Ford's financial crisis starves Lincoln lineup

By CHARLES CHILD | Automotive News

As Cadillac builds momentum with fresh products, rival Lincoln is stuck in neutral.

Ford Motor Co.'s luxury division suffers from lackluster products. The problem: Neglect. Ford's financial crisis dried up investments for the brand.

COO Nick Scheele says new products are on the way. But Ford will not spend the billions on Lincoln that General Motors spent at Cadillac. Instead, Ford plans to give Lincoln two Mazda6-based vehicles, plus a new rear-drive large sedan.

There is a sense of urgency at Lincoln, whose sales nose-dived from 193,009 in 2000 to 150,057 in 2002. From Lincoln's viewpoint, Ford's recent history is a tale of missed opportunities and misplaced priorities.

Former CEO Jacques Nasser poured cash into other luxury brands. He paid $6.5 billion for Volvo Cars in 1999 and $2.9 billion for Land Rover in 2000.

Meanwhile, Ford moved Lincoln's headquarters out of Dearborn, Mich., to Southern California in 1998 and added Lincoln to the Premier Automotive Group. Lincoln reported to PAG Chairman Wolfgang Reitzle, who was 5,500 miles and eight time zones away in London.

Nasser and Reitzle planned to follow in Cadillac's footsteps with a new rwd platform for Lincoln and other PAG brands, but Ford's financial crisis aborted their ambitions.

The enormity of the problem became clear shortly after Bill Ford replaced Nasser as CEO in 2001. At the Detroit auto show three months later, Reitzle told reporters that a new rwd platform for Lincoln and other PAG brands had been axed. The company couldn't afford it.

The Lincoln lineup lacks excitement. Navigator sales are solid, but the Aviator, which was introduced in November, has been disappointing. It is perceived as a knockoff of the Ford Explorer and is priced too closely to the Navigator.

That leaves the Town Car, which is aimed at senior citizens, and the LS, which suffers from vanilla styling.

Lincoln sold 106,577 vehicles in the first eight months of this year, compared with 135,051 for Cadillac.

To get Lincoln back on its feet, Bill Ford pulled Lincoln out of PAG and back into North American operations. Reitzle, a Nasser hire, left the company last year.

Scheele says Ford will revive Lincoln and make the luxury brand competitive with Cadillac. "It will (be competitive) but without the billions," Scheele said. "I'm very comfortable with where Lincoln is going. We did have some problems."

Executives say Lincoln will get three new products within the next three years:

A mid-sized sedan, related to the coming Ford Futura and based off the Mazda6, is coming. Lincoln has not released timing, but the Futura is scheduled to debut in 2005.

An all-wheel-drive sport wagon, also based on the Mazda6, is slated for production in August 2006 as a 2007 model.

A flagship rwd sedan is planned, though Lincoln officials are sketchy about its arrival date. Ford product developer Chris Theodore said in April that the vehicle is based on the LS platform. But a Ford official says that is not certain.

Under the Reitzle revival plan, Lincoln would have received more new products than planned now. Not only were they too expensive, but Lincoln Mercury dealers objected.

The dealers wanted to balance product investment between Lincoln and Mercury, says John Fitzpatrick, general marketing manager at Lincoln Mercury.

Mercury sales are key to supporting Lincoln Mercury dealers, Fitzpatrick says. The Mercury Grand Marquis and Mercury Mountaineer alone will account for about 115,000 retail sales - or 40 percent - for Lincoln Mercury dealers in 2003.

Mercury is getting four new products by the end of 2005. The two brands must continue as unique but complementary lineups, Fitzpatrick says.

"Our dealer network does not survive without those two unique brands through the same retail outlet," Fitzpatrick says. "Cadillac, they are doing some of these new things. But we have to be careful that we're not dismissive to Mercury."

Automotive News Staff Reporter Amy Wilson contributed to this report

 

i don't think a mazda 6 based lincoln is a good idea.

 

I don't think much of anything Ford has done recently has been a good idea.

 

they have some good things comming, this isn't one of them.

 

Sheesh. So Lincoln's revival plan is going to depend on a freaking Mazda platform? I suppose Ford execs didn't pay attention to the Cadillac Cimmaron.

I have to admit, as much as we might not like Cadillac's stranglehold on Sigma it makes a lot of sense. You won't find stuff like rebadged Subbies in Caddy's future lineup.

 

I think pulling Lincoln out of PAG may be a good thing. Lincoln needs new product. If building a mazda-6 based car gets them a descent volume seller, then in time they could move back to PAG.
The car should be beyond mazda quality.

Remember, Acura builds some of it's cars off the accord platform and they sell. lexus does the same thing with the camry. If the mazda-6 gives them a descent volume car to earn money, they should build it. I do also think that this could also become Lincoln's version of the Cadillac the cimmaron.

I don't want to see it happen, but hey, you gotta do what you gotta do.

 

You know, I never thought of it that way.

Good point.

 

As true as that is, people have a little (lot) higher opinion of Honda Motorcars than Mazda, thus making people not even care about an Acura sharing Honda pieces. If Lincoln can do this without looking like Mazdas, it just might work. I still don't like the sound of that though.

 

Hopefully people won't look at this negatively. This Lincoln is going to have to be dang good, though. Personally, I've always loved the LS, but I would like to see a CTSv-like model. (of course )

 

Is their goal to be competitive with Caddy sales wise, or car wise? I dont think we'll see $76k Lincolns selling to anyone. Regardless, it'd be nice to have another American luxury car company being strong again.

 

Then again, Acura is not really considered a luxury line (more like the "nice" Honda) and Lexus is still considered Mid-Lux. If Lincoln is striving for Mid-Lux status then this could work. I'd like to see them strive for better.

 

The article didn't mention the LS sedan, Lincoln's best car, and a match for anything in its price range with the available V8--great handling, etc. Since it shares the Jag S-Type platform, I think Lincoln has lots of room to work, and new cars can share investment dollars with Jaguar. I think the article shows serious flaws.

 

Not flaming you,But speaking of the Mazda 6,Have you heard any auto mag. report negative findings?Ive seen them love the car.The Mazda 6 platform is capable of AWD so it has a ways to go as far as proving its self.Not that it hasnt already...

 

This is a funny post Chuck.Just few years ago NOBODY would of seen a caddy have a 76K pricetag.(over priced joke IMHO)It does not mean Lincoln cannot do it.I dunno a Ford GT screws a Mark VIII maybe?
But Lincoln is not following Caddy.Lincoln doesnt have performance in its mind right now.It has a lil to do with the article at the top of this page buddy.

 

No, the rags seem to like it. All I am saying is that your traditional Lincoln customer won't care how good a Mazda is when they want a Lincoln and not a Lincolnized Mazda. Know what I mean? Same kind of deal with the Aviator. A Lincolnized Exploder for big cash. Now it's going away.