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Lincoln again asking dealers to move out from under Ford's roof

Lincoln is once again looking at ways to stand out from parent company Ford and establish itself as a credible player in the luxury segment. The company has returned to its plan for standalone showrooms to give its sales and image a boost. In 2018, Lincoln asked 150 Ford-Lincoln dealerships in its 30 biggest American markets to make plans for a standalone showroom by July 2019, and inaugurate it by July 2021. Of those stores, 72 signed on — but the others resisted, partly because the move requires investing millions of dollars. Lincoln put the campaign on hiatus in December 2018, and now Automotive News has learned it's ready to relaunch the plan after finding a middle ground that satisfies both executives and store owners. The publication said dealers gained more freedom to choose how big of a store they build; square foot requirements are no longer tied to the market size. Lincoln also agreed to treat dealers who don't comply more fairly, notably by reducing financial penalties, and it made the aforementioned deadlines more flexible. Standalone Lincoln stores must now be completed by July 2022. The move makes sense, at least on paper. As Autoblog reported in 2018, research shows dealers with standalone showrooms sell more cars. The handful of Lincoln retailers that sell cars in purpose-built showrooms have seen their sales increase considerably faster than those who display the firm's models next to Ford-badged vehicles. Customers "want to buy a luxury product in a luxury environment," explained Robert Parker, Lincoln's head of marketing, at the time. Lincoln was historically tied to Mercury, though the Continental also incongruously shared showroom space with the De Tomaso Pantera during the early 1970s. Lincoln moved under Ford's roof when Mercury was done away with in 2011, and it began experimenting with standalone stores in the early 2010s. Auto News Lincoln

Lincoln unveils its Black Label Collection at Pebble Beach

With the posh surroundings of Monterey, CA during the Pebble Beach week as a backdrop, Lincoln has unveiled is new personalization and luxury service brand, called Lincoln Black Label. Following in the footsteps of programs like BMW Individual, Range Rover Autobiography, and many more, Black Label is strategic strike, aimed at upping Lincoln's brand cachet while luring new customers into the fold. Speaking about this at the Black Label's introduction in California Thursday, Jim Farley, Ford's executive vice president of Global Marketing, Sales and Service and Lincoln, told members of the media that "At Lincoln, our flagship is, you get to choose. That's our flagship."
While Black Label customers will benefit from concierge-like service from their dealers - both during the sale process and throughout ownership - the focus of the introduction is strongly focused on interior design.
Lincoln chose its current MKZ sedan and its MKC Concept crossover (seen in the inset image) as the debutants for Black Label treatment for good reason: the well-received MKC points the way forward for Lincoln styling as a whole, and the MKZ will be the first production vehicle to receive the option of the high-zoot interior design. We're told that eventually, Black Label treatment will be available for the full Lincoln lineup, but the MKZ will be the initial recipient, and not until late in 2014 according to the company's current projections.

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: