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Infotainment Systems Take a Beating in Latest Consumer Reports Survey

October 29, 2014 by admin 1 Comment

The Consumer Reports 2014 Annual Reliability Survey is out, what paints a highly critical and negative picture of in-car technologies, particularly infotainment systems. Such systems typically provide audio, information and navigation access, but often do not deliver as promised. Instead, users may find these systems confusing, unreliable or simply unworkable, leading Consumer Reports (CR) to say that they present a “growing reliability plague” for manufacturers.

Infiniti QX60

Consumer Reports took exception with the Infiniti QX60.

Problem First-Year Models

CR especially pointed to flaws found in first-year models for several brands, including Cadillac, Ford, Honda, Infiniti, Fiat, Jeep and Ram, with each having numerous bugs and glitches in their infotainment systems. CR surveyed owners of more than 1.1 million new vehicles, identifying 17 problem areas. Topping the list were in-car electronics, easily outpacing consumer complaints in other areas.

As before, CR found that the Asian brands usually outperformed all others with the American brands finishing far down the pack. Most European brands were in the middle of the pack or toward the end. Audi, however, continues to excel, finishing in the fifth spot for the second consecutive year. Porsche took the ninth position.

Lexus, Toyota, Mazda and Honda nabbed the top four spots. Following Audi, Buick, Subaru, Scion, Porsche and Kia rounded out the top 10. Fiat Chrysler, however, took the last four spots of the 28 brands surveyed with Dodge, Ram, Jeep and Fiat rounding out the group.

And if you think technologies are the sole problem, CR insists otherwise. “Infotainment system problems generally don’t exist in a vacuum,” said Jake Fisher, director of automotive testing at Consumer Reports, “A close look at the results suggests that cars with a lot of in-car electronic issues usually have plenty of other troubles, too.”

Chrysler Defies the Odds With Strong Sales

Despite the apparent quality issues, Fiat Chrysler continues to thrive. Indeed, the Chrysler Group has experienced 54 consecutive months of year-over-year sales increases through Sept. 2014. Chrysler Group sales are up 15 percent for the year, nearly three times the industry average. The Chrysler Group is seeing Jeep sales up by 45 percent and Ram sales up by 25 percent for the year.

For its report, CR gathered data for 248 models, looking at 17 potential problem areas. From its survey it has been able to accurately point out future problems owners may have with their new vehicles as well as to spot trends.

One trend that isn’t boding well for Infiniti is the reliability of two of its models: the new Q50 sedans and the QX60 crossover. Both models have had their share of problems, causing Infiniti to take the largest plunge of any brand, falling from 6th place last year to the 20th position this year.

Improved Infotainment Systems

CR did find that some manufacturers are making changes that have made their infotainment systems easier to use. CR has criticized Ford and Lincoln for their technologies, but the two Ford Motor Company brands have made steady improvements ever since the organization slammed the 2011 Ford Explorer’s quality. While Ford rose three positions this year, Lincoln had the largest year-over-year increase of any brand, jumping 12 positions to the 15th spot.

Mercedes-Benz fell 11 spots on the heels of introducing its CLA-Class sedan and high-end S-Class. A few of its models, including the GLK utility vehicle and the E-Class V-6 sedan, outperformed the market.

Poor Performers by Segment

American manufacturers need to pay closer attention to certain segments where these vehicles are not performing up to par. CR found that the subcompact Chevy Sonic, the compact Chevy Cruze, the compact Ford Focus and the compact Dodge Dart turbo each performed below average. Large pickup trucks have been a problem too with the Chevrolet Silverado, GMC Sierra and Ram 1500 each performing below average.

See Also — Auto Reliability: Consumer Reports Slaps Acura, Cadillac and, Yes, the Tesla Model S

Filed Under: Engineering & Technology Tagged With: AUDIO SYSTEMS, CHRYSLER GROUP, CONSUMER REPORTS, CONSUMERS, Ford, infotainment, Lexus, Lincoln, navigation, NEW CARS, RELIABILITY, SURVEY, Toyota

Branding: What’s In a Model Name?

