Thursday, February 9, 2012

Why I Believe in Lincoln



As Lincoln sits at the beginning of the latest in a string of reinvention plans, it's easy to be skeptical. We've seen designs, marketing plans, and executives all change in hopes of invigorating Ford's top-shelf brand. Despite all the previous efforts, the brand has slipped from market leader to also ran. With the announcement of Mercury's execution in 2009, Ford committed to a reimagined, revitalized Lincoln. As the fruits of that commitment are just starting to trickle into the spotlight, plenty of armchair CEO's are quick to pronounce any new Lincoln DOA. 


I like to fancy myself a realist, with perhaps ever-so-slight optimistic pretensions, but I see some solid reasons why this turnaround plan has the juice to succeed where the others didn't. 


Why I Believe in Lincoln:


The Outsiders. 
For the first time perhaps ever, talent has been poached from across the luxury arena to "fix" Lincoln. Every other turnaround was conceived by those already in the Ford system; typically already sucked into the fiefdoms that contaminated the corporate culture and nearly sent Ford into bankruptcy. These aren't "yes" men, these are the people who will keep the brand's plans and expectations planted firmly in the bedrock of reality. 






The Product.
How long has it been since Lincoln had an absolute standout product? The latest crop of Lincolns, while good, haven't gone far enough to distance themselves from their blue oval brethren. Their two high-volume segment entries, the MKZ and MKX, are great products in a vacuum, but share far too much with the Fusion and Edge respectively. Going forward, however, we have affirmations from Ford brass that Lincolns will share little more than platforms with the lesser Fords. As evidenced by the stunning, though not for everyone, MKZ Concept shown last month at the North American International Auto Show, they're serious. After the new MKZ launches with a slew of exclusive features later this year (including a fully retractable glass roof, touchpanel gear selector, and a computerized drive control), we expect a sports-oriented compact crossover and traditional mid-sized utility vehicle. Too many utilities? No. While plenty of luxury segments are fully catered to, these buyers can't seem to get enough crossovers. The trick to building a successful range isn't to look where other makes are strong, it's to look where other makes are weak. BMW has built their empire almost solely on the 3-Series, and rightfully so. It's a great product. What other luxury brand has been able to match BMW's success by imitating their products? The 3-Series is already joined by the C-Class, IS, G, and new ATS in an incredibly crowded segment. The best opportunity for growth in the luxury arena right now exists with crossovers. They're extremely popular, they tend to carry much higher prices than similarly-equipped sedans, and the market isn't saturated yet. MKEscape, Aviator, MKX, Navigator and MKT, paired with the new MKZ, and an MKS-replacing full sized sedan would make for a solid lineup. More solid, in fact, than the range has been in decades. 






The X Factor.
Selling luxury cars, or luxury anything for that matter, is about far more than simply building a great product. Every aspect of shopping for, buying, and maintaining a luxury car must remind the customer that they're getting something special. Lincoln has imposed tough new dealer standards, and having had the chance to experience the new building mandate first hand at Bob Boyd Lincoln of Columbus, I can assure you that this is one aspect they've nailed. The new look is sleek and expressive without being pretentious or stuffy. Lincoln has also spent the last year or so creating exclusive customer "touch points", resulting in the creation of "Lincoln Financial" (instead of lowly Ford Credit) for financing, and separate phone numbers and representatives for customer service issues. Luxury goods find success in the details, and Lincoln finally gets that. 


It isn't a sure bet. Like we saw with Plymouth, Oldsmobile, Mercury, Saturn, Hummer, and Pontiac, sometimes the most sensible thing to do is euthanize a damaged brand. We know now that the idea of killing Lincoln along with Mercury was considered, but Mulally and company decided it was worth fixing. While we've seen other turnarounds before, we've never seen them dedicate the talent and resources they way they are now. The future for Lincoln looks bright, and that's why I believe in Lincoln. 

2 comments:

  1. If anyone can do it Mullaly can. I do agree fighting over the 3 series segment for now is futile. The crossover segment these days is not exciting, the SRX does a good job but it uses too much fuel.

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  2. Excellent analysis, as usual. I am also optimistic about Lincoln's future.

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