Lincoln's Future in Doubt, Again
04-15-2011, 03:32 PM
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Lincoln's Future in Doubt, Again Lincoln Dealers Have Questions… And Not About Product
By Edward Niedermeyer on April 11, 2011
Ford Motor Company has benefited immensely from its investments in its Blue Oval Brand, improving sales and profits, while wrapping its entire operations in an aura of invulnerability. But underneath all the Ford-branded success lies a problem that, more often than not, has been conveniently swept under the rug: Ford’s luxury offerings are in chaos.
The last time we checked in on Lincoln, Ford was trying to convince dealers that Lincoln’s future product would be competitive in the tough luxury market… without disclosing any details that might give salesmen hope that future Lincolns will be something other than an obviously tarted-up Ford. But as tough a sell as that is, Lincoln’s dealers seem to be even more worried about the more prosaic elements of Ford’s luxury brand turnaround…
According to Automotive News [sub], Ford has issued an ultimatum to its Lincoln dealers: either they agree to meet minimum brand requirements by September 1, or they face losing their franchise. Ford’s demands include that dealers
• Offer perks such as a free car wash and a Lincoln loaner vehicle to Lincoln service customers
• Have a dedicated service manager and dedicated sales staff for Lincoln, if the dealership is paired with a Ford store
• Have only the word “Lincoln,” without “Mercury,” appear on all franchise signage
• Have at least 30% of used-Lincoln inventory be certified pre-owned
And though these seem like basic requirements for a luxury dealer net, a number of Lincoln store owners are concerned with several demands.For example, what if a customer wants a full-sized loaner replacement for a vehicle that’s been turned in for service, but the dealer only has MKZs on the lot? A dealer complains,
The rule is 80 percent of the customers that Ford follows up on have to get a Lincoln loaner… You may have a situation in the course of the day where you don’t have enough Lincoln loaner cars.
Another dealer notes that getting a used car certified as part of Lincoln’s CPO program could cost $400 per car. Yet another wonders how closely Ford will monitor compliance with its demands, and offers the following scenario,
Say you have 10 used Lincolns in stock, and 40 percent were certified pre-owned, and you sold two of them. Now you’re down to eight in stock and only two being certified pre-owned, do you have to scramble to get two more certified pre-owns to make yourself compliant?
Ford says it’s making itself available to answer questions from Lincoln dealers, but ultimately the dealers aren’t facing much of a choice. If they neither comply nor terminate their franchises by September 1, Ford says it will stop giving them a dealer discount, which could cost as much as $700 at retail. But if that’s what it comes to, some dealers may just sue Ford under local franchise laws.
Meanwhile, though Ford has shown Lincoln dealers the stick, there’s still no sign of any carrots: nobody seems to know how Ford is going to convincingly fix Lincoln’s product issues. Until dealers know what they are going to be selling, it could be tough to get them to make any concessions. The battle for Ford’s struggling luxury brand continues…
By Edward Niedermeyer on April 11, 2011
Ford Motor Company has benefited immensely from its investments in its Blue Oval Brand, improving sales and profits, while wrapping its entire operations in an aura of invulnerability. But underneath all the Ford-branded success lies a problem that, more often than not, has been conveniently swept under the rug: Ford’s luxury offerings are in chaos.
The last time we checked in on Lincoln, Ford was trying to convince dealers that Lincoln’s future product would be competitive in the tough luxury market… without disclosing any details that might give salesmen hope that future Lincolns will be something other than an obviously tarted-up Ford. But as tough a sell as that is, Lincoln’s dealers seem to be even more worried about the more prosaic elements of Ford’s luxury brand turnaround…
According to Automotive News [sub], Ford has issued an ultimatum to its Lincoln dealers: either they agree to meet minimum brand requirements by September 1, or they face losing their franchise. Ford’s demands include that dealers
• Offer perks such as a free car wash and a Lincoln loaner vehicle to Lincoln service customers
• Have a dedicated service manager and dedicated sales staff for Lincoln, if the dealership is paired with a Ford store
• Have only the word “Lincoln,” without “Mercury,” appear on all franchise signage
• Have at least 30% of used-Lincoln inventory be certified pre-owned
And though these seem like basic requirements for a luxury dealer net, a number of Lincoln store owners are concerned with several demands.For example, what if a customer wants a full-sized loaner replacement for a vehicle that’s been turned in for service, but the dealer only has MKZs on the lot? A dealer complains,
The rule is 80 percent of the customers that Ford follows up on have to get a Lincoln loaner… You may have a situation in the course of the day where you don’t have enough Lincoln loaner cars.
