Lincoln Aviator isn't doing so well
04-28-2003, 08:24 AM
#1
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Lincoln Aviator isn't doing so well
(08:54 April 28, 2003)
Lincoln Aviator sales sputter; dealers say the new SUV is priced too high
By AMY WILSON | Automotive News
Though Aviator sales have been slow, Lincoln has seen signs of hope in younger buyers.
DETROIT - Even as Lincoln dealers worry about a product dearth, the luxury brand's newest vehicle is getting off to a slow start.
Five months after it reached showrooms, sales of the 2003 Lincoln Aviator SUV have disappointed some dealers, and a key Ford Motor Co. executive even acknowledged that the Aviator hasn't sold as well as expected. Dealers say the $40,000-plus SUV is priced too high, while the automaker says it needs some time to evaluate the Aviator's performance in a war economy and to give advertising a chance.
The Aviator's success is key for Lincoln dealers, who are concerned about a thinning product lineup and slipping sales. Lincoln's U.S. sales dropped by 5.6 percent in 2002 to 150,057 vehicles, its third decline in the last four years. Lincoln has said it is responding to the concerns with three new vehicles in the next three years.
Lincoln started advertising the Aviator in February and has seen some recent gains.
"It could be doing slightly better, but it gained a lot of momentum in March versus February," says Jim O'Connor, Ford group vice president for North America marketing, sales and service. "I would say it's priced a little high."
U.S. dealers sold 6,789 Aviators from its November 2002 introduction through March, when sales jumped 52.8 percent from February levels to 2,245. Inventory soared to a huge 160-day supply at the beginning of March and dropped to a still-high 113 days on April 1. Lincoln has targeted Aviator sales of 30,000 to 35,000 in 2003.
Because of price, many shoppers who look at an Aviator end up buying the larger Lincoln Navigator SUV, which starts at $49,050, or the similar-sized Mercury Mountaineer SUV, which starts at $29,950, dealers say. Or they cross-shop SUVs and sport wagons sold by import luxury brands such as Lexus or Acura that can be had for less money. The Aviator's list price starts at $39,995 and can top $54,000 for a loaded Kitty Hawk edition.
"Pricing is the one thing that has to be addressed," says Jack Straub of Straub Lincoln-Mercury in Keyport, N.J.
Lincoln officials say the Aviator has attracted more import buyers and younger buyers than other Lincolns.
But given price and its styling similarities to the Navigator, the Aviator is not likely to add incremental sales to Lincoln Mercury, says Jeff Schuster, director of North American forecasting for J.D. Power and Associates.
For $10,000 less, a buyer could get substantially the same vehicle in the Mercury Mountaineer, he says.
"It pretty much is feeding on itself," Schuster says.
The automaker still is working on the right pricing formula for the Aviator, O'Connor says.
While adjusting the list price isn't under consideration, Lincoln began offering 0 percent financing or a $3,000 cash rebate on the Aviator this month. Those are high incentives for a vehicle so new to the market.
Cutting production is another option if stocks remain high.
"It's off the same (platform) as the Mountaineer and Explorer," O'Connor says. "Both of those are selling well, and while there's more margin in Aviator for the company, it's not like you lost all your margin. We're mixing."
Lincoln Aviator sales sputter; dealers say the new SUV is priced too high
By AMY WILSON | Automotive News
Though Aviator sales have been slow, Lincoln has seen signs of hope in younger buyers.
DETROIT - Even as Lincoln dealers worry about a product dearth, the luxury brand's newest vehicle is getting off to a slow start.
Five months after it reached showrooms, sales of the 2003 Lincoln Aviator SUV have disappointed some dealers, and a key Ford Motor Co. executive even acknowledged that the Aviator hasn't sold as well as expected. Dealers say the $40,000-plus SUV is priced too high, while the automaker says it needs some time to evaluate the Aviator's performance in a war economy and to give advertising a chance.
The Aviator's success is key for Lincoln dealers, who are concerned about a thinning product lineup and slipping sales. Lincoln's U.S. sales dropped by 5.6 percent in 2002 to 150,057 vehicles, its third decline in the last four years. Lincoln has said it is responding to the concerns with three new vehicles in the next three years.
Lincoln started advertising the Aviator in February and has seen some recent gains.
"It could be doing slightly better, but it gained a lot of momentum in March versus February," says Jim O'Connor, Ford group vice president for North America marketing, sales and service. "I would say it's priced a little high."
