Ford Motor Co. (F) has announced to eliminate a third of its 1,200 Lincoln dealers in the U.S. Out of 500 Lincoln dealerships in the nation’s metropolitan markets, 175 dealerships have been rumored to be eliminated. The automaker’s remaining 700 dealerships are located in rural areas.
Ford plans to market Lincoln models in 130 urban areas where demand for luxury good is very strong. The automaker will ask the remaining dealerships to upgrade their showrooms and services.
Ford has decided to meet each of its Lincoln dealers twice by the end of the year to advise them about the required investment to be made for the upgrading program. Dealers have revealed that the renovations could cost about $2 million per showroom.
Ford has decided to expand its luxury Lincoln line-up at the cost of its Mercury line-up, which will be phased out by the end of this year. The company plans to launch as many as 7 new Lincoln vehicles in the next 4 years, including a small car in 2014.
In late 2010, Ford will introduce the restructured 2011 MKX crossover, followed by another six significantly refreshed vehicles. The company will include V-6 engine, advanced fuel-efficient transmissions and EcoBoost engines in all its new Lincoln line-ups.
On the other hand, Ford will suspend production of its Mercury branded vehicles in the fourth quarter of this year. The company will divert the resources from Mercury towards its core Ford brand besides enhancing the Lincoln brand.
Lincoln is the only surviving luxury line after Ford has sold off other similar lines, including Jaguar, Land Rover, Aston Martin and Volvo. As a result, Ford expects the brand to compete with other notable luxury lines, such as Toyota Motor Corp’s (TM) Lexus, General Motors’ (MTLQQ) Cadillac and Daimler AG’s (DDAIF) Mercedes-Benz.
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