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Ford might sell Volvo and Mercury?

34 posts in this topic

An aid to Mr. Kerkorian has speculated in an interview with Automotive News that he thinks Ford will sell Volvo and Mercury. This seems to be speculation, since the CEO of Ford has not said so.

Tracinda Corp, an investment company of Kerkorian, currently owns about 4.7% of Ford stock, and has planned to offer to obtain another 1% stake.

An excerpt:

"Jerry York, an adviser to billionaire investor and Ford Motor Co stakeholder Kirk Kerkorian, expects the No. 2 U.S. automaker to sell its Volvo and Mercury brands, according to an interview published online by the Automotive News on Thursday.

York told the trade publication he expected that Ford Chief Executive Alan Mulally would hold on to the luxury Lincoln brand, but sell Volvo and Mercury.

"I think ... he'll put Volvo on the market within the next year and a half," York was quoted as saying. "There's no rational reason for keeping Volvo and Mercury.""

http://www.reuters.com/article/marketsNews...=44&sp=true

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An aid to Mr. Kerkorian has speculated in an interview with Automotive News that he thinks Ford will sell Volvo and Mercury. This seems to be speculation, since the CEO of Ford has not said so.

Tracinda Corp, an investment company of Kerkorian, currently owns about 4.7% of Ford stock, and has planned to offer to obtain another 1% stake.

An excerpt:

"Jerry York, an adviser to billionaire investor and Ford Motor Co stakeholder Kirk Kerkorian, expects the No. 2 U.S. automaker to sell its Volvo and Mercury brands, according to an interview published online by the Automotive News on Thursday.

York told the trade publication he expected that Ford Chief Executive Alan Mulally would hold on to the luxury Lincoln brand, but sell Volvo and Mercury.

"I think ... he'll put Volvo on the market within the next year and a half," York was quoted as saying. "There's no rational reason for keeping Volvo and Mercury.""

http://www.reuters.com/article/marketsNews...=44&sp=true

I doubt if they would 'sell' Mercury, but I think it could definitely go the way of Oldsmobile and Plymouth...

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Who would want Mercury?

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Who would want Mercury?

And considering all it's cars are badge-engineered Fords, it's pretty much unsellable. Maybe sell the brand naming rights? It's not a stand-alone company like Volvo naturally is...

Edited by moltar
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Rights-to-name is a possibility- but I agree that I cannot see anyone buying even that, unfortunately.

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A purchase of Volvo would require the purchase of Volvo's shares. Given the company (Volvo)'s shares have a market value, it would go up to the highest bidder, who would be required to undertake a raft of legal due diligence procedures to go through prior to any sale.

Mercury is a merely a brand name owned by Ford. A "sale" would be simply a sale of rights to use the name and logo. Mercury has no capital or assets of its own to sell.

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That's what I was getting at.

I'd hardly consider Mercury a stand-alone brand anymore that can be sold off. If anything, Mercury will probably just fade away. I doubt anyone would notice.

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Yeah that makes lots of sense since Mercury is worthless as a brand to sell since it's made up entirely of rebadges and much of Ford's car lineup is derived from Volvo platforms.

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I would hate to see Mercury go the way of Olds... And Ford would be stupid to dumb any of there remaining brands.

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I suppose they could sell off the leftover brushed aluminum trim and iced taillights. That's about all Mercury is.

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I would hate to see Mercury go the way of Olds... And Ford would be stupid to dumb any of there remaining brands.

It would be sad, but how many car buyers under 40 or so are even aware of the brand? It could dissapear more quietly than even Olds or Plymouth (Plymouth was completely rebadges and irrelevant when it folded).

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I would hate to see Mercury go the way of Olds...

Ford does not seem to be interested in seriously investing in Mercury. There are no unique models to the Mercury brand, and it does not really seem that there will be anything of the sort on the foreseeable horizon. There are rumors, but they never come to fruition.

It was painful to see the plug being pulled on Oldsmobile, however. Money was being invested in Olds right up to the end. Oldsmobile had potential in either being itself ... or even being what we know as Saturn now. Either way, it did have a future.

At Mercury, a chance for any sort of real and true future is slim.

And Ford would be stupid to dumb any of there remaining brands.

Yes, it would be dumb of FoMoCo to dump their Ford, Lincoln, and Mazda brands. :AH-HA_wink:

It would also be unwise for them to lose Volvo as well. Volvo is an engineering resource for Ford, there is a lot to be learned from them still.

Edited by YellowJacket894
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Maybe SAIC can buy the Mercury brand... :lol:

2011 Mercury Milan?

Roewe-550-2-lg.jpg

Roewe-550-interior-rendering-1.jpg

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Maybe SAIC can buy the Mercury brand... :lol:

2011 Mercury Milan?

Roewe-550-2-lg.jpg

Roewe-550-interior-rendering-1.jpg

:duh:

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Ford does not seem to be interested in seriously investing in Mercury. There are no unique models to the Mercury brand, and it does not really seem that there will be anything of the sort on the foreseeable horizon. There are rumors, but they never come to fruition.

It was painful to see the plug being pulled on Oldsmobile, however. Money was being invested in Olds right up to the end. Oldsmobile had potential in either being itself ... or even being what we know as Saturn now. Either way, it did have a future.

At Mercury, a chance for any sort of real and true future is slim.

