Ford Motor Co. (NYSE: F) made ripples in the automotive industry last week as rumors surfaced suggesting that the Detroit automaker may plan on phasing-out its Mercury line of vehicles.
New media reports suggests that Ford may have been trying to kill the 71-year-old brand over a period of years by starving it of product.
Sources suggest that when the plan is proposed to the board of directors, executives plan to say that the company can no longer support the cost of building Mercury vehicles as a result of the brand’s declining sales volume.
“Understand, when you kill a brand, dealers sue and win big settlements (unless you go bankrupt),” said Jerry Flint of Forbes “But you can get away with it if you starve the brand and then say there’s just no business left.”
Rumors which came out last week suggested that Ford executives would present a plan to the company’s board of directors in July to end the brand.