Another dealer notes that getting a used car certified as part of Lincoln’s CPO program could cost $400 per car. Yet another wonders how closely Ford will monitor compliance with its demands, and offers the following scenario,
Say you have 10 used Lincolns in stock, and 40 percent were certified pre-owned, and you sold two of them. Now you’re down to eight in stock and only two being certified pre-owned, do you have to scramble to get two more certified pre-owns to make yourself compliant?
Ford says it’s making itself available to answer questions from Lincoln dealers, but ultimately the dealers aren’t facing much of a choice. If they neither comply nor terminate their franchises by September 1, Ford says it will stop giving them a dealer discount, which could cost as much as $700 at retail. But if that’s what it comes to, some dealers may just sue Ford under local franchise laws.
Meanwhile, though Ford has shown Lincoln dealers the stick, there’s still no sign of any carrots: nobody seems to know how Ford is going to convincingly fix Lincoln’s product issues. Until dealers know what they are going to be selling, it could be tough to get them to make any concessions. The battle for Ford’s struggling luxury brand continues…
04-15-2011, 03:32 PM
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A Wild-*** Look At Lincoln’s Future Products
By Edward Niedermeyer on April 13, 2011
Ford’s Lincoln turnaround continues to be a hot topic for industry watchers who have a hard time squaring the success of the Ford brand with the weak performance of Ford’s luxury efforts.
Thus far, the X-factor is Lincoln’s product, which has for too long consisted of little more than tarted-up Fords without any of the the unique attributes that drive luxury brand aspiration. So, what does the future hold for Lincoln’s product plans? According to FordInsideNews, the answer is as predictable as it is troubling: Global C-Platform. That’s right, Lincoln’s future is based on the same platform as the future of the Ford brand.
At this year’s North American International Auto Show, Ford was entirely focused on its new compact C-platform, touting the global appeal and flexibility of the gubbins beneath its new Focus. It was classic Ford stuff: leveraging huge volumes of competent but modest underpinnings into a portfolio of vehicles designed to transport people the world over. But then techno-democratic evangelism has been a Ford strong suit since the Model T put the world on wheels; Dearborn’s problem over the last century or so has been in creating the durably desirable luxury brands that bring in huge profits on lower volumes. And based on the latest rumors, that challenge isn’t about to go away.
According to FordInsideNews’s sources, 2013 will be the year of Lincoln’s re-boot, with four new or refreshed products planned. The first is a Global C-Platform-based compact hatch, with styling inspired by the 2009 Lincoln Concept C. But besides the 1.6 Ecoboost engine and 43 MPG, it’s not clear what this compact Lincoln will bring to the table. And with the MKC name tipped for this don’t-call-it-a-Focus, it’s tough to imagine it doing anything a Focus Titanium can’t.
Keeping with the C-Platform theme, another rumored 2013 Lincoln is a re-worked version of the next-gen Ford Escape, which was also previewed in Ford’s Compactfest in the form of the Vertrek concept. Another global C-product, the Vertrek replaces both the European Kuga and the Escape, so it’s safe to assume that (like the Focus) even the Ford version will be relatively upscale. Once again, Ford’s desire to make its Blue Oval brand a leader in quality and technological proliferation seems to be trading off with its unwillingness to develop wholly unique products for its luxury brand. Which means that, once again, Lincoln’s future depends on Ford’s ability to differentiate its luxury platform with design and packaging.
One hint about Ford’s approach to this all-important differentiation comes from rumors about the next-generation MKZ, which is being developed as part of Ford’s effort to unify its Mondeo and Fusion midsizers into a single global product. With a new platform that combines elements of the Fusion’s CD3 and Mondeo’s EUCD as well as Ford’s 3rd-generation hybrid drivetrain, the MKZ will be the first product to be styled by Lincoln’s new design boss, Max Wolff. And, reports FIN,
In addition to the different styling, the new MkZ will also feature an exclusive Vista Roof, which the Fusion/Mondeo will not receive. MkZ will also see further technological differentiation from the Fusion. Also in the tech department, MyFord touch will be an option on the Fusion and Mondeo, while the MkZ will have MyLincoln Touch as standard equipment.
