Biker16 Posted May 14, 2007 Share Posted May 14, 2007 Global glitch: Ford scraps Lincoln import Amy Wilson | Automotive News May 14, 2007 - 1:00 am advertisement Alan Mulally desperately wanted Lincoln to get a U.S. version of a new European crossover to be built at Ford's Saarlouis, Germany, plant. It's part of his globalization mantra. Oops. The plunging dollar has forced Ford to scrap the plan. This shows why currency is one of the things that make it hard to achieve Mulally's global dream. The crash of dollar against euro torpedoed the plan, one source said. The value of the euro to the dollar hit $1.37, an all-time high, at the end of April. On Friday, May 11, it was $1.35. "Clearly, what's very important is it has to pass the business-case test," Ford's Americas chief, Mark Fields, said last week when asked about the Europe-made Lincoln. The program had not received formal approval, a spokesman said Friday, May 11. The small Lincoln crossover is still on Ford's wish list, another company source said. But it may wait until the company builds its next-generation Focus-sized, or C-segment, vehicles in North America early in the next decade. The imported Lincoln would have been a variant of a Ford-brand crossover that goes on sale in Europe next year, industry and Ford sources said. The new European Ford is based on the Iosis X concept vehicle exhibited at the 2006 Paris auto show. A near-production model is expected to debut at the Frankfurt auto show this year. Richard Truett contributed to this report You may e-mail Amy Wilson at awilson@crain.com Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted May 14, 2007 Share Posted May 14, 2007 So, if I read this article right, it seems to be saying is that importing cars from Europe is cost-prohibitive. Whaddya know? Quote Link to comment Share on other sites More sharing options...
jpd80 Posted May 14, 2007 Share Posted May 14, 2007 So, if I read this article right, it seems to be saying is that importing cars from Europe is cost-prohibitive. Whaddya know? Looks like importing cars from anywhere out side Canada and Mexico may hit a big brick wall. Just about every currency has strengthened against the greenback. Quote Link to comment Share on other sites More sharing options...
LincolnFan Posted May 14, 2007 Share Posted May 14, 2007 Lincoln gets the bullet again! Quote Link to comment Share on other sites More sharing options...
igor Posted May 14, 2007 Share Posted May 14, 2007 hmm so the X_Max was to be a Lincoln?!?!? oh well .. I hope they dig themselves out of this hole when they finally make the good platforms here in NA. Igor Quote Link to comment Share on other sites More sharing options...
armadamaster Posted May 14, 2007 Share Posted May 14, 2007 I thought they already had a small Lincoln crossover (MKX) in the lineup? Quote Link to comment Share on other sites More sharing options...
one2gamble Posted May 14, 2007 Share Posted May 14, 2007 So, if I read this article right, it seems to be saying is that importing cars from Europe is cost-prohibitive. Whaddya know? What this also says is that as the dollar continues to weaken against everything on the planet other Ford divisions that "import" will also suffer (Jaguar, LR). What it also indicates is that a 1:1 or close ratio of the Euro to $ makes importing Euro Fords a money making idea even after crash and emissions standards. But it is an argument for standard platforms around the world to hedge currency fluctuations by altering plant manufacturing to a different model somewhere else in the world to maximize potential profits while maintaining "fresh" product and hopefully market share. Quote Link to comment Share on other sites More sharing options...
Biker16 Posted May 14, 2007 Author Share Posted May 14, 2007 What this also says is that as the dollar continues to weaken against everything on the planet other Ford divisions that "import" will also suffer (Jaguar, LR). What it also indicates is that a 1:1 or close ratio of the Euro to $ makes importing Euro Fords a money making idea even after crash and emissions standards. But it is an argument for standard platforms around the world to hedge currency fluctuations by altering plant manufacturing to a different model somewhere else in the world to maximize potential profits while maintaining "fresh" product and hopefully market share. If ford had global archtechtures right now, now would be the time to export to europe. but we have nothing to export. what a wasted opportunity. PAG made $400 million 1Q 2007 FoE made $200 million 1Q 2007 Quote Link to comment Share on other sites More sharing options...
ANTAUS Posted May 14, 2007 Share Posted May 14, 2007 I thought they already had a small Lincoln crossover (MKX) in the lineup? Well something smaller and lighter than the 4400lbs MKX.... Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted May 14, 2007 Share Posted May 14, 2007 Well something smaller and lighter than the 4400lbs MKX.... Would that really appeal to anybody though? The only really small "luxury" ute I can think of is the Acura RDX. I don't really see this as being a big loss for Lincoln. The MKS and people-mover should do pretty well to fill the model lineup for the time being, so long as they keep the currently-new products up to date going forward. Quote Link to comment Share on other sites More sharing options...
