Lincoln MKC

[ice-capades]

My Dealer Principal and I met with our Ford representative this morning and part of the discussion involved Ford's prospects of being successful in turning around the recently rebranded Lincoln Division now known as the Lincoln Motor Company. Ford is investing a lot of money in new Lincoln product that has been promised for a number of years now but slow to appear on the market. Unfortunately for Lincoln, the all-new MKZ is not setting any sales records which doesn't help matters any.

 

During the conversation, the Lincoln MKC compact crossover came up and I mentioned that there had been a number of posts online with the general inquiry as to the MKC's future availability. The response was that Ford has made no commitment to actually producing the MKC and that it was unveiled to the public as a concept vehicle. The reality of the matter is that in order to produce the Lincoln MKC, Ford would have to cut Escape production. With Ford Escape sales at record numbers, Ford is not about to commit to the MKC making into the market until they can address the production issues.

 

So here's Lincoln showing the MKC as a stylish new compact crossover in a very strong segment and they can't build it because of plant capacity issues.

[mrgdr57]

Thank you for sharing this. That's rather discouraging information considering the enthusiastic response the MKC concept received and the positive market trend of smaller near-luxury and luxury crossovers. Coincidentally, Autoblog just posted this item regarding demand for the (IMO unfortunate looking) apparently popular Buick Encore. http://www.autoblog.com/2013/08/06/buick-struggling-to-keep-up-with-encore-demand/ I suppose it will eventually boil down to Ford's genuine commitment the success of the Lincoln Motor Company. Half-hearted attempts to reinvent the brand will not suffice. That other GM brand has thrown billions of dollars into years of product development and it's just begun to regain a modicum of respect for its non-halo vehicles. This is not simply a styling effort, its an all-or-nothing proposition for Lincoln.

[akirby]

I'm not doubting they said that but ford might be playing possum on this one. I find it hard to believe they would delay arguably the most important new Lincoln in years.

[2b2]

posted about the MKC earlier today, elsewhere

...just getting a weird-scary vibe today

:runaway:

[2b2]

dupe

Edited August 7, 2013 by 2b2

[All-Or-Nothing]

Sorry.....but I don't believe this at all. No MKC becaue they can't build it.

 

 

 

Thanks for the laugh.

[Hugh]

I used to sit and try to glean information from my father back when he used to be a sales representative at the local dealership. What surprised me was the information he had was pretty much could be found in other sources such as the media. Now, I don't dispute what you said Ice, I'm from a business of sorts where a good lie has a great measure of truth.

Maybe I am just dreaming here but I believe that production resources are limited so that makes sense. To say MKC was just a concept? Sorry I don't want to believe that.

[2b2]

I decided not to panic ....until Aug14 when the PBC starts.

 

 

 

[akirby]

I'm pretty sure Ford already said the MKC concept was 90% of what the production version would be. It is possible they're delaying it but I would be very surprised.

[transitman]

For whatever reason they are waiting to launch the MKC, it's a smart move and shows Ford has learned from mistakes in the past. Sales are great for the Escape, why saturate the market with the same sized vehicle and why draw from potential MKX sales from those who must have a Lincoln. I assume there's a lot of profit to be made per unit with the Escape, especially now they that have reconfigured the features and option packages for 2014. Add up the cost of completing the tooling, reconfiguring the plant, disrupting the build of a money maker, scheduling build slots, media launch, advertising, etc. etc., and the initial cost is high for a vehicle with unknown potential. The current potential of the Escape is known, when sales begin to slow and purchasing trends turn to higher end vehicles, that's when you will see the MKC launch, which will be luxury upgrade from the Escape. Maybe when the redesign of the Escape is due, they will launch the MKC and the Escape will not get a redesign, drawing people towards the MKC. Savvy marketing ploy.

[twintornados]

Fords hidden gem in all this is Flat Rock and Avon Lake.....moving Fusion Titanium and MKZ to Flat Rock would free up more production capacity at Hermosillo and building MKC at Avon Lake would give them needed production lines with the wind-down of E-Series...

[Hugh]

Perhaps but isin't Avon Lake going to be putting out E-Series Chassis for some time? I don't know how many lines are there.

[twintornados]

Perhaps but isin't Avon Lake going to be putting out E-Series Chassis for some time? I don't know how many lines are there.

http://en.wikipedia.org/wiki/Ohio_Assembly

 

Ohio Assembly is a Ford Motor Company factory located in Avon Lake, Ohio. The 419-acre (1.70 km²) plant opened in 1974 to produce the Ford Econoline (now E-Series) van. It produced the Mercury Villager and Nissan Quest from 1993 through 2002, and the Ford Escape and Mercury Mariner until 2005. Ford E-Series production stopped at the end of 2013 as Ford replaced the E-Series with the uni-body Ford Transit, which will be produced at Ford's facility in Kansas City, MO. Starting in 2014 production of the Ford F-650 will commence.

