Luxury automakers tend to have fewer dealerships than those of mainstream brands. A small number of sales outlets minimizes dealers competing with other dealerships of the same brand. It also helps create an air of exclusivity.
Ford’s Lincoln luxury brand has more outlets than most rivals. The company is trying to change that, according to a new report.
Industry publication Automotive News explains, “Lincoln Motor Co. shed a record 100 U.S. dealerships in 2023 and plans to slash 100 more this year.” By the end of the year, the company hopes “to have roughly 400 stores, about 40 percent fewer than in 2021 but still more than most other luxury brands have.”
The move doesn’t mean the Lincoln brand is shrinking. It maintains its core lineup of luxury SUVs — the compact Corsair, midsize Nautilus and Aviator, and full-size Navigator — with no major cuts or new products announced.
But, AN says, many of its dealerships are paired with a Ford dealership and share sales personnel. “We have many, many dealers who were only selling one or two Lincolns a month, almost all of those out of a dualed facility,” says Lincoln President Dianne Craig.
The brand might benefit from closing those facilities to help foster a more exclusive image.
“The brand’s U.S. sales have declined in each of the past four years,” AN notes.
That can represent a buying opportunity for luxury shoppers. Lincoln is one of four brands that finished last month with more than twice the industry’s average inventory in stock — a sign that dealers might be willing to discount cars to help move them off the lot.
The other three — Chrysler, Dodge, and Jeep — are all owned by Stellantis.
