Professor Elam

Ford was not answering Dealer Inquiries about the Mercury brand.  GM dropped Olds but spent millions settling dealer contracts.  And as we know from cost accounting, GM dropping Olds or Chrysler dropping Plymouth, or now Ford dropping Mercury does not lower fixed costs.Instead it raises fixed costs per unit over the rest of the product line.

Apparently all three thought is would save money. But as Jerry Flint points out you do not save  a car company by closing plants, anyone can do that. You save the company by building cars people want to buy.