Farley on Lincoln's Future

[mackinaw]

From Friday's Automotive News:

 

"Ford Motor Co. plans to further differentiate the Lincoln and Ford division product lineups, while giving the luxury Lincoln brand a “point of view,” company leaders promise.

 

"With Mercury to be discontinued by year-end, Jim Farley, Ford's group vice president of global marketing, sales and service, said the automaker is applying “100 percent” of its focus on Lincoln design and customer service in order to win younger customers.

 

“It's not about scale right now, it's about getting it right,” Farley said at an event here this week. “The next set of products is about getting it right for the customer.”

 

Ford has promised Lincoln seven new or improved vehicles in the next four years.

 

Farley said Lincoln's future design will have a “point of view,” which he did not further explain.

 

Lincoln's future products will stay in the $35,000 to $55,000 price range, Farley said.

 

The brand's signature waterfall grille will remain on future models, he said. But future Lincoln products will have body design cues that differentiate them more from Ford division products than the present lineup. He declined to provide more specific product details.

 

The two brands often share the same underpinnings and engines.

 

“Our commitment on the upper body will be specific, and the MKX is an example of that,” said Farley. “We're making a commitment to differentiate the product at every step we can.”

 

Some critics have argued there isn't enough overall differentiation between Lincoln and Ford products to motivate customers to pay a premium for the Lincoln badge. But Farley said Lincoln's advantage is what he dubs: “the customer experience.”

 

“People don't cross shop luxury at the feature level,” Farley said.

 

Boosting Lincoln's cachet will mean emphasizing technology and fuel economy in advertising. It also means offering superior customer service, Farley said.

 

In the meantime, Ford has no plans to sell Lincoln vehicles overseas.

 

“Why would we want to distract our engineering team on what's needed around the world when we need to get it right here in the U.S.?” Farley said. “The next set of products is about getting it right for the customer.”.

 

Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20100903/OEM/100909945/1256#ixzz0ya2FLeSo

[ausrutherford]

The Nav already is $57k...

[johnnyb82]

How is the MKX well differentiated from the Edge again?

Edited September 4, 2010 by johnnyb82

[FordBuyer]

Lincoln's future products will stay in the $35,000 to $55,000 price range, Farley said.

 

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Hmmmmmm...then Ford better sell at least 2,000/month of each model it offers as profit margins will only get tighter. Some Ford's are pushing that price range like Flex, Edge, and new Explorer plus the Taurus SHO. And Farley should be the next President of Lincoln division as Ford nees someone who knows what the hell he is doing. If Ford only plans on selling 600 of each model like the MKT, then go all out and build an all aluminum body MKR and charge $75,000 for it. Then you can make money selling 7,000 of them/year.

[FordBuyer]

How is the MKX well differentiated from the Edge again?

 

The MKX uses the 3.7L V6 with over 300hp engine and the standard engine in the Edge is the 3.5L V6 with about 285hp. The exterior and interior on the MKX reeks a little more with luxury, and you can order heated and cooled seats. I imagine you can order adaptive headlights also. Other than that and $2,000 price difference between them in standard fare, not a lot. One could still argue that the MKX is a gussied up Edge. But a nice one IMO. Not a rip off like the MKS and MKZ IMO. Yeah, Lincoln has a long way to go, and I'm not sure they can do it in $35,000-$55,000 price range. To really differentiate them with like 7 and 8 speed auto trans, Ford will have to push Lincoln into higher price range to accomplish it. I still don't think Ford knows how to run a luxury brand. Certainly no proof that they do.

[fordtion]

Just how are these Lincoln dealers going to survive without Mercury and Lincoln getting it right? Make all Lincoln dealers Ford sells also? The above statement by Farley is spoken with a "forked tongue".

[FordBuyer]

Just how are these Lincoln dealers going to survive without Mercury and Lincoln getting it right? Make all Lincoln dealers Ford sells also? The above statement by Farley is spoken with a "forked tongue".

