Final answer:
The Mercury line of automobiles was created by Ford in 1938 to bridge the gap between its affordable Fords and the luxury Lincoln line. This move was part of Ford's strategy to cater to a middle-class market that desired more upmarket cars at a reasonable price, expanding on their success with the mass-produced Model T.
Step-by-step explanation:
The high-end luxury line that Ford aimed to bridge the gap with when it introduced the Mercury line of automobiles in 1938 was the Lincoln line. This initiative was to serve a market segment that desired upscale vehicles but at a price lower than the luxury Lincolns. Ford had established their reputation with the mass production of the affordable Model T, which had a transformative impact on American society.
Henry Ford, the pioneer of the assembly line method, leveraged mass production to drastically reduce the prices of his automobiles. For instance, the price of the Model T dropped from $850 in 1908 to just $300 in 1924. By offering high wages of five dollars per day to Ford workers, Ford ensured a consumer base for their products amongst its own employees, further solidifying the company's dominant position in the American automobile market.
The creation of the Mercury brand was an attempt to fill the void in Ford's product lineup between the everyday affordable Ford cars and the more opulent Lincolns. It was a strategic response to a diverse consumer demand. The Mercury line offered features and a level of sophistication that was superior to regular Fords, yet it remained within the financial reach of many middle-class Americans, unlike the pricier Lincolns.