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Lincoln hopes month-by-month leasing will woo luxury clients

Lincoln is launching a new subscription-based service that will allow customers to lease any of its vehicles on a month-by-month basis as part of a new suite of services aimed at offering flexibility and converting buyers. The luxury brand has also been operating a pilot program in which dealers bring Lincoln vehicles to consumers' homes for them to test drive on their own time — and sometimes even complete the entire sales process at their homes. Lincoln also announced on the heels of the L.A. Auto Show a new collaboration with Clear, a company that provides expedited screening at security gates at airports and sports arenas, plus an expansion of its Lincoln Personal Driver service, formerly known as Lincoln Chauffeur, to Dallas. Kumar Galhotra, Lincoln's president, said the company is trying to create a brand experience for consumers that is warm, human and effortless, and that the new services are based on consumer research that equates time with luxury. "We take this philosophy of warm, human and effortless, and we really embed it" in the vehicles and ownership experience, he said. Lincoln plans to launch its vehicle subscription service early next year, likely in "a couple California cities," Galhotra said, that allows consumers to lease any Lincoln vehicle on a monthly basis. While Lincoln did not announce pricing, the program is based on Ford Credit's Canvas program, which offers monthly subscriptions to pre-owned Ford vehicles and come with insurance, maintenance and warranty coverage. The service is so far offered only in the Bay Area and parts of Los Angeles. The service appears to be similar to the $1,500-a-month Book by Cadillac service and Care by Volvo. Robert Parker, Lincoln's global director of marketing, sales and service, said the service will allow consumers the option of upgrading to larger-size vehicles without being locked into a traditional two-year lease. "We acknowledge the fact that we are a challenger brand. We're not at the scale of the Germans," Parker said. "We certainly aspire to continue to grow, that's not our No. 1 focus.

GM design boss Welburn says Lincoln isn't a Cadillac rival [w/poll]

General Motors Vice President of Global Design, Ed Welburn, had some dismissive words for a certain cross-town luxury brand during an interview with Car and Driver. When asked about his thoughts on Lincoln, Welburn deflected, before saying, "I don't consider Lincoln to be a competitor for Cadillac."
"They're not a global luxury brand. I don't consider them a competitor. Are they a competitor for Buick? Quite possibly. But not for Cadillac," GM's head designer explained. Welburn, who's been at the helm of GM Design North America since 2003 and is the first to hold the position of VP of Global Design, has been instrumental in the styling renaissance at GM, so predictably, Car and Driver's interview with him focused on the design aspect of cars.
During the interview, Welburn explicitly denied plans for a reborn Cadillac XLR, even as a new Chevrolet Corvette is hitting the market and strides are being made with Cadillac's V-Series performance arm saying, "We have a lot of cars that we're working on for the Cadillac brand. The XLR is not one of them right now."

Lincoln poised to double MKZ Hybrid production

The Lincoln MKZ Hybrid has been something of a hit for Ford since the beginning, exceeding the company's modest projected 15-percent take rate for more than two years (we say "modest" because that still means an overwhelming majority of Lincoln customers are passing up on the gas-electric powertrain even though it costs the same as the standard model). Either way, Lincoln builds 700 MKZ Hybrids at its plant in Mexico each month, but has sold 715 of them in each of the past three months. That's why, according to a report in The Detroit News, when the restyled 2014 MKZ Hybrid arrives (non-hybrid pictured), Ford is doubling production compared to 2013. Instead of the hybrid model being 20 percent of production, the new hybrid will make up 40 percent.
Ford is doing well with hybrids in general - its portion of the electrified vehicle segment jumping 12 points in a single year to 16 percent. Assuming Ford doesn't change the pricing strategy (along with the changes Ford is making to calibration to improve fuel economy), the sedan could continue to "[show] other luxury hybrids how it's done" when it goes on sale later this year.