DCK Posted May 14, 2007 Share Posted May 14, 2007 So, if I read this article right, it seems to be saying is that importing cars from Europe is cost-prohibitive. Whaddya know? except if your VW, Volvo, Saab, and all of the german luxury brands. It is sad that Lincoln has become such a patheic joke in the market place that they can't sell vehicles at a luxury price. Lincoln is supposed to be Ford's premium luxury automaker, and Ford can't find a way to bring a Ford from Europe over as a lincoln, when GM can do it with a $16k astra, Ford can't do it with a $50k Lincoln? Or does Ford realize like I mentioned above they have totally killed all Lincoln's prestige and realize that Lincoln can now barely sell in the $30k range? Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted May 14, 2007 Share Posted May 14, 2007 except if your VW, Volvo, Saab, and all of the german luxury brands. Most of the "affordable" VW's come to us via Mexico, not Europe. Still pretty much agree with what you're saying though. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted May 14, 2007 Share Posted May 14, 2007 Lincoln is supposed to be Ford's premium luxury automaker, and Ford can't find a way to bring a Ford from Europe over as a lincoln Do you see the inherent contradiction in those two phrases? On the one hand Lincoln is 'supposed to be Ford's premium luxury automaker', and on the other hand, they're supposed to 'bring a Ford from Europe over as a lincoln'? Reduced to doing a more blatant rebadge than the MKZ? --- IMO, bringing this thing over as a Lincoln was not a first choice. I would be willing to bet their first choice was Ford or Mercury, but it really didn't make sense then. Frankly, I'm glad it's not coming over as a Lincoln. As Nick points out, who would want it--especially, who would want it and would want it from Lincoln? Quote Link to comment Share on other sites More sharing options...
one2gamble Posted May 14, 2007 Share Posted May 14, 2007 Do you see the inherent contradiction in those two phrases? On the one hand Lincoln is 'supposed to be Ford's premium luxury automaker', and on the other hand, they're supposed to 'bring a Ford from Europe over as a lincoln'? Reduced to doing a more blatant rebadge than the MKZ? The fallacy in your argument is that it wouldnt be a "blatant rebadge" for the american people. They dont have the "ford" to compare it to...remember? Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted May 14, 2007 Share Posted May 14, 2007 The fallacy in your argument is that it wouldnt be a "blatant rebadge" for the american people. They dont have the "ford" to compare it to...remember? The inference is that a U.S. Lincoln need be only as good as an E.U. Ford. That was the point, if phrased badly. Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted May 14, 2007 Share Posted May 14, 2007 Would that really appeal to anybody though? The only really small "luxury" ute I can think of is the Acura RDX. I don't really see this as being a big loss for Lincoln. The MKS and people-mover should do pretty well to fill the model lineup for the time being, so long as they keep the currently-new products up to date going forward. Infinti is coming out with a smaller crossover then the current one they have..it looks pretty spiffy too to boot. But this just goes to confirm my thoughts, that a European Ford product can't be brought over and sold as a Ford NA product and make a profit...unless its built here or Mexico Quote Link to comment Share on other sites More sharing options...
Roadrunner Posted May 14, 2007 Share Posted May 14, 2007 Looks like importing cars from anywhere out side Canada and Mexico may hit a big brick wall.Just about every currency has strengthened against the greenback. It's been said that's due to spending on the Iraq war. Quote Link to comment Share on other sites More sharing options...
TStag Posted May 14, 2007 Share Posted May 14, 2007 Infinti is coming out with a smaller crossover then the current one they have..it looks pretty spiffy too to boot. But this just goes to confirm my thoughts, that a European Ford product can't be brought over and sold as a Ford NA product and make a profit...unless its built here or Mexico Aren't Mercury's going to be European Ford's? Or are they just going to assemble them in the USA? Quote Link to comment Share on other sites More sharing options...
