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Some Lincoln Dealers Hesitant to Updgade


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Lots of good bits from this AN article..

 

Lincoln dealers say they are reluctant to invest in pricey upgrades to their stores until Ford Motor Co. reveals more details about Lincoln's future lineup.

 

Ford is asking some dealerships to spend more than $1 million to remodel buildings and make other improvements to meet new standards that have yet to be spelled out, several dealer sources say.

 

"I say show me the money," said Larry Taylor, owner of Beau Townsend Ford-Lincoln Mercury in Vandalia, Ohio.

 

"They told us there would be no new products for about 24 months. I don't know how the stand-alone Lincoln dealers are going to make it, especially those dealers who have to spend $2 million on their upgrades."

 

Ford has begun offering some Lincoln dealers cash -- in one case about $1.5 million and in another just over $300,000 -- to give up the franchise if they're not in a "preferred location" or won't make the recommended improvements.

 

"My facility is in excellent shape," one dealer said. "I plan on doing nothing here but selling Lincolns -- unless Ford comes up with a lot more money."

 

Some dealers see tough negotiations ahead with the factory. Some are rejecting buyout offers as too low. And others wonder about the commitment to product. Ford has said it will spend $2 billion to upgrade Lincoln's lineup.

 

 

 

Ford has started meeting individually with Lincoln dealers to outline expectations for facility improvements and to offer cash compensation to some who choose to leave. Some stores would require more extensive investment than others.

 

The dealers who have met with Ford say the automaker wants a decision before Dec. 31.

 

In one major metro market, a dealer said Ford offered him about $1.5 million to relinquish his Lincoln franchise.

 

The dealer asked for anonymity because he plans to keep selling Lincolns. But the dealer says Ford's offer for Lincoln is "very low." He owns a large Lincoln-Mercury dealership and sells nearly 1,000 new vehicles a year. The dealer earns nearly $2 million in annual profits. Ford's offer, the dealer says, should be closer to $5 million.

 

"So they're just offering me one year of earnings," the dealer said. "For some stores that's fair because they're losing money, but for us, it's not."

 

The dealer rejected Ford's offer and says he will not comply with Ford's requested $2 million in facility changes.

 

A second dealer in the same market estimates Ford's desired remodeling would cost at least $1.5 million. Ford offered that dealer just more than $300,000 to give up the franchise.

 

At the meeting, Ford told dealers that maintenance for four years or 50,000 miles, such as oil changes, will be included in the price for all Lincoln vehicles. Also, beginning Jan. 1, a new slate of owner privileges, such as providing the same Lincoln model loaner vehicle for Lincoln warranty work, better roadside service and a dedicated team of Lincoln customer service people will kick in.

 

Dealers also must agree to wash and detail every Lincoln vehicle at every service visit.

 

Ford is telling dealers that it would like a distinct look for Lincoln showrooms, but Ford and Lincoln franchises can share a rooftop.

 

LINK - Auto News

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I think they're purposely trying to "cull the herd" and get rid of more marginal dealers. Killing Mercury was the first step. I like the new rules, especially the Lincoln loaner car and free maintenance although I don't think I want the dealership washing my car.

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although I don't think I want the dealership washing my car.

 

I'm sure if you insisted that they didn't, they wouldn't.

 

I too like the new programs that will be starting. It brings them up to par with other luxury brands that have been offering similar things for years.

 

On a side note, I live near a Lexus dealer. I sure do see a whole heck of a lot of "Complimentary Loaner Vehicle" stickers on the roads around here. I thought those vehicles never needed service?? :headscratch:

Edited by NickF1011
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And i don't blame em one bit. Someone said earlier after Ford "promised" great Lincolns back in 2000 if dealers updated showrooms also the Mecrury "will get new poduct" deal and Ford didn't deliever on ethier. So why will a dealer thow millions on something for nothing?.

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I'm a Lincoln owner and a big Lincoln fan. That said I would have to go along with the dealers that say show me the new car line first. I'm very disappointed in what Lincoln has done in the past 5-6 years. They went front wheel drive and those damn "M" lettering for model numbers. The only thing I see different with Lincoln now is they advertise more on TV. I sure wished they'd of done more of that with the LS. I believe Ford and the CEO would love to see Lincoln go away. Example, look at at how much a Ford product costs and all those extra options. At least when Mercury was around (GM) you could buy a Grand Marquis LS with any option at reasonable price or package deals....

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I believe Ford and the CEO would love to see Lincoln go away. Example, look at at how much a Ford product costs and all those extra options.

 

If Ford wanted Lincoln to go away, it would be going away.

 

While it's certainly true that the price of Ford's models has gone up due to increased content, so has the pricing of all of their competition. Lead or be led.

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I believe Ford and the CEO would love to see Lincoln go away. Example, look at at how much a Ford product costs and all those extra options.

 

So what? As a Ford buyer If I want all the options in a Lincoln in Ford product, why shouldn't I get them? If anything Ford is raking in even more profit on the high end Ford models then they would do with a Lincoln with unique sheetmetal that needs to be paid for. I bet Lincoln will be in MUCH better shape in 2015 (or Earlier) Much like Ford was in 2005 vs now. Ford was in worse shape then Lincoln is now...at least Lincoln has good platforms to build off of now

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So what? As a Ford buyer If I want all the options in a Lincoln in Ford product, why shouldn't I get them?

So What? Because Ford wants to sell Lincolns, that's why you shouldn't get all the options in a Lincoln in a Ford product. That's like a SEAT or VW buyer expecting "all the options" that are available in an AUDI.

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So What? Because Ford wants to sell Lincolns, that's why you shouldn't get all the options in a Lincoln in a Ford product. That's like a SEAT or VW buyer expecting "all the options" that are available in an AUDI.

 

Well, which options would you specifically limit to Lincoln that shouldn't be available in a Ford?

 

I think the only areas where limitations should exist at all really are in powertrains (apparently in the works), audio (Lincoln already gets the THX-certified systems not available in Ford products) and in warranty/loaner/service plans (also in the works). Is there really a valid reason something like heated/cooled seats shouldn't be available in a Ford (or Seat or VW) and only in a Lincoln (or Audi)?

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And i don't blame em one bit. Someone said earlier after Ford "promised" great Lincolns back in 2000 if dealers updated showrooms [snip]

Well if that's the case, many/most of the dealers didn't keep up their end of the bargin either. I haven't dropped by the local Lincoln showroom since moving up here, but 3 of the 4 nearby L/M dealers when I lived in AZ looked like they were stuck in an early 90s time warp. And all but one of them either had no website or had such ridiculously basic/amateurish sites as to be laughable. It wasn't much better back East.

 

On the one hand, I understand perfectly dealers not wanting to give in on lowball offers, or not wanting to spend a chunk of their own profit in a depressed market without a certain product future. On the other, what has Ford done since Alan took over that would lead them to believe they can't deliver the goods? Didn't a number of dealers set off a ton of Internet buzz when they walked away from the recent meeting describing the new Flagship Lincoln as [like a] new Continental?

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Well, which options would you specifically limit to Lincoln that shouldn't be available in a Ford?

 

I think the only areas where limitations should exist at all really are in powertrains (apparently in the works), audio (Lincoln already gets the THX-certified systems not available in Ford products) and in warranty/loaner/service plans (also in the works). Is there really a valid reason something like heated/cooled seats shouldn't be available in a Ford (or Seat or VW) and only in a Lincoln (or Audi)?

 

This was your same arguement for eliminating Mercury so maybe Lincoln should be next since there is apparently no point to having any options or models above a Ford. They may throw Lincoln a transmision or engine, but it will end up in a Ford somewhere along the way--it will not be a Lincoln exclusive. Audio systems can always be upgraded if Ford's are not up to snuff. And if quality is truely job one and delivered then warrently/loaner/service cars are somewhat mute and so will Lincoln be if these features and a polorizing nose clip are all they have to offer for a premium price.

 

It seems to me that Ford is playing a very dangerous game. They are trying to be all things. Companies that play this game, for example retailers, that try to be all things to all people are usually not very good at anything except being mundane.

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It seems to me that Ford is playing a very dangerous game. They are trying to be all things. Companies that play this game, for example retailers, that try to be all things to all people are usually not very good at anything except being mundane.

 

And yet the Ford brand is flourishing because Ford dares to make itself more than just mundane.

Ford to me is playing the perfect game, get your name brand right first before doing anything else.

Lincoln can wait, the returns from 14,000/month Lincolns would be a pittance compared to Ford

increasing its own brand by 15,000 or 20, 000 at the top end - exactly what Ford is doing BTW...

Edited by jpd80
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This was your same arguement for eliminating Mercury so maybe Lincoln should be next since there is apparently no point to having any options or models above a Ford. They may throw Lincoln a transmision or engine, but it will end up in a Ford somewhere along the way--it will not be a Lincoln exclusive. Audio systems can always be upgraded if Ford's are not up to snuff. And if quality is truely job one and delivered then warrently/loaner/service cars are somewhat mute and so will Lincoln be if these features and a polorizing nose clip are all they have to offer for a premium price.

 

It seems to me that Ford is playing a very dangerous game. They are trying to be all things. Companies that play this game, for example retailers, that try to be all things to all people are usually not very good at anything except being mundane.

 

Between powertrains, audio upgrades, service, and a couple of other odds-n-end features like sunshades here and there, what do any luxury automakers offer over their more plebian cousins? And no, my argument for Mercury was entirely different because Mercury didn't even offer those differences. They had become rebadged/re-grilled Fords, period. Lincoln is now going in the opposite direction as far as shared sheet metal and interiors.