It currently has 1,821 employees.^[1]

 

Sounds like they have room for MKC....

[Hugh]

http://en.wikipedia.org/wiki/Ohio_Assembly

 

 

Sounds like they have room for MKC....

OPS Agrees.

[timf]

If anything were to go to Avon Lake, it would make the most sense to have a Flat Rock type split where they build high volume S and SE model Escapes and the MKC goes on the Louisville line with the bulk of Escape production. It'll be an easier launch for the MKC if they're being built by people already used to the platform.

[Footballfan]

My Dealer Principal and I met with our Ford representative this morning and part of the discussion involved Ford's prospects of being successful in turning around the recently rebranded Lincoln Division now known as the Lincoln Motor Company. Ford is investing a lot of money in new Lincoln product that has been promised for a number of years now but slow to appear on the market. Unfortunately for Lincoln, the all-new MKZ is not setting any sales records which doesn't help matters any.

 

During the conversation, the Lincoln MKC compact crossover came up and I mentioned that there had been a number of posts online with the general inquiry as to the MKC's future availability. The response was that Ford has made no commitment to actually producing the MKC and that it was unveiled to the public as a concept vehicle. The reality of the matter is that in order to produce the Lincoln MKC, Ford would have to cut Escape production. With Ford Escape sales at record numbers, Ford is not about to commit to the MKC making into the market until they can address the production issues.

 

So here's Lincoln showing the MKC as a stylish new compact crossover in a very strong segment and they can't build it because of plant capacity issues.

 

I remember when Ford was doing their cutbacks in 2006, Junior said that they will "not cut themselves into oblivion." Well, In Lincoln's case, they look to be doing just that. The MKZ launch was a disaster because it was an anciliary vehichle on the Fusion line. Even if they add the MKC to Louisville, what impact will that have on 1) The quality of the MKC, and 2) the availability of the Escape? Long term, if Lincoln is truly going to be a formidable brand, Ford may have to look at building a Lincoln-only plant for most of Lincoln's models. This will 1) allow the line to run at a slower pace to assure quality, and 2) free up desparately needed production space in plants like Chicago and Oakville, and 3) add a layer of distinction to the brand.

[Footballfan]

For whatever reason they are waiting to launch the MKC, it's a smart move and shows Ford has learned from mistakes in the past. Sales are great for the Escape, why saturate the market with the same sized vehicle and why draw from potential MKX sales from those who must have a Lincoln. I assume there's a lot of profit to be made per unit with the Escape, especially now they that have reconfigured the features and option packages for 2014. Add up the cost of completing the tooling, reconfiguring the plant, disrupting the build of a money maker, scheduling build slots, media launch, advertising, etc. etc., and the initial cost is high for a vehicle with unknown potential. The current potential of the Escape is known, when sales begin to slow and purchasing trends turn to higher end vehicles, that's when you will see the MKC launch, which will be luxury upgrade from the Escape. Maybe when the redesign of the Escape is due, they will launch the MKC and the Escape will not get a redesign, drawing people towards the MKC. Savvy marketing ploy.

 

The problem is that Lincoln is now the eighth place luxury brand in the market. Right now they are on target to sell about 75K units a year. That is way too low to support a entire dealer body, especially with Mercury gone. The dealers, and brand for that matter, cannot simply wait another three or four years for new product. Lincoln needs a lot of new product, and they needed it yesterdy.

[Hugh]

I remember when Ford was doing their cutbacks in 2006, Junior said that they will "not cut themselves into oblivion." Well, In Lincoln's case, they look to be doing just that. The MKZ launch was a disaster because it was an anciliary vehichle on the Fusion line. Even if they add the MKC to Louisville, what impact will that have on 1) The quality of the MKC, and 2) the availability of the Escape? Long term, if Lincoln is truly going to be a formidable brand, Ford may have to look at building a Lincoln-only plant for most of Lincoln's models. This will 1) allow the line to run at a slower pace to assure quality, and 2) free up desparately needed production space in plants like Chicago and Oakville, and 3) add a layer of distinction to the brand.

The idea of a Lincoln "Center of excellence" has merit and perhaps it's a long term option. What are they going to do now? The 'disaster' you described sounds a lot like the Fiesta, Focus and Escape launches. At least there's no trying to hide it and Ford has been very forthcoming which still has them in the good books with customers so far. I just want Ford to build the bloody thing!

