Instead of completely shutting down its rental and fleet vehicle sales departments, The Lincoln Motor Company is intentionally scaling back the distribution of Lincoln cars and SUVs to daily rental and fleet companies involved in for-hire business activities.
The term “black car,” which has dominated the rental, taxi, and shuttle industry for many years, originates from the iconic Lincoln Towncar, a vehicle that will likely always be linked to chauffeured transportation.
While being a prominent choice in any industry usually indicates success, Lincoln’s marketing director, Robert Parker, mentions that the oversaturation of Lincoln vehicles in these commercial sectors has had a negative impact on ownership experiences and the residual values of the vehicles.
As reported by Automotive News, Lincoln Motor Company has significantly reduced vehicle sales to companies like Hertz and Avis, and has ceased providing Lincoln-branded vehicles for internal and commercial use, aligning with Ford’s CEO Jim Hackett’s company-wide strategy.
“These efforts are deliberate actions aimed at enhancing residual values with the introduction of our new products,” Parker shared with Automotive News. “When these vehicles return within six to twelve months, it poses challenges to our residual values due to depreciation. The longer they remain outside, the better it is for us.”
Although these actions may appear somewhat exclusive, it’s crucial to note that Lincoln products such as the Navigator are in high demand for the first time in decades. The Kentucky Plant, where the all-new Navigator is manufactured, is struggling to meet the demand. Most SUVs are being sold within eight to ten days, as opposed to the average of 28 to 34 days for most Ford Motor Company vehicles.
The more Lincoln safeguards the reinvigorated reputation of its brand, the more successful it will be in establishing its own niche in a fiercely competitive market. Achieving this success could pave the way for a highly prosperous launch of several brand-new vehicles, such as the Nautilus and the recently revealed three-row Aviator at the 2018 New York International Auto Show.
