Looking at figures today it’s hard to imagine that sales of Ford Motor Company (NYSE:F)‘s Lincoln brand were once on top of the U.S. luxury segment 15 years ago. Consider that nine of Ford’s vehicles alone outsold the entire Lincoln brand through July. Or consider that Ford’s bread and butter F-Series outsold Lincoln nine times over. Ford needs its luxury brand to succeed – it represents purely incremental sales at higher transaction prices and margins. Ford Motor Company (NYSE:F)’s luxury segment has seen better days but management is determined to restore Lincoln to its past glory. The revival strategy focuses on three aspects: new models and (more importantly) wine and cheese.
Graph by author. Information source: Automotive News DataCenter.
MKC Black Label Chroma Flame exterior concept. Photo credit: Ford Motor.
Lincoln’s larger MKS sedan will be redesigned and launched in 2016 and could possibly run on one of Ford Motor Company (NYSE:F)’s new Nano V-6 engines. Lincoln’s midsized crossover, the MKX, which accounts for roughly 30% of Lincoln sales through July, will arrive in the first half of 2015. The Navigator, which was once a mega revenue maker for the brand, will be revived as Lincoln’s largest SUV and could come to the market in late 2014.
Assuming that Ford Motor Company (NYSE:F) and Lincoln will build these new models in excellent fashion, the next step is to improve selling methods – that’s where the wine and cheese will play a role.
Ford Motor Company (NYSE:F) is changing its target audience drastically from retirees to a younger, more affluent, Starbucks-drinking type of crowd. To attract a much different audience, Ford is throwing out specific guidelines and renovations for its Lincoln showrooms. According to the AP, Ford is putting pressure on 300 dealerships in the 130 largest metropolitan areas and 70% have agreed to the renovations thus far.
Those that have agreed can expect improvements in the smallest details, including the smell of the showroom. Ford has even taken into consideration that consumers are willing to spend more money when sitting in very luxurious chairs – bring on the thrones! You can also expect an upgrade for the food during special events. No longer will you see hot dogs and hamburgers for the July 4th sale, but rather wine and cheese that are paired together in a more luxurious fashion.