It is difficult to believe Lincoln was once America’s top-selling luxury brand. According to Automotive News, in 1998, Lincoln was the top U.S. luxury brand with 187,121 sales. Last year Automotive News reported Lincoln's 82,847 sales were less than half those of luxury segment leaders Lexus, BMW and Mercedes Benz. With 2010 year to date sales of 63,200 units, Lincoln languishes at the back of the luxury car pack. In comparison, Lexus sold 162,000 units during the same time period.
Familiar tune
If this sounds familiar, it is because you’ve heard this tune before. Letting established brands whither, then scrambling to revive them seems to be a pattern of behavior at the Glass House on Michgian Avenue in Dearborn. The original 1986 Taurus, if you will recall, became America’s most popular car before it was neglected to death and taken out of production. Taurus was resurrected by Ford’s new CEO Allan Mulally. Mercury was put out of its misery a few months ago after twisting in the wind for more than a decade.
200 dealelrships may close
In an effort to burnish the Lincoln brand and enhance the buying and ownership experience, Ford’s management wants to raise standards of Lincoln dealerships. This could, however, force many Lincoln dealers to either spend millions on upgrades or walk away. Many will opt to relinquish their franchises rather than make the added investment. According to a recent article in the Chicago Tribune, Ford may close up to 200 Lincoln dealerships in an effort to revitalize the brand and help the remaining dealer points become more profitable.
Better late than never
Some automotive consultants say Lincoln dealers need to upgrade their facilities in order to compete in the luxury car market. According to the Automotive News, Ford wants to improve the "customer experience." Upgrades are reported to include customer touch points such as higher standards for loaner vehicles and car washes.
If this sounds impressive, consider that a service loaner car pogram, roadside assistance and complimentary car washes were part of a Total Ownership Experience program when Nissan launched their Infiniti Division – in 1989.
People don’t go to dealerships to socialize, read the newspaper, eat donuts, drink coffee or get a free car wash. They go to dealerships to either buy or lease a vehicle or get it serviced - under warranty - and get on with their day with a minimum of inconvenience. It should go without saying that all customers expect prompt, professional treatment at every "touch point."
Women customers
Talk of an "ownership experience" means it may be time for another auto executive to "discover" the women's market. The number of times women customers have been "discovered" by various industry consultants and auto marketing honchos over the years is impossible to say because it happens so often. It's almost as though it were some sort of -- marketing ploy. Maybe someone in the automotive press will finally wise up and ask questions the next time the women's market is "discovered" instead of copying and pasting a press release.
The Costco paradox
When rethinking the dealership experience, it would be wise to consideer the Costco Paradox. Luxury car owners who shop at upscale stores like Nordstrom’s on Saturday afternoon are perfectly at home buying expensive wines and premium cuts of meat at Costco, where the floors are bare concrete and the lights are mercury vapor bulbs. And they sell cars and Sea Ray boats at Costo.
It's the driving expereince, not the ownership experience
What matters is the product, not whether the coffee in the dealership customer waiting room is French Roast. These days pure luxury cars are becoming obsolete. The big luxo-boats Detroit was famous for aren't what luxury intenders are buying.
People in the luxury price range want it all – a car that has a high level of luxury content and technology features, impressive performance, great looks, sporty handling and quality. They want a total driving experience.
For the time being, unfortunately, that isn't Lincoln. In the coming years, Lincoln may introduce up to seven new or freshened vehicles. The total driving experience, however, is what people get now when they buy an Audi, Porsche, Mercedes, Lexus or a BMW.
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