View Full Version : Ford To Invest $1 Billion To Revive Lincoln
MM2004
06-21-2011, 07:42 AM
Automaker tells dealers it is committed to resuscitating its luxury marque by 2014
Lincoln dealers say Ford Motor Co. intends to invest about $1 billion in new vehicles by 2014 in a bid to rejuvenate its struggling luxury brand.
Ford's leadership team, including CEO Alan Mulally, met in Dearborn two weeks ago with Lincoln dealers from major metropolitan areas to assure them of the company's commitment to the brand. Lincoln sold fewer than 35,000 vehicles in the United States through the first five months of the year, down 7.5 percent from a year ago. That represents less than 1 percent of the U.S. market.
Last year, Ford promised that Lincoln would get seven new or significantly upgraded vehicles over four years. But major auto shows have come and gone this year with no new Lincolns to excite dealers who are being asked to spend, on faith, $1 million or more each to upgrade their facilities in anticipation of a fresh showroom of vehicles.
"We're fully committed to making Lincoln a world-class luxury brand with compelling vehicles and an exceptional consumer experience to match," Lincoln spokesman Timothy Elliott said Monday.
But many are skeptical about its future.
"The bigger question is whether Lincoln will be viable," said Rebecca Lindland, a director with IHS Automotive Inc. in Lexington, Mass.
General Motors Co. CEO Dan Akerson recently dismissed Ford's efforts to revive Lincoln, its competitor to GM's Cadillac. "You might as well sprinkle holy water. It's over," he told The Detroit News.
IHS predicts Lincoln will next year add a compact sedan — a premium cousin to the Ford Focus — and a compact crossover in 2013 as a 2014 model. The automotive consultants at IHS expect most of the new and upgraded Lincolns to arrive as 2014 models, including a midsize crossover (a premium cousin to the Ford Explorer) as well as the next generation of its MKS full-size sedan. At that time, the MKT — sister to the Ford Flex — is expected to go away, and the Navigator full-size SUV could expire by 2016. But Lincoln will have new versions of the MKZ midsize sedan and MKX utility vehicle.
While the industry hasn't recovered fully — the seasonally adjusted sales rate for 2011 was 11.8 million units in May — the market is slowly coming back.
"Lincoln may miss some of the momentum," Lindland said.
Bob Tasca Jr. is president of Tasca Automotive Group, which includes Ford and Lincoln showrooms in Cranston, R.I. The chairman of the Lincoln Mercury Dealer Council traveled to Dearborn for the meeting that he described as "very positive."
Commitment assured
Ford management "assured dealers, without a question of a doubt, that Ford is fully committed to Lincoln," Tasca said.
"They have a ways to go, but you gotta believe it," he said, referring to promises made and kept to turn around the Ford brand. Tasca expects Mulally and his management team to ramp up Lincoln as well.
But he said he shares the sentiment of many of his fellow dealers in wishing the new vehicles would come sooner. His volume models — the MKX and MKZ — are selling well, but few buyers want the MKT or Navigator, Tasca said.
Ford executives told the dealers that Lincoln sales could fall below 80,000 this year, but predicted they will exceed 150,000 annually by 2015, when the lineup has been overhauled.
Lou Stanford of Varsity Lincoln in Novi also would like more up-to-date vehicles to sell, but recognizes "they're rewinding Lincoln" and resources are still stretched as Ford seeks to reduce its overall debt, which affects the resources available to develop new vehicles.
The automaker's executives have said Lincoln products will share underbellies with Ford products but distinguish themselves with their look, more technology and standard features, and powertrains that give them greater performance.
The sharing of the chassis and many major components makes it possible for Ford to come up with seven new or refreshed Lincoln products for $1 billion, Lindland said.
"They are working with economies of scale to develop these products less expensively and get more immediate return on the investment," she said.
At the meeting in Dearborn, the dealers were told they need showrooms, as well as sales and service employees, dedicated to Lincoln products.
"We were clear about their need to invest in their businesses to recognize the full potential of our investment in the brand," Elliott said. He would not comment on the investment figures.
Investment expected
Tasca said most dealers to whom he spoke will make the necessary investment.
"There is not one stencil you can put over everybody," said Tasca, who added that he will not need to spend much on the Lincoln facility he built in 2000. "I already built the Taj Mahal."
Varsity Lincoln was updated about four years ago, so Stanford doesn't think he needs to make a huge investment.
But some Lincoln dealers who also sold the Mercury brand, discontinued last year, will choose to stop selling Lincolns rather than invest, given their reduced volumes.
There were about 1,180 Lincoln dealers at the start of the year, including about 300 stand-alone Lincoln outlets.
In the top 130 metro markets, Ford wants to pare its dealership network to 325 from about 500 at the end of last year. It wants Lincoln to go head-to-head with premium brands including BMW, Mercedes and Audi — brands whose sales outlets are concentrated in large cities.
Time will tell how many close, Tasca said. But he is optimistic for the brand.
Motorhead350
06-21-2011, 10:31 AM
Please please please have a full size V8 rwd sedan. No focus compact crap!
SC Cheesehead
06-21-2011, 10:50 AM
Please please please have a full size V8 rwd sedan. No focus compact crap!
Unfortunately, I think those days (and cars) are long gone... :(
RF Overlord
06-21-2011, 10:54 AM
IHS predicts Lincoln will next year add a compact sedan — a premium cousin to the Ford Focus — That was tried by Cadillac in the late '80s/early '90s...the Cimarron was a luxury compact sedan based on the Cavalier. It was a complete POS and failed miserably. Looks like history is doomed to repeat itself.
Please please please have a full size V8 rwd sedan.In your dreams, brah.
Let's all face it: RWD is dead in anything but trucks. The 300/Charger/Challenger are just waiting for the axe from FIAT.
SC Cheesehead
06-21-2011, 11:09 AM
That was tried by Cadillac in the late '80s/early '90s...the Cimarron was a luxury compact sedan based on the Cavalier. It was a complete POS and failed miserably. Looks like history is doomed to repeat itself.In your dreams, brah.
Let's all face it: RWD is dead in anything but trucks. The 300/Charger/Challenger are just waiting for the axe from FIAT.
What about the Camaro and the 'Vette from Gov't Mtrs? :confused:
Joe Walsh
06-21-2011, 11:13 AM
Too little too late I'm afraid!.....:shake:
Lincoln once was one of the most respected and highly regarded luxury cars on the market.
But FORD has let the Lincoln brand languish, just like it did to Mercury....
Cadillac has continued to evolve with unique (though controversial) styling and continues to put strong engines in their products.
Remember the Lincoln Continental which only came as a 3.8L V6 FWD car???....:puke:
I'm a dyed-in-the-blue-wool FORD guy....but if I were to ever consider buying a luxury car, I'd look at a LOT of other manufacturers before I ever considered a Lincoln.
RF Overlord
06-21-2011, 11:19 AM
Gov't Motors already cancelled the Camaro once...and the 'vette is out of most people's price range.
I also left out the Mustang, but that's a small impractical car. I'm not saying it's not a GOOD car, just not a good "all-around" car like the MM.
My point is that we went from a nation of fine RWD automobiles available in many sizes and configurations for every possible use, to a nation of Toyota-drivers who can't figure out which one's the brake and which one's the gas. Now we're down to a pitiful handful of cars that for the most part are impractical, unaffordable, or doomed.
SC Cheesehead
06-21-2011, 11:27 AM
Gov't Motors already cancelled the Camaro once...and the 'vette is out of most people's price range.
I also left out the Mustang, but that's a small impractical car. I'm not saying it's not a GOOD car, just not a good "all-around" car like the MM.