September 30, 2014 by admin Leave a Comment

Last week, GM announced the name for its long-expected, ultra-luxurious Cadillac sedan. Originally code-named LTS (or Omega), the new model will be called the CT6 when it goes on sale in late 2015. That model name may seem out of place considering the brand’s current three-letter naming convention, but it also points to where Cadillac’s nomenclature is now heading.

In other words, every Cadillac model will eventually sport an alphanumeric naming convention that begins with “CT” and ends in a number. Changes to the brand’s current model names such as ATS, CTS and XTS won’t take place until refreshed or new versions of each vehicle are released. So, for the next few years Cadillac will employ a transitional naming convention, composed of old and new names.

Cadillac Escalade
Branding strategy: Cadillac may eventually drop the Escalade name.

Branding: Naming Conventions

GM’s move is designed to align Cadillac’s naming strategy closer to what the European makes, particularly the Germans, provide. All Audi car models start with an A and are followed by a number: A3, A4, A5 and so on. Audi crossovers start with a Q and include: Q3, Q5 and Q7. Mercedes-Benz typically employs a one-letter naming convention followed by “class” to include: C-Class, E-Class and S-Class. BMW takes a similar approach, assigning a number followed by series. For instance, you have the 3 Series, 4 Series and the 7 Series, to name a few.

Lincoln and Infiniti have also changed their naming conventions in recent years. These days, all Lincoln models (except for the Navigator) start with an MK and are followed by a third letter as in MKZ, MKS, MKT and MKX. For 2014, Infiniti changed its naming convention with “Q” followed by two numbers now representing cars (Q70, for example) and “QX” applied to all utility vehicles (QX50, QX60 and QX70). Unlike Cadillac, Infiniti introduced its new naming convention at once.

As expected, news about the top-end Cadillac’s planned introduction was warmly received by the automotive press. Even so, there was also disappointment with the choice of the name — not a few of us believe that “LTS” would have been an entirely suitable choice, what could represent “long or lengthened touring sedan.” But that won’t happen as new Cadillac president, Johan de Nysschen, the architect of Infiniti’s naming convention, announced the pending change with management backing.

The Experts Weigh In

Coming up with new model names is par for the industry. However, changing the entire naming strategy is a big move. Auto Trends reached out to a few brand-savvy folks to get their take on the changes and received mixed responses.

Bob Ramsey, a marketing consultant with Senior Living magazine out of British Columbia, Canada, pointed out that both Cadillac and Lincoln “…are trending to a universal scheme, yet not fully realized by the consumer, which includes anyone not a
brand loyalist.” Both brands have relied nearly exclusively on Canadian and American consumers, but now have much greater, indeed, global aspirations.

Ramsey felt that where Bonneville (Pontiac) and Fleetwood (Cadillac) names once met something to established owners (likely to include those that subscribe to his magazine), the model names mean nothing to most new shoppers, especially to global consumers.

Branding expert Rob Frankel, author of “The Revenge of Brand X: How to Build a Big Time Brand on the Web or Anywhere Else,” noted that Cadillac has been moving away from its “older man’s brand” image thanks to “new body designs and advertising.” He understands why Cadillac is making the move, but he thinks it is a mistake.

And that mistake has to do with confusing models with other brands. Said Frankel, “Try throwing all those number/letter names on to the table without their manufacturer’s names and see how many people can pick out whose is whose.”

Know Us by Our Brands?

One way that confusion may be averted is to simply refer to each vehicle by its brand name with no regard to model. That seems to be the direction premium brands are taking today with an Audi A3 being just as much as an Audi as an A8. It appears that Cadillac has that thinking in mind too, with only your wallet knowing those distinctions.

Related Reading

Grand Cadillac to be Built in Detroit

Great Leap Forward: Cadillac to New York

Cadillac LTS and Other Luxury Rumors

Filed Under: Special Tagged With: BRANDING, CADILLAC, GM, INFINITI, Lincoln, luxury, NAMING CONVENTION, NOMENCLATURE

3 All-New Models for the Big Three in 2015

May 20, 2014 by admin 2 Comments

New 2015 models on the way.

The Big Three automakers continue to fight back in a wide open US market. GM remains the market leader, but Ford and Fiat Chrysler continue to boost market share in various segments, sometimes at the expense of each other. For 2015, all three automakers will have several new models to offer including the following three that are all-new and should boost sales.

