What We're Saying: On Mercury, Toyota-Tesla, Super-Luxury Cars and Auto Financing
By Michelle Krebs May 28, 2010Edmunds.com analysts chimed in recently on the possible demise of Mercury; prospects of the Toyota-Tesla partnership; the return of super-luxury vehicle sales; and consumers responding to zero percent financing.
Here are highlights:
Mercury's Future in Question 
After Bloomberg News broke the story that Ford executives would present a proposal to eliminate the Mercury brand at the July board meeting, The New York Times reported that Mercury dealers are expected to hear in October that the 71-year-old brand will be phased out. Edmunds.com CEO Jeremy Anwyl told The Times that Ford does not seem to need its Mercury brand anymore, and that the value the brand had years ago is greatly diminished. All four remaining Mercury models are rebadged versions of Ford vehicles.
Anwyl said in the Wall Street Journal that the Mercury brand has lost its meaning in the American marketplace and is not worth trying to save. Only two Mercury models will be sold next year: the Milan sedan and the Mariner, a small SUV.
Edmunds.com senior analyst Michelle Krebs told the Los Angeles Times in a story about Mercury that she would not be surprised to see it go away. For years, she said, the question has been what is Mercury, and why does it exist. She thinks it would be more cost efficient for Ford to focus its marketing efforts on fewer brands.
Toyota-Tesla's Partnership
The Toyota-Tesla Motor's partnership is creating a good deal of media buzz. John O'Dell, senior editor of Edmunds' GreenCarAdvisor.com, said in a Forbes magazine article that Toyota did its homework before making this investment. Krebs told MSNBC that the partnership could give Toyota a new way of looking at its products and provide both companies with fresh perspectives. However, the verdict is out on whether the partnership will be successful. She said it is easier to make a few very expensive vehicles than manufacture vehicles in large volumes.
Super-Luxury Car Sales Up
Meanwhile, responding to a Bloomberg Business Week story about sales rebounding for super-luxury cars such as Aston Martins and Maseratis, Anwyl stated that these are emotional vehicles. Those people who have money and were holding off buying these pricey cars now are feeling more comfortable indulging themselves. He called super-luxury vehicle sales spotty. For example, Bentley Motors' Continental, which starts at $177,600, is selling with the help of hefty incentives.
Zero-Percent Financing on Upswing
Finally, USA Today reported that according to Edmunds.com, the percentage of vehicles purchased with zero-percent financing in March hit a record 22.4 percent of all new cars financed. It remained elevated in April at 17.8 percent. Edmunds.com sales analyst Jessica Caldwell said that zero-percent financing has more appeal than advertisements right now to cash-strapped buyers. It is a simple incentive people understand.
Misc.
Other media outlets quoting Edmunds.com staffers include:
The New York Times on the 2011 Jeep Grand Cherokee
The Detroit News on Memorial Day sales forecast
St. Louis Post Dispatch on May car sales forecast
Columbus (Ohio) Dispatch on battery plants
Associated Press on consumer spending
Bloomberg Business Week on Toyota recalls and lessons learned
The Oakland Press (Pontiac, Mich.) on the potential demise of Mercury
This report compiled by contributing writer Marti Benedetti.
Photos by manufacturers
1 - 2010 Mercury Milan
2 - Tesla S sedan
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