Lincoln-Mercury Makeover

NEW YORK, April 17, 2003; Justin Hyde writing for Reuters reported that once again, Ford Motor Co. on Thursday pledged to remake its Lincoln and Mercury brands from also-rans in an overcrowded market to profitable standouts.

Like similar announcements from the past several years, the pledge from Ford executives comes with new vehicles -- for Mercury, a version of the Ford Escape sport utility vehicle called Mariner, and for Lincoln a promise of three new vehicles in three years.

But unlike previous attempts to make Lincoln and Mercury more independent from Ford, the automaker says the only way the brands will grow is by not stretching too far from their traditional roles.

Lincoln and Mercury contribute about 11 percent of Ford's U.S. vehicle sales and a significant chunk of Ford's profits. But sales have fallen in recent years, and are down 8.6 percent through March, thanks to stiff foreign competition and a revived General Motors Corp.

Chris Theodore, vice president of advanced product creation, said Lincoln's future models will emphasize an understated look, with comfort and design as important as power.

"We would never do a 16-cylinder Lincoln," Theodore told Reuters in an interview, referring to the extravagant Cadillac Sixteen concept car General Motors Corp. unveiled earlier this year. "If Cadillac is in your face, Lincoln is understated elegance."

Theodore said Mercury would return to its traditional role as the slightly nicer, slightly more expensive update of a Ford. Mercury "provides an alternative for someone who wants a vehicle that's a little more distinctive and a little more different," he said.

This turnaround comes courtesy of the previous revival effort from a few years ago, which grouped Lincoln with Ford's Premier Automotive Group of foreign luxury brands and left Mercury essentially as an orphan, under control of PAG executives but not officially part of the group.

During that time, the future plans for both brands became muddled, as executives considered how to make Lincoln fit in globally with Volvo, Jaguar and Land Rover, and never found an answer.

"Prior to pulling out of PAG, the Lincoln plan was on an unaffordable collision course," Theodore said. "It just couldn't sustain itself or its business case."

Mercury has often been listed as headed for extinction by people inside and outside Ford. But Lincoln dealers rely on Mercury to support their businesses, and Mercury's exit would also likely put a huge hole in Lincoln sales.

Last year, Ford put Lincoln and Mercury back under control of Ford North American executives and began redoing the future product plan. Mercury will now likely get versions of every new Ford model, including the Five Hundred large sedan and the Futura midsize sedan.

And Ford Chief Operating Officer Nick Scheele hinted in a speech on Wednesday that Lincoln could get a revived Continental, its flagship luxury car.