AN: After a difficult year, Lincoln sees better days ahead

[spudz64]

Automotive News has coverage of the NADA convention (auto dealers) and they have a Q&A with Bill Knight, Lincoln's dealer council chairman. Among the interesting things discussed:

 

"Any specific vehicles you'd like to see added?

The thing we don't have is a mid-sized SUV or CUV that has a third row. We don't have a volume entry in a third-row SUV. As those segments continue to grow, when you look at the other luxury players moving down to that B- and C-car segment, those are things we hope the company can look at going forward."

"How would Lincoln dealers react to a flagship sedan?

Our priorities are products that will help our throughput. We try to keep them focused on products that will provide volume. I don't think we're ready yet for a small-volume, high-dollar flagship sedan. That's why it's important to have the MKC in a growing segment. Once we get a throughput increase and get the dealer network healthy again, absolutely that's the vision of the future.

How about a compact luxury sedan?

We know that is where it appears the other luxury manufacturers are going. It appears there is going to be volume there. Let's go chase the segment where we can get volume and increase our throughput."

"The MK naming system continues to generate confusion. Would dealers like to see a change there?

If you ask most people today, they would say they'd like to see Lincoln transition away from the nomenclature we have today. That's easier said than done. We continue to have dialogue about that. The great thing about Lincoln is there are a stable of names from Continental to Mark to Aviator. From a priority standpoint, we know all of this takes money. If you said would you rather change the name or have a new product, we'd take the new product all day long.

What's the status of the Black Label rollout? We've heard Lincoln expects about 5 percent take rate. Will those dealers be mostly in the coastal areas and top 100 markets?

I think it's still early. There's going to be kind of a staged rollout. There's going to be a rollout with six states beginning in January. I've been really encouraged by the "take-it- slow" approach. It's going to be 100 percent voluntary."

 

Link might require a subscription..

 

http://www.autonews.com/article/20140124/RETAIL06/301259995/after-a-difficult-year-lincoln-sees-better-days-ahead?cciid=email-autonews-detroit%3Fr%3D5224I0673801G4Y

[Biker16]

interesting.

[ZanatWork]

To sum up:

"It's the volume of the throughput, then the throughput of the volume, and we are aware people don't like the names".

[Hugh]

So if the names are going to change, perhaps changing them at the same time as Lincoln is introduced globally starting in China?

[94bronco]

Changing back to real names would be welcome.

[jpd80]

Q. How was 2013 for Lincoln dealers?

A. Clearly from a volume standpoint it wasn't what we had planned or what the objective called for. Year-over-year the volume was flat in a luxury industry that continues to grow, so it certainly was not what the company or the dealers wanted.

But if there's a bright spot, profitability for the Lincoln dealer improved 30 percent in 2013. A lot of that can be attributed to some of the invoicing actions that we took back in 2012.

We're certainly not where we want to be on volume. But it has been awhile since profitability for Lincoln dealers was up 30 percent.

 

How does 2014 look for Lincoln dealers?

There's a lot of positive news about the MKC. The reaction of the press to the unveiling has been really positive. It shows the continued commitment on the part of the company to provide differentiated vehicles for Lincoln. The MKC is the best example of that. The MKZ got criticism from the media that it was too close to the Ford Fusion. We're not hearing any of that on MKC.

It's an incremental product for us, which we need, and it hits at a very exciting time. The segment it hits, there just aren't a lot of players. This is the type of product that sets us up well as we continue the journey.

 

In what areas would you like to see improvements?

We continue first and foremost to challenge the company to increase the breadth and depth of the product lineup, whether it's a third-row SUV or CUV or a small sedan. We recognize it just takes time. We continue to have dialogue with the company to get throughput for the dealer network.

 

Any specific vehicles you'd like to see added?

The thing we don't have is a mid-sized SUV or CUV that has a third row. We don't have a volume entry in a third-row SUV. As those segments continue to grow, when you look at the other luxury players moving down to that B- and C-car segment, those are things we hope the company can look at going forward.

 

What about the MKT? Sales have been very slow.

