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• Ford is expanding its Lincoln lineup with seven all-new or significantly refreshed vehicles in the next four years – including its first-ever C-segment vehicle
• Lincoln’s plan accelerates with more investment and attention on standout product design, class-leading technology and powertrains delivering top performance and fuel efficiency
• Lincoln product development, marketing, sales and service resources expanding as the brand competes with Cadillac and Lexus in the marketplace
• Ford will end production of Mercury vehicles in the fourth quarter of this year to fully devote its financial, product development, production and marketing, sales and service resources toward further growing its core Ford brand while enhancing Lincoln
• Existing Mercury owners to receive continued access to parts and service support at Ford
  and Lincoln dealers; current Mercury vehicle warranties and Extended Service Plans will be honored; special offers available on new Mercury vehicles through the summer
• Affected dealers to receive specialized support during the transition, as the company continues its transformation to a more profitable dealer network

DEARBORN, Mich., June 2, 2010 – Ford Motor Company will expand and enhance its Lincoln brand lineup with seven all-new or significantly refreshed vehicles in the next four years as part of an aggressive growth plan focused on standout product design, class-leading technology and new powertrains – all aimed at competing with Cadillac and Lexus in North America.

Ford also will end production of Mercury vehicles in the fourth quarter of this year to fully devote its financial, product development, production and marketing, sales and service resources toward further growing its core Ford brand while enhancing the Lincoln brand.

“We have made tremendous progress on profitably growing the Ford brand during the past few years.  Now, it is time to do the same for Lincoln,” said Mark Fields, Ford’s president of The Americas.  “The new Lincoln vehicles will transform luxury for North American premium customers through an unexpected blend of responsive driving enjoyment and warm, inviting comfort. We will also offer our customers a world-class retail experience through a vibrant retail network.”

Lincoln’s hallmarks will be refined, modern design, the most fuel-efficient premium powertrains and industry-leading technology that create a unique driver experience both in the cabin and on the road.

“Profitably growing Lincoln in North America is an important part of our One Ford plan,” said Alan Mulally, Ford president and CEO. “Our Ford brand is gaining momentum and winning customers around the world.  Now, we are going to use the same laser focus to further strengthen Lincoln and deliver even more products luxury customers really want and value.”

Foundation Set
The future of Lincoln is building from a strong base that includes the all-new flagship MKS large sedan, the all-new MKT seven-passenger crossover and a significantly refreshed MKZ mid-size sedan – all now in showrooms.  The hybrid version of the MKZ will reach showrooms later this year and is expected to be the most fuel efficient premium sedan on the market.

Lincoln’s product actions continue later this year with the debut of the significantly refreshed 2011 MKX crossover, the first vehicle to feature MyLincoln Touch driver connect technology.

This will be followed by another six all-new or significantly refreshed vehicles within four years developed with Lincoln’s DNA of standout design, precise and confident driving experience, class-leading technology and powertrains delivering top performance and fuel efficiency.

Lincoln will be led by expanded product development and marketing, sales and service teams to support the brand’s growth plan and ensure it has a strong cadence of distinct products that are well positioned in the market.  Plans for Lincoln include:

• Lincoln’s first-ever C-segment vehicle
• New Lincoln-exclusive powertrains, including an all-new V-6 engine and advanced fuel-efficient transmissions
• EcoBoost engines available in all Lincolns – from the Navigator full-size SUV to the new C-segment Lincoln
• Fuel economy leadership with each new vehicle – leading to Lincoln emerging as the most fuel-efficient luxury lineup on the market
• More useful technology and features than any other competitor – with a special focus on comfort and convenience.  New advanced features include: fully retractable glass roofs; adaptive computer-controlled suspensions; electronic, push-button gear-selectors; active noise control; and exclusive MyLincoln Touch driver connect technology

“Lincoln vehicles will reward drivers with smooth, effortless power complemented by agile handling and responsive steering,” said Derrick Kuzak, Ford’s group vice president, Global Product Development.  “The cabin is a sanctuary with segment-leading quietness, genuine materials and intuitive, useful technology.”

Lincoln has started gaining traction with customers, as evidenced by market share gains during the past five years.  Lincoln’s share of the retail U.S. luxury vehicle market has grown from 4.5 percent in 2005 to 6.3 percent through the first quarter of 2010.

