Closing Mercury will cost Ford nearly $500 million, CFO says
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From: Charleston, WV
Closing Mercury will cost Ford nearly $500 million, CFO says
Closing Mercury will cost Ford nearly $500 million, CFO says
DETROIT -- Ford Motor Co. could spend nearly $500 million to shutter its Mercury brand, CFO Lewis Booth said.
In an interview today with Automotive News, Booth said Ford took special charges of $247 million in the first half of 2010 to cover the cost of ongoing dealer reductions and shuttering the Mercury brand. He estimates the total cost to close the brand will be twice that amount.
About 700 of the 1,700 franchised Mercury dealers in the United States have signed agreements to close their stores in return for cash compensation, Booth said.
“The plan is in place and we're having very fruitful discussions with our dealers,”
Booth said. No dealer lawsuits have been filed against Ford related to the shutdown of Mercury.
Ford announced in June that it would discontinue the 71-year-old brand by Dec. 31 and focus solely on the Ford and Lincoln brands. It expects to sell off all Mercury inventory before year end. Ford plans to end production of the Mercury lineup in early October.
DETROIT -- Ford Motor Co. could spend nearly $500 million to shutter its Mercury brand, CFO Lewis Booth said.
In an interview today with Automotive News, Booth said Ford took special charges of $247 million in the first half of 2010 to cover the cost of ongoing dealer reductions and shuttering the Mercury brand. He estimates the total cost to close the brand will be twice that amount.
About 700 of the 1,700 franchised Mercury dealers in the United States have signed agreements to close their stores in return for cash compensation, Booth said.
“The plan is in place and we're having very fruitful discussions with our dealers,”
Booth said. No dealer lawsuits have been filed against Ford related to the shutdown of Mercury.
Ford announced in June that it would discontinue the 71-year-old brand by Dec. 31 and focus solely on the Ford and Lincoln brands. It expects to sell off all Mercury inventory before year end. Ford plans to end production of the Mercury lineup in early October.
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Joined: Mar 2001
Posts: 13,713
From: The Golden State
To give you some perspective on how much that 500 million actually is, it cost GM 250 million to reskin the 1998 Camaro.... 13 years ago.
Any modern all new car that comes in under 2 billion is considered an absolute steal.
Finally, a good automotive advertizing campaign costs in the $500 million range.
Ford is closing Mercury for essentially pennies.
Any modern all new car that comes in under 2 billion is considered an absolute steal.
Finally, a good automotive advertizing campaign costs in the $500 million range.
Ford is closing Mercury for essentially pennies.
Registered User
Joined: Jan 2003
Posts: 1,217
From: Greenville, SC
To give you some perspective on how much that 500 million actually is, it cost GM 250 million to reskin the 1998 Camaro.... 13 years ago.
Any modern all new car that comes in under 2 billion is considered an absolute steal.
Finally, a good automotive advertizing campaign costs in the $500 million range.
Ford is closing Mercury for essentially pennies.
Any modern all new car that comes in under 2 billion is considered an absolute steal.
Finally, a good automotive advertizing campaign costs in the $500 million range.
Ford is closing Mercury for essentially pennies.
Registered User
Joined: Sep 2004
Posts: 1,597
From: Mack and Bewick
Didn't it cost GM more than twice that to close Olds, ten years ago, in 1990's dollars?
Are the dealers agreeing to it because Ford actually has decent products or what? I can't imagine Olds was much bigger than Mercury.
Are the dealers agreeing to it because Ford actually has decent products or what? I can't imagine Olds was much bigger than Mercury.
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