Ford, Dismissing Rumors, Says Mercury Is Not Going Away

Ford Motor Co. says rumors of the death of its Mercury brand have been greatly exaggerated.

Debunking several analyst and media reports that said Ford appeared to be phasing out its Irvine-based Mercury division, Ford said Thursday that it is committed to the brand and has several new models in the pipeline.

“Mercury is planning to bring to market new versions of several products over the next couple of years--hardly a sign of a brand with a limited future,� said Robert Rewey, Ford group vice president for marketing.

He noted that next week, the 2000-model Mercury Sable mid-size sedan will be introduced at the San Diego Auto Show. The unveiling will be shown live on the Internet, a move Ford said shows the innovative thinking of the brand since it moved its headquarters to Southern California last year.

Speculation that Mercury was in danger of being phased out came after the company announced last week that it will drop the Lincoln and Mercury names from all dealerships in Canada, which will use the Ford name instead. The auto maker also said it will no longer sell the Sable or Mercury Mystique compact car in Canada.

Some auto trade publications have pointed to a lack of clear plans for future Mercury products. AutoWeek, for instance, said that the futures of the Mountaineer sport-utility vehicle and Villager minivan are questionable and reported that a new 2001 small-SUV crossover will bear a Ford rather than Mercury badge. Rewey responded that Ford isn’t in the business of tipping its product plans to the competition. He also pointed out that the Mercury Cougar, the sporty coupe, has been successful in drawing new, young buyers to the brand and said he expects other new Mercury models will do likewise.

Ford shares rose $2.19 to close at $58.38 on the New York Stock Exchange.