Bob Rosadini Posted October 11, 2010 Share Posted October 11, 2010 They kept a brand that can carry ATPs $10k or more higher than the one they dropped. Right size the dealer footprint and you're money ahead. I don't like that they canned Mercury. I don't buy the 'distractions' argument, and I think they created a false dilemma by thinking their only choices were to invest a fortune in it or cancel it. However, Lincoln products carry a significantly higher transaction price without bearing a proportionally higher cost. Thus they're more profitable. Richard-yes I hear you on the pricing issue. but explain to me how "right sizing the dealer footprint" generates a REAL savings for Ford? They are not company stores. Right sizing benefits surviving dealers but what does Ford save? Postage? Brochure costs? (I think the dealers pay for those) Manpower?-maybe they lay off a couple of field reps. Also by eliminating say Milan , Mountaineer production, do those sales automatically default to Fusion/ Explorer? I'm afraid that is wishful thinking. I think it is comical that they are now scrambling to come up with additional product so that the Lincoln dealers can survive. Quote Link to comment Share on other sites More sharing options...
Bob Rosadini Posted October 11, 2010 Share Posted October 11, 2010 Oh yeah just what Lincoln needs... Upsizing.... Lincoln MKHD StangBang-Outstanding- loPro Lincoln 650 that the surviving Lincoln dealers will all buy as their designated ramp truck! Complete with Lincoln signature "starving Baleen Whale" grill! And the Lincoln volume will do much to bolster the production figures the Ford commercial truck guys are generating! Quote Link to comment Share on other sites More sharing options...
Chester Posted October 11, 2010 Share Posted October 11, 2010 Richard-yes I hear you on the pricing issue. but explain to me how "right sizing the dealer footprint" generates a REAL savings for Ford? They are not company stores. Right sizing benefits surviving dealers but what does Ford save? Postage? Brochure costs? (I think the dealers pay for those) Manpower?-maybe they lay off a couple of field reps. Also by eliminating say Milan , Mountaineer production, do those sales automatically default to Fusion/ Explorer? I'm afraid that is wishful thinking. I think it is comical that they are now scrambling to come up with additional product so that the Lincoln dealers can survive. I believe Lincoln dealers will only survive if they are large enough to carry a large volume of vehciles, have really good sales reps, and cater to those willing to pay the difference. You can't really get a good sales force (for a Luxury buyer) if they only sell a hand full of Lincolns a month. Those dealers are making their living selling something else. What Lincoln needs is dealers that make a living off of selling Lincolns, and give a good buying and service experience to its clientele. Otherwise, you may as well buy a Ford or something else. Quote Link to comment Share on other sites More sharing options...
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