Lincoln Hopes to Boost Ford Motor Company (F)’s Stock Value

Published on June 19, 2013 at 12:54 pm by The Motley Fool in News

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After those two steps, it’s believed that Lincoln will produce a luxury ride based on the Ford Motor Company (NYSE:F) Focus. After that it isn’t clear what Lincoln is planning, but here’s what makes sense to me. We know that the U.S. auto market in general, and the luxury segment in particular, is surging. We also know that China is the world’s largest and fastest growing automotive market today. One vehicle that could sell in both markets would be a smaller luxury vehicle, and that has been rumored to be under consideration for 2016.

It could be what Matt VanDyke, who heads Lincoln’s development, hinted toward in an investor conference. He said that there are vehicle markets “that we’re not playing in today that we can enter that are high-volume segments and growing fast.”

Bottom line
Lincoln’s revival is going to be a very important piece for Ford Motor Company (NYSE:F) if it wants its share price and value to continue to increase. During the recession, and Ford’s restructuring turnaround, CEO Alan Mulally cut many brands, keeping only its Blue Oval namesake and Lincoln’s luxury line. It did this because the two brands won’t compete or cannibalize sales from one another – Lincoln offers pure incremental sales and profit gains. Now that Ford Motor Company (NYSE:F) has the cash to make the same brand revival with Lincoln, as it did with Ford, we’re seeing the plan take place. Higher-quality vehicles are being produced with economies of scale. Demand is being recreated for a luxury line left for dead, and salespeople are being trained to connect the two ends of the equation.

The article Lincoln Hopes to Boost Ford’s Stock Value originally appeared on Fool.com and is written by Daniel Miller.

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