"Mercury Mixes It Up" - Ford Dropping Freestyle, Freestar/Monterey

[ragingfish]

Quote, originally posted by Forbes.com »Mercury has long been a brand without a defined identity. For generations its vehicles have been little more than thinly disguised copies of parent company Ford's lineup. Now, in an effort to goose sales, Ford is finally looking to give it a personality of its own.How? By rolling out a crossover vehicle that will be unique to Mercury alone. Ford is planning a variety of crossover utility vehicles that will cater to family buyers and others who like the cargo space of big sport utility vehicles (SUVs), but want something that is easier to park and doesn't cost as much to operate. According to supplier sources familiar with the automaker's plans, Ford will drop its low-selling Freestyle SUV at the end of model-year 2007. Instead of having the Freestyle in its lineup, Ford will let Mercury have a face-lifted version of the car--a new SUV based on Mercury's recent Meta One prototype. Ford's rationale for rethinking Mercury isn't based as much on relieving the brand from terminal blandness, as it is on lifting sales. For 2004, Mercury, Ford's third-largest-selling division, sold 193,534 cars--a mere 7% of the 2,778,678 sold with Ford badges.The Meta One has some interesting features that make it sound potentially more promising than the Freestyle. While the Freestyle uses a conventional internal-combustion engine, the Meta One is a diesel hybrid. It also has advanced safety technology, such as a device that alerts the driver if the vehicle is wandering from its lane. It can even apply the brakes if an accident is imminent. There is no evidence, however, that the new Mercury crossover will be a diesel hybrid.Ford is planning to discontinue its struggling minivans--the Ford Freestar and Mercury Monterey--in favor of crossovers. The new Mercury, based on the Meta One, will be an indirect replacement for the Monterey.A crossover has the potential to be more successful than a minivan, as other companies are learning. Take Nissan Motor: In the first five months of 2004, Nissan sold only 1,700 more of its Murano crossover than it did of its Quest minivan. But in the first five months of this year, Nissan sold 31,000 Muranos and 18,000 Quests. Trends suggest crossovers are on the rise.Ford has a dearth of crossovers at the moment, with the Freestyle being its only real entry into the market. This is a shame because crossovers, such as the Murano, have been successes (for another successful crossover, consider the Equinox, of which General Motors' Chevrolet division sold 53,768 in the first five months of this year). The advantage of a crossover is that it is more like a car than a truck, so it will ordinarily have a more refined ride than a typical SUV, will be easier to maneuver and will consume less gas.To introduce a new crossover would seem to be a smart move for Ford. But rehashing a ho-hum crossover such as the Freestyle seems like a half-hearted way to do things. However, we believe that new crossovers and different Mercury vehicles are inherently good. Without more differentiation from Ford, Mercury doesn't have much of a reason for continuing.The new Mercury will be built in Chicago, alongside the Ford Five Hundred and Mercury Montego sedans--vehicles with which it will share mechanical underpinnings. Expect the Mercury to arrive as a 2007 or 2008 model.Forbes FactThe Ford Freestyle rides on architecture known as the D3, P2 or P2X platform. The platform also underpins the Five Hundred and Montego sedans, and can handle front- and all-wheel drive vehicles.Ford will drop it's weak selling Freestyle in the '07 MY and hand it over to Mercury for restyling and reengineeringMercury's "Meta One" Concept Source: http://www.forbes.com/vehicles....html RagingCommentary: Seems that Ford is taking a "reorganizational" approach to it's brands similar to that of GM. However, they too, have pulled a stunt GM is notorious for -- missing the boat. Yes, crossovers *may* be gaining popularity. But by the time they bring more of them to market, the trends will likely have changed. As an aside, I think from concept to cessation, the Freestyle has to be the shortest-lived vehicle I can remember in my lifetime. It will have only been around for 2 model years when it is put down in 07.

[millster]

Have to give Ford credit here though, at least they are smart enough to ditch a loser. How long did GM hang onto the Aztek. Not Aztek bashing here, just stating a fact that it did not sell well and yet GM kept trying to keep it going.Personally, I rather like the Freestyle but it's bland and a little overpriced. Best to get out while they can. Hopefully the Merc will fair better. I really hope they stick with the diesel-hybrid powertrain (though I doubt they will). That would be marvelous!

[tangerine]

don't be afraid to diss the aztek that is the nastiest vehichle on the road next to the pinto. lookout when that thing backfires.

[Reynoma]

Has anybody read about Ford dropping the Freestyle anywhere else but Forbes? I would actually like to get confirmation on that one - it doesn't make sense.Two comments: (1) I agree with Ford dropping their minivans - they were weak entries at best into the minivan market. (2) to compare Murano and Quest sales is a defective analysis. The two would not be cross-shopped. As a family of 5, I could never consider the Murano (or any 5 seat vehicle). I could see cross shopping the Pathfinder (with 7 seat capacity) with the Quest.