Ford to phase out legendary brand Mercury

Ford Motor Co is preparing to phase out its 71-year old Mercury brand as the industry becomes more competitive.

Ford chief executive Alan Mulally has won the backing of key members of the Ford family to the proposal to discontinue Mercury following years of dwindling sales, according to a person familiar with the matter.

Created in 1939 by Edsel Ford, the son of Henry Ford, it was prompted by General Motors Co's strategy of building a 'ladder of brands' including the Chevrolet, Pontiac, Oldsmobile, Buick and Cadillac.

Mercury would be the latest Detroit brand to be phased out since 2000. GM phased out its Pontiac and Saturn divisions, as part of its bankruptcy restructuring plans with Hummer too headed for the same fate. Earlier Oldsmobile was phased out and Chrysler Group LLC killed off Plymouth.

Mercury's future had been uncertain ever since Mullally arrived on the scene as CEO in 2006 and laid out a roadmap for a turnaround that included phasing out of niche brands directing most of the company's resources into its Ford division. Since then the company has sold off Jaguar, Land Rover and most recently Volvo.

Mercury was supposed to serve as a fit between the inexpensive Ford models and its more luxurious Lincolns as a mid-priced car.