Lincoln Dealer Network Shrinks With Move to EVs
Automaker won’t offer retailers buyouts as some brands have, but it will introduce sales requirements.
Lincoln will let retailers decide if they want to invest in transitioning to electric vehicles, and has no plans for buyouts, as some automakers have offered to dealers.
IMAGE: Lincoln Media
Lincoln’s transition to electric vehicles is coming with an industry accessory: an increasingly smaller dealer network.
Though it anticipates the number of its dealerships will drop by more than 12% this year from 2021 to less than 600, Lincoln plans no buyout program like other automakers have introduced, including Buick and Cadillac.
“We continue every year to work on the network and say, 'Do we have the right dealers in the right markets with the right focus?' Lincoln President Joy Falotico told Automotive News at the Detroit auto show this week.
“Certainly, as we go to EVs and we see that concentration, that will create another opportunity for dealers to decide if the investment makes sense for them or if it doesn't. It will be completely up to them if they want to proceed with the Lincoln brand … With EVs, no matter how you look at it, that’s going to be an investment for our dealers, so it’s a choice they have to make."
Lincoln plans to meet with dealers early next month to discuss EV sales requirements.
The automaker plans to introduce three battery-electric vehicles by 2025, followed by a fourth in 2026.
Originally posted on F&I and Showroom
More Industry
EV Sales Recover in Q2
The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.
Read More →
The Cheapest Hybrids to Fuel
The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.
Read More →
Hybrids and SUVs Gaining Ground
The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.
Read More →
Dealership Profits Decline
While new and used retail sales stagnated, dealerships have been particularly supported by fixed operations and finance-and-insurance profits, according to a new report.
Read More →
New Mexico Stores Change Hands
Three dealerships owned by three brothers are renamed for a new partnership bridging the founders’ family and a new auto retail leader.
Read More →
International Automakers Overpower Domestic Output
As the current U.S. administration pushes for domestic automotive production, a new report sheds light on the prevalence of international automakers here.
Read More →
World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →