Although analysts have said for years that Ford needs to cut down the number of brands it sells--especially the long-ailing Mercury--no lines will be axed when the company finalizes its restructuring
plan this week. "Mercury is part of our plans," confirms a Ford spokesman. Former President Bill Clinton is scheduled to accept a new Mercury Mariner Hybrid next week at the Clinton Global Initiative
conference--further indication that the brand will live on, despite a 55 percent sales decline in the last decade. The restructuring, which is to be publicly announced after the board of directors'
meeting today, will include accelerated job cuts and a plan to reduce dealerships and new product plans, among other actions. One of the long-term arguments against killing Mercury is the expense of
phasing out a brand. GM, for example, recorded a $939-million charge in 2001 to pay dealerships to shutter Oldsmobile showrooms. Some observers suspect that Ford will starve Mercury of new products
for several years. Doing so would weed out weak dealerships and devalue the brand, reducing the amount of any future phase-out expense.
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