Clean on 2040-cars

Auto blog

Lincoln's $5B revival bid hinges upon new D6 chassis

It's no secret that Lincoln has received short shrift from the Ford Motor Company for years, and former CEO Alan Mullay even wanted to kill the whole thing off when he ran things. Today, things appear to be trending in a different direction. Fresh investment has helped enable a sizable marketing push for its well-regarded MKC compact crossover, a couple of awards for the company and plant the seeds for a major expansion into China. While the situation is still in the early going, it looks like Lincoln is on a tentative (if long) path towards a turnaround. If new reports are accurate, the brand is poised to build on that momentum with its largest investment in new products in years thanks in large measure to a new modular platform codenamed D6.
According to four unnamed insiders speaking to Reuters, FoMoCo is investing over $5 billion over the next five years, partially to create a new modular platform to underpin multiple Lincoln vehicles - and possibly some Ford products, too. Development is reportedly being overseen by the division's new boss, Kumar Galhotra. At the moment, specific details about the D6 chassis aren't yet known, but it's rumored to have the flexibility to support front-, rear- and all-wheel drive vehicles. According to Reuters, the first model using the framework could be an MKZ replacement and seven-passenger MKT successor in 2019.
Until the D6-based models hit, expect to see continued expansion from Lincoln. Ford management isn't trying to turn around the division overnight and is planning "in terms of generations of products," according to current CEO Mark Fields. The strategy unsurprisingly includes a production version of Lincoln's recent MKX Concept, as well as an all-new Navigator using aluminum-intensive architecture. Reuters also claims the MKS is due for renewal in the meantime, including with a longer-wheelbase version to appeal to the brand's new Chinese buyers.

Analysts warn Lincoln shouldn't follow Ford out of the sedan market

Lincoln looks set to mimic Ford's on-going shift away from sedans. The move makes sense on the surface, but analysts warn the luxury brand needs to keep some low-riding models in its portfolio. The company's current lineup includes two sedans, the MKZ and the Continental, plus five SUVs. The sedans aren't long for this world, according to The Detroit Free Press. The publication learned Ford's Hermosillo, Mexico, factory will stop manufacturing the MKZ in late 2020 or early 2021, and it pointed out UAW documents note Continental production will continue "through its product lifecycle." In other words, it's the last model on the Continental branch of the Lincoln family tree. These two nameplates represent 23.3 percent of Lincoln's annual sales so far in 2019, which is a surprising and respectable statistic. One in four cars the company sells is a sedan. The problem is that they accounted for 27.6 percent of the firm's sales in 2018, and that number will continue to fall in 2020 as customers flock towards crossovers and SUVs. And yet, exiting the sedan market isn't the right answer for a company that wants to re-establish its reputation as a luxury automaker. Eric Noble, the president of consulting firm CarLab, told The Detroit Free Press about 40 percent of American buyers in the market for a luxury car choose a sedan. The Chinese market — where Lincoln hopes to gain a secure foothold in the coming years — also has a healthy appetite for sedans. Going SUV-only is a strategy that might work well in the United States, but it doesn't suit Lincoln's ambitions. Germany's big three luxury brands all have a flagship sedan at the top of their range. We can't argue against sales data; the sedan market is shrinking. There are ways to keep buyers in the fold, however. The Continental is a stellar effort from the brand, and a solid foundation on which to build. Noble pointed out Lincoln could use the rear-wheel drive platform found under its Aviator and Ford's latest Explorer to build a four-door model with a fastback-like roof line in the vein of the Audi A7. It's a sleeker, sexier body style that tends to attract more buyers than a more conventional three-box sedan, which is often criticized as old-fashioned. Automakers can normally get away with charging a little bit more for these cars; the A7 is more expensive than the A6, for example. Electrification could be the Lincoln sedan's saving grace.

The Lincoln Way seeks to woo customers with unique services

Lincoln has been fighting hard to shed their image as a luxury brand for the elderly. The company has recently introduced or updated nearly every vehicle in its fleet in order to literally put a new face on the brand. Options, like the Black Label program, attempt to pull influence from high-end automakers that provide services extending beyond scheduled oil changes. Now, Lincoln is introducing a program that it refers to as The Lincoln Way, a suite of customer-oriented services that the company hopes will set it apart from the pack. All of this starts this fall when the new Continental goes on sale. Customers will have access to services like vehicle pickup and drop off and complimentary loaner vehicles. The company is planning more incentives for the future, but details are vague. Lincoln parent Ford is offering similar services on the upcoming GT. The Lincoln Way seems to be an expansion of some services already offered under the Black Label program. Right now, Black Label includes scheduled maintenance, car washes, and concierge services, as well as exclusive vehicle colors and options. The program is pricey and only available on some models in some states, though Lincoln plans on expanding Black Label's reach. In addition to these services, Lincoln is opening a showroom of sorts, called the Lincoln Experience Center, in Newport Beach, California. The facility won't actually sell vehicles. Instead, customers can come and learn about the brand, build and price vehicles, and take test drives. The Experience Center will then put customers in contact with local dealers. Lincoln says the increased focus on customer care and satisfaction draws influence from the company's growth in China. Since the introduction of The Lincoln Way services, sales in China have grown greatly. Sales in the United States, like China, have been improving the past few years. With the introduction of The Lincoln Way, the company hopes that Matthew Mcconaughey won't be the only draw for future customers. Related Video: Lincoln Ownership Luxury lincoln black label