Dive Brief:
- Ford’s luxury unit Lincoln Motor Co. is working to reduce its sales network after lowering its dealer count by more than 100 in 2023, the company said in an email.
- A company spokesperson said it would work with its remaining dealers individually to determine what works best for their needs in the future and that the buyouts are “not a one-size-fits-all approach.”
- The buyouts are part of an effort to reduce Ford's sales network, according to company spokesperson Anika Salceda-Wycoco.
Dive Insight:
Although the company did not provide the locations of the dealers that accepted buyouts, Lincoln is working to ensure that the brand is represented in major car markets in the U.S., where it says most luxury vehicle sales occur.
“Over the last several years, we have been working to ensure we have the right representation in the top luxury markets which represents 90% of luxury industry sales,” Salceda-Wycoco said in an email.
Lincoln declined to provide the dollar amount its dealers received for the buyouts.
In 2021, Ford’s luxury brand had 685 U.S. dealers. The number dropped to 637 in 2022. By the end of 2023, Lincoln had just over 500 retail locations, according to Salceda-Wycoco.
Ford reported Lincoln brand sales of 81,818 vehicles in 2023, a 2% drop from a year earlier. Sales of the luxury Aviator SUV were down 29.2% year over year, while sales of the Corsair dropped 11.9% YoY. In contrast, sales of the Lincoln Navigator were up 32.9% in 2023 to 17,549 vehicles.
In 2022, Ford named Dianne Craig as Lincoln’s new president. She was the former CEO of Ford Motor Co. of Canada. As president of Lincoln, Craig is responsible for growing it into a global luxury brand, as well as leading Lincoln’s transition to a fully electric luxury car brand, according to Ford.
A year ago, Ford told the Detroit News that around 60% of its Lincoln dealers opted to sell electric vehicles, including an investment of up to $900,000 to sell and service them.