My point is that we went from a nation of fine RWD automobiles available in many sizes and configurations for every possible use, to a nation of Toyota-drivers who can't figure out which one's the brake and which one's the gas. Now we're down to a pitiful handful of cars that for the most part are impractical, unaffordable, or doomed.
Yup, I can see it coming...
http://fabulouslymoderndisco.files.wo rdpress.com/2010/04/turtlezombie.jpg?w=385&h=472
Granddaddy Marq
06-21-2011, 11:56 AM
Just 1 billion is all they're spending. Somebody at ford needs to fall of their walet and spend so more Lancoln has nothing. CTS V!
Bigdogjim
06-21-2011, 11:59 AM
Problem with Lincoln is all of cars are re-badged Fords. It was Mercury's downfall and it will be Lincoln downfall as well.
When Ford bought Lincoln it was a stand alone brand, when Mercury was introduced in '39(?) it was one up over the Ford's of the day.
People will stop in the showrooms and look only to see the the cars for what they really are, re-baged Ford's.
Granddaddy Marq
06-21-2011, 12:09 PM
What Bigdog said!
LIGHTNIN1
06-21-2011, 12:10 PM
Just 1 billion is all they're spending. Somebody at ford needs to fall of their walet and spend so more Lancoln has nothing. CTS V!
I was just looking at the CTS-V. Looking good. 556 factory horses. No nitrous needed. One of the many Shelby Mustang versions also look good. The Mid America Shelby meet was here this weekend and I am still drooling.
Bluerauder
06-21-2011, 12:15 PM
My point is that we went .... to a nation of Toyota-drivers who can't figure out which one's the brake and which one's the gas.
Ain't that ^^^^ the truth. :( I suspect that half of the drivers out there paid someone to pass their driver's test (written and practical) for them. And most of them are driving Toyotas.
As others have indicated, Lincoln as a brand could be on its way out without a major retooing of their concept. Apparently, rebranding models as MKT, MKS, etc. didn't work. When the bigwigs start "Opening New Doors" for Lincoln ..... you can stick a fork in it.
I agree with Joe. If I was in the market for a luxury car ..... I wouldn't be thinkin' Lincoln. ;)
CWright
06-21-2011, 12:26 PM
Unfortunately, I think those days (and cars) are long gone... :(
Just another reason to take care of the Marauder!!:D
Joe Walsh
06-21-2011, 12:32 PM
Ain't that ^^^^ the truth. :( I suspect that half of the drivers out there paid someone to pass their driver's test (written and practical) for them. And most of them are driving Toyotas.
As others have indicated, Lincoln as a brand could be on its way out without a major retooing of their concept. Apparently, rebranding models as MKT, MKS, etc. didn't work. When the bigwigs start "Opening New Doors" for Lincoln ..... you can stick a fork in it.
I agree with Joe. If I was in the market for a luxury car ..... I wouldn't be thinkin' Lincoln. ;)
Yep, That MKS, MKZ, MKT.....:blah: .....:blah:
naming of Lincoln models was almost as dumb as Volkswagon's idea to use little known European vegetables to name their models.....:shake:
Routan
Tiguen
Touarag
Passat
Eos.......:rolleyes:
SC Cheesehead
06-21-2011, 12:45 PM
Yep, That MKS, MKZ, MKT.....:blah: .....:blah:
naming of Lincoln models was almost as dumb as Volkswagon's idea to use little known European vegetables to name their models.....:shake:
Routan
Tiguen
Touarag
Passat
Eos.......:rolleyes:
A tourag's a vegetable?
Does it go well with pork, and secondly, does it cause gas? :P
RF Overlord
06-21-2011, 12:54 PM
almost as dumb as Volkswagon's idea to use little known European vegetables to name their models.....:shake:
Routan
Tiguen
Touarag
Passat
Eos.......:rolleyes:How very America-centric of you. Remember this is a global economy now and, although strange to us, those names are revered in Yugoslavia, Lithuania, Croatia, and Latvia.