 

Doesn't inspire confidence, does it? Maybe Ford needs to bring in an outsider that knows how to market luxury vehicles and knows also how to engineer and design them properly. What Ford has said so far about where it wants to take Lincoln leaves much to be desired. That stated price range is especially alarming. No wiggle room there for any MKR or luxury sedan that could compete against Jag and MB.

[TomServo92]

Lincoln's future products will stay in the $35,000 to $55,000 price range, Farley said.

 

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Hmmmmmm...then Ford better sell at least 2,000/month of each model it offers as profit margins will only get tighter. Some Ford's are pushing that price range like Flex, Edge, and new Explorer plus the Taurus SHO. And Farley should be the next President of Lincoln division as Ford nees someone who knows what the hell he is doing. If Ford only plans on selling 600 of each model like the MKT, then go all out and build an all aluminum body MKR and charge $75,000 for it. Then you can make money selling 7,000 of them/year.

 

I'd like to see some FACTS to back up those assertions instead of just your dubious opinions. In case you don't understand what I'm requesting, here's a learning aid:

 

fact

–noun

1. something that actually exists; reality; truth: Your fears have no basis in fact.

 

I hope this helps.

[RichardJensen]

Maybe Ford needs to bring in an outsider that knows how to market luxury vehicles and knows also how to engineer and design them properly.

Farley ran Lexus.

[TomServo92]

Just how are these Lincoln dealers going to survive without Mercury and Lincoln getting it right? Make all Lincoln dealers Ford sells also? The above statement by Farley is spoken with a "forked tongue".

 

How many standalone LM dealers are left nationwide? (the highlight is for you Fordbuyer because Detroit isn't nationwide).

Edited September 4, 2010 by TomServo92

[TomServo92]

Farley ran Lexus.

 

Don't bother Fordbuyer with facts. He doesn't understand the concept. In his little world, they are just annoyances that get in the way of his limited viewpoints.

[Edstock]

Doesn't inspire confidence, does it?

Depends on your attitude.

 

First, the emphasis on ownership experience is critical to keep 'em coming back.

 

Second, there is no need for Ford to disclose what it's got in development for Lincoln, beyond vague description. There is no need for the competition to know now what the marketplace in 2015 might have in the way of Lincoln models.

 

But, the 5.0 powertrain is too good not to be used in something with a Lincoln grille.

 

So, we will see.

[FordBuyer]

How many standalone LM dealers are left nationwide? (the highlight is for you Fordbuyer because Detroit isn't nationwide).

 

And I don't live in Texas, but do live in MI where all the LM dealerships in Metro Detroit are stand alone and some as big as the biggest Ford dealers. So why shouldn't I care about my neigborhood LM dealer? Shuttered dealerships affect home values also. You can bet the Cadillac dealers are prospering and not closing up. Ditto for Lexus, MB, and BMW dealerships. They are still building new ones. In fact, MB sales are growing in tough economy. So yeah, Metro Detroiters are not happy about Ford's decision to throw LM dealers under the bus irrespective of what compensation they get for abruptly closing Mercury down. We already have a boarded up Chrysler dealer on the corner; we don't need an LM dealer down the street adding to the blight. As the days pass, my opinion about Mercury closing looks more right, not more wrong.

[TomServo92]

And I don't live in Texas, but do live in MI where all the LM dealerships in Metro Detroit are stand alone and some as big as the biggest Ford dealers. So why shouldn't I care about my neigborhood LM dealer? Shuttered dealerships affect home values also. You can bet the Cadillac dealers are prospering and not closing up. Ditto for Lexus, MB, and BMW dealerships. They are still building new ones. In fact, MB sales are growing in tough economy. So yeah, Metro Detroiters are not happy about Ford's decision to throw LM dealers under the bus irrespective of what compensation they get for abruptly closing Mercury down. We already have a boarded up Chrysler dealer on the corner; we don't need an LM dealer down the street adding to the blight. As the days pass, my opinion about Mercury closing looks more right, not more wrong.

 

The problem is there are too many dealerships to support sales. SOMETHING HAS TO GIVE! Why can't you realize that?

 

Here's a question for you: How many Caddy dealerships did GM kill with the bankruptcy?