rkisler Posted May 15, 2007 Share Posted May 15, 2007 Here's my take on investigation of a Lincoln "RDX": It looks to me like Mulaly wanted to find some project to test importation of FoE products to North America. And, based on his reputation, I bet he pushed hard. Some options: - This generation of Mondeo not a good idea -- little potential for incremental sales, and would substitue for cars already produced here; limited engine choices which would put the car at a competitive disadvantage in the US marketplace from a horsepower standpoint (no V6 and top horsepower is lower than today's Fusion which already lags competition). - S-Max might have been interesting as it represents an unique product in the Ford showroom, but revenues likely limited and demand for small minivans uncertain. - Lincoln small crossover also represents an unique product. Would offer a fun, more youthful entry in the Lincoln showroom. Would offer the best possible pricing for a NA brand to provide the best business case. Would require some modification to make it into a Lincoln -- trim, badging, materials, grille, etc. - but nothing structural. - Lincoln also could consider an "Acura TSX". The TSX is basically the European Accord and comes as a 205HP I4 only. I assume Ford has already investigated a Lincolnized Mondeo as a possible entry below MKZ. Since we haven't heard anything, we can probably assume this was also rejected. The fact that this business case apparently fell through does not surprise me. I also means that there is likely not any business case for any other direct import from Europe at this point. Quote Link to comment Share on other sites More sharing options...
Edstock Posted May 15, 2007 Share Posted May 15, 2007 Let's see . . . Lincoln has the MK S coming Next year should bring the Lincoln Flex "people mover" With the new Fusion platform, the MK Z should get re-done as well. The point is, with gas going to $4+ in 24-36 months, with all that fresh 3.5 liter product, maybe Lincoln should work on a 3,000 pound car from the next Focus platform, to go after the Acura/BMW 1-series/A-3 market. Too bad about economic reality. The S-Max would look great with a Mercury grille. MPV boost S-MAX range benefits from new diesel-auto set-up, plus a Sport Pack, which adds different wheels and lower suspension. http://www.autoexpress.co.uk/news/autoexpr...d_carriers.html "All change on Ford carriers Buyers of Ford's S-MAX and Galaxy people carriers can get a diesel with an auto box for the first time 14th May 2007 The engine is the 2.0-litre 130PS Duratorq TDCi oil-burner, while the transmission is the all-new six-speed Durashift unit that will appear in the Mondeo. " Quote Link to comment Share on other sites More sharing options...
BORG Posted May 15, 2007 Share Posted May 15, 2007 There's only one thing left to do, the US needs to adopt the Euro! Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted May 15, 2007 Share Posted May 15, 2007 The point is, with gas going to $4+ in 24-36 months, with all that fresh 3.5 liter product, maybe Lincoln should work on a 3,000 pound car from the next Focus platform, to go after the Acura/BMW 1-series/A-3 market. I could see Mercury getting a Focus variant, but Lincoln? I don't see A3's hardly anywhere, and Acura has shitcanned the RSX, their only true small-car entry. Is the 1-series even still coming here? The only real success story in compact luxury cars has been the Mini Cooper. Quote Link to comment Share on other sites More sharing options...
Edstock Posted May 15, 2007 Share Posted May 15, 2007 I could see Mercury getting a Focus variant, but Lincoln? I don't see A3's hardly anywhere, and Acura has shitcanned the RSX, their only true small-car entry. Is the 1-series even still coming here? The only real success story in compact luxury cars has been the Mini Cooper. You're right. That's the market today, but what about 3-4 years from now? Gasoline will not be cheaper. In Southern Ontario, Canada, gas costs roughly $3.75-$4 USD per gallon. In this urban market that stretches from Toronto to Windsor, Acuras, A3/4's, Mercedes B-class and others sell very well. The BMW 1-series will probably be a hit when it arrives, too. Saw my first C-30 Volvo this week: marvellous! The point is, with gas costs, and an increasing awareness of CO2, there will be more and more relatively wealthy urbanites who will realize they don't need or want a bigger sled, but want all the toys. Should there be a blue oval product for this segment, 3-4 years from now? It's just a segment: small luxos will not appeal to the mainstream — but watch the Koreans pile features into their B-cars over the next few years. Quote Link to comment Share on other sites More sharing options...
old_fairmont_wagon Posted May 15, 2007 Share Posted May 15, 2007 Isn't the TSX doing decently well? Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted May 15, 2007 Share Posted May 15, 2007 Isn't the TSX doing decently well? TSX isn't really a small car though. It's a smallish midsizer. Acura sells a true C-car in Canada called the CSX, but it looks like a blatently rebadged Civic. Lincoln variant of the C30 might be interesting maybe? Again though, I think it would fit in better with Mercury. The advantage that Lincoln has with the Mercury pairing in dealers is that they have zero reason to dip into the lower end of the car market since Mercury can fill that price gap without doing any harm to Lincoln's image, at least in theory anyway. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.