[Hugh]

I remember when Ford was doing their cutbacks in 2006, Junior said that they will "not cut themselves into oblivion." Well, In Lincoln's case, they look to be doing just that. The MKZ launch was a disaster because it was an anciliary vehichle on the Fusion line. Even if they add the MKC to Louisville, what impact will that have on 1) The quality of the MKC, and 2) the availability of the Escape? Long term, if Lincoln is truly going to be a formidable brand, Ford may have to look at building a Lincoln-only plant for most of Lincoln's models. This will 1) allow the line to run at a slower pace to assure quality, and 2) free up desparately needed production space in plants like Chicago and Oakville, and 3) add a layer of distinction to the brand.

The idea of a Lincoln "Center of excellence" has merit and perhaps it's a long term option. What are they going to do now? The 'disaster' you described sounds a lot like the Fiesta, Focus and Escape launches. At least there's no trying to hide it and Ford has been very forthcoming which still has them in the good books with customers so far. I just want Ford to build the bloody thing!

[Hugh]

I remember when Ford was doing their cutbacks in 2006, Junior said that they will "not cut themselves into oblivion." Well, In Lincoln's case, they look to be doing just that. The MKZ launch was a disaster because it was an anciliary vehichle on the Fusion line. Even if they add the MKC to Louisville, what impact will that have on 1) The quality of the MKC, and 2) the availability of the Escape? Long term, if Lincoln is truly going to be a formidable brand, Ford may have to look at building a Lincoln-only plant for most of Lincoln's models. This will 1) allow the line to run at a slower pace to assure quality, and 2) free up desparately needed production space in plants like Chicago and Oakville, and 3) add a layer of distinction to the brand.

The idea of a Lincoln "Center of excellence" has merit and perhaps it's a long term option. What are they going to do now? The 'disaster' you described sounds a lot like the Fiesta, Focus and Escape launches. At least there's no trying to hide it and Ford has been very forthcoming which still has them in the good books with customers so far. I just want Ford to build the bloody thing!

[chevys]

For the love of me I dont see the appeal of a Lincoln Escape. Why not build a Lincoln Fiesta as well? CUV's are hot right now but that is only going to carry you so far. I suppose its one product at a time to try to rebuild the Lincoln brand but it has about as much appeal to me as a Cadillac Cimmaron.

[Iiari]

For the love of me I dont see the appeal of a Lincoln Escape. Why not build a Lincoln Fiesta as well? CUV's are hot right now but that is only going to carry you so far. I suppose its one product at a time to try to rebuild the Lincoln brand but it has about as much appeal to me as a Cadillac Cimmaron.

 

This is actually what all of the premium makers are doing in every class as they all barrel along towards having full lines... Acura is doing their own Civic as the ILX, Audi has the A1, BMW the 1. Lincoln was for a while rumored to be doing a version of the Focus (that's what everyone thought an MKC would be at first).

 

And what premium maker doesn't have a CUV right now? Jaguar is about to do one as well, with a concept upcoming. I see no reason Lincoln shouldn't play along. That's about as heretical as, well, Porsche doing an SUV, right?

[twintornados]

For the love of me I dont see the appeal of a Lincoln Escape......

 

I would agree with your assessment if all Lincoln Motor Company did was borrow an Escape, slap a different grille on it and call it a day....but those days are gone and while MKC will still be based on the chassis architecture of an Escape, it will have it's own style, form and function...similar to what all other luxury marquees are currently doing with their respective "plebeian" brands....

 

The upcoming ELR from Cadillac is a prime example of what can be done with the basics of a "cheaper" ride as it sits atop Chevrolets' Volt chassis architecture....

Edited August 8, 2013 by twintornados

[md3184]

I don't think louisville is near capacity; the MKC has not been put on hold. I just heard Jim Farley comment a few weeks back at the earnings annoucement and town hall meeting for world hq employees that the MKC was a critical component of the Lincoln revival. Also, I have a co-worker who just transferred from WHQ to the louisville plant and commented they were preparing for production (timing uncertain).

[hotcarl]

_{The MKC is alive and well and one the way. How I see it: Ford is looking to up production in Louisville by increasing line speed. Right now they shut down for breaks. I see them using relief workers to cover breaks. They will add extra mandatory production OT days and then suppliment that with voluntary OT shifts. They could reduce Escape production a bit which in turn would allow for more profit for Ford and the dealers by making demand higher. It's no secret that luxury cars have a higher profit margin. Ford would rather build 350,000 Escapes and 50,000 MKC's then 400,000 Escapes the way I see it.}