DEARBORN, Mich. -- Ford Motor Co. has announced plans to expand and enhance its Lincoln brand lineup with seven all-new or significantly refreshed vehicles in the next four years. The move is part of an aggressive growth plan aimed at competing with Cadillac and Lexus in North America.

Ford also has announced that it 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.

"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."

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'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.

Ford says it 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.

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.

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 yesterday 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."