Expect to see Lincoln continue to downsize even as it expands, several company sources suggest. That’s not some Zen mantra but an increasing interest in smaller models that can flesh out the brand’s currently modest line-up.
Among the offerings likely to reach market over the next few years, the most certain is a compact crossover that will be based on the all-new Ford Escape platform and which may be sold as the MKC.
“That’s where the real growth in the luxury market is coming from,” said a senior source with Ford Motor Co.’s luxury brand.
But, he quickly added, “We’re looking at our options in the compact sedan segment, as well,” which the source stressed is likely to be another high-growth segment in the coming years.
Such a product could be based on a modified version of Ford’s compact Focus “architecture.”
Crosstown rival Cadillac is in the midst of launching its own compact sedan, the 2013 ATS, as is Acura with the new ILX. Mercedes-Benz is preparing to launch the new CLA, a pint-sized version of its coupe-like sedan, the CLS. And BMW has updated its small 1-Series.
Not everyone is convinced Americans will embrace such small passenger cars. Mark Templin, the general manager of Toyota’s luxury brand, Lexus, said there are no plans to go smaller than the current IS model – except with specialty hybrids like the Japanese maker’s CT 200h. But Lexus is also giving close scrutiny to a small CUV.
That segment is clearly showing signs of strong growth as new offerings from the various German makers – such as the Audi Q3, BMW X1 and Mercedes GLK – reach showrooms. Cadillac is also reported to be working on an entry based on the same platform as Buick’s new Encore.
Lincoln is reportedly working fast to avoid being last to market, a potential problem as it struggles for revival. The maker hopes to kick that process off with the dramatic re-make of its current entry-lux model, the MKZ, which reaches showrooms later this year.
Ford corporate management has approved a number of long-sought programs for the domestic luxury brand. That includes an overdue replacement for the big Navigator SUV. But there are currently no plans to add a flagship luxury sedan, ala the Mercedes S-Class – or the big sedan Cadillac recently won corporate approval for.
While he declined to directly address questions about a compact crossover or small sedan, Lincoln marketing chief C.J. Odonell hinted that, “We’re going to take a strategy that hits (segments) where we can build volume quickly.”
One of the questions that will determine the need for a compact sedan – and possibly other new offerings – is whether Lincoln can eventually expand beyond the North American market. Ford management, including President of the Americas Mark Fields, have said that’s not part of the near-term strategy. Ford now, the focus is on rebuilding Lincoln’s reputation at home.
But, ironically, inside company research has revealed that Lincoln has a surprisingly strong reputation in the world’s largest automotive market, China – which is also rapidly becoming one of the world’ biggest markets for luxury products.
Breaking into China could help Lincoln develop the volume it wants quite quickly – if it can come up with the right products. Ford has been struggling to make inroads there after getting off to a late start with the so-called Blue Oval brand. It hopes to double sales in China over the next half decade and could tap Lincoln for help – especially if the long-struggling luxury marque shows it has some momentum with the upcoming launch of the new MKZ.