Lincoln Now Sells More Product in China Than U.S.
After years of Ford unsuccessfully trying to court the Chinese market in the same way General Motors did, Blue Oval has finally hit an important milestone. For the first time ever, the Lincoln luxury brand has achieved more sales in China than in the United States.
On Thursday, Lincoln announced that it had delivered more than 91,000 vehicles in China in 2021 – representing an increase of 48 percent increase against 2020. Meanwhile, the brand managed to lose ground in North America with just 86,929 sales for last year. That’s the worst Lincoln has seen in over a decade, though the company has basically witnessed its share of the U.S. market seesawing in the wrong direction since the 1990s.
Prior to 2008, Ford’s luxury arm could reliably count on six-figure volumes in the U.S. each year. But that would be cause for celebration these days, as the company typically falls short of its sales targets.
Automotive News framed Ford’s Chinese connection as a clear victory for the automaker and – from a purely monetary perspective – it absolutely is. While it seems kind of sad that Lincoln cannot reliably depend on its home turf for the maximum amount of sales, Ford has been trying to get the brand into China for nearly a decade. Back in 2014, former CEO Mark Fields estimated Asia would help get Lincoln to a point where it could move 300,000 vehicles globally by 2020. It’s not there yet. But with business from China, there’s a chance it could be within striking distance within a few years, assuming the brand continues growing at its current pace.
From AN:
Lincoln opened its first China dealerships in 2014, well behind much of its luxury competition. But the brand made a point to study Chinese customers and offer them a unique car-buying experience, called the Lincoln Way.
Lincoln hired Eight Inc., the firm that designed the original Apple stores, to craft warm, welcoming dealerships including tea rooms, waterfall displays and a heritage wall that showcased the brand’s history. Designers insisted on a small number of vehicles in the showroom, and placed those models on pedestals with special lighting.
Dealers were told to pamper customers and focus on the experience before they focused on the sale.
While Lincoln is predicting additional growth in Asia, has continued selling the Continental there (despite its elimination in the U.S.), and decided on debuting the upcoming Zephyr sedan in China, the manufacturer has said it will continue selling on the home market. That said, it’s also going to be localizing as much product for Asia as it can to avoid catching the ire of the Chinese government. It’s likewise going to be building more direct-to-consumer stores within the region.
“Ford starts 2022 with strong momentum from the execution of our China 2.0 plans centered on a robust portfolio and electrification,” Anning Chen, president and CEO, Ford China, said on Friday. “The steady rollout of new vehicles – including the locally built Ford Mustang Mach-E, Ford EVOS and Lincoln Zephyr – combined with the launch of Ford’s network of direct-to-customer battery electric vehicle stores positions us well for growth ahead.”
[Image: Ford Motor Co.]
A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.
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Sadly this shows why China will likely triumph over the West eventually. In the end, Capitalists will sell out their mother for the biggest market for their goods.
Perhaps the "blocky" styling of Lincolns is closer to the domestic products in China but have the cachet of being "imports"