 

One more question: How many NEW MB, BMW, or Lexus dealers have been built in the last year? Again, the request is for FACTS to back up your assertions. Got it?

Edited September 4, 2010 by TomServo92

[FordBuyer]

The problem is there are too many dealerships to support sales. SOMETHING HAS TO GIVE! Why can't you realize that?

 

Here's a question for you: How many Caddy dealerships did GM kill with the bankruptcy?

 

One more question: How many NEW MB, BMW, or Lexus dealers have been built in the last year? Again, the request is for FACTS to back up your assertions. Got it?

 

Around Metro Detroit, as far as I know, no Cadillac dealers have closed, two new Lexus dealers have gone up in last couple years, one MB dealer, and one BMW dealership. Not that many years ago, you had to go to Birmingham/Bloomfield Hills area to buy Porsche, Lexus, BMW, and MB. But now they are all over the Metro area where there is higher socioeconomics of course. Same with Acura and Infinity. Even Land Rover built a new dealership not long ago in Novi. The two Chevy dealerships by me and right next to Ford dealerships were slated for closure, but won in arbritration and now 2011s are coming in. So isn't it ironic that the bankrupt companies are keeping their dealerships open and no Cadillac closures, but LM dealerships have to fight for their lives when Ford is making more money than just about any auto manufacturer in world. Very ironic. Each LM dealership probably supports around 100 employees on average, and they are not going to keep many of them around just because Ford is compensating them for lost sales. Less sales translates into less employees as you lower your overhead. So who would have thought even 9 months ago that LM dealers would be the ones to suffer the most as Ford itself prospers the most.

[TomServo92]

Around Metro Detroit, as far as I know, no Cadillac dealers have closed blah, blah, blah...

 

 

So in other words, you have no idea.

Edited September 4, 2010 by TomServo92

[BrewfanGRB]

Lincoln's future products will stay in the $35,000 to $55,000 price range, Farley said.

 

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Hmmmmmm...then Ford better sell at least 2,000/month of each model it offers as profit margins will only get tighter. Some Ford's are pushing that price range like Flex, Edge, and new Explorer plus the Taurus SHO. And Farley should be the next President of Lincoln division as Ford nees someone who knows what the hell he is doing. If Ford only plans on selling 600 of each model like the MKT, then go all out and build an all aluminum body MKR and charge $75,000 for it. Then you can make money selling 7,000 of them/year.

 

How do you know this? This is clearly where your critical thinking skills fail you. You equate sales price with profit. You blather on and on about how every model needs to sell 2000/month...but that a 75k mystery vehicle can make it with 600/month.

[akirby]

Around Metro Detroit, as far as I know, no Cadillac dealers have closed, two new Lexus dealers have gone up in last couple years, one MB dealer, and one BMW dealership. Not that many years ago, you had to go to Birmingham/Bloomfield Hills area to buy Porsche, Lexus, BMW, and MB. But now they are all over the Metro area where there is higher socioeconomics of course. Same with Acura and Infinity. Even Land Rover built a new dealership not long ago in Novi. The two Chevy dealerships by me and right next to Ford dealerships were slated for closure, but won in arbritration and now 2011s are coming in. So isn't it ironic that the bankrupt companies are keeping their dealerships open and no Cadillac closures, but LM dealerships have to fight for their lives when Ford is making more money than just about any auto manufacturer in world. Very ironic. Each LM dealership probably supports around 100 employees on average, and they are not going to keep many of them around just because Ford is compensating them for lost sales. Less sales translates into less employees as you lower your overhead. So who would have thought even 9 months ago that LM dealers would be the ones to suffer the most as Ford itself prospers the most.

 

So let me get this straight - the companies that went bankrupt have a better business model than the one who didn't? I think you have that backwards.

 

How many total LM dealers are there versus Cadillac or Lexus or MB? That's the issue. You can't keep twice as many Lincoln dealerships as the others with half the sales.

 

Apparently you think Ford should have kept Mercury just to keep the LM dealers in business. Understandable from a personal standpoint. Stupid from a business standpoint.

