Monday, May 26, 2008

Mercury may be coming end of the road

mercury_cougar_xr7

Launched in the 1939 model year as a “step-up” car for buyers between economy Fords and upscale Lincolns, Mercury was known for its powerful V-8 engines, such as the one in this 1939 Mercury Eight, and became popular with hot rodders.
The dealers, in fact, could be the key to Mercury's fate. Although there are no stand-alone Mercury stores left, about 1,900 dealerships sell the brand in combination with Ford or Lincoln or both.Because of franchise agreements and state laws that protect car dealers, killing off a line of vehicles can be a real pain, as General Motors Corp. discovered when it pulled the plug on Oldsmobile eight years ago. GM set aside almost $1 billion to handle the transition and still spent more than five years battling dealer lawsuits.

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