Ford Motor Company — Lincoln MKC

Props must be given to Lincoln dealers who have suffered enormously since the Mercury brand was discontinued in 2011. With very few models to offer, Mercury-free Lincoln dealers have seen sales tumble and their profits with it.

Ford has promised to revive its luxury brand and began to make a positive stride last year with the introduction of the updated MKZ sedan. That model has helped sales, but Lincoln dealers want and need more. Fortunately, that wait is nearly over as the Lincoln MKC crossover utility vehicle debuts this June.

Never mind that the Lincoln MKC shares its platform with the Ford Escape. You will not find badge engineering here as the MKC has its own body, interior and many mechanical components that are unique to this model. Priced from $33,100, the MKC joins two other crossovers in the Lincoln line: MXK and MKT. Lincoln still sells its traditional body-on-frame Navigator, what will also be new for 2015.

Big Three: Lincoln MKC

A pair of EcoBoost engines (i.e., turbochargers, direct injection, variable valve timing) will be available with the MKC including a 2.0-liter four-cylinder engine that makes 240 horsepower and is also sold with the Ford Escape. New for 2015 is a 2.3-liter four that makes 275 horsepower and is available only with the all-wheel-drive edition. Standard adaptive suspension, bi-xenon headlamps, push-button transmission, and real leather and wood are among its highlights, features you won’t find in the Escape.

The Lincoln MKC serves one of the fastest growing segments in all of autodom: compact luxury utility vehicles. It will have many competitors including the Cadillac SRX, Mercedes-Benz GLK, Audi Q3, and the BMW X3. It should quickly become Lincoln’s best selling model, even topping the 40,000 units the MKZ is projected to garner this year.

General Motors Company — Cadillac ATS Coupe

Two years ago GM introduced the Cadillac ATS, a compact sedan that slotted below the popular CTS line. It was the first time since the Catera of the 1990s and the Cimarron of the 1980s that Cadillac has sold a compact model, with the ATS immediately proving a hit for the brand.

GM made it known back then that new ATS models would follow. The next body style for the ATS line is a coupe, a model that has the BMW 4-Series in its crosshairs. Comparable models from Mercedes-Benz, Lexus, Infiniti and Audi are also game.

Cadillac has priced its luxury 2+2 sport coupe from $38,900. What you get is a standard 2.0-liter turbocharged four-cylinder engine paired with a 6-speed manual or 6-speed automatic transmission. This engine makes 272 horsepower and 295 foot-pounds of torque. Rear-wheel drive is standard; all-wheel-drive is available.

Big Three: Cadillac ATS Coupe

You can also choose a 321-horsepower 3.6-liter V-6 engine paired with a 6-speed automatic. Brembo brakes are standard across the model line; magnetic ride control suspension is also available.

Cadillac describes the ATS coupe as a “true driver’s car” with four color themes available making use of Sapele wood, aluminum trim and leather. Its near 50-50 front to rear weight distribution, magnesium paddle shifters, speed sensitive steering, and independent suspension are designed to emphasize the thrill of the drive.

Cadillac sales have slipped slightly this year, but the addition of the ATS coupe and an all-new Escalade should help GM’s luxury brand bring in more customers.

Fiat Chrysler Automobiles, N.V. — Chrysler 200

Fresh off the official merger of Fiat and Chrysler to form Fiat Chrysler Automobiles, N.V., the combined corporate entity continues to bang out new models. One such vehicle is the Chrysler 200, a midsize sedan that has not competed well in a segment dominated by the Toyota Camry, Honda Civic, Nissan Altima and the Ford Fusion.

The Chrysler 200 made its debut in 2011, essentially a refreshed version of the previous Chrysler Sebring. The name change alone helped sales for a model line that also included a convertible. The convertible is no more, just a sedan will be offered.

The latest iteration of the 200 is not like any one previously offered. It is based on Fiat’s compact-wide platform, what underpins the Dodge Dart and Jeep Cherokee. That platform has been stretched and widened to accommodate the Chrysler, a model priced from $21,700.

Big Three: Chrysler 200

A 2.4-liter four-cylinder engine making 184 horsepower is standard. Also available is a 295 horsepower 3.6-liter V-6 engine. Both engines are paired with a 9-speed automatic transmission. New for 2015 is the available all-wheel drive, an improved infotainment system and other technologies, plus eight airbags.

