Ford Inside News banner

1 - 3 of 3 Posts

Mercury C557
22,734 Posts
Discussion Starter #1
Edmunds Report Provides Insights on Luxury Buyers - Edmunds
Published: 12/19/2014
by Anita Lienert analysts studied 12 luxury brands sold in the United States: Acura, Audi, BMW, Cadillac, Infiniti, Jaguar, Land Rover, Lexus, Lincoln, Mercedes-Benz, Porsche and Volvo.

Those 12 brands account for 11 percent of new-car sales volume, but 18 percent of dollars spent on new vehicles — more than $90 billion in 2013, according to the report...

...Luxury-cars owners often — but not always — trade for another luxury vehicle. Porsche owners stick with luxury on 78 percent of their trades, while Lincoln owners tend to go non-luxury 68 percent of the time.

Edmunds says: Some interesting insights for car shoppers to consider, especially as they head out to luxury showrooms.

- - - - - - - - - - - - - - - - - - - - -

Bad News for Ford's and General Motors' Luxury Brands -
By Daniel Miller
January 4, 2015
...sales of luxury vehicles are critical for automakers' success in the U.S. and globally. Luxury vehicles drive significantly higher average transaction prices, and fatter bottom-line profits.

With that in mind, Ford Motor Company (NYSE: F ) and General Motors (NYSE: GM ) received some bad news regarding their luxury lineups recently.

Walking away
The graphic on the left, from the hardworking crew at, shows what people buy after returning their luxury ride. First, the Porsche statistic should probably be ignored: If a consumer has purchased a Porsche, chances are their days of driving a non-luxury or mass-market car are over.

Now for the bad news. Four luxury brands had consumers trading in their luxury ride for a mass-market vehicle more often than not. Leading the exodus charge was Lincoln, with Ford's struggling luxury brand seeing nearly seven of every 10 consumers trade in its vehicles for a non-luxury ride.

You could interpret that statistic in a few different ways...

...Looking at a wider picture, luxury sales represent between 10% and 11% of auto industry sales, yet represent roughly 18% of generated new-car sales revenue, according to Edmunds. Digging even further, Ford estimates that the luxury segment's 10% to 11% of total industry sales generates roughly a third of all profits...

Super Moderator
7,893 Posts
What seems consistent is the Luxury brands with enough models in all segments, were able to keep their Luxury customers as they upgraded or downgraded. However for Lincoln, I can almost be certain that the Lincoln consumer that went non-luxury wen to Ford.

I see last gen MKZ consumers going to Ford Fusion Titanium or Energi models.

2,799 Posts
You also have to remember that Lincoln closed many of its dealerships making the brand far less accessible than before for many existing customers (I lost my dealership), I know that's why most of my family stopped buying Lincolns (I'm actually the only one left willing to drive 40 minutes). And like many Lincoln customers, leasees have to return to buy a vehicle but Lincoln recently pulled the plug on several cars before they had replacements in the showroom, like the MKZ and now MKX. This has been a horrible time to be a loyal Lincoln customer so there has been a huge customer loss over the past couple of years. And remember Lincoln pricing has increased considerably as well so existing customer are also leaving because they are far more expensive than before so that's why many Lincoln customers simply go back to Ford (and many Lincoln customers are Ford employees/family so they have no choice to buy a non-luxury car if they can't buy a Lincoln). I am actually experiencing the same problem right now, MKX is not available as my lease ends in a few weeks so I will be leaving Lincoln for something else (which should be fun figuring out, hope to do that at the Autoshow).
1 - 3 of 3 Posts