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Sunday, April 4, 2010

Should Ford be worried about its premium brands?

Take a look at Ford/Mercury/Lincoln sales numbers and tell me what goes through your mind. Fords' numbers were impressive, but maybe too impressive perhaps. Sure its a great feat that Ford sold 22,773 Fusion's this month, but riddle me this: Just how many sales did the Fusion snatch away from its cousins Milan and MKZ? Together the Milan and MKZ couldn't even make 8,000 sales, let alone the mighty 22,773 the Fusion pushed. So that was a pretty good example, but I have a better one. Look at the MKS and Taurus. In general, barely any consumer outside of enthusiasts understand just how similar the Taurus and MKS are, or do they? The MKS' sales fell 15.9% to 1,443, while Taurus sales took a leap upwards 86.3% to 7,001. Just for a small comparison, the Cadillac CTS (the MKS' only American competition) also fell heavily, down 26.4% to create 2,870 sales. Now considering that the CTS is in heavy need a refresh since it is an 08 model is saying something. There needs to be some distinction between Ford, Mercury and Lincoln, and it needs to happen ASAP.

There are multiple solutions Ford can come up with, but in the long run there's only one clear solution: Lincoln needs to go farther upmarket. Simply meaning there probably needs to be RWD in the Lincoln stable. The MKR is a nice starting ground. What also needs to happen is Mercury needs to be pushed up to where Lincoln is right now. Reason being is Lincoln is supposed to challenge Cadillac right about now, but no one can really justify Lincoln being on the same level as Cadillac because Lincoln constantly gets compared to Buick and it makes sense. The only Lincoln that challenges a Cadillac so far is the MKX to the SRX. Lincoln needs to find its way or it will always be seen as the brand that can't come close to BMW and Mercedes, something Cadillac is steadily fighting away as we speak.

As for Mercury, it could go one or two ways, improve Lincoln or kill Mercury. I'm sorry to say this but, it seems as if every single Ford eats away at Mercury sales. The Dodge Avenger and Chrysler Sebring, separately, sold more than the Milan (even though most of those sales were fleet, but the data still remains). Obviously there's a problem. At least with Volvo, that brand started to show distinction and, eventually, sales will show the progress. With Mercury, where is the hope? It seems as if the brand is dead in the water, only having two cars sold under its name (Milan and Mariner). Maybe Mercury will pull a Buick, or maybe its too late.

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