It is certainly polarizing. From a dealer perspective, we're not in a position to tell the company we don't want certain products. The MKT fills a small niche. It's certainly not providing the volume or throughput we need. We are selling some of them. We're anxious to see what the company's plans are.

 

The MKZ launch was delayed. Lincoln has admitted the launch was botched. How well has Lincoln recovered from that episode?

I think the company learned a lot from that. It certainly wasn't what the company planned, nor was it what the dealers expected. But we got through it.

The company did some unprecedented things by providing cash payments to the dealers most affected. Clearly it was something we didn't anticipate and don't want to go through again. It showed we can have collaboration and constructive conversations. The company will take those lessons learned and apply them to the launch of the MKC. We're confident that it won't happen again. They were launching the MKZ right after the Fusion. The Fusion was a complicated launch, and that got more complicated because of the MKZ.

Read more: http://www.autonews.com/article/20140124/RETAIL06/301259995/after-a-difficult-year-lincoln-sees-better-days-ahead#ixzz2rSShNMge

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Edited January 26, 2014 by jpd80

[jpd80]

MKT is an unmitigated disaster, bring back a Lincoln Aviator based on an LWB Explorer and give dealers what they want.

Dealers want a 3-row SUV/CUV, compact sedan and utility but I think they should keep MKX too and look at Mustang Coupe.

 

Utilities:

MKC MKX, Aviator & Navigator

 

Cars:

MKF, MKZ, MKS , maybe MKR Coupe...

Edited January 26, 2014 by jpd80

[2b2]

...bring back a Lincoln Aviator based on an LWB Explorer and give dealers what they want.

Dealers want a 3-row SUV/CUV, compact sedan and utility but I think they should keep MKX too and look at Mustang Coupe.

 

Utilities:

MKC MKX, Aviator & Navigator

 

Cars:

MKF, MKZ, MKS , maybe MKR Coupe...

basically

 

Cuv/Suvs = "new core"

* MKC & MKX (mainstream)

* Aviator & Navigator ('delux')

 

Cars (sedans) = traditional-core imho

* MKZ (mainstream)

* Continentals ('delux')

 

Specialty

* MKEs (Energi/Electric)

* LincStangs (performance)

 

from Mission:LINCOLN

Edited January 26, 2014 by 2b2

[jpd80]

basically

 

Cuv/Suvs = "new core"

* MKC & MKX (mainstream)

* Aviator & Navigator ('delux')

 

Cars (sedans) = traditional-core imho

* MKZ (mainstream)

* Continentals ('delux')

 

Specialty

* MKEs (Energi/Electric)

* LincStangs (performance)

 

from Mission:LINCOLN

This, 100%

 

Lincoln needs good product and a Black label experience for ALL buyers, not just the initial targeted groups...ALL Lincoln Buyers

 

When you buy a Lincoln, it should be special and memorable and feel like your vehicle has been hand built to "your specifications".

If Lincoln has those values at its core, it will begin luring a lot more buyers into its showrooms, do that long enough and it becomes desirable.

 

I jush whis Ford would get the lead out and give Lincoln dealers new products to sell, the ones they want not what Ford thinks they should sell.

[focus05]

 

 

Lincoln needs good product and a Black label experience for ALL buyers, not just the initial targeted groups...ALL Lincoln Buyers

 

I think this is exactly what Lincoln is doing (eventually).

 

If I read the cards, the product cadence looks pretty good. MKC is the first truly new Lincoln. The MKS and MKX are probably coming for 2016MY. I would venture that there are Lincoln's based on the Explorer and Focus structures coming in 2018 when those models get bigger updates and the platforms can be looked at more significantly than an MCE.

 

That's basically adding 10-20k of volume every year at constant industry volumes and similar share to today's models (both of which could be volatile in the next 5 years). Not too fast. Not too slow. At the same time, they can ramp up the brand's international presence a bit to maybe 30% of the brand's volume.

 

At which point, in 2020, I have a luxury marque with volume (200-250k globally) worth taking a chance on separating out more wholly from Ford. Possibly with larger platform and technology variations and maybe even the halo model that everyone is dreaming about (but no one will buy). All of which will take another 6-10 years of model cycles to bring in, but the investment can start.