Joe Walsh
06-21-2011, 12:56 PM
A tourag's a vegetable?
Does it go well with pork, and secondly, does it cause gas? :P
Depends on what you're porking!
Yes, all vegetables cause gas.....at least that's been my experience....:D
Joe Walsh
06-21-2011, 12:56 PM
How very America-centric of you. Remember this is a global economy now and, although strange to us, those names are revered in Yugoslavia, Lithuania, Croatia, and Latvia.
:rofl:
I think that you forgot Estonia!
(Anyway....back to the imminent demise of Lincoln.)
Bigdogjim
06-21-2011, 04:15 PM
Yep, That MKS, MKZ, MKT.....:blah: .....:blah:
naming of Lincoln models was almost as dumb as Volkswagon's idea to use little known European vegetables to name their models.....:shake:
Routan
Tiguen
Touarag
Passat
Eos.......:rolleyes:
One major differance here Joe is VW can sell it's cars:) Lincoln on the other hand is sinking fast. Self-inflected buy ..FOMOCO...
FastMerc
06-21-2011, 07:38 PM
Just another reason to take care of the Marauder!!:D Amen brother,I totaly agree on that...
packardbob
06-21-2011, 08:53 PM
So quickly we forget that Ford just pulled the greatest comeback in the history of American business. I think $1 billion is a good start. Ford has made it clear in regards to non core brands, aka not "Ford", that they would be forced to pay their own way, Mercury couldn't do it and it was axed. Before GM was headed for bankruptcy, Cadillac sucked! (I think it still does) Overnight GM dumps $5 billion into Cadillac instead of their breadwinner Chevy, and what is going on at Cadillac now is the result of that infusion of cash. The sad part is, GM will never see the return from that huge investment, Cadillac doesn't sell enough cars to pay that lump sum off AND pay for future R&D. The sales of this spring proved that the only way GM can sell cars is to dump a ton of money on the hood. When they brought their incentive spending (including Cadillac) down to industry norms, Ford outsold GM for that month. As stated before, that method of business will not work at Ford, everything must pay for itself. I will give Ford the benefit of the doubt, some sources say the new Lincoln sheet metal designs are drop dead gorgeous and Ford has been hiring some fantastic talent away from other luxury makes for Lincoln. I would say this is the most serious Ford has been so far in rebuilding the Lincoln brand and I think it will work.
Ozark Marauder
06-22-2011, 08:30 AM
Concept..........maybe
Based on the rear-wheel-drive Ford Thunderbird architecture, Mark X features a 3.9-liter, 4-valve DOHC V-8 aluminum engine mated to a five-speed automatic transmission delivering 280 horsepower and 286 foot-pounds of torque. Its athletic stance is accomplished through 19-inch, 12-spoke machined aluminum wheels with P245/40/R19 Michelin tires on the front and wider P275/35/R19 tires in the rear.
http://www.seriouswheels.com/cars/top-Lincoln-Mark-X-Concept.htm
PonyUP
06-22-2011, 08:51 AM
Concept..........maybe
Based on the rear-wheel-drive Ford Thunderbird architecture, Mark X features a 3.9-liter, 4-valve DOHC V-8 aluminum engine mated to a five-speed automatic transmission delivering 280 horsepower and 286 foot-pounds of torque. Its athletic stance is accomplished through 19-inch, 12-spoke machined aluminum wheels with P245/40/R19 Michelin tires on the front and wider P275/35/R19 tires in the rear.
http://www.seriouswheels.com/cars/top-Lincoln-Mark-X-Concept.htm
Thats basically the new Thunderbird that Ford put out, which I liked, but was a large failure for them. I think Lincoln needs to get back to what worked. The Continental, the Town Car, the Marks, but they need to be redesigned. I thnk what has killed Lincoln has been the growth of Lexus, Acura, and Audi. 20 years ago, Cadillac and Lincoln were considered two of the best Luxury brands, or you overpayed for a Mercedes. The Luxury Market seems a little flooded right now, and ford needs to boost Lincoln with styling and technology.
