Sep 28th, 2010 by Dean Hightower
Lincoln will close more than 200 dealerships, mostly in metropolitan areas, in an attempt to improve the company’s image and compete with other luxury brands. Closing the dealerships will bring Lincoln closer to the number of dealerships that brands like Lexus, BMW and Mercedes-Benz have.
There are currently 1,221 Lincoln dealerships in America, compared to 230 Lexus dealers and about 350 for both BMW and Mercedes-Benz. Lincoln is attempting to compete seriously in the luxury market, and in order to do that, the company believes that cutting dealerships is necessary.
Right now, Lincoln is ranked eighth in sales for luxury car companies in the United States. Left Lane News says that Lincoln will probably sell approximately 83,000 cars this year, while Lexus, the number one premium brand in America, will sell about 217,000.
Lincoln says that cutting dealerships will make the brand more profitable and also make the buying experience more pleasurable for the customer. That makes sense, since the average Lincoln dealership sells just 67 cars a year, compared to 546 each year for Mercedes-Benz dealers and 947 annual sales for the average Lexus dealership. Obviously, more cars sold means more money that the dealership can spend on amenities for its wealthy clientele.