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Lincoln dealers to build standalone dealerships separate from Ford

Way back in 2011, Ford Motor Credit Co. established Lincoln Automotive Financial Services as part of what Automotive News called "a campaign to set the Lincoln brand apart." Lincoln's been on a wild, public ride in the seven years since, which included a near-death experience in 2013 under former Ford CEO Alan Mulally. But Ford's luxury brand has rebounded and is ready to take another shot at setting itself apart. Automaker execs have asked dealers with twinned Ford- Lincoln dealerships in 30 major U.S. markets to build standalone stores. According to company data, the move isn't a gamble — dealers with standalone showrooms sell more vehicles. Lincoln's standalone dealerships in the 30 major U.S. markets that account for 70 percent of luxury segment sales increased 48 percent from 2014 to 2017, compared to an overall Lincoln brand sales increase of 18 percent. After a former Ford-Lincoln dealer in Minneapolis opened a devoted Lincoln store this January, sales have climbed 60 percent so far this year. Dealers in Orange County, California, and Atlanta, Georgia have seen sales double since opening exclusive Lincoln storefronts. The sales manager at the Atlanta dealer said, "Customers have pulled up and said, 'This is how it should be.'" Robert Parker, Lincoln's head of marketing, said, "Customers expect the environment to be equal to the product. They want to buy a luxury product in a luxury environment." That issue repeatedly comes up when a mass-market brand launches a luxury product; observers have lately wondered how much the issue affects sales of Hyundai's Genesis brand. Out of 845 Lincoln showrooms nationwide, there are 150 Lincoln dealers in those 30 major U.S. markets. So far, 72 dealers have made or are working to make the standalone switch on their own. Lincoln is asking the remaining 78 shops to follow suit, to agree to a new facility by July 2019 and to have the store finished by July 2021. Only the showrooms would need to be exclusive, service and other back-end departments can remain in Ford-branded complexes. Wielding the carrot, Lincoln will help dealers with relocating, and pay more for every car sold. Wielding the stick, Lincoln said that come Q2 2019, it won't let twinned dealers sell Black Label trims if they don't already. Over the next couple of years, Lincoln will complete the revamp of its lineup. Said marketing honco Parker, "The next phase of the transformation is critical.

Jim Hackett says metal tariffs costing Ford $1 billion in profits

Ford CEO Jim Hackett divulged in an interview with Bloomberg that the Trump administration's tariffs on metals imported from the European Union, Canada and Mexico have affected the automaker's balance sheet, adding that trade disputes need a quick resolution. "From Ford's perspective, the metals tariffs took about $1 billion in profit from us," Hackett told the outlet. "The irony is we source most of that in the U.S. today anyways. We're in a good place right now, but if it goes on longer there will be more damage." Hackett did not specify what period the $1 billion covered, but a Ford spokesman said the CEO was referring to internal forecasts at Ford for higher tariff-related costs in 2018 and 2019. President Trump in March announced his intention to enact 25 percent tariffs on steel imports and 10 percent on imported aluminum from the three trade zones as a way to protect the U.S. steel industry. The move sent U.S. automakers' stock prices plunging at a time when they were coming off weak monthly sales reports. Separately, President Trump has targeted China with two rounds of tariffs targeting a combined $260 billion worth of imports. China has responded by enacting 25-percent tariffs on U.S. goods including vehicle imports. In the interview, Hackett said that has hurt demand for Lincoln, which has found a growing market for its luxury vehicles in China, and made the price of the Lincoln MKC less attractive to Chinese buyers. The MKC is built at the company's Louisville, Ky. assembly plant. "We've had to move people in that factory to other operations because of that trade problem," he said. It's not clear what those moves entail or how many workers were involved. Autoblog sought comment from a Ford spokeswoman and will update this story if we hear back. Ford last month announced it was scrapping plans to import the Focus Active small crossover to the U.S. from China because of the new 25-percent tariffs on Chinese imports. Material from Reuters was used in this report Related Video:

2016 Lincoln MKX First Drive [w/video]

The Lincoln Motor Company was one of America's great luxury symbols of the 20th Century. It grew from an aircraft engine maker during the First World War to become the car of presidents. The jaw-dropping Continental concept revealed earlier this year is a clear indication that Lincoln plans to build on its history and recapture some of that luxury magic. While the image of a powerful Continental thundering over a tony Westchester road is certainly romantic, it does little to sell cars today. Enter the 2016 Lincoln MKX. Flagships like the Continental are great, but Americans buy way more crossovers, and Lincoln's redesign of the MKX focuses on the needs of modern luxury customers. That means more and better safety features, a quiet interior with attractive materials, and classy exterior design. The potent 2.7-liter twin-turbo V6 pushes out 335 horsepower, outperforming V6 offerings from Lexus and Acura. There's also a new engine – Ford's potent 2.7-liter twin-turbo V6 pushing out 335 horsepower – that outguns V6 offerings from Lexus and Acura. All told, it's a tasteful redesign with some spotlight features that might turn a few more customers Lincoln's way. The updates are intriguing, yet many of them (aside from the V6's 380 pound-feet of torque) are rather subtle. So we grab the key fob to an attractive all-wheel-drive model decked out with the Reserve package and set out for a long weekend to absorb the new MKX. Several days of running errands around town, commuting, and a three-and-half-hour drive from metro Detroit to the northern tip of Michigan lay ahead of us. We're going to be spending a lot of time in the MKX, so naturally, we take stock of the interior. Our tester (we photographed a different one) is done up in a cappuccino leather theme, which means brown leather for the steering wheel, armrests, and the tops of the door panels. Another chocolately strip bisects the dashboard. The rest of the cabin – the headliner, the seats, the sides of the doors, etc. – is a creamy white. We sink into the seats, which are cushy yet supportive. The headrest is like a pillow, and the plush floormats feel made for bare feet. The touchscreen works well, and it's complemented by redundant buttons and switches, which we like. The MKX is generally user friendly. The touchscreen works well, with little poking or jabbing. It's complemented by redundant buttons and switches, which we like.