor or Prize Supplier, no substitute prize will be awarded due to the unique nature of the prize. Sponsor and Prize Supplier shall not be liable to the winner or any person claiming through winner for failure to supply the prize or any part thereof, by reason of any acts of God, any action(s), regulation(s), order(s) or request(s) by any governmental or quasi-governmental entity (whether or not the action(s), regulations(s), order(s) or request(s) prove(s) to be invalid), equipment failure, utility failure, internet failure, terrorist acts, threatened terrorist acts, air raid, blackout, act of public enemy, earthquake, war (declared or undeclared), fire, flood, epidemic, explosion, unusually severe weather, hurricane, embargo, labor dispute or strike (whether legal or illegal) labor or material shortage, transportation interruption of any kind, work slow-down, civil disturbance, insurrection, riot, or any other cause beyond Sponsor's or Prize Supplier's control (collectively, "Force Majeure Event"). Sponsor shall not be responsible for any cancellations, delays, diversions or substitutions or any act or omissions whatsoever by the performers/events, other transportation companies or any other persons providing any of these services and accommodations to passengers including any results thereof such as changes in services or accommodations necessitated by same.

8. CONDITIONS: By entering the Sweepstakes, entrants agree to be bound by the Official Rules, Terms and Conditions and that Sponsor has the irrevocable right to use in perpetuity entrants' names, user names, likenesses, photographs, voices, home mailing address, biographical and prize information, and entry materials, without notice to entrants and without compensation or obligation, in any and all media now or hereafter known throughout the world, in any manner whatsoever, to advertise and promote Sponsor, its products and services, the Sweepstakes, and for any other purpose except where prohibited by law. Entrant waives the right to assert as a cost of winning a prize any and all costs of verification and redemption or travel to redeem said prize and any liability which might arise from redeeming or seeking to redeem said prize. Sponsor is not responsible for fraudulent calls or emails made to entrants not by the Sponsor. If the Sweepstakes is not capable of running as planned by reason of damage by computer viruses, worms or bugs, tampering, unauthorized intervention, fraud, technical limitations or failures, any Force Majeure Event or any other cause which, in the sole opinion of Sponsor, could corrupt, compromise, undermine or otherwise affect the administration, security, fairness, integrity, viability or proper conduct of the Sweepstakes, Sponsor reserves the right, in its sole and absolute discretion, to cancel, terminate, modify or suspend all or any part of the Sweepstakes, and to select a winner from among all eligible entries received by Sponsor up until the time of such cancellation, termination, modification or suspension, as applicable. Sponsor reserves the right in its sole discretion to disqualify any individual that (i) tampers or attempts to tamper with the entry process or the operations of this Sweepstakes in any manner, (ii) violates the Official Rules, Terms and Conditions or (iii) acts in an unsportsmanlike or disruptive manner, or with intent to annoy, abuse, threaten or harass any other person. CAUTION: ANY ATTEMPT BY AN ENTRANT OR ANY OTHER INDIVIDUAL TO DELIBERATELY DAMAGE OR UNDERMINE THE LEGITIMATE OPERATION OF THIS SWEEPSTAKES IS A VIOLATION OF CRIMINAL AND CIVIL LAWS. SHOULD SUCH AN ATTEMPT BE MADE, SPONSOR RESERVES THE RIGHT TO SEEK CIVIL AND/OR CRIMINAL PROSECUTION AND/OR DAMAGES FROM ANY SUCH PERSON TO THE FULLEST EXTENT PERMITTED BY LAW. Any expenses and receipt and use of the prize and federal, state and local taxes and fees applicable in connection with the prize awarded are the sole responsibility of the winner. An IRS Form 1099 will be issued in the name of the winner for the actual value of the prize received. This Sweepstakes is subject to all federal, state and local laws of the United States. VOID WHERE PROHIBITED. Sponsor, Prize Supplier, and their respective officers, directors, parent companies, affiliates, subsidiaries and advertising and promotion agencies, employees, representatives and agents are not responsible for and shall not be liable for (i) any injuries, losses or damages of any kind caused by a prize resulting from acceptance, possession or usage of the prize, or (ii) printing, distribution or production errors. Sponsor or its affiliates may rescind any promotion found to contain such errors without liability at its or their sole discretion.

9. SPONSOR: The Sponsor of this contest is VerticalScope Inc. (the owner and operator of AutoGuide.com), 111 Peter Street, Suite 700, Toronto, Ontario, M5V 2H1.

Subscribe to our email newsletter and automatically be entered to win.
*Restrictions apply. See offer for details

Get Breaking Automotive News, Reviews and Video in your Facebook Feed!

Already Liked