 

But, it will also demand much greater differentiation of the experience like what Black Label is exploring in the US and Vignale in Europe. If I were a betting man, I would suspect both of these programs are not meant to treat people differently over the long run. They are to assess the return for Ford's investment in certain "amenities." By 2020, if Lincoln performs as expected, I don't believe there will be a separate Black Label experience in the US (or Vignale in Europe for that matter). What I expect is that all of Lincoln will have a set of features in service and support that are truly value-add for high-end customers and the brand will use them in the US, Europe, China and elsewhere.

 

Ultimately, though, the sad truth is that the gap between luxury and non-luxury brands is narrowing, particularly as regulations and natural resources globally become more expensive. I believe Ford will be 2/3 fleet in 20 years in the US and higher in some countries and most individuals globally will only own cars "on-demand." People actually buying Fords will be paying what we consider near-luxury prices. Lincoln will have to use the personalized concierge experience of ownership to create a luxury marque along with some nominal differences in platforms, materials and technology. But it will be the "access" that Lincoln affords that will keep them unique in 2030 and beyond in this highly commoditized industry.

Edited January 26, 2014 by focus05

[NickF1011]

I jush whis Ford would get the lead out and give Lincoln dealers new products to sell, the ones they want not what Ford thinks they should sell.

 

Not quite sure how that would work, as has been discussed plenty of times before. Ford isn't going to dump money into a bottomless pit just to make dealers smile at the fancy new flagship in their showroom that nobody is buying.

 

As for the core products dealers want, they will arrive when it is financially viable based on platform schedules. Rushing it isn't going to help the bottom line.

[jpd80]

 

Not quite sure how that would work, as has been discussed plenty of times before. Ford isn't going to dump money into a bottomless pit just to make dealers smile at the fancy new flagship in their showroom that nobody is buying.

 

As for the core products dealers want, they will arrive when it is financially viable based on platform schedules. Rushing it isn't going to help the bottom line.

The dealer council is not asking for a bottomless pit of product and if you look at the vehicles being requested,

I think that those products are reasonable:

- the compact Utility is almost here

- a compact sedan is not to great of a hurdle.

- a three row SUV to replace the poor selling MKT is logical and will complement the two row MKX

- Why Ford is wasting funds on MKT livery/ town car development that practically no one wants is crazy - give it up.

 

The council also understand that these take time but they are still free to advise Ford om what Lincoln products are missing in their opinion.

These guys want to make money on products they know they can sell, it's in Ford's best interest to keep listening to them.

 

MKZ has been nothing short of brilliant in increasing dealership profits last year, one can only wonder what might have been with a clean launch.

Hopefully, Ford has learned a valuable lesson and the MKC comes out of the chute clean and gets the job done this year, that should sate dealers.

Edited January 27, 2014 by jpd80

[NickF1011]

The dealer council is not asking for a bottomless pit of product and if you look at the vehicles being requested,

I think that those products are reasonable:

- the compact Utility is almost here

- a compact sedan is not to great of a hurdle.

- a three row SUV to replace the poor selling MKT is logical and will complement the two row MKX

 

The council also understand that these take time but they are still free to advise Ford om what Lincoln products are missing in their opinion.

These guys want to make money on products they know they can sell, it's in Ford's best interest to keep listening to them.

 

So they are already getting the MKC.

 

A compact sedan could be done, but would also be dependent on developments with the Focus and how large a priority Lincoln management believes it is. I think for now it is more important to get their existing lineup moved into a competitive position before adding too much more to it. I think the MKC is more of a known quantity than a compact sedan would be, hence the priority it was given.

 

The three row SUV will be awhile precisely because of platform schedules. There is no logical way to push out a Lincoln version of the Explorer given the scheduling for refreshes and/or replacement. They waited too long to get on board with it so now they'll just have to wait.

[jpd80]

 

So they are already getting the MKC.

 

A compact sedan could be done, but would also be dependent on developments with the Focus and how large a priority Lincoln management believes it is. I think for now it is more important to get their existing lineup moved into a competitive position before adding too much more to it. I think the MKC is more of a known quantity than a compact sedan would be, hence the priority it was given.

