Ford to sell Lincolns in China
Now into its 90th year as an automobile manufacturer, Lincoln will tap into the growing prestige and luxury market in China - which is forecast to eclipse that in the US by 2020 - that's currently dominated by European brands, and serviced to a lesser degree by GM's Buick nameplate.
A press release from Ford says that "Lincoln will deliver an exceptional and personalized brand experience for Chinese customers seeking luxury tailored to their own needs."
New Lincoln products will begin to be sold in China in the second half of 2014 through an independent dealer network. The company will begin meeting with dealers interested in being part of Lincoln's growth in China in the fourth quarter of this year.
"Lincoln is an important part of our plan, and introducing Lincoln in China marks the next step in our expansion in Asia and our commitment to serving customers in the luxury market," said Ford Motor Company President and CEO Alan Mulally. "We recognize the growth potential for Lincoln in China, building on the growing appeal of our new Lincoln products and unique, personalized customer experience in North America."
In China, consumers now see luxury as more than a product, according to an intensive observation study of luxury car buyers conducted by TNS China, "Targeting luxury car drivers in China".
The study also shows that while many affluent consumers in China are still motivated by a primary desire to display their wealth noticeably, data gathered over the last 2 years reveals that a select group of consumers are evolving towards purchasing luxury for the personal experience rather than as an outward signal to others. Their motivation to purchase is also led by self-discovery of products and services that meet their own unique demands, providing a high degree of self-reward in making the right choice.
According to Ford, Lincoln's combination of outstanding products and a personalized luxury buying and ownership experience is expected to be particularly appealing to this evolving group of Chinese luxury consumers.
"Globally, we're seeing a new generation of luxury clients who value more individualistic and tailored options," said Jim Farley, Group Vice President, Global Marketing Sales and Service, Ford Motor Company. "In China, the emerging luxury buyers are younger and fast-changing, and they have a strong desire to understand and appreciate the heritage of a brand- the origins of its real values such as timeless elegance, sophistication and craftsmanship in Lincoln."
"Lincoln will distinguish itself by providing more individual and personalized motor cars, and a more personal and crafted experience to match," said Farley. "The Lincoln experience promises to deliver elegant simplicity, something warmer and more personally engaging."
"Research shows that for luxury consumers in China, international credentials are not enough; heritage and excellence are also expected of a luxury car."
In China, luxury vehicle sales are expected to more than double - from 6 percent of the market today to nearly 9 percent - by the end of the decade, according to IHS. Annual sales of luxury cars are forecast to be approximately 2.7 million units by then.
"Lincoln's introduction to China represents a significant step forward in Ford's aggressive growth strategy for the country", said Dave Schoch, Chairman and CEO, Ford Motor China. "We are on track to deliver 15 new Ford-branded vehicles and 20 powertrains by 2015 to Chinese customers. With Lincoln, we will be expanding our product offering to cover China's fast-growing luxury car segment."
Ford Motor Company is building five new plants in China, including in Chongqing, which is home to the largest manufacturing location for Ford outside southeast Michigan. Once completed, the plants will double the company's capacity in China to 1.2 million passenger vehicles a year.
The expansion, the largest by Ford in 50 years, will help the automaker realize an increase in global sales by around 50 percent from 2010 to about 8 million vehicles annually by mid-decade.
