Lincoln’s Billion Dollar Chance
Ford is investing $1 Billion Dollars into their Lincoln brand, as part of a last chance to turn a more substantial profit from the luxury car maker. Lincoln, recently voted the most trusted luxury car maker in America (beating out competition the likes of Lexus and BMW), has not attracted enough sales revenue for Ford, even after the company pumped millions of left over Mercury money into it.
“Lincoln’s precipitous decline saw it sell just 85,828 cars in the United States last year, a figure dwarfed by just one of rival BMW’s lines – its 3-Series sold 100,910 units in 2010. Sales are off a further 8 percent this year and could drop even more next year when the company’s fleet-heavy Town Car, which accounts for nearly one in six sales, is dropped.”
“Ford says it has seven new Lincolns on the way by 2015, which it thinks will boost sales to 162,000 units despite a planned decrease in Lincoln showrooms. That drop in retail outlets should benefit remaining dealers, which Ford thinks will see sales increase 300 to 400 percent over the next four model years.”
Ford adds its dealers “need to commit to big dealership upgrades to put them more in line with import brand showrooms.”
Ford will add $1 Billion on top of the dealership funds to revamp the brand. Hopefully, we won’t be saying goodbye to Lincoln in 2012.
Source: LeftLaneNews
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