U.S. dealers sold 6,789 Aviators from its November 2002 introduction through March, when sales jumped 52.8 percent from February levels to 2,245. Inventory soared to a huge 160-day supply at the beginning of March and dropped to a still-high 113 days on April 1. Lincoln has targeted Aviator sales of 30,000 to 35,000 in 2003.
Because of price, many shoppers who look at an Aviator end up buying the larger Lincoln Navigator SUV, which starts at $49,050, or the similar-sized Mercury Mountaineer SUV, which starts at $29,950, dealers say. Or they cross-shop SUVs and sport wagons sold by import luxury brands such as Lexus or Acura that can be had for less money. The Aviator's list price starts at $39,995 and can top $54,000 for a loaded Kitty Hawk edition.
"Pricing is the one thing that has to be addressed," says Jack Straub of Straub Lincoln-Mercury in Keyport, N.J.
Lincoln officials say the Aviator has attracted more import buyers and younger buyers than other Lincolns.
But given price and its styling similarities to the Navigator, the Aviator is not likely to add incremental sales to Lincoln Mercury, says Jeff Schuster, director of North American forecasting for J.D. Power and Associates.
For $10,000 less, a buyer could get substantially the same vehicle in the Mercury Mountaineer, he says.
"It pretty much is feeding on itself," Schuster says.
The automaker still is working on the right pricing formula for the Aviator, O'Connor says.
While adjusting the list price isn't under consideration, Lincoln began offering 0 percent financing or a $3,000 cash rebate on the Aviator this month. Those are high incentives for a vehicle so new to the market.
Cutting production is another option if stocks remain high.
"It's off the same (platform) as the Mountaineer and Explorer," O'Connor says. "Both of those are selling well, and while there's more margin in Aviator for the company, it's not like you lost all your margin. We're mixing."
04-28-2003, 08:30 AM
#2
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I sort of questioned the idea of the Aviator from the beginning...
Do you really want your top luxo-brand having a small(er) SUV?
I don't know if that's the image I'd like to project if I am Lincoln. It'd be kind of like Cadillac doing a version TrailBlazer... I think GM did this right by leaving that to Buick (Ranier) (originally Olds (Bravada))... and I think Ford should have left that to Mercury (Mountaineer), but instead, they have given the same baic car to their entry division (Ford (Explorer)) their mid-lux (Mercury (Mountaineer)) and their Full-Lux (Lincoln Aviator))... doesn't add up for me.
Do you really want your top luxo-brand having a small(er) SUV?
I don't know if that's the image I'd like to project if I am Lincoln. It'd be kind of like Cadillac doing a version TrailBlazer... I think GM did this right by leaving that to Buick (Ranier) (originally Olds (Bravada))... and I think Ford should have left that to Mercury (Mountaineer), but instead, they have given the same baic car to their entry division (Ford (Explorer)) their mid-lux (Mercury (Mountaineer)) and their Full-Lux (Lincoln Aviator))... doesn't add up for me.
Last edited by Darth Xed; 04-29-2003 at 07:41 AM.
04-28-2003, 08:56 AM
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<turn on Sam Kinnison voice now>
It's the friggin' PRICE!!!
<turn off Sam Kinnison voice now>
For heaven's sake, when will they come to their senses!
Ford has gone cuckoo with their pricing on some of these units lately, and I'm starting to get a rashyass over it all.
The T-bird, Marauder, Superduties, even the SUVS - they are all WAY FRIGGIN' TOO HIGH PRICED. They are all pretty neat cars with something unique to bring to market, but a little uniqueness alone doesn't give them the right to charge exhorbitant prices.
I don't have any facts to support this particular model, but I'd bet that the margin on this new vehicle is near $20K... which is just insane. The shameful part is when the buyer goes into an import model because the import dealer is able to offer a more realistic price to the common guy.
Maybe they have blinders on that have guionM's message written inside them,"higher priced models sell better than base ones". In many cases, I agree, but I wouldn't make that my new modus operandi or business model... Geez.
It's the friggin' PRICE!!!
<turn off Sam Kinnison voice now>
For heaven's sake, when will they come to their senses!
Ford has gone cuckoo with their pricing on some of these units lately, and I'm starting to get a rashyass over it all.
The T-bird, Marauder, Superduties, even the SUVS - they are all WAY FRIGGIN' TOO HIGH PRICED. They are all pretty neat cars with something unique to bring to market, but a little uniqueness alone doesn't give them the right to charge exhorbitant prices.
I don't have any facts to support this particular model, but I'd bet that the margin on this new vehicle is near $20K... which is just insane. The shameful part is when the buyer goes into an import model because the import dealer is able to offer a more realistic price to the common guy.
