Lincoln’s plan to regain ‘mojo’: Fewer dealers, more fluid EV strategy

NEW YORK — Lincoln’s new president is working to galvanize the luxury brand’s stalled revival by shrinking its dealer network, refocusing its electrification strategy and updating its products to spark interest from new and returning customers.

“We have to get our mojo back,” Dianne Craig told Automotive News last week at the New York auto show as Lincoln introduced the redesigned Nautilus, a product she hopes will be key to that plan.

Lincoln executives spent much of the past decade working to make the brand relevant again in an increasingly crowded luxury market. Their efforts succeeded to an extent — U.S. sales topped 112,000 vehicles in 2019, a 12-year high — then flatlined when the pandemic hit.

Craig, who succeeded Joy Falotico in December, now vows that Lincoln will grow again.

“It’s really very straightforward — great products, great service,” she said. “That will define the future of the brand.”

Many of Lincoln’s retailers, however, may not be part of that future.

Although Craig called the brand’s dealer network a “strategic advantage,” she said it must get smaller. Lincoln had 637 dealers at the start of 2023, according to Automotive News’ annual dealer census.

“We have too many dealers,” Craig said. “If we’re going to be a successful luxury brand, we need brand-exclusive facilities. Most of the dealers we have are still dualed. We love them as our Ford partner, but we need to focus on having that brand-exclusive experience.”

As of late last year, Lincoln had about 145 standalone stores. It has been asking dealers in the top 120 markets to invest in new single-brand showrooms.

Craig declined to say how many stores the brand should have but suggested it could be around 356, the number of dealers who have signed up for Lincoln’s electric vehicle certification program.

“At the end of the day, all I know is we have too many,” she said. “As we evolve to EVs with the dealers that signed up with our EV tenets, it’s probably in the right snap bracket to where we ultimately need to go, and we’ll work really closely with the dealers to get there.”

A Lincoln spokesperson said the company will work with dealers individually to address their differing needs “as this is not a one-size-fits-all approach.” Craig said company officials were having discussions with “all of our dealers” about remaining with the brand.

“I’ve had many conversations with dealers over the last four months, many that are my personal friends, that don’t want to give up the brand because they love the brand,” she said. “But … if there’s not an industry there to serve, does it really make sense for them to go on this next evolution with the investments they’ll have to make for EV? Or just focus on Ford? We want to do the right thing for them as business partners.”