So Lincolns will have a fancy sunroof, and gets MyLincolnTouch as standard… does it sound like we’re beating the “luxury brand as trim level” trap yet? If Wolff’s styling doesn’t absolutely blow consumers out of the water, it sounds like Lincoln’s turnaround could need a turnaround. Plans for a revival of the Lincoln Aviator, a rebadge of the new Explorer, don’t really change that perception either. Nor do planned “refreshes” of the MKS, MKT and Navigator. In short, Lincoln’s future sounds like a healthy helping of more of the same, and if there are some convincing new differentiation tricks that haven’t been tried yet, we’re still waiting to hear about them.
By Edward Niedermeyer on April 13, 2011
Ford’s Lincoln turnaround continues to be a hot topic for industry watchers who have a hard time squaring the success of the Ford brand with the weak performance of Ford’s luxury efforts.
Thus far, the X-factor is Lincoln’s product, which has for too long consisted of little more than tarted-up Fords without any of the the unique attributes that drive luxury brand aspiration. So, what does the future hold for Lincoln’s product plans? According to FordInsideNews, the answer is as predictable as it is troubling: Global C-Platform. That’s right, Lincoln’s future is based on the same platform as the future of the Ford brand.
At this year’s North American International Auto Show, Ford was entirely focused on its new compact C-platform, touting the global appeal and flexibility of the gubbins beneath its new Focus. It was classic Ford stuff: leveraging huge volumes of competent but modest underpinnings into a portfolio of vehicles designed to transport people the world over. But then techno-democratic evangelism has been a Ford strong suit since the Model T put the world on wheels; Dearborn’s problem over the last century or so has been in creating the durably desirable luxury brands that bring in huge profits on lower volumes. And based on the latest rumors, that challenge isn’t about to go away.
According to FordInsideNews’s sources, 2013 will be the year of Lincoln’s re-boot, with four new or refreshed products planned. The first is a Global C-Platform-based compact hatch, with styling inspired by the 2009 Lincoln Concept C. But besides the 1.6 Ecoboost engine and 43 MPG, it’s not clear what this compact Lincoln will bring to the table. And with the MKC name tipped for this don’t-call-it-a-Focus, it’s tough to imagine it doing anything a Focus Titanium can’t.
Keeping with the C-Platform theme, another rumored 2013 Lincoln is a re-worked version of the next-gen Ford Escape, which was also previewed in Ford’s Compactfest in the form of the Vertrek concept. Another global C-product, the Vertrek replaces both the European Kuga and the Escape, so it’s safe to assume that (like the Focus) even the Ford version will be relatively upscale. Once again, Ford’s desire to make its Blue Oval brand a leader in quality and technological proliferation seems to be trading off with its unwillingness to develop wholly unique products for its luxury brand. Which means that, once again, Lincoln’s future depends on Ford’s ability to differentiate its luxury platform with design and packaging.
One hint about Ford’s approach to this all-important differentiation comes from rumors about the next-generation MKZ, which is being developed as part of Ford’s effort to unify its Mondeo and Fusion midsizers into a single global product. With a new platform that combines elements of the Fusion’s CD3 and Mondeo’s EUCD as well as Ford’s 3rd-generation hybrid drivetrain, the MKZ will be the first product to be styled by Lincoln’s new design boss, Max Wolff. And, reports FIN,
In addition to the different styling, the new MkZ will also feature an exclusive Vista Roof, which the Fusion/Mondeo will not receive. MkZ will also see further technological differentiation from the Fusion. Also in the tech department, MyFord touch will be an option on the Fusion and Mondeo, while the MkZ will have MyLincoln Touch as standard equipment.
So Lincolns will have a fancy sunroof, and gets MyLincolnTouch as standard… does it sound like we’re beating the “luxury brand as trim level” trap yet? If Wolff’s styling doesn’t absolutely blow consumers out of the water, it sounds like Lincoln’s turnaround could need a turnaround. Plans for a revival of the Lincoln Aviator, a rebadge of the new Explorer, don’t really change that perception either. Nor do planned “refreshes” of the MKS, MKT and Navigator. In short, Lincoln’s future sounds like a healthy helping of more of the same, and if there are some convincing new differentiation tricks that haven’t been tried yet, we’re still waiting to hear about them.
