Can Ford Motor Company (F) Secure the Next Generation?

Enter the Lincoln line
You now have an understanding of the millenials’ current purchasing power, and the idea that we will have the most purchasing power over time. You know that Ford Motor Company (NYSE:F) is attracting the young consumer better than its competitors, but why does this matter for its Lincoln line? The majority of my generation aren’t close to purchasing a luxury vehicle – yet. In a few years I’ll have the option to purchase my first luxury vehicle – if I choose to give up my beloved Mustang – and I won’t be alone.

Ford’s focus – no pun intended – will be divided in two parts. One, Ford wants to lock the millenials into its vehicles early through unique advertising. Then, as we age, Ford will do its best to step us up into a more premium vehicle – via the Lincoln line. It’s the classic good, better, best marketing ploy to retain customers and maximize profits. That will require drastic improvements to the Lincoln line to attract new customers. Right now, that option just isn’t attractive; those few in my generation that are ready to purchase a luxury vehicle from Ford will likely walk out the door and down the street to the nearest competitor. Ford needs to have a quality Lincoln line, and soon.

Bottom line
Ford Motor Company (NYSE:F) has a lot going for it right now, and the icing on the cake would be a turnaround in its all but dead Lincoln luxury brand. If it can bring the brand back to relevance, it would be a great catalyst for Ford stock. These premium sales would be purely incremental to its Ford lineup.

The thing investors need to watch is the success of the Fiesta. It’s attracting more millennial attention than any other Ford Motor Company (NYSE:F) vehicle and will be key to building brand loyalty with the generation that will soon be top spenders. If the Fiesta takes off, and Ford continues to attract more millenials, it will be proof that Ford’s future is indeed brighter than people realize.

The article Can Ford Secure the Next Generation? originally appeared on Fool.com and is written by Daniel Miller.

Fool contributor Daniel Miller owns shares of Ford. The Motley Fool recommends Ford. The Motley Fool owns shares of Ford.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.