In an effort to try and stimulate falling sales of it’s North American luxury brand, Ford Motor Company has announced it will be spending $1 billion in a last-chance revitalization effort.
Lincoln has been struggling in the luxury sector, faced with stiff competition from German and Japanese brands with a product portfolio that essentially consists of badge-engineered Fords.
In 2010, the brand sold 85,828 cars in the US, by comparison, BMW sold more than that from just one of its product lines (the 3-Series sold more than 100,000 units during the same period).
And with the imminent demise of the highly-profitable Town Car, the brand’s fortunes are set to decline even further, especially in the short term.
Nevertheless, Ford has said that for the time being, it remains committed to revitalizing it’s premier marque, though today, $1 billion doesn’t go a long way in the automobile business, especially for an entire brand.
A good deal of the revitalization plan involves asking dealers to commit to Lincoln, by upgrading their stores to bring them more in-line with imported luxury brands, though Ford says it plans to reduce the total number of Lincoln franchises.
Nevertheless, that should give the remaining retailers are chance to boost their bottom line, especially if the automaker sticks to its promises of bringing to market seven new products within the next five years.
[Source: Left Lane News]