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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.

Dealers mobilize to protect their margins from automaker subscription services

Six individual auto brands — Lincoln, Cadillac, Porsche, Mercedes, BMW and Volvo — have established or are trialing a vehicle subscription service in the U.S. Three third-party companies — Flexdrive, Clutch and Carma — run brand-agnostic subscription services. And three automakers — Mercedes-Benz, BMW, and General Motors — have also launched short-term rental services. Dealers, afraid of how these trends might affect their margins, are building political and lawmaking campaigns to protect their revenue streams. So far, three states are investigating automaker subscriptions, and Indiana has banned any such service until next year. It's certain that those three states are the first fronts in a long political and legal battle. Powerful dealer franchise laws mandate the existence of dealers and restrict how automakers are allowed to interact with customers to sell a vehicle. On top of that, Bob Reisner, CEO of Nassau Business Funding & Services, said, "Dealers and their associations are among the strongest political operators in many states. They as a group are difficult for state politicians to vote against." In California earlier this year, the state Assembly debated a bill with wide-ranging provisions to protect against what the California New Car Dealers Association called "inappropriate treatment of dealers by manufacturers." One of those provisions stipulated that subscription services need to go through dealers, but that item got stripped out when dealers and manufacturers agreed to discuss the matter further. In Indiana, Gov. Eric Holcomb signed a moratorium on all subscription programs by dealers or manufacturers until May 1, 2019, to give legislators more time to investigate. Dealers in New Jersey have taken their campaign to the state capitol, asking that the cars in subscription programs get a different classification for registration purposes. Automakers run the current subscription services and own the vehicles. Sign-ups and financial transactions happen online or through apps, leaving dealers to do little more than act as fulfillment centers to various degrees, with little legal recourse as to compensation amounts when they're called on to deliver or service a car. That's a bad base to build on for business owners who've sunk millions of dollars into their operations.

Lincoln Aviator debuts as stylish 3-row crossover with a surprise

NEW YORK — At a studio in the Meatpacking District in Manhattan, after a walk through an "art gallery" full of inspiration for Lincoln's newest midsize, three-row Aviator crossover, we saw the company's future. That's not breathless hyperbole, either. Lincoln's huge Navigator is selling like gangbusters, but the aging MKT is a sad vestige of the company's last attempt to reinvent itself. The company needs an attractive, well-proportioned three-row with contemporary powertrains to complement the MKC and the larger Nautilus (nee MKX). For those wondering, the MKC is likely to get renamed at its next refresh, and the lousy MK__ naming convention will finally die. But while the names are refreshing, that's not the reason the Aviator is so important. For one, it'll almost certainly lend its underpinnings, which are rear-wheel-drive based, to the next Ford Explorer. The other is that it's an all-important three-row, a conventionally-shaped one rather than the awkward MKT's long, lumpy look. The Aviator — the vehicle we saw is a preview, not a production model, but is extremely close to production — has style and presence. There's more than a bit of Range Rover Velar in the look, but it's not a clone. And the interior is a wonderful interpretation of the larger Navigator's bold, distinctive and purely American look. View 20 Photos While many, many details are unspecified at this stage — including exact engine details, dimensions, and the like — there's enough there to draw some conclusions about the new Aviator. For one, it's got a version of the Navigator's elegant interior. Those Perfect Position seats, also seen in the Continental, covered with soft leather, are central to the Aviator's interior experience. When's the last time beautiful seats were such a selling point? Other than Volvo, no one's put enough attention on unique and particularly comfortable seats. It's a unique selling proposition and, also, a nice aesthetic detail. You could say the same for the dash design: It's low and sleek, with solid but not bulky elements and the sort of tastefulness normally reserved for Scandinavian industrial design. Back to the rear-drive platform and what little else we know of the powertrain. For one, it'll feature a twin-turbocharged EcoBoost engine with an available plug-in hybrid option. As far as we can tell, both versions will use the same engine, and there are no optional engines outside of this.