(January 29, 2024) Lincoln shed a record 100 U.S. dealerships in 2023 and plans to slash 100 more this year as it seeks a smaller, more profitable retail network. By year end, Ford's luxury arm expects to have roughly 400 stores, about 40 percent fewer than in 2021 but still more than most other luxury brands have, according to a report in Automotive News.

The brand is offering Lincoln retailers — mostly those still coupled with a Ford store — buyouts that vary on a case-by-case basis, Lincoln President Dianne Craig told Automotive News. She wouldn't reveal how much money Lincoln is offering but said the packages include sweeteners such as more Ford-brand inventory and special incentive plans for loyal customers.

It marks an escalation of Lincoln's efforts to increase sales and dealership throughput by shrinking its network and having fewer showrooms dualed with the Ford brand. Lincoln has 164 standalone stores, including 58 built in a new style it calls "vitrine," and plans to add 23 vitrine stores this year.

"For us to have a healthy and competitive premium franchise, we need to make sure our retailers have competitive throughput, and we need to make sure our clients have a wonderful experience when they go into our brand-exclusive stores," Craig said. "We have many, many dealers who were only selling one or two Lincolns a month, almost all of those out of a dualed facility. That's not right and ultimately not good for the Lincoln business if we're going to compete with the premium brands."

After a mid-decade revival, Lincoln has struggled to maintain momentum and pivot to the electric vehicle age.

The brand's U.S. sales have declined in each of the past four years, including a 2 percent drop in 2023 amid a stop-sale on the Aviator related to quality issues. Last year's total of 81,818 was about 4,000 fewer than in 2011, when General Motors' then-CEO, Dan Akerson, quipped that someone should "sprinkle holy water" on Lincoln.

Source: Automotive News