Lincoln is Outperforming the Luxury Auto Market

In 2016, the US auto market set new sales records outperforming 2015’s record by a surplus of 50,000 vehicles. The best sellers were SUVs and pickups, but luxury vehicle sales remained relatively uneventful, with only a one percent increase in 2016. The only exception was with Ford’s luxury brand, Lincoln. Sales were up by ten percent with more than 112,000 vehicles sold in 2016. Lincoln also had a strong debut of their new full-size Continental sedan, despite the market moving away from traditional four-doors.

New Leadership, New Opportunities

The most successful luxury vehicle sales in 2016 came from Mercedes with over 340,000 sold in the US. However, Lincoln’s numbers are nothing to scoff at considering they were on the chopping block just five years ago. The brand was seriously suffering and Ford had to make the decision to keep Lincoln alive or let it go. Fortunately, Ford kept them on, and Lincoln made an impressive comeback over the years. December 2016 was a big month with sales up eighteen percent and almost 13,000 vehicles sold. The president of Lincoln Kumar Galhotra who was brought in to head up and salvage the brand almost five years ago talked about how the momentum of sales was fantastic. He also recognized that there is still work to be done moving forward.

The New Navigator

In 2017, the all-new Lincoln Navigator will launch, which was the vehicle that led the luxury SUV revolution in the late 1990s. The new Navigator is an over-the-top, yacht-inspired concept that features huge gull-wing doors. This splashy SUV was first rolled out at the 2016 New York Auto Show. Galhotra says that Navigator is an iconic product that is important to the brand and to Lincoln customers.

The Face of Quiet Luxury

Under the leadership of Galhotra, Lincoln joined forces with actor Matthew McConaughey for his now iconic commercials, which have been parodied and talked about on the internet and media. The message McConaughey so successfully delivered was Quiet Luxury This rebranding has helped Lincoln bring over customers from other luxury car brands, which is no easy task. Although Lincoln has a complete lineup of sedans and crossover SUVs, the brand has been overshadowed by luxury brands BMW, Mercedes, Lexus, Infiniti and fellow domestic rival, Cadillac. Many BMW owners, for instance, have not considered other brands for decades. Galhotra and his team have slowly won over new customers with the very directed marketing of their Quiet Luxury branding that has resonated with drivers.

Location, Location, Location

Sales for Lincoln were strong in the Northeast and in Florida in 2016. They also ended up opening an experience center in Southern California, which has historically been a challenging regional market for American luxury brands. Texas recently opened an Experience Center too.

A Manchurian Candidate

The US revival of Lincoln is exciting, but its growth pace in China is probably most noteworthy. With 65 dealerships throughout the country, over 32,000 vehicles were sold there in 2016, which is three times the amount sold in 2015. The growth in China is especially significant because when looking back to November 2014, Lincoln had no presence in China. Galhotra said Lincoln was the first luxury brand to sell more than 10,000 units in its first year in China. This is a significant gain for Ford, which has typically been overshadowed by its competitors, such as General Motors and Volkswagon in China. In 2016, the second largest market for Lincoln vehicles outside of the US was in China.

Navigating the Future

The next challenge for Lincoln will be to grow additional shares of the US market in 2017, which may be headed for a plateau. Most luxury brands will be part of this fight for increased market shares. Fortunately, Lincoln has an impressive lineup of crossovers and SUVs, and a couple of sedans, which are crucial for sales in China. Vehicles like the Continental are one of the many coveted cars used for chauffeuring in China. While demand for sedans may be shrinking in the US, they are globally important according to Galhotra. He is feeling confident Lincoln has the right balance of vehicles on offer.