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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.

How Lincoln could make itself special again

Things are going better for the Lincoln brand — or, more properly, The Lincoln Motor Company — so far this year, and are likely to continue to do so, comparatively speaking. In the first quarter of 2017, the brand's sales are up 8.7 percent compared with the same period last year. Lincoln delivered 27,083 units in the first quarter. The Continental is certainly a boon, with 3,209 units (almost 12 percent of the total number), something Lincoln didn't have in the first quarter of 2016. Its crossovers, the MKC and MKX, were up 15 and 11.2 percent, respectively, and while the Navigator SUV was down 16.2 percent, the new 2018 model will certainly boost that nameplate. Still, there is undoubtedly a glass — or crystal — ceiling for Lincoln (as well as for Cadillac) that it's not likely to break through regarding total US sales. No matter how you look at it, the US luxury market is dominated by import brands, and there is no reason to think that's going to change. Ever. According to Autodata, for the first quarter of 2017 there were 213,817 luxury vehicles delivered, of which 170,780 were from import brands and 43,037 domestic. While there is a good likelihood that Lincoln will gain some ground, given the lineup extensions that the likes of Mercedes, Audi, BMW, and Lexus are making, as well as the creation of new brands like Genesis and the traction of Tesla, it is going to be all the more challenging for any company to get any significant growth in the luxury category. So growth for Lincoln, yes. Notable growth? No. But there is something the company could do to generate revenue separate from the car and crossover business. It may not make a lot of money in and of itself, but it can provide a distinct edge in the product segment that would cement Lincoln with a unique offering. Kumar Galhorta, president of Lincoln, frequently talks about "experiences." About how the company is working to relieve or eliminate "pain points" from its customers. About how time — or the perceived lack thereof — is something Lincoln is working to address. And it's doing so in a way that gives it a distinctiveness vis-a-vis the competitive set. Lincoln's services are creating a buzz in a way that Matthew McConaughey ads never will. Lincoln is addressing it through service. As in offering pickup and delivery for service appointments for all new 2017 Lincoln models.

Lincoln trumpets $129M investment, 300 new jobs in Louisville for MKC

Remember when we used to talk about how close Lincoln was to being axed and how it seemed any day now the Grim Reaper would use it as a car service back to the grave? Last time we did it was, oh, not even a month ago. What a difference 27 days makes: Ford and Lincoln are trumpeting a $129M investment in the Louisville Assembly Plant that builds the MKC.
In July the MKC was the third-best-selling Lincoln of the brand's six offerings, beat by the MKZ and - by a much smaller margin - the MKX. It has sold 2,895 units in the two months it's been on sale, which is more than half the year-to-date sales of the MKS, MKT and Navigator. It's already important, is what we're trying to say, and this is before the Chinese market gets a crack at it later this year.
The money headed to Kentucky will be joined by 300 new workers, another marker in Ford's march to create 12,000 hourly jobs in the US by next year. You can read more about it in the press release below.