Ford is working on dash systems that allow you to twitter and facebook safely while driving ( I will never ever need this) their Microsoft sync system is strong (though it doesn't work with IPhones).
But the Bottom Line is, if you want people spending $50K on a car, you better have something that separates you from Audi and Lexus, and right now they don't have it.
RF Overlord
06-22-2011, 09:01 AM
packardbob, please don't misunderstand me, I love Ford. I'm tickled that they're the only brand not to have needed Gummint bailouts or foreign takeovers. I just don't think bringing out a compact version of a large luxury marque flies. How many luxury versions of FIATs do you see? None, because people who buy FIATs want compact economical cars (or don't have the money to buy a luxury car in the first place), and people who buy luxury cars don't want tiny versions of them.
I really do hope the Lincoln brand survives and thrives and is able to kick some ass. When I get to be an old(er) coot and actually WANT a car like that, I'd rather be driving a Lincoln than a Cadillac that looks like a snowplow. :D
How very America-centric of you. Remember this is a global economy now and, although strange to us, those names are revered in Yugoslavia, Lithuania, Croatia, and Latvia.
I've been there. If it has four wheels and moves under its own power, the vehicle will be revered regardless of the name on it.
PonyUP
06-22-2011, 09:12 AM
I've been there. If it has four wheels and moves under its own power, the vehicle will be revered regardless of the name on it.
:lol: I think it was Eurotrip where they were in Czechoslavakia (however you spell it) and there was a guy driving around is a really small hoopty painted up like the General Lee
:lol: I think it was Eurotrip where they were in Czechoslavakia (however you spell it) and there was a guy driving around is a really small hoopty painted up like the General Lee
Yeah i think it was Bratislatvia or some other crazy ending in "via" country. That gal is blazin' nowadays, Michelle Trachtenburg(?) I think her name is. Anyway, yeah, good luck with a Lincoln over there. Europe uses Mercedez for taxis (and buses), a Lincoln isn't going to impress anyone.
PonyUP
06-22-2011, 09:23 AM
Yeah i think it was Bratislatvia or some other crazy ending in "via" country. That gal is blazin' nowadays, Michelle Trachtenburg(?) I think her name is. Anyway, yeah, good luck with a Lincoln over there. Europe uses Mercedez for taxis (and buses), a Lincoln isn't going to impress anyone.
Yeah, she has developed quite well from her days as the annoying stupid sister on buffy the Vampire Slayer.
I would definitely like to get her in the back of a Lincoln, that is as long as they scrub the subcompact idea. :D
PonyUP
06-22-2011, 09:25 AM
Al Pacino likes Cadillac
EtgdZ8jhhdA
stryker
06-22-2011, 11:02 AM
:mad: I hate Ford CEO for discontinue of the Crownvictoria/police Interceptor
:mad: I hate Lincoln, all cars all SUV's
:mad: I hate Green propaganda
:mad: I hate compact cars
:mad: I hate Mercury for discontinue the Marauder & Grand marquis
:mad: I hate japanesse,korean,european and all imported cars not american
:mad2: :censor: :bs: :fire:
Tnbigbody
06-22-2011, 08:49 PM
but i think we are all missing the point. they are killing off brands because we dont buy a new car as soon as the next model year comes out and thats what ford is looking at. the cars they make are vastly superior to other brands. who cares if you are buying a rebadged ford the point is when someone asks what do you drive most ppl say the cars name. not the brand and as soon as the name leaves ur mouth boom they know its a mercury its just just that kind of impression. so they arent trying to please the ppl who allready own a fomoco product the are trying to get the ppl who dont. i personally have owned 4 mercury's and loved them they are great cars for what i have asked of my cars they all have performed well and i would actually over look a new car for a good used mercury/ford/lincoln because i know what they are made of and the fact that these models that fomoco has been making have been around the block a time or two they are like stars the ones that may not burn the brightest but last longer then the ones that go full blast balls to the walls all out.... until they burn out just as quickly as they came. imho il stick to my big gas hogging grandma lookalike grocery getter with something to prove mercury :)
SC Cheesehead
06-23-2011, 05:41 AM
Fewer brands = less overhead to produce.
