When Ford Motor Co. (NYSE: F) renamed its Lincoln division “The Lincoln Motor Company,” many industry experts scoffed. Such a notion was too obvious a ploy and too weak a plan to help flagging sales rebound. Whether it is the new name, or a new model, however, Lincoln has started the most modest of turnarounds, and sales were up 12.5% in September.
The figures are still exceedingly small. Lincoln sold 7,257 cars and light trucks last month, which is leagues away from market leaders Mercedes and BMW, and even well below those of General Motors Co.’s (NYSE: GM) Cadillac division (which has made a decision of its own to change public perception by relocating to the trendy Soho neighborhood of New York City). The industry’s top manufacturer by sales among luxury brands is Mercedes, which sold 29,523 units in September, which is up 10% from the same period a year ago.
Oddly, among Lincoln’s best performing vehicles is the impossibly large Navigator SUV, the sales of which rose 23.8% to 1,013. The number would seem paltry, except for the percentage it is of Lincoln’s total monthly number. A reason for its success is probably that the SUV was upgraded for it 2015 model. The Navigator can easily cost more than $70,000, and it gets 16 mpg in city driving. Buyers have to be well-off and insensitive to at least one cause of global warming.
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Lincoln’s other success is its MKC. It is a new model, and an inexpensive one. The price for the MKC begins at $33,100, so it barely passes as a luxury car. Sales of the MKC rose from zero last year to 1,763 in September, an increase rate of infinity.
Ford management bragged about the MKC as Lincoln’s primary success:
Lincoln MKC sales continue to increase, as Lincoln sales of 7,257 vehicles saw a 12 percent gain, providing the brand with its best September sales since 2010.
They might have skipped the September total division comparison because it is based on such tiny numbers.
Lincoln management hopes more new models will help its sales improve. They would have to double for a while to catch market leaders. At least it has made a small start.
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