What Ford's $1B Effort to Save Lincoln Really Needs: A Reborn Continental
Instead of letting its Lincoln division die -- and having CEO Alan Mulally's "One Ford" plan come literally true -- the company is investing $1 billion in a last-ditch effort to get Lincoln breathing again as a world-class luxury leader.
It wants Lincoln to play the role Audi occupies for Volkswagen, but maybe with less of a performance preoccupation. It's a smart move, because Lincoln is more than the sum of its long history -- it's a prestige brand that means something to people, as long as the cars associated with it make sense. And a reborn Continental luxury model, perhaps with rear-wheel drive, makes sense.
For an opposing view -- urging Ford to kill Lincoln off right now -- check out my BNET colleague Matt DeBord's column, which suggests that the $1 billion would be better spent adding quality and features to existing models.
Having pared away its venerable Mercury brand, as well as relatively recent acquisitions Volvo, Jaguar and Aston-Martin, Ford is down to just two nameplates -- Ford and Lincoln. But Lincoln is in deep trouble, with anemic sales of 85,828 in 2010, and a sinking projection of just 78,000 vehicles this year. Its scattered lineup is outgunned by just about every upscale brand, from Lexus, Audi and Acura to Mercedes, BMW and Cadillac. Ford is projecting sales of 162,000 cars by 2015, double its current output, and necessitating a fast-track plan for new models.
What Lincoln needs is... the Continental!
One of those new cars should be the Continental (1939-2002). Right now the Lincoln brand doesn't stand for much of anything, as it certainly did when the distinctive, luxurious Continental was the company's flagship. There's a reason Continentals were routinely made into Presidential limousines. Job One for Lincoln should be bringing back the Continental name on a high-end automobile that would have some name recognition.
There have long been rumors that Lincoln would revive the name, and in 2002 an appealing but impractical Continental concept vehicle was shown with the center-opening "suicide" doors of the beloved 1960s models -- but by then it was too late because the name was already dead. If Lincoln is going to bring back Continental, it has to do it right, because by the end of its run the model had devolved into an outdated grandpa's car. As Edmunds.com put it back then:
The aged Continental appeals mostly to a dwindling supply of traditionalists; the type of buyer who likes Vogue wheels and dealer-installed carriage roofs. Which explains why it dies at the end of the year.Tomorrow's Continental needs to stand out, but not by making it so expensive that nobody will buy it. That's unfortunately part of Lincoln lore, too, because the well-respected Edsel Ford (son of Henry) invested his all in developing the exquisite Continental Mark II for 1956, but the darned thing was practically hand-built and at $10,000 (in 1950s dollars!) there were few takers.
Sink or swim
Mark Fields, Ford's chief of the Americas, reportedly told a dealers' group that the company sees this as Lincoln's "last chance," and it should be. If a $1 billion investment in a smart new product line doesn't cure Lincoln's ills, the patient is terminal.
Lincoln's lineup now is cluttered, and hampered by confusing nomenclature. If you can fully parse the difference between the MKZ, MKS, MKT and MKX you're a better man than I. The only truly iconic model is the Town Car, and that aging model for limo drivers and pensioners is hardly pointing the way forward for Lincoln.
Lincoln is trying to be all things to all luxury buyers, with performance sedans, crossovers and big SUVs when what it needs is two instantly recognizable and distinctive models. I'd make that one luxury car and one luxury SUV/crossover. Ford is actually talking about seven new models, but as DeBord points out, that amounts to not enough development money spread across too many cars. The line desperately needs a styling makeover, too, because the whole "waterfall grille" look is definitely an acquired taste, and I haven't acquired it.
The wrong way forward
Much as I think it's cute, Lincoln's Concept C, first shown in 2009, is not the way forward. Part of the "One Ford" mantra is to put multiple vehicles on one platform, thus saving a lot of development dollars and increasing profits. The Concept C is a tiny green-themed compact hatchback built on the all-purpose Ford Focus, but it would simply confuse Lincoln's image, which needs to be that of Ford's premium luxury brand.
Ford has already begun the process of paring down its too-numerous inventory of Lincoln dealers, and getting the remaining ones to invest at least $1 million in remodeling to fit an upscale image. Some have balked, telling Ford to "show us the money," but getting rid of the unwilling is actually part of the plan as the company whittles down to 1,000 franchises from 1,200.
Lincoln does have one big plus -- it was named the most dependable brand name by J.D. Power and Associates this year. That's a win (Lincoln's first ever) that Ford can capitalize on as it rebuilds.
So for a reborn Lincoln Continental it's all about coming up with a unique and distinctive automobile at a price (not above $40,000, please) that would make it a justifiable value proposition when stacked up against tough competition. On cars like that, Lincoln could be revitalized, and the last chance could become the beginning of an exciting new future.
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Photos: Ford/Lincoln