 

And no matter how high a vehicle's quality, there will always be a need for service now and then, so the free loaner program is still a winner.

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If Ford wanted Lincoln to go away, it would be going away...

If FoMoCo wants to eliminate the smaller, more-costly half of LM too;

** without inviting major litigation**

What Could They Be Doing "BETTER" Than They Already Are?

 

 

And yet the Ford brand is flourishing because Ford dares to make itself more than just mundane...

for now

while their "Hey, Can You Believe THIS Is a FORD?" routine is still new.

imho

that will fade if/when Fords need to compete with luxury/premium Brands day-in day-out.

Edited by 2b2
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Well...I remodeled my F/L/M showroom 5 years ago to the tune of $1.3m. I have dedicated Lincoln loaners. I have Starbucks, Otis Spunkmeyer cookies, wireless. The local Lexus dealer benchmarked my store for his upgrade he never did. The only reason Ford can give me to add to my facility is that they don't want their Lincoln owners sitting next to their landscapers in the waiting area. Because apparently the assumption is landscapers cannot afford a Lexus. Pretty poor reason for me personally to spend big bucks. All I can think of is the Hummer quonset down the street. A $1M showroom debacle. Now it's a Kia showroom. Still trying to figure out how they will change the huge H into a K.

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That's based on an assumption that they won't continue to roll-out new and improved features/technology.

actually my comment is based more on the posts I've seen saying there is no reason to pay MKS prices seeing how good the Taurus already is

sounds to me like even if FoMoCo wants to "reach higher" with Blue Oval vehicles (or Star Ships) they might be stalling out ... peak, plateau, or foothill?; I dunno yet

Edited by 2b2
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actually my comment is based more on the posts I've seen saying there is no reason to pay MKS prices seeing how good the Taurus already is

sounds to me like even if FoMoCo wants to "reach higher" with Blue Oval vehicles (or Star Ships) they might be stalling out ... peak, plateau, or foothill?; I dunno yet

 

 

I happen to agree with the MKS/Taurus comparison. A Limited Taurus is a very very good car. On par with MKS sadly. Many think better looking.

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I happen to agree with the MKS/Taurus comparison. A Limited Taurus is a very very good car. On par with MKS sadly. Many think better looking.

 

From what insiders are saying, the MKS refresh that is coming soon (maybe next year) will address that problem. From what I've read, the MCE MKS is supposed to be stunning. Keep in mind the 2010 Taurus was pushed up a year or two, which added pressure to the MKS since it was that good.

 

How about this? I've seen the new MKX and the new Edge....to be honest with you the MKX blew my socks off...I was shocked at how nice it was and the "presence" it had...far better then out going model and the Edge. The new Edge is nice, but didn't have the same effect. Thats what I expect out of Lincoln going down the road.

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From what insiders are saying, the MKS refresh that is coming soon (maybe next year) will address that problem. From what I've read, the MCE MKS is supposed to be stunning. Keep in mind the 2010 Taurus was pushed up a year or two, which added pressure to the MKS since it was that good.

 

How about this? I've seen the new MKX and the new Edge....to be honest with you the MKX blew my socks off...I was shocked at how nice it was and the "presence" it had...far better then out going model and the Edge. The new Edge is nice, but didn't have the same effect. Thats what I expect out of Lincoln going down the road.

 

You are definately on to something. I do believe that no expense was spared on the MKX. That and MKZ are the bread and butter. Very little (if anything) about MKT, MKS and Nav was talked about at the dealer meeting. I think MKX will be a real contender.Not that I would know. I dont have any yet.

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If FoMoCo wants to eliminate the smaller, more-costly half of LM too;

** without inviting major litigation**

What Could They Be Doing "BETTER" Than They Already Are?

 

They could turn them into Mercury and continue to cater to nothing but octogenarians.

 

However, I'm optimistic that Ford has a better plan than that. Unfortunately, the bitter taste left in your mouth by them axing Mercury seems to have left you as quite the pessimist.

Edited by NickF1011
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actually my comment is based more on the posts I've seen saying there is no reason to pay MKS prices seeing how good the Taurus already is

sounds to me like even if FoMoCo wants to "reach higher" with Blue Oval vehicles (or Star Ships) they might be stalling out ... peak, plateau, or foothill?; I dunno yet

 

It almost seems as though you're ignoring the fact that the Taurus is 2 model years newer than the MKS, while being one of the new Ford vehicles that represent the new way of doing things at Ford. The MKS, while a good vehicle when it came out, has "fallen" to only be equal with the Taurus, only because it has not received a true/full "new Ford" update yet.

Edited by rmc523
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