Ford will pay almost $500 million to wind down Mercury, CFO says
By Andrew C., 30 Aug, 2010. 0 Comments
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It appears that winding down Mercury brand will not be a cheap move for Ford as it will cost the American manufacturer almost nearly $500 million, according to CFO Lewis Booth. Booth said that Ford charges of $247 million in the first half of the year in order to cover the cost of ongoing dealer reductions and shuttering the Mercury brand. Ford says that almost 700 of the 1,700 franchised Mercury dealers in the United States have signed agreements to close their stores and receive the cash compensation. The plan is in place and we're having very fruitful discussions with our dealers. And the good news is that no dealer lawsuits have been filed against Ford related to the shutdown of Mercury. For those who don´t know, Ford announced in June that it will wind down the 71-year-old brand by Dec. 31 and focus solely on the Ford and Lincoln brands. Mercury production is set to close in early October.
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