You're right about the car-buying cycle as well. Back in the 50's, the average trade-in/new car purchase was 2 years. It's steadily increased over the past couple decades; I read somewhere that it's now averaging 5+ years.
Bigdogjim
06-23-2011, 06:47 AM
but i think we are all missing the point.NO we are not missing the point, Ford is dropping the ball so to speak thinking the car buying public will not see the differance in a 'clone" Back in the late '60's my Mercurys were not re-baged Ford's, my buddies that drove the big Ford's of the day could really see the Mercury was a differant car then their Ford. they are killing off brands because we dont buy a new car as soon as the next model year comes out and thats what ford is looking at. the cars they make are vastly superior to other brands. who cares if you are buying a rebadged ford the point is when someone asks what do you drive most ppl say the cars name. not the brand and as soon as the name leaves ur mouth boom they know its a mercury its just just that kind of impression. so they arent trying to please the ppl who allready own a fomoco product the are trying to get the ppl who dont. i personally have owned 4 mercury's and loved them they are great cars for what i have asked of my cars they all have performed well and i would actually over look a new car for a good used mercury/ford/lincoln because i know what they are made of and the fact that these models that fomoco has been making have been around the block a time or two they are like stars the ones that may not burn the brightest but last longer then the ones that go full blast balls to the walls all out.... until they burn out just as quickly as they came. imho il stick to my big gas hogging grandma lookalike grocery getter with something to prove mercury :)
Most people now belive Japan still makes better cars then Detroit does, it will take a lone time to convince them otherwise. Ford has made great inroads over the last few years. But they need to get to the status of other car comapnys comparing ther cars to Ford's not the otherway around.
Tnbigbody
06-23-2011, 12:43 PM
i dont disagree with the overhead bearing down on production but as we all have seen before if its as popular as we all like to think then why is it they brought back the camaros and challengers? or even the marauder? becuase ppl wanted the idea of the car not necessarily the brand and thats the reason F/L/M has has such long production of their vechiles such as the town car and continential they like the idea of what those cars are meant for. i also agree that ford has been behind the curve when it comes to power, styling, etc but as im sure most of us remember there was a point in mercury"s history when it was more sporty and performance oriented,and lincoln was towards the upper portion of luxury. but thats kinda the point these brands are directed towards particular buyers in many different income ranges there are reasons not many people drive brand new luxury cars and thats because most cant afford them, so inturn you want "poor mans luxury" you buy a mercury (use to anyways) and if you couldnt afford that then you get a ford...
SC Cheesehead
06-23-2011, 01:47 PM
i dont disagree with the overhead bearing down on production but as we all have seen before if its as popular as we all like to think then why is it they brought back the camaros and challengers? or even the marauder? becuase ppl wanted the idea of the car not necessarily the brand and thats the reason F/L/M has has such long production of their vechiles such as the town car and continential they like the idea of what those cars are meant for. i also agree that ford has been behind the curve when it comes to power, styling, etc but as im sure most of us remember there was a point in mercury"s history when it was more sporty and performance oriented,and lincoln was towards the upper portion of luxury. but thats kinda the point these brands are directed towards particular buyers in many different income ranges there are reasons not many people drive brand new luxury cars and thats because most cant afford them, so inturn you want "poor mans luxury" you buy a mercury (use to anyways) and if you couldnt afford that then you get a ford...
That's the way I always viewed it. My first Merc was a 66 Park Lane convertible, had five of 'em since then, counting my Marauders; always considered them a notch up from a Ford. (just like GM had with the Pontiac - Olds - Buick line up).
If nothing else, trim levels and base offerings were differentiators.
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