Tuesday, February 8, 2011

Lincoln's Sputnik Moment

By Edward Niedermeyer on February 7, 2011

Ford's been fixing Lincoln for so long now, it's almost surprising that things on the dealership level are still so broken. But, as Ford told its dealers at last weekend's NADA convention [via Automotive News [sub]], it's time to put up or become a former Lincoln dealership. By the end of this year, every Lincoln dealer must comply with a few of Ford's "more than reasonable" expectations, to wit:
  • Offering what Lincoln calls "owner privileges." That includes providing a free car wash and loaner vehicle to owners who come in for service
  • Having a dedicated service manager and dedicated sales staff for Lincoln, Bokich said. That applies specifically to Lincoln dealers paired with Ford stores.
  • Having only the word "Lincoln" appear on all franchise signage, not Mercury. Ford discontinued the Mercury brand as of Dec. 31.
  • Having at least 30 percent of used-vehicle inventory be certified pre-owned vehicles.
You know, those do sound like reasonable standards for a luxury brand dealer network... and if a Lincoln dealer doesn't like them, well, Ford is looking to trim the network by 100 stores or so anyway. Still, isn't Lincoln's problem pretty conclusively product-related? There's no word from Ford's boffins on that front, which means some dealers may be happy to leave the Mercury sign up and become one of those used car lots that still has an Oldsmobile sign up. Yes, Lincoln needs a top-notch dealer experience (and an own-brand sales manager to keep marks away from the Taurus) to make Lincoln viable, but demanding it without even hinting at future product is to ask Lincoln dealers to make an incredible leap of faith.


Thank you,
Thomas Ieracitano
Can't Make it Here, We'll Take it There!
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