04-15-2011, 03:58 PM
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Eh... Lincoln hasn't got enough differences anymore. Dropping the Town Car was a terrible idea in my book, and has hurt sales. You could get nearly the same car with Ford labels and spend less, giving up no comfort to speak of, and not a bit of hard earned income.
Today I went and got an oil change. When I was done, I looked over some new Fords. The Expedition caught my eye, but isn't really what I want on the outside. A salesman came over and invited my into an "Edge" and it kinda surprised me with all the gadgets and the interior space. Then he said, "Let's look at this one" and we stepped over to the new Explorer. At $40,400+, I wasn't instantly impressed. He thinks it's a great deal, but I'm not so sure. Then I got inside. MAN, that thing has room! There are 3 rows of seats, though I only got into the front passenger seat. The "MyTouch" or whatever... full of "stuff" to check out, including navigation and Siruis Sat. radio and plenty more. I'm not planning to buy one, but it is impressive... Which Lincoln is or will be based on that? Whichever... price is a reason I would stick with the Ford label here. THAT is Lincolns biggest problem from the looks. There are already enough available options on the Ford label. Why spend more for the few standard features of a Lincoln when you can opt up the other and still pay less in many cases???
I considered a test drive of the Explorer just because, but he had to get back with a customer who was trading in her Jaguar(XLS or close) for a new Escape... I'm thinking, "WHAT?" As 3 got out I overheard a chat. They quickly headed inside to finish the paperwork. I'm not thinking I'd choose to go from Jag to Escape, but that old lady did. They evidently had no interest in Lincolns.
Today I went and got an oil change. When I was done, I looked over some new Fords. The Expedition caught my eye, but isn't really what I want on the outside. A salesman came over and invited my into an "Edge" and it kinda surprised me with all the gadgets and the interior space. Then he said, "Let's look at this one" and we stepped over to the new Explorer. At $40,400+, I wasn't instantly impressed. He thinks it's a great deal, but I'm not so sure. Then I got inside. MAN, that thing has room! There are 3 rows of seats, though I only got into the front passenger seat. The "MyTouch" or whatever... full of "stuff" to check out, including navigation and Siruis Sat. radio and plenty more. I'm not planning to buy one, but it is impressive... Which Lincoln is or will be based on that? Whichever... price is a reason I would stick with the Ford label here. THAT is Lincolns biggest problem from the looks. There are already enough available options on the Ford label. Why spend more for the few standard features of a Lincoln when you can opt up the other and still pay less in many cases???
I considered a test drive of the Explorer just because, but he had to get back with a customer who was trading in her Jaguar(XLS or close) for a new Escape... I'm thinking, "WHAT?" As 3 got out I overheard a chat. They quickly headed inside to finish the paperwork. I'm not thinking I'd choose to go from Jag to Escape, but that old lady did. They evidently had no interest in Lincolns.
04-15-2011, 07:51 PM
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Agreed. Lincoln just doesn't offer enough features that can't be had in its Ford counterparts for less. I don't know if it's that Ford products are just that good these days or if Lincoln's just are aren't that much better.
IMO Lincoln needs a few cars that AREN'T rebadged/upscaled Fords. I still think they should look at bringing in the Falcon as a Lincoln exclusive.....would make for a great new Town Car/LS.
IMO Lincoln needs a few cars that AREN'T rebadged/upscaled Fords. I still think they should look at bringing in the Falcon as a Lincoln exclusive.....would make for a great new Town Car/LS.
04-15-2011, 08:33 PM
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LS maybe, but no TC. I think they should've kept the TC in current form or revised it somewhat, retaining RWD and a standard V8(the 5L would be fine), all attached to a real frame. I'd have enjoyed seeing a TC looking like a Mark IV or older. It just seems they'd do better with a full size car with a massive trunk and long nose. If going completely away from that platform(as they did), it only seems right that they bring about something COMPLETELY NEW and exclusively Lincoln, such as the LS was when replacing the Mark VIII.
Seems to me, Ford will remove Lincoln in the next few years. The only way I see around it is to constantly expect losses or to offer a different line of products vs the rebadged Ford lineup.
Seems to me, Ford will remove Lincoln in the next few years. The only way I see around it is to constantly expect losses or to offer a different line of products vs the rebadged Ford lineup.
