Lincoln Seeing a Revival
By DEE-ANN DURBIN – Associated Press
Nov. 14, 2007
The following story was also posted online at www.leasetrader.com.
Lincoln, long content to be your grandfather's brand, is enjoying a revival thanks to new products and a new emphasis at Ford Motor Co. on rebuilding the 86-year-old nameplate.
Those efforts will be in focus Wednesday with the introduction of Lincoln's new flagship sedan, the MKS, at the Los Angeles Auto Show. The auto show opens to the public Friday after two days of media previews.
But Ford still has a tough road ahead educating consumers and re-establishing Lincoln as a brand with meaning and cache, industry analysts say.
"Lincoln does have brand baggage, and when you couple that with unfamiliar model names, you're really up against a lot of marketing challenges," said Rebecca Lindland, an auto industry analyst with the consulting company Global Insight.
Lincoln sales rose 15 percent in the first 10 months of this year — more than any other luxury brand — largely on the strength of the new MKX crossover. The Navigator sport utility vehicle and the MKZ sedan each surged 8 percent, helping cover double-digit declines for the Town Car sedan and Mark LT pickup.
Lincoln hopes to extend the upward momentum with the elegant MKS. Peter Horbury, Ford's executive director of design for the Americas, said the company used design cues from Lincolns of the past, including a distinct double-wing grille from 1941, to give the MKS its clean, confident look.
The MKS, which will go on sale next summer, has a 3.7-liter, V-6 engine with 270 horsepower. Later in 2008, Ford will also offer an MKS with direct-injection engine technology that gives the vehicle the torque and power of a V-8 with the fuel efficiency of a V-6. The MKS has Ford's Sync system, which allows drivers hands-free access to mobile phones and media, and a capless fuel system designed to reduce emissions. The MKS starts at around $38,000, slightly less than a Cadillac DTS.
"We think we have a strong entry here to really entice folks," said Mark Fields, Ford's president of the Americas, at a recent media preview for the MKS in Dearborn, near Ford's headquarters.
Fields said Ford is trying to redefine Lincoln as a brand for those who appreciate understated luxury.
"It's not the person who wants to shout, 'I made it,' but wants to celebrate that," he said.
The real hope is that the MKS will aid Lincoln's quest to capture younger buyers. The average age of Lincoln buyers is 61, according to Lincoln marketing manager Mike Richards. Buyers of the stately Town Car sedan are over 70, he said, but newer models have been bringing the brand's age down. The average Navigator buyer is 49, he said, and the company is targeting 48 as the average age for the MKS buyer.
Art Spinella, president of CNW Marketing Research, an automotive research firm in Oregon, said he's seeing more consideration for Lincoln, especially among young buyers. After nearly collapsing a few years ago, Lincoln is on its way to a brand revival similar to that of Cadillac in the late 1990s, Spinella said.
"This isn't going to turn around quickly, but it's not the disaster it looked like it was going to be two years ago," he said.
Lindland said Lincoln has been hurt by an alphabet soup of new vehicle names. The MKX sedan was originally called the Zephyr, while Ford was expected to call the MKZ the Aviator but changed course. It's an echo of the problems at the Ford brand, which scrapped the Taurus name only to bring it back for the 2008 model year.
"There's a lot of confusion on the consumer end with all the name changes they have," Lindland said. "They're having to start over with so many vehicles instead of building from a foundation. It's very expensive and it's very time consuming."
Lindland said Lincoln should focus on its heritage, since that's something Asian competitors like Lexus and Acura don't have. The MKS, for example, can boast seats from the same company that supplied the leather for the Model T.
"Heritage doesn't need to be baggage. It can be positive," she said. "Lincoln needs to take advantage of it."
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This story posted by LeaseTrader.com, the automotive service company that lets people transfer out of their Car Leases early. If you're looking to swap a lease or transfer out of your car lease, please visit www.leasetrader.com