Rejuvenated Lincoln seeks a place of its own

[YEH]

Rejuvenated Lincoln seeks a place of its own

Dealers in major markets urged to build stand-alone showrooms

August 12, 2018 @ 12:01 am
Michael Martinez

DETROIT — Lincoln is asking its dealers in the 30 top U.S. luxury markets to build stand-alone stores, reversing an effort to consolidate with the Ford brand, after a product revival has given Lincoln confidence that it can challenge top-tier makes.

Lincoln executives say stand-alone stores regularly outsell dualed dealerships and are responsible for most of Lincoln's sales gains in recent years. They cite internal and external surveys concluding that luxury customers prefer buying in a dedicated space.

Lincoln has roughly 150 dealers in the 30 markets that it says account for 70 percent of the industry's luxury sales. Nearly half of those dealers have built or started construction on exclusive stores independently. That, executives say, is evidence of the strength of Lincoln's revival.

The company wants its 78 remaining dualed dealerships in those markets to commit by next July to building stand-alone stores that will be completed by July 2021. Service departments and parts of the business that don't interact with customers can continue to share buildings with the Ford brand.

Higher sales

Lincoln says the sales at its 72 stand-alone large-market stores speak for themselves.

Retail sales at those dealerships rose 48 percent from 2014 through 2017, compared with 18 percent for the brand overall.

Three stores already have adopted the new design. West End Lincoln near Minneapolis transitioned to an exclusive store from a dualed outlet in January, and its retail sales jumped 60 percent this year through July. Retail sales doubled in July at Lincoln South Coast in California, which opened a new store in June.

"Transaction prices are going up. Their margins are going up," Parker said. "They're not being forced to discount like maybe they have been. They're getting their money back."

Building the brand

In Alpharetta, Ga., a wealthy suburb north of Atlanta, Angela Krause Lincoln opened a stand-alone store and has had a noticeable sales boost. The 8,000-square-foot store was built on land next to the formerly dualed operation. The dealership is working to completely separate its Lincoln business from the Ford brand, even ordering new business cards, nametags and signage.

Dealer principal Vernon Krause said the switch was necessary to compete with rivals. The store sits on a luxury row of sorts, across the street from a Volvo showroom and a short distance from Porsche, Lexus and Jaguar-Land Rover dealerships.

"When you're Ford-Lincoln, it's sort of like you're an afterthought," he said of Lincoln, which in the U.S. sells about one vehicle for every 24 sold by the Ford brand. "When you have your own facility, it shows everybody's committed to building the brand."

Zack Krause, the sales manager, said the dualed store was selling about 12 Lincolns a month. Since the Lincoln-only operation opened, sales have more than doubled.

"Customers have pulled up and said, 'This is how it should be,' " he said. "I think people like to be here, which is saying a lot for a dealership."

And some here still think that Genesis selling at Hyundai dealerships is still the way to go.

Now, the most important thing is still the product (but that's coming), but also need to meet what prospective buyers expect when it comes to the sales and service experience.

 

[EdP]

some here still think that Genesis selling at Hyundai dealerships is still the way to go.

Now, the most important thing is still the product (but that's coming), but also need to meet what prospective buyers expect when it comes to the sales and service experience.

The Continental is a big factor for them. It is a good looking car. The older models looked like a Fusion gussied up with an ugly split grill.

 

[rroyce46]

Drove a new Continental & No comparison with my 2016 Genny.Felt cheap,noisy & rough ride.

 

[PMCErnie]

As folks often say when choosing a hotel, "I don't want to buy the place, I just want a bed for the night."

The dirty little secret remains: Fords and Lincolns are still likely being serviced in the same shop.

 

[EdP]

As folks often say when choosing a hotel, "I don't want to buy the place, I just want a bed for the night."

The dirty little secret remains: Fords and Lincolns are still likely being serviced in the same shop.

I don't mind that. It is the guy under the hood, not the sign on the door that determines the quality of service. They share a lot of parts too.

 

[Gen127]

Drove a new Continental & No comparison with my 2016 Genny.Felt cheap,noisy & rough ride.

I've had bad experiences with Lincolns in the past, but maybe they've righted the ship.
JD Powers seems to think so...
2018 Quality Midsize Premium Car Awards | J.D. Power

 

[PMCErnie]

XX

I don't mind that. It is the guy under the hood, not the sign on the door that determines the quality of service. They share a lot of parts too.

I wonder if the sign on the Genesis boutique door mentions that?