04-15-2011, 10:31 PM
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Strange thing of it is........lately I've been seeing TONS of new Lincolns all over my area. About a year ago I couldn't even tell you what a late model Lincoln looked like. Now I see them almost as regularly as their Ford counterparts. Maybe it's just a local phenomenon. [shrugs]
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04-16-2011, 02:47 PM
#9
That is a great list of things to require for a Lincoln store.
Too bad they don't realize it is the CAR the people need to buy, not a pat on the back when they bring in their current car.
Really, fire all of the designers and get some unique chassis or this ship is sinking fast.....
Too bad they don't realize it is the CAR the people need to buy, not a pat on the back when they bring in their current car.
Really, fire all of the designers and get some unique chassis or this ship is sinking fast.....
04-16-2011, 03:17 PM
#10
That is a great list of things to require for a Lincoln store.
Too bad they don't realize it is the CAR the people need to buy, not a pat on the back when they bring in their current car.
Really, fire all of the designers and get some unique chassis or this ship is sinking fast.....
Too bad they don't realize it is the CAR the people need to buy, not a pat on the back when they bring in their current car.
Really, fire all of the designers and get some unique chassis or this ship is sinking fast.....
04-17-2011, 01:04 AM
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That is a great list of things to require for a Lincoln store.
Too bad they don't realize it is the CAR the people need to buy, not a pat on the back when they bring in their current car.
Really, fire all of the designers and get some unique chassis or this ship is sinking fast.....
Too bad they don't realize it is the CAR the people need to buy, not a pat on the back when they bring in their current car.
Really, fire all of the designers and get some unique chassis or this ship is sinking fast.....
Well, they tend to talk people into spending the money... I don't think they deserve credit for "most" though, since none of that slated money-making stuff could be done without the mechanics and parts people and little of it could be made if the vehicles never got sold.
04-17-2011, 01:12 PM
#12
I think they should've kept the TC in current form or revised it somewhat, retaining RWD and a standard V8(the 5L would be fine), all attached to a real frame. I'd have enjoyed seeing a TC looking like a Mark IV or older. It just seems they'd do better with a full size car with a massive trunk and long nose. If going completely away from that platform(as they did), it only seems right that they bring about something COMPLETELY NEW and exclusively Lincoln, such as the LS was when replacing the Mark VIII.
04-18-2011, 04:57 PM
#13
If I were a Ford/Lincoln, or Lincoln only dealer, I'd be looking for a way out right now. People aren't dumb, there is no way you can grow sales by offering the same exact crap as Ford and pricing it 5-10k more. You'll always have those few "suckers" who will buy a Lincoln, but once again the key word is few.
04-18-2011, 08:53 PM
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If I were a Ford/Lincoln, or Lincoln only dealer, I'd be looking for a way out right now. People aren't dumb, there is no way you can grow sales by offering the same exact crap as Ford and pricing it 5-10k more. You'll always have those few "suckers" who will buy a Lincoln, but once again the key word is few.
04-19-2011, 12:00 AM
#16
Let me rephrase the "crap" part of that, as I agree that Ford is putting out some kick butt product right now. Just saying that the Lincoln products are different in styling, but are not any better than a fully optioned Ford in terms of quality of assembly, luxury features, and the chassis/engines/transmission are exactly the same.
IMO Lincoln has become the new Mercury. Same car as the Ford but with some styling and trim changes.
IMO Lincoln has become the new Mercury. Same car as the Ford but with some styling and trim changes.
05-11-2011, 02:34 PM
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Yep, Just some extra chrome and a higher price.
Plus I dont see the problem for dealers on what Ford is wanting from them? GM charges about $359-399 per Certified car (depends on year)
And the loaner car could be a fleet of preowned certified cars with low milage that are all the same model so there is no fighting for model type.
Plus I dont see the problem for dealers on what Ford is wanting from them? GM charges about $359-399 per Certified car (depends on year)
And the loaner car could be a fleet of preowned certified cars with low milage that are all the same model so there is no fighting for model type.
05-11-2011, 04:12 PM
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I think it's a bit different simply because, unlike the Chevy/GMC pickups, the Lincoln has always been a "luxury" brand. Besides, it's a car maker and doesn't specifically need to look like or perform like others... Pickups all strongly resemble each other while many cars look very different based on styling and ride quality.
