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4/19/2016 0 Comments

The Lincolnaissance: More (and better) models, higher volume


​​When you compete in the car industry it helps to have more models in your line up. This is particularly true in the luxury car segment, where the top makers have significantly more models than the rest of the competitors. For comparison, Lincoln only has 6 models currently, and will offer the 7th with the launch of the new 2017 Continental. 
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Graph by Lincolnrati.com; Source: Wikipedia.org, Lincoln.com, and others.

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​From a historical perspective, Lincoln has never had a large line up of models. The highest number of models was produced in 2010-2011: 7.  In fact, the most successful years, from a sales volume stand point, were achieved offering only 3-4 models. 

Picture
Graph by Lincolnrati.com; Source: Wikipedia.org, Lincoln.com, and others. Different variants of the same model were not included.


​In an effort to catch up with the segment leaders, Lincoln has gradually increased the number of models offered since the late 1990’s. However, the larger offering has not produced the expected sales increase. We can all argue that the deep recession has played an important role, as everyone suffered for a good couple of years. The market rebound has turned things around for the industry and having more models has definitely helped Lincoln.
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Despite the bragging rights and the brand push that come along with the higher sales volume, it is encouraging that Ford and Lincoln are focused on profitability and aligning business plans to the market conditions. Equally encouraging is the fact that Lincoln has often shown up in recent rankings higher than some of its competitors. Quality is an important attribute of luxury brands – probably one of the easiest to understand and compare – and this can only delight the Lincoln enthusiasts. It is a great time to be a Lincoln fan.
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4/5/2016 0 Comments

Where is Lincoln made? (“Appellation MADE IN USA controlee”/ Designation MADE IN USA controlled)


​Have you ever wondered where was your car built? Of the six current models in Lincoln’s line up, three models are assembled in the US, two of them in Canada and one in Mexico. The seventh model coming up in 2017, the new Continental, is scheduled to be built in Michigan.
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  1. Lincoln MKZ:  Hermosillo Stamping & Assembly, Hermosillo, Sonora, Mexico.
  2. Lincoln MKS:  Ford Chicago Assembly, Chicago, Illinois, USA.
  3. Lincoln Navigator: Louisville Kentucky Truck Plant, Kentucky, USA.
  4. Lincoln MKC: Louisville Assembly Plant, Louisville, Kentucky, USA.
  5. Lincoln MKX: Oakville Assembly, Oakville, Ontario, Canada.
  6. Lincoln MKT: Oakville Assembly, Oakville, Ontario, Canada.
  7. Lincoln Continental (2017~): Flat Rock Assembly Plant, Flat Rock, Michigan, USA.
 
There is no “Appellation d'origine controlee” (controlled designation of origin) in case of cars, something like the wines of Europe, but sometimes we wonder why not…Watches made in Switzerland are highly prized and synonymous with unmatched quality. The Swiss watch makers are esteemed, valued brands. They successfully turned the manufacturing location into a differentiator. And the Swiss watch industry is the largest in the world. It is worth thinking about it and learning from it.
 
A “Fine cars of Michigan”, or “Made in Michigan”, or “Made in USA” stamp of quality on a new and proud Continental may give it even more to go along with the high quality. [say: Designation of “Made in Michigan” controlled]. How would it sound? A Continental made 100% (say) in Michigan (or USA), that would launch with a bang, hitting the top spot in all charts, from JD Power and safety scores to every other ranking in the industry. The expectations are high for such a revered brand; "the burden of being Lincoln" is heavy. But there is a great opportunity here - maybe a once in a lifetime opportunity.
 
Well…this is a great time to be a Lincoln fan.


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    ​Welcome back Continental!




    The Royal DNA
    Once upon a time, there was a car synonymous with presidential limos, a car that was the king of cool, a car associated with celebrities and movie stars. That car was LINCOLN. Lincolns were imposing vehicles. They were the darlings of kings, popes, and many people aspired at having one. That was a time when owning a Lincoln really meant something: elegance, style, refinement. Without any doubt, it was a symbol of American Luxury. From Elvis Presley to Elizabeth Taylor, from the Shah of Iran and President John F. Kennedy, to Frank Sinatra, Marilyn Monroe and many others, Lincoln was "the choice".  Lincoln was a true luxury brand and sold some of the nicest cars on the market. The Lincoln brand was the pinnacle of luxury.
     