In addition, Lincoln’s reputation with consumers has risen, with favorable opinion and purchase consideration reaching its highest level in the past five years.  Lincoln’s long-term durability was second only to Porsche’s in the 2010 J.D. Power and Associates Vehicle Dependability Survey.

Mercury
Mercury originally was created as a premium offering to Ford and was an important source of incremental sales.  However, the continued strength of the Ford brand – particularly during the past three years – has accelerated the migration from Mercury to Ford for many customers.

Today, Mercury’s customer profile, pricing and margins are almost identical to Ford, but Mercury’s incremental sales have been declining.

The majority of current Mercury sales are to fleet buyers and customers purchasing through employee, retiree and friends and family discounts, which Ford anticipates largely can be satisfied by Ford brand vehicles.

Of Ford Motor Company’s 16 percent market share in the U.S., Mercury accounts for 0.8 percentage points, a level that has been flat or declining for the past several years.  That contrasts with the Ford brand, which has increased market share by 2.2 percentage points so far this year on the strength of new products and improved quality, fuel efficiency, safety, smart design and value.

Ford’s strengthening financial position – including the return to profitability and positive cash flow – allows the company to absorb short-term costs associated with the discontinuation of Mercury and to consolidate future product investments into Lincoln.

Today, there are no stand-alone Mercury dealerships in North America.  Ford is working closely with dealers to maintain properly located stand-alone Lincoln or Ford-Lincoln dealers, which will offer dealers and the company the greatest opportunity for long-term profitable growth.

New operational standards developed with the company’s dealers will facilitate a Lincoln customer experience that exceeds the expectations of North American luxury customers.

Personal Attention
Ford will work closely with Mercury dealers and customers during the transition, including providing existing Mercury owners with continued access to parts and service support at Ford and Lincoln dealers and by honoring current warranties, including Ford’s Extended Service Plans.

“We are 100 percent committed to supporting Mercury owners through Ford and Lincoln dealerships and working hard to keep them as valued customers in the future,” Fields said. “At the same time, we will work closely with our dealers to phase out Mercury franchises and continue to build a healthy, growing Lincoln with strong new products and a profitable dealer network that delivers a world-class customer experience.”

Mercury owners will receive additional details in the coming days explaining the transition and assuring them that Ford and its dealers will continue to provide all necessary parts and service support for Mercury products.

Ford has notified Mercury dealers of the decision and provided details of a financial package that includes payment in exchange for resigning the franchise.

Ford today also informed dealers of special offers on new Mercury vehicles that will be available through the summer to support the sell down of current Mercury inventory and remaining Mercury vehicle production.

“We are taking decisive action and moving into the future with the right plan to deliver profitable growth for all stakeholders,” Fields said. “These moves position us to continue building momentum through strong brands, great products and an unwavering focus on the customer.”

# # #

About Ford Motor Company
Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles across six continents.  With about 176,000 employees and about 80 plants worldwide, the company’s automotive brands include Ford, Lincoln, Mercury and, until its sale, Volvo. The company provides financial services through Ford Motor Credit Company.  For more information regarding Ford’s products, please visit www.ford.com.

But it seems Volvo sees value in offering free scheduled maintenance.

Coverage for scheduled maintenance is being advertised as 3 years or 36,000 miles, whichever occurs first but that’s not quite the case.

The first four regularly scheduled maintenance service will be covered. Those are at 7,500, 15,000, 22,500 and 30,000 miles. The 37,500 mile scheduled maintenance is the first the customer has to pay for.

This applies to 2009 model year Volvos sold in the U.S.

Facing tough times, GM is looking to increase the sales of certified pre-owned vehicles with changes to the program.

Warranty coverage will go up to 12 months or 12,000 miles, whichever occurs first from the current 3 months or 3,000 miles, whichever occurs first. Warranty coverage will be bumper to bumper including roadside assistance and courtesy transportation minus coverage for wear items. The warranty has no deductible and is transferable.

This only applies to Buick, Chevrolet, GMC, Pontiac and Saturn vehicles. Cadillac, Saab and HUMMER have their own certified pre-owned programs that already offer additional warranty coverage.

The new warranty coverage and other changes will become effective on September 13, 2008.

Currently vehicles that are either current model year or from the past 5 model years and less than 60,000 miles are eligible to be certified. Once the enhancements to the program kick in, vehicles that are either a current model year vehicle or from the past 5 model years and less than 75,000 miles are eligible for certification.

