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Ford defends plan to shareholders: ‘We're simply reinventing the American car’

Ford's top executives took heat from shareholders over their plan to do away with sedans as we know them in Ford's North American lineup, as the company held its annual meeting Thursday. Critics said the plan to shelve the Fiesta, Focus and Taurus, reduce the Focus to one crossover model, and concentrate on high-margin trucks and SUVs was a shortsighted abandonment of entire market segments of affordable vehicles. "This doesn't mean we intend to lose those customers," Ford CEO Jim Hackett said. "We want to give them what they're telling us they really want. We're simply reinventing the American car." Ford has said SUVs/crossovers and pickups will constitute 90 percent of its North American lineup by 2020. And though only the Mustang and new Focus Active will remain, it plans to add new vehicles going forward that offer better fuel economy and utility, including EVs and hybrids. Hackett characterized the shift not as an abandonment of traditional cars but as a transformation of them. "We don't want anyone to think we're leaving anything," Hackett said. "We're just moving to a modern version. This is an exciting new generation of vehicles coming from Ford." It was Hackett's first annual meeting as CEO, and for the second year it was conducted online rather than in person. The change to Ford's lineup is part of Hackett's overall plan to cut $25.2 billion in costs by the year 2022. Executive Chairman Bill Ford Jr. blamed the negative reaction to the lineup plan on media coverage. "I wish the coverage had been a little different," he said. "If you got beyond the headline, you'll see we're adding to our product lineup and by 2020 we'll have the freshest showroom in the industry. The headlines look like Ford's retreating. In fact, nothing could be further from the truth." While Ford was clear about its plans for the Blue Oval, it has been less clear about the Lincoln brand. Hackett on Thursday said only that the Lincoln Continental, re-introduced just two years ago, would continue "through its life cycle" — but it has been such a slow seller that rumor has Ford killing the Continental again after that, and Hackett made no mention of a new generation. Presumably the MKZ sedan will go away when its twin the Ford Fusion does, but although Ford has outlined end dates for other models, the Fusion's departure is open-ended. The stock price has been a frustration for investors for years and has fallen 12 percent since the first of the year.

Lincoln Continental brings back suicide doors with Coach Door Edition

Remember that teaser image from last week indicating the Lincoln Continental would get suicide doors? Well, it's happening, and we got to check out a prototype late last week. As you can see from the photos, the vehicle is essentially a stretched Continental with rear doors that latch forward. Lincoln doesn't call it the suicide door edition, of course. No, the proper name is 80th Anniversary Coach Door Edition. Semantics aside, the car is here to pay homage to the suicide doors of the 1960s Continental and celebrate 80 years since the original Continental was introduced. That's the why; now here is the how. To build this special edition, a Continental begins life as a normal Black Label model, and leaves the factory with normal doors intact. From there, Lincoln ships the car to Cabot Coach Builders in Massachusetts for the stretch and other modifications we'll get into later. Before you start cursing Lincoln for not really screwing together a suicide door Continental, know this: Lincoln engineered all the components, metalwork and everything else that goes with the build. It then gives the car and components to Cabot for the fabrication work. So yes, somebody else is doing the conversion, but you're still getting a Lincoln-engineered vehicle. Make of that what you will. Cabot has done work for Ford before with the MKT and Transit Van, but Lincoln says it's much more involved in this build than it ever was before. To begin, the Continental gets a six-inch stretch. It was a relatively long car before, but boy does this thing look like it's lounging now. That's exactly what you'll be doing once inside those suicide doors. Lincoln claims best-in-class legroom, and yes, to our eye that is surely accurate. Someone well over 6 feet tall could easily stretch all the way out and still have room to spare back there. The only problem we noticed? Headroom. A sloping roofline combined with seats that are well pushed back doesn't leave a whole lot of space up there. It looks like Lincoln noticed this and carved out little spaces in the headliner, but it might not be enough for those who are closer to the sky than most. A flow-through center console occupies space where the middle seat would typically be. This has all sorts of controls for things like audio and climate control. Lincoln said the one we sat in wasn't entirely finished with all the features and electronics that will be included.

Lincoln hopes month-by-month leasing will woo luxury clients

Lincoln is launching a new subscription-based service that will allow customers to lease any of its vehicles on a month-by-month basis as part of a new suite of services aimed at offering flexibility and converting buyers. The luxury brand has also been operating a pilot program in which dealers bring Lincoln vehicles to consumers' homes for them to test drive on their own time — and sometimes even complete the entire sales process at their homes. Lincoln also announced on the heels of the L.A. Auto Show a new collaboration with Clear, a company that provides expedited screening at security gates at airports and sports arenas, plus an expansion of its Lincoln Personal Driver service, formerly known as Lincoln Chauffeur, to Dallas. Kumar Galhotra, Lincoln's president, said the company is trying to create a brand experience for consumers that is warm, human and effortless, and that the new services are based on consumer research that equates time with luxury. "We take this philosophy of warm, human and effortless, and we really embed it" in the vehicles and ownership experience, he said. Lincoln plans to launch its vehicle subscription service early next year, likely in "a couple California cities," Galhotra said, that allows consumers to lease any Lincoln vehicle on a monthly basis. While Lincoln did not announce pricing, the program is based on Ford Credit's Canvas program, which offers monthly subscriptions to pre-owned Ford vehicles and come with insurance, maintenance and warranty coverage. The service is so far offered only in the Bay Area and parts of Los Angeles. The service appears to be similar to the $1,500-a-month Book by Cadillac service and Care by Volvo. Robert Parker, Lincoln's global director of marketing, sales and service, said the service will allow consumers the option of upgrading to larger-size vehicles without being locked into a traditional two-year lease. "We acknowledge the fact that we are a challenger brand. We're not at the scale of the Germans," Parker said. "We certainly aspire to continue to grow, that's not our No. 1 focus.