Amidst the allure of Matthew McConaughey’s commercials, the trajectory of Lincoln has been steadily upward. Through strategic investments in crossovers, coupled with the success of its flagship sedan, the Continental, and SUV, the Navigator, Lincoln has evolved into a more prominent luxury brand than during the era of the grand Panther-platform Town Car.
Yet, Lincoln aims to enhance its brand standing by urging 150 dealers in 30 key markets to establish separate, independent showrooms for Lincoln, diverging from the current practice of sharing facilities with Ford. Notably, these 30 markets represent the bulk of luxury car sales in the U.S., as highlighted by Automotive News.
Presently, roughly half of these dealerships have initiated construction of new Lincoln-exclusive spaces, with corporate urging the remaining dealers to follow suit. The objective is to secure commitments for new showrooms by the upcoming summer, to be completed by the end of the decade. This transition typically involves creating distinct showrooms solely for Lincoln, ensuring its luxury vehicles have dedicated showcase areas separate from more commonplace Fords. However, service and financing aspects can still be linked to the primary Ford dealership.
So, what’s the motivation behind this shift? As per Automotive News, Lincoln observed a commendable 18% increase in overall retail sales from 2014 to 2017, while standalone dealerships experienced a remarkable growth of up to 48% during the same period. Separate outlets can command higher prices and offer reduced discounts, resulting in superior profit margins, a mutually beneficial situation for both dealers and the brand. Moreover, an exclusive and aesthetically pleasing space, along with upgraded amenities, enhances the luxury brand’s appeal.
The fact that Lincoln finds itself in a position to enact such a plan is indeed noteworthy. Following the challenges of the 2008 economic crisis and a sluggish recovery, Lincoln’s current product lineup and brand reputation have evolved to a point where standalone Lincoln dealerships are now a sought-after destination, reflecting a significant transformation for the brand.