 

The three row SUV will be awhile precisely because of platform schedules. There is no logical way to push out a Lincoln version of the Explorer given the scheduling for refreshes and/or replacement. They waited too long to get on board with it so now they'll just have to wait.

that's what I'm saying above, the council understands product scheduling but Ford has to know what is working and what isn't.

Horbury's disaster must not be repeated because Ford knows better than dealers...

 

edit,

A refreshed Navigator with a very competitive starting price may also allow dealers to sell a different kind of three row for now,

freshened Nav + MKT....maybe this is also the conciliatory plan to get through until more suitable products become available.

the upgrades to Navigator make it more fuel efficient, the EB V6 would be attractive to some buyers as well... a lot better than nothing.

Edited January 27, 2014 by jpd80

[NickF1011]

that's what I'm saying above, the council understands product scheduling but Ford has to know what is working and what isn't.

Horbury's disaster must not be repeated because Ford knows better than dealers...

 

So then we both know there is no way to just "take the lead out" and give the products to dealers. Yes, we don't need another MKT, but then again, what was the alternative product there? The Explorer didn't exist at the time in its current guise. Where were the dealers pushing for a version of the new Explorer then?

[RichardJensen]

Dealer input on product is kind of valuable, but not really, because they're getting the kind of feedback from customers that Henry Ford once described as, "a faster horse."

 

Customer feedback is stuff like, "I want a Lincoln (insert name of competitor's product)" or "Do you have anything like the (insert name of competitor's product)?"

 

It's not particularly useful because very few customers can tell you, unprompted, how they want a product to differ, other than trivial requests like "faster", "bigger", "more fuel efficient."

 

It's a cue that there might be demand in a certain segment, but recall that dealers really wanted the Mark LT, so, you know, them complaining about the MKT is a bit rich.

Edited January 27, 2014 by RichardJensen

[akirby]

Actual sales speak way louder than focus groups or customer feedback.

 

What people say they want and what they actually buy can be 2 different things.

[Edstock]

What people say they want and what they actually buy can be 2 different things.

 

Especially on BON . . .

[SoonerLS]

Actual sales speak way louder than focus groups or customer feedback.

 

What people say they want and what they actually buy can be 2 different things.

As someone we both know once put it, a smart automotive company gives the customer what he wants, not what he says he wants.

[sullynd]

What people say they want and what they actually buy can be 2 different things.

Come on man, if GM brought back Pontiac, and finally gave us the Ute we all want, it would be the biggest brand in the GM family.

 

Come on man, if GM would just bring the Monaro to the states, it would be one of their top sellers!

 

Come on man, if GM would just bring us the Commodore it would be one of their top sellers!

 

RWD sells, man.

[rmc523]

The dealer council is not asking for a bottomless pit of product and if you look at the vehicles being requested,

I think that those products are reasonable:

- the compact Utility is almost here

- a compact sedan is not to great of a hurdle.

- a three row SUV to replace the poor selling MKT is logical and will complement the two row MKX

- Why Ford is wasting funds on MKT livery/ town car development that practically no one wants is crazy - give it up.

 

The other points have been addressed, but I'll touch on the MKT livery....I don't think Ford ever intended to make the MKT livery, but created it when MKT sales failed to materialize.....more as a way to lift MKT sales numbers a bit.....not like it costs them much to do it

[sullynd]

The other points have been addressed, but I'll touch on the MKT livery....I don't think Ford ever intended to make the MKT livery, but created it when MKT sales failed to materialize.....more as a way to lift MKT sales numbers a bit.....not like it costs them much to do it

I do see a fair amount of MKTowncars in Chicago (And rode in one for the first time back in October).

[drob23]

delete.

Edited January 31, 2014 by drob23

[Edstock]

It sucks because a lot of other luxury markees have the chassis',

 

Dude, there's nothing wrong with the MKT chassis. It's a top hat problem, people don't like the way it looks. That will change.

[atomcat68]

 

Dude, there's nothing wrong with the MKT chassis. It's a top hat problem, people don't like the way it looks. That will change.

I agree. It is a very nice car. I even like the way it looks from the side. It's that front and back that just kill this car! The front looks like a train with cow catcher and the back looks like a big boat.