Yes, it would be dumb of FoMoCo to dump their Ford, Lincoln, and Mazda brands. :AH-HA_wink:

It would also be unwise for them to lose Volvo as well. Volvo is an engineering resource for Ford, there is a lot to be learned from them still.

Agreed. :yes:

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A purchase of Volvo would require the purchase of Volvo's shares. Given the company (Volvo)'s shares have a market value, it would go up to the highest bidder, who would be required to undertake a raft of legal due diligence procedures to go through prior to any sale.

There were rumours of Ford looking for a deal to sell Volvo around this coming Summer.

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I don't think Ford should sell Volvo, but if they do I wouldn't be upset. If Ford did sell Volvo, though, it would allow a place for Mercury, which I cannot see them selling. Think about it: Lincoln gets to move upmarket without any internal "luxury" competition from Volvo. Mercury could be made into the uplevel brand, essentially what Lincoln is today. Ford can then be the "Chevrolet" of "Toyota" brand, with something for everyone on the low-middle price ranges, and Mazda remains the sporty brand. That looks like a pretty solid lineup to me.

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I was thinking a foreign company could buy Mercury and just keep the corporate shell. It is very expensive to set up a large corporation with many operations like a car company, and buying the brand could be worthwhile to just bypass all the regulatory crap.

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I was thinking a foreign company could buy Mercury and just keep the corporate shell. It is very expensive to set up a large corporation with many operations like a car company, and buying the brand could be worthwhile to just bypass all the regulatory crap.

For that Ford would have to carve out assets (I'm thinking manufacturing assets) or enter in some kind of agreement with the new owners of 'New Mercury' to keep production at Ford plants while a manufacturing base is established for 'New Mercury'.

EDIT - These are only purely theoretical alternatives. I don't think any of them make much business sense.

Edited by ZL-1
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Jerry York is an idiot. Ford won't sell Mercury...it has no unique platforms/engines, no standalone dealerships, no plants....basically nothing that anyone would want.

A week or two ago, Mulally re-iterated for probably the 5th time that Mercury and Volvo have a future within Ford. Of course, he also said that they will continue to evaluate all their brands, as he has said every time.

Right now, I don't think Ford knows what it is going to do with Mercury yet. Lincoln's getting the investment and Mercury is taking a backseat. I think Mulally wants to kill Mercury, but I don't think Bill Ford will let him considering it's his great grandfather's creation.

Edited by mustang84
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Jerry York is an idiot. Ford won't sell Mercury...it has no unique platforms/engines, no standalone dealerships, no plants....basically nothing that anyone would want.

A week or two ago, Mulally re-iterated for probably the 5th time that Mercury and Volvo have a future within Ford. Of course, he also said that they will continue to evaluate all their brands, as he has said every time.

Right now, I don't think Ford knows what it is going to do with Mercury yet. Lincoln's getting the investment and Mercury is taking a backseat. I think Mulally wants to kill Mercury, but I don't think Bill Ford will let him considering it's his great grandfather's creation.

Mercury is not a legal entity in its own right to sell: it isn't a company, it has no assets or capital of its own.

Ford could only sell the rights to use the Mercury brand name or logo - the name would be attractive to a competitor, but it's unlikely anyone would want to buy the logo.

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Ford could only sell the rights to use the Mercury brand name or logo - the name would be attractive to a competitor, but it's unlikely anyone would want to buy the logo.

Maybe they could sell some the neat letterhead/stationary -- just white-out the Lincoln part of the name. :scratchchin:

What is York thinking?

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Maybe SAIC can buy the Mercury brand... :lol:

2011 Mercury Milan?

Roewe-550-2-lg.jpg

Roewe-550-interior-rendering-1.jpg

what is this?????????????????????????? :)

there is NO downside to keeping the mercury brand as a ford x 2 channel. jill wagner alone can sell buttloads of 239 leases for mariners and milans to chickies all over till the cows come home. my gosh she could get me to lease about 10 cars just by being in the commercials.

Edited by regfootball
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what is this?????????????????????????? :)

It's the Roewe 550, the eventual production version of the joint Rover/SAIC RDX60 project.

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In response to an earlier comment, quite a few young people know Mercury. I see Cougars around town all the time, and I think that they are great finds at the used-car prices being asked for right now. They also still look modern, despite having been designed ten years ago.

Truthfully, I don't want to see Merucry go. I think Ford should really invest time and work into reviving the brand and give it more image than it has now. Too many great auto companies have died off that have had long histories with many memorable products.

I don't think Ford should sell Volvo, but if they do I wouldn't be upset. If Ford did sell Volvo, though, it would allow a place for Mercury, which I cannot see them selling. Think about it: Lincoln gets to move upmarket without any internal "luxury" competition from Volvo. Mercury could be made into the uplevel brand, essentially what Lincoln is today. Ford can then be the "Chevrolet" of "Toyota" brand, with something for everyone on the low-middle price ranges, and Mazda remains the sporty brand. That looks like a pretty solid lineup to me.

I was thinking of something along those lines. Lincoln and Mercury both would be luxurious, but the emphasis would be different. Lincolns wouldn't be "sporty", but rather high-speed cruisers. Lincolns would be, essentially, Bentleys for the common man. Mercury would be a notch down from Lincoln as far as absolute luxury goes, but would have more focus on overall performance. Volvo does, already, have a near-luxury personality, but it doesn't really have performance on par with other near-luxury brands. I think a few Mercurys from the past already had this personality, particularly the original '67 Cougar.

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