Maybe they have blinders on that have guionM's message written inside them,"higher priced models sell better than base ones". In many cases, I agree, but I wouldn't make that my new modus operandi or business model... Geez.
Last edited by ProudPony; 04-28-2003 at 09:00 AM.
04-28-2003, 10:10 AM
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All the pricing on newer vehicles is nuts.
If you think the Superduty's are high, look at the GM HD's. I saw a recent comparo between all of the Heavy duty diesel trucks and the Superduty's price was about $10K less than a similarly equiped GM HD. The Dodge was somewhere in the middle of the two.
You can buy 1/2 ton trucks now with MSRP's in the mid 40's (Silverado SS, GMC Denali w/quadrasteer), or the high 30's (Ford Harley truck), and people used to think the price for a Lightning was high.
I think sales of the Aviator have been slow becuase they just came out and then there was war. Nothing has been selling unless it is given away (aka large incentives and 0% financing). High priced non essential items have taken a hit (with the exception of the H2........ never underestimate the amount of men with something to prove
).
I think GM will be shooting itself in the foot also with the pricing of the CTSV. Here everyone was hailing GM as their saviour when they thought they would be in the mid 30's. I had no such delusions, as I knew they would not be that nice when the standard CTS runs from $30,000-36,000. Now we hear they will come in around $50K. That is a large chunk of change. People can get a pretty nice Mercedes or BMW for that price.
I guess we will have to see how this all goes. Everyone wants to play the "I'm selling you a Maybach, but am only charging you Cadillac prices" game these days. Some are going to win......... I think many will lose.
If you think the Superduty's are high, look at the GM HD's. I saw a recent comparo between all of the Heavy duty diesel trucks and the Superduty's price was about $10K less than a similarly equiped GM HD. The Dodge was somewhere in the middle of the two.
You can buy 1/2 ton trucks now with MSRP's in the mid 40's (Silverado SS, GMC Denali w/quadrasteer), or the high 30's (Ford Harley truck), and people used to think the price for a Lightning was high.
I think sales of the Aviator have been slow becuase they just came out and then there was war. Nothing has been selling unless it is given away (aka large incentives and 0% financing). High priced non essential items have taken a hit (with the exception of the H2........ never underestimate the amount of men with something to prove
). I think GM will be shooting itself in the foot also with the pricing of the CTSV. Here everyone was hailing GM as their saviour when they thought they would be in the mid 30's. I had no such delusions, as I knew they would not be that nice when the standard CTS runs from $30,000-36,000. Now we hear they will come in around $50K. That is a large chunk of change. People can get a pretty nice Mercedes or BMW for that price.
I guess we will have to see how this all goes. Everyone wants to play the "I'm selling you a Maybach, but am only charging you Cadillac prices" game these days. Some are going to win......... I think many will lose.
Last edited by 94LightningGal; 04-28-2003 at 10:12 AM.
04-28-2003, 11:09 AM
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Those damned writers are forgetting a BIG piece of the puzzle.When it comes to mid size luxo SUV merc and lincoln are kind of fighting for the same basic turf.Kinda doing a GM and slicing each others throat.The Mountaineer will be gone as of next year and then the Aviator will do much better.Will it hit its sales target?NOBODY knows.But it will stand a better chance when the Merc is gone.
04-28-2003, 12:10 PM
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Perhaps people have gotten wise to the "rebadged ____" concept that automakers loved to use in the 80's.
The Lincoln version has a bit nicer interior but it is still shaped like an Explorer, probably drives like an Explorer...save your money and buy the Explorer.
The Lincoln version has a bit nicer interior but it is still shaped like an Explorer, probably drives like an Explorer...save your money and buy the Explorer.
04-28-2003, 12:35 PM
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What, you mean that $45K is too much for a rebadged Explorer? I think this might be the first signs of the collapse of the mid-lux SUV market.
I haven't found too much difference in price between identically-equipped Superduties and GM HDs when shopping for a diesel to replace my current truck - both were way too expensive for me to consider at this time, and both had that wonderful pricing/option structure that pretty much forced one into the $45K range.
I haven't found too much difference in price between identically-equipped Superduties and GM HDs when shopping for a diesel to replace my current truck - both were way too expensive for me to consider at this time, and both had that wonderful pricing/option structure that pretty much forced one into the $45K range.
04-28-2003, 01:15 PM
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Priced too high? ABSOLUTELY!!!
I took a look at the Aviator, but couldn't stomach paying the obviously inflated asking price for what others have accurately deemed a re-badged and re-interiored (albiet nicely!) Explorer.
