Lincoln To Terminate 200 Franchises, Mostly In Urban Areas

Lincoln To Terminate 200 Franchises, Mostly In Urban Areas
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Lincoln, Ford’s luxury brand, has a problem; too many dealers hocking not enough product. While recent Lincoln’s have been well received by critics, it’s not necessarily translating into sales.

Lincoln moved 83,000 cars last year, while class leader Lexus sold about 216,000 – a pretty substantial gulf. And while Lexus only has 230 dealerships in the United States, Lincoln has 1,221.

Ford is hoping to put a revitalization plan into action that calls for eliminating at least 200 dealerships, mainly in urban areas where there are an abundance of Lincoln stores. Surviving dealerships will be upgraded to give a “premium” feel rather than just the “other half of a Ford showroom” vibe. Sounds like a good idea, but Ford shouldn’t forget what makes all the difference; product.

[Source: Bloomberg]