For vehicles that are certified but still within the new vehicle warranty period, the warranty coverage will be extended 12 months or 12,000 miles beyond the new vehicle warranty period. For Chevrolet, GMC, Pontiac, Saturn, and Buick (up to 2005 model year), coverage would go from 3 years or 36,000 to 4 years or 48,000 miles from the original in-service date. For 2006 to current Buicks, the coverage would go from 4 years or 50,000 miles to 5 years or 62,000 miles.

Vehicles that are certified outside of the new vehicle warranty period, the coverage will receive a flat 12 months or 12,000 miles from the date the vehicle was sold as certified pre-owned.

GM vehicles certified and sold on or after March 5, 2007 also receive a 5 year/100,000 mile, whichever occurs first, powertrain warranty along with roadside assistance and courtesy transportation.

There is one hitch to the program. In some cases, a vehicle that is sold as certified between 4 and 5 years since the original in service date will go through a wild ride in coverage.

Up to that five year point, you will get the 12 month/12,000 mile bumper to bumper coverage along with the 5 year/100,000 mile powertrain coverage, roadside assistance and courtesy transportation. But somewhere along the line, during that 12 month coverage, the 5 year/100,000 mile powertrain coverage will come to an end. It could happen two months into your ownership of the vehicle or eight months or any other point in time during the 12 months depending on when the vehicle was sold to the original owner.

For most of the GM Certified Pre-Owned vehicles, they will receive roadside assistance and courtesy transportation for the initial 12 months/12,000 miles and will also receive it as long as they’re within the 5 year/100,000 mileage coverage period. The only difference is, courtesy transportation will be available for bumper to bumper repairs during the 12/12 but only for powertrain warranty repairs after the expiration of the 12/12 coverage but within the 5/100 time period.

You will have to ask your dealership what the original in-service date is when you purchase the vehicle to really know what coverage you will receive and how long it will last.

This isn’t a new hitch. It’s been one that has been part of GM’s Certified Pre-Owned program since the 5 year/100,000 mile coverage was introduced in March 2007.

It’s expected this enhancement to the Certified Pre-Owned program will help with the residual values of vehicles as they come off lease so GM will see an additional benefit and lessen their losses on those vehicles turned in after the lease expires.

Don’t get me wrong. The GM Certified Pre-Owned program is a great program and one that will give you peace of mind when buying a vehicle. The increase in warranty coverage is a big boost but you do need to understand the ins and outs of the program to get the greatest benefits from it.

Most information out there touts the extended warranty coverage that Porsche is offering. Actually, the time and mileage coverage is the same as it has been since the program started in June 2003.

The change comes in the parts covered by the new, improved warranty.

The prior parts coverage was structured more like you would see from a service contract.

The new parts coverage mirrors the coverage you would get with the new-vehicle warranty.

Although this is the same as it was prior, here is a rundown on the time and mileage coverage offered with the Porsche Pre-Owned program.

For vehicles certified outside of the new-vehicle warranty, the coverage will be for 2 years or 50,000 miles (80,000 kilometers), whichever comes first, from the time the vehicle was sold as pre-owned.

For vehicles certified during the new vehicle warranty period, the coverage will be for 6 years or 100,000 miles (160,000 kilometers), whichver comes first, from the the original sale of the vehicle.

It’s a nice upgrade and one that will help eliminate any confusion in coverage.

It looks like that is changing for the 2009 model year.

For 2009, Saab is going back to future by rolling back to some of the same warranty coverage that was offered prior to 2007.

A separate powertrain warranty will not be offered but powertrain components will be included as part of the 4-year/50,000-mile bumper to bumper warranty. Roadside assistance and courtesy transportation will also be covered for the same period.

In 2007 and 2008, Saabs were covered by a 5-year/100,000 mile powertrain warranty. Included in that is roadside assistance and courtesy transportation.

This announcement comes on the same day that General Motor’s CEO Rick Wagoner said it has no plans on selling Saab and would begin manufacturing Saabs in the United States. Saab has some new products coming online in late 2009 and it appears one of those new products will be produced at a plant in the U.S.

7/28/08: To clarify, not only will the powertrain coverage drop from 5/100 to 4/50 but so will roadside assistance and courtesy transportation