Ford Says Mercury Brand Still Important Part of Ford Model Lline-up

DETROIT June 9, 2008; Poornima Gupta and David Bailey writing for Reuters reported that Ford Motor Co's Mercury brand is an important part of the U.S. automaker's line-up and the company is continuing to invest in the nameplate, Mark Fields, Ford's president of the Americas, said on Monday.

"It is an important part of the stable of brands," Fields told reporters at an event promoting the new Lincoln MKS sedan in Garden City, Michigan.

Fields comments follow recent analyst questions on whether Ford would continue to invest in its Mercury brand, whose sales fell nearly 7 percent in 2007.

Jerry York, adviser to billionaire investor Kirk Kerkorian, who holds a nearly 5 percent stake in the company, had said in a media interview that he expected Ford to sell its Volvo and Mercury brands. He later apologized for what he termed "off the cuff" remarks.

Ford, which last month abandoned its long-standing goal to be profitable in 2009, has been hurt by the shift in U.S. consumer demand toward smaller, fuel-efficient vehicles and away from large trucks and SUVs.

Ford relies heavily on sales of its SUVs and full-size pickup trucks in the U.S. market, but the U.S. demand for the large vehicles has been shrinking for several years and the declines accelerated in the last couple of months as gas prices rose above $3.50 per gallon.

Fields said the automaker may introduce some incentives to move some of the larger SUVs from dealer lots. Ford earlier this month said it would offer its employee pricing incentive on full-size F-Series trucks to reduce inventories ahead of its planned launch of a redesigned vehicle in the fall.

The F-Series trucks were outsold in May for the first time since 1991 as consumers flocked to cars, but Fields said the truck market is "one of the biggest segments in the industry."

Overall, the truck and SUV market remains one of the larger segments in North America, Fields said.

Fields also said that while the F-Series trucks are more regional due to their large design, the Ranger compact pickup truck platform could "potentially" be global for the automaker.

Ford introduced a global small car platform earlier this year, the Fiesta, that will be offered in Europe, Asia and North America and has been exploring other potential global platforms.

Editing for Reuters by Carol Bishopric and Gary Hill