I was really only looking for a comfortable, nicely appointed, smooth riding vehicle with a ton of storage space.
So I bought a Trailblazer...
Some might say "but it's not in the same league as the Aviator!"
Well, I'd have to disagree. Similar power (the Trailblazer gives up <30 hp and 25 ft-lbs of torque -- but weighs 350 lbs less!), similar ride, better front-seat room in the 'blazer, better fuel economy, similar storage, and it has a REAL 4wd system (for the admittedly rare occasion that this thing is going to hit the mud). Ok, so it doesn't LOOK as upscale. Fine with me. As far as I'm concerned, it's a better vehicle.
No brainer, really. Saved over $10K USD too...
-J
I took a look at the Aviator, but couldn't stomach paying the obviously inflated asking price for what others have accurately deemed a re-badged and re-interiored (albiet nicely!) Explorer.
I was really only looking for a comfortable, nicely appointed, smooth riding vehicle with a ton of storage space.
So I bought a Trailblazer...
Some might say "but it's not in the same league as the Aviator!"
Well, I'd have to disagree. Similar power (the Trailblazer gives up <30 hp and 25 ft-lbs of torque -- but weighs 350 lbs less!), similar ride, better front-seat room in the 'blazer, better fuel economy, similar storage, and it has a REAL 4wd system (for the admittedly rare occasion that this thing is going to hit the mud). Ok, so it doesn't LOOK as upscale. Fine with me. As far as I'm concerned, it's a better vehicle.
No brainer, really. Saved over $10K USD too...
-J
04-28-2003, 01:16 PM
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Actually, the Aviator against the Explorer is supposed to be a much bigger difference than the Mountaineer against the Explorer.
The Aviators suspension is set up completely different, the engine is different (and much more powerful at 302hp) and the interior is completely different.
However, I do not see how Ford doing this is any different than GM having a Trailblazer, Envoy and Bravada that are all the same vehicle.......... or the Yukon XL/Suburban....... or the Tahoe/Yukon....... or the Sierra/Silverado......... or the...............
The Aviators suspension is set up completely different, the engine is different (and much more powerful at 302hp) and the interior is completely different.
However, I do not see how Ford doing this is any different than GM having a Trailblazer, Envoy and Bravada that are all the same vehicle.......... or the Yukon XL/Suburban....... or the Tahoe/Yukon....... or the Sierra/Silverado......... or the...............
04-28-2003, 01:40 PM
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Its called badge engineering....... no matter how you look at it.
Oh, I forgot to add Isuzu's version of the TB/Envoy/Bravada. I forget what its name is.
Basically, this is when you take the same vehicle, make it look a little bit different, trim the interiors differently, and call it a different vehicle........ when really, all it is is the same vehicle.
Companies do this to save money.
GM is the master of this. Ford is just following their lead......... sorry they do not have as many divisions to pass the same products on to.
Oh, I forgot to add Isuzu's version of the TB/Envoy/Bravada. I forget what its name is.
Basically, this is when you take the same vehicle, make it look a little bit different, trim the interiors differently, and call it a different vehicle........ when really, all it is is the same vehicle.
Companies do this to save money.
GM is the master of this. Ford is just following their lead......... sorry they do not have as many divisions to pass the same products on to.
04-28-2003, 01:42 PM
#12
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Originally posted by SNEAKY NEIL
It would be the same if GM rebadged the Trailblazer as a Cadillac, so the 2 are not the same. Something similar would be the Mountaineer and Explorer.
It would be the same if GM rebadged the Trailblazer as a Cadillac, so the 2 are not the same. Something similar would be the Mountaineer and Explorer.
04-28-2003, 07:19 PM
#13
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Its funny how some here can say the Aviator is just a rebadge.It is far from that.The thing has more bells and whistles then the GM mid SUV's,So yeah it would go up higher in price.It is better equipped them the Explorer so its price isnt to bad.Sure when you look at the price your sticker shocked but when you compare it to the competition what does GM got?
The Aviators pricing starts right where the Mountaineer's stops.So it is in the right price range.
The Aviators pricing starts right where the Mountaineer's stops.So it is in the right price range.
04-28-2003, 08:17 PM
#14
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I'd blame it on very little press and advertising, Compare the name reconition to the Navigator or escalade or benz.
It looks like a great SUV, interior is so nice. I'd love to own one.
I think another problem is that it looks too much like a 1998 Navigator, people might be ready for something new style wise.
It looks like a great SUV, interior is so nice. I'd love to own one.
I think another problem is that it looks too much like a 1998 Navigator, people might be ready for something new style wise.
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