Dealers Say California Makes It Impossible To Build Standalone Lincoln Dealerships

The California New Car Dealers Association is asking Ford Motor Co. to immediately cease anti-dualing policies in California and to halt plans to withhold part of dealer margin for stores that don't divide facilities.

The association also called on the automaker to stop threats to cut off co-op payments for dual stores that don't comply with requests by Ford and Lincoln to create separate trade names.

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TomM - 11/21/2018 3:35:00 PM

+2 Boost

Lincoln does not currently sell enough cars to be a standalone dealership - especially in California - but pretty much everywhere. However - Ford is looking to force its Lincoln Dealers to operate in Standalone dealerships - both Sales and Service.

My guess would be that Ford wants to reduce the number of Dealers - because that is the only thing that makes sense of this - Reduce the dealers and the remaining once supposedly get bigger sales numbers. The problem with that is if you close a local dealership - you likely LOSE the customer to brand with a local dealer.

Since there are SO MANY different dealership contracts out there - it is impossible to determine how this will end up affecting them. However - it makes no difference until Lincoln had a Lineup of both Cars, Crossovers, and SUVs that sell in large enough numbers. Currently - Lincoln only has 1 vehicle that really sells well - the rest are dead on the vine.

PUGPROUD - 11/21/2018 4:05:36 PM

+1 Boost

Spot on TomM. I would add that I believe new Ford CEO's overall strategy is a high wire act in many regards (no more US sedans, transition into a transportation company, etc). Just don't think Ford has the leadership, capital, vision and internal resolve to succeed in the current competitive industry environment and fast changing technology. I'm just not buying in.

MDarringer - 11/21/2018 4:38:28 PM

0 Boost

Before you put the crown on the dementia-ridden dolt, he demonstrates total ignorance when he says: "Lincoln only has 1 vehicle that really sells well - the rest are dead on the vine." The MKC and MKX are doing respectable volume for their segments. Not class leading but doing OK. Even the putrid MKZ is doing OK. I mean Alfa Romeo would be thrilled to have any of their volumes and yet to hear told, Alfa Romeo is a roaring success.

mre30 - 11/21/2018 5:01:03 PM

-1 Boost

I take a Lincoln, over a Cadillac, Acura, Infinity, Lexus, or Alfa, any day of the week. I do agree that the domestics still are chipping away at their 'under-performing' dealer cull initiative. There are still too many mom and pop's that need to be retired.

The 2008 Floor-Planning financial crisis did many of them in - they should be given stock in exchange for their stores. Else they face the constant hazing from corporate to make their lives miserable until they give in.