    Challenging times

    Only a couple of decades ago, Lincoln was the top selling luxury brand in the US, before buyers began defecting to foreign brand like BMW and Lexus. But then came the decline: the brand "was allowed to wither on the vine" as Mark Fileds put it recently. Suffering from poor perceptions, in spite of producing great cars recently, it has been difficult for Lincoln to change those perceptions. It's a great lesson here: it takes a lot of time to repair a damaged reputation, whether you are a product, or a company. You need a lot of money and brilliant marketing to accomplish that transformation.

    New Strategy
    But Lincoln seems to just do the right things:
    "we are not trying to out-German the Germans", said recently Mark Fields, Ford's CEO. And, instead of reinventing itself as a sport or performance brand, trying to replicate the German brands, Lincoln seems to draw upon its illustrious past, finding inspiration in the best of its history. The Lincoln team decided to bring customers the "quiet, serene experience". However, as Kumar Galhotra, the head of Lincoln Brands, clarified, "we are not about fast", but, "we have plenty of power, our customers are looking for abundant power, effortless power, power when they need it." It is an interesting take on luxury, if you think about it, when Cadillac is openly going after the Germans.
     
    We feel that the team behind Lincoln is coming up with a great new definition of American luxury, trying to emphasize comfort, silence, and high tech over performance. It sounds like they are developing a "dynamic variable". It is a strong hint at the "
    Big Picture" framework, from University of Michigan. Seeing a clear strategy (ACQUISITION/STEAL SHARE ?) to accompany the will to reinvigorate the whole brand can only bring joy to all the Lincoln brand innamorati. All that is left is implementing it, executing that strategy: coming up with the right products, reflecting the strategic choices, selecting the appropriate price, in line with all those decisions on targeting and positioning (value proposition), building up the necessary distribution network, or transforming it to carry out the new strategy, and last, but not least, choosing the right balance between promotions and brand building efforts. Or, as Steve Jobs put it, when he returned to Apple in 1990s and pushed the company to go back to the basics: great product, great marketing and great distribution (as you probably noticed, PRICE was not mentioned in that conversation!).
     
    Seeing is believing. Trying is believing. The new Continental shown at the 2016 North American International Auto Show in Detroit exudes luxury, it has everything that a luxury car customer may want. You need to experience it to really understand the move. Pictures don't make it justice. It looks way much better in person than it does in pictures. We are impressed: great attention to details, beautiful door handles, the new signature grill, huge moon roof, cool and comfortable jet inspired seats, with massage systems, lots of legs room, nice touch leather, wood accents, powered rear window sunshade. You can feel the abundance, the opulence. You are lured in lushness and seduced.

     
     A Hopeful Future
    With Continental, we could say that Lincoln has got its mojo back. Continental screams loudly with passion, conviction and unashamed: look at me, it's OK to buy a Lincoln! I am different! I am not your grandpa's car anymore. Modern, sexy, and sophisticated it is truly a car well done, that can satisfy even the most exigent, younger, more affluent customers. We believe Lincoln deserves a second chance. Take a look! And judging by the reactions we've seen, with Continental, Lincoln is getting a lot of the needed attention.
     
    The brand Lincoln is going for sure in the right direction. Cars are better and better. And Continental is an even bigger step on that path. With every new vehicle, Lincoln is getting closer and closer to what a Lincoln is meant to be. Finding, or re-finding your place, in an environment where more and more manufacturers are struggling to stand out is not easy. Creating, or recreating a credible, distinctive identity is most of the times elusive, but Lincoln has figured it out and it captures people's imagination once again. Will Lincoln ever return to its former glory? Only time will tell, but we feel much better about it now than even five years ago. It certainly seems capable of doing it.
     
    Again, welcome back Continental! It's been a long wait. We are proud of you!
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