[akirby]

How do you know this? This is clearly where your critical thinking skills fail you. You equate sales price with profit. You blather on and on about how every model needs to sell 2000/month...but that a 75k mystery vehicle can make it with 600/month.

 

He doesn't care about profits. All he cares about is keeping Detroit LM dealers in business. Period.

[TomServo92]

Around Metro Detroit, as far as I know, no Cadillac dealers have closed

 

Actually a quick Google search indicated that Dalgleish Cadillac was closed as part of the bankruptcy related dealer closings.

 

Source

 

Do you see how easy it is to do a little research and present actual FACTS?

[FordBuyer]

So let me get this straight - the companies that went bankrupt have a better business model than the one who didn't? I think you have that backwards.

 

How many total LM dealers are there versus Cadillac or Lexus or MB? That's the issue. You can't keep twice as many Lincoln dealerships as the others with half the sales.

 

Apparently you think Ford should have kept Mercury just to keep the LM dealers in business. Understandable from a personal standpoint. Stupid from a business standpoint.

 

Gee, I guess I should be like Servo and give the definition of irony. But I won't because I know you are a smart guy. And since I know the area where I live, no Cadillac dealerships around me closed. For example, the biggest Cadillac dealership in the world is right next to Hines Park LM dealership and it's disconcerting to see Hines Park, one of the best dealerships sink to nothing as it stares at successful Cadilac dealership across street. Yes, that is ironical in the extreme. And there are lots of Cadillac dealerships in Metro Detroit area. The only one I know that closed was in the New Center of Detroit that was near old GM's headquarter building that is now run by state of MI. I believe it was one of the last new car dealerships left in the city limits of Detroit. And Lexus has built a lot of new flashy dealerhsips in Metro Detroit in last several years. The last one was built in Sterling Hts, next to the big mall there. The closest ones to me are Ann Arbor and Southfield, both less than 20 miles from me. No matter where you live in Metro Detroit, there will be a Lexus dealership nearby. And they all are very modern. Cadillac dealerhsips not so much so. Lincoln has better ones....Hines Park, Varsity, Metropolitan, and Star all very nice and modern. Varsity in Novi is especially modern and huge. I really feel for Varsity LM. That dealership is as nice as the nicest Lexus dealership, and now nothing to sell except for hopefully MKX that hopefully can get to 2,000/month sales rate. I imagine his survival will depend upon preowned luxury vehicles. Maybe he can get a MB or BMW franchise in there also.

[TomServo92]

A little further research shows that GM closed as many as 700 Caddy dealerships nationwide.

 

Source

 

This Better Business Bureau articles states 70% of all Caddy dealerships will close. Down from 1,400 to 400.

 

Source

 

By the way, there are only 236 Lexus dealerships nationwide.

[TomServo92]

. And since I know the area where I live, no Cadillac dealerships around me closed.

 

Incorrect. I've already provided FACTS that Dagleish Cadillac in Detroit was closed.

[FordBuyer]

Incorrect. I've already provided FACTS that Dagleish Cadillac in Detroit was closed.

 

I don't live in Detroit and don't see it as "around me." Dagleish should have been closed down 20 years ago. Park Motors LM in Detroit should have gone with it.

[FordBuyer]

There are 10 Cadillac dealerships in Metro Detoit:

 

Allen Chevrolet Cadillac - Monroe

Audette Cadillac - West Bloomfield

Crestview Cadillac - Rochester

Dalgleish Cadillac-Oldsmobile - Detroit

Don Gooley Cadillac, Inc. - St. Clair Shores

Don Massey Cadillac - Plymouth

Hoot McInerney Cadillac - Mount Clemens

LaFontaine Automotive Group - Highland

Rinke Cadillac - Warren

Suburban Oldsmobile Cadillac Buick Hummer - Troy

Superior Cadillac GMC - Brighton

 

As far as I know, all still in existence except for Dalgleish. I live in Plymouth and Don Massey is biggest one in U.S. by sales. I love that Oldsmobile name is still there.