For FoMoCo, the quicker the Mercury brand is wound down, the better. Ford is offering Mercury dealers a way to guarantee their cash settlements are secured by year”s end, but that would require all dealers to report their inventory as sold by November 12, and then sell off the remaining inventory as used vehicles. According to the company there are still about 1,294 Mercury dealers that remain in business.
Many dealers are reluctant to sign a settlement with Ford, because they are holding out for larger payments. Attorney”s representing dealers have seen settlement offers ranging from $100,000 to $800,000. Ford says that it will reimburse dealers 100% for parts, and that dealers may also keep and sell those parts.
Currently, Ford has a 35-day supply of Mercury vehicles, or well under 10,000 as the company puts it. It is expected that Ford will be sold out of any remaining Mercury vehicles by mid-December. Through October of this year, Mercury has shown a 4% increase in sales from last year.
– By: Stephen Calogera
Source: Automotive News (Subscription Required)