Wednesday, October 6, 2010

Reviving Lincoln

Once upon a time Lincoln had as much status as Caddy. Lincoln used to furnish presidential limo's, at least in Democratic administrations.
Used to be the proper noun "Lincoln" meant a luxury sedan sold by dedicated Lincoln dealers. Now "Lincoln" denotes a merely plusher level of interior trim on Ford cars.
Ford Motor company, hoping to make a bit more money, announced that it would "revive" the Lincoln brand. For car companies, luxury cars are profit sources. They can be sold for twice the price of ordinary cars but they cost little more to make than ordinary cars. Instant profit margin. The current Lincoln lineup is merely Fords with a Lincoln badge affixed to them, the public recognizes this, and hence Lincoln doesn't sell very well, or for very much, and the resale value sucks. Most people won't pay luxury car prices for a Ford with just a badge on the trunklid and a different grill.
Assuming Ford actually puts up the cash to design a new Lincoln, one wonders what they will make. They could stick with the 6 passenger American sedan. It may be a geezer mobile, but there are a lot of geezers out there and they tend to have money. If they did some design work to gain more trunk space for taking kids to camp and to college, they might really have something. Say arrange for the rear seat backs to fold down and extend the trunk right up to the front seatbacks.
Or they could switch to making Mercedes/BMW type Euro sedans. Caddy is working on this. They are having customer perception troubles. When the customer thinks of "Caddy" he thinks of a full sized sedan and has trouble seeing the compact Caddys as real Caddys, especially the six cylinder ones.
Or they could do a luxury SUV. For a while Hummer made money for GM, but the gas price spike killed it and GM sold it to the Chinese. But it might be possible to build a less thirsty SUV, say 25 mpg and sell it. The SUV is popular with married folks cause it holds all the children, will carry plywood home from the lumber yard and furniture home from the auction. On the down side, married with children families tend to be a little cash strapped and buy the low end brand to save money

No comments: