Ford Motor Co. (F) plans to eliminate a third of its 1,200 Lincoln dealers in the U.S. The automaker has 500 Lincoln dealerships in the metropolitan markets while 700 dealerships are located in rural areas. So far, 175 dealerships from the urban areas have been reported to be eliminated.
Ford has decided to market the Lincoln models in 130 urban areas where demand for luxury good is very strong. In order to improve the customer services, 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 model 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 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’s (TM) Lexus, General Motors’ (MTLQQ) Cadillac and Daimler AG’s (DDAIF) Mercedes- Benz.
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