Perhaps the biggest change for the 200 is how Chrysler is recasting the brand. In April, CEO Sergio Marchionne said that Chrysler is now its mainstream brand. In other words, it no longer competes with Buick and defunct Mercury, rather it is on the same playing field as Ford and Chevrolet.

Big Three and Other New Models

Auto Trends will have reviews of these and other new models as they pass through our press fleet. That information will be posted to our new car reviews section in the coming months.


See Also — MRY Study Reveals That We Still Love Our Cars

Filed Under: New Car Reviews Tagged With: 2015 MODELS, CADILLAC, CADILLAC ATS COUPE, Chrysler 200, FIAT CHRYSLER, Ford, GENERAL MOTORS, Lincoln, LINCOLN MKC

Automotive Branding: Are Sub-brands the Way to Go?

September 6, 2013 by admin Leave a Comment

Ask what should seem to be a fairly straightforward question and you would hope for similarly worded answers. That wasn’t the case when I made a query to auto industry and public relations professionals about branding.

That query asked: Are sub-brands the way to go?

By sub-brands, that would represent a brand that “reports” to another brand. For instance, Scion is part of Toyota. The M-Series is a performance sub-brand for BMW. AMG does likewise for Mercedes-Benz.

branding sub-branding

The BMW i3 launches the “i” sub-brand.

Sub-brand Defined, Sort Of

We’ve been hearing a lot about automotive sub-brands lately as Toyota seeks to give its dealerships more freedom on whether to carry Scion or not. In some eyes Scion is a separate brand given that its cars are registered separately. Fair enough. However, other respondents focused on the defunct Saturn as a sub-brand of GM while still others looked at Lexus in the same way.

For the record, Saturn was originally a separately held company and GM subsidiary before it was eventually pulled in to the brand fold to join Cadillac, Buick, Chevrolet and others. Lexus, developed in the 1980s, is Toyota’s luxury brand. Perhaps some respondents were looking at the lack of distinction between select earlier Toyota and Lexus models.

Let’s be candid: even marketers sometimes do not fully understand branding.

Besides Scion, BMW is launching its “i” division, a sub-brand of BMW. Lincoln recently announced its “Black Label” and Cadillac may yet expand its new “VSport” line to several models. All three examples are sub-brands.

What I wanted to know is what upside does a sub-brand have for a manufacturer?

Black Label branding

Lincoln will launch its Black Label late in 2014.

BMW, Mercedes-Benz and Prius

Justin Cupler, editor-in-chief at TopSpeed.com, explained that “sub-brands ultimately are a way for an automaker to go outside of its typical scope without fearing damage to its main image. It’s almost like a beta test to see if it’ll work or not. If it fails, the maker can chalk it up as just a “test.” If it succeeds, the automaker looks like a genius and pulls in profits on the brand.”

Kevin O’Brien, Vice President, Marketing Solutions Operations at Minacs Marketing Solutions, gave an example of Prius (sub-brand of Toyota) noting the timing of the hybrid’s introduction when the segment was new. Once its environmental benefits were recognized Prius “organically developed into a sub-brand as the consumers were very loyal brand advocates.” Besides its market timing, brand positioning and product quality also helped advance the Prius line, while offering insulation for the Toyota brand should it later decide to abandon Prius noted O’Brien. That, of course, isn’t about to happen as the Prius family now consists of four vehicles, a line that also outsells all other hybrid models combined.

Lincoln and Cadillac Approaches

What is interesting about the Lincoln and Cadillac sub-brands is that the former is taking an approach based on design, the latter on performance. Both approaches may tell much on just how the parent brands perceive their upscale brands, with Lincoln taking a more traditional approach, while Cadillac appears headed to take on BMW and Mercedes-Benz on their own turfs.

Ford describes the Black Label Collection as “a new and higher level expression of the brand’s design, craftsmanship, and personal service and experience.” The automaker said that equipped Lincoln models will feature four exclusive exterior colors and a variety of interior enhancements including Venetian leather.

For GM, the emphasis is on performance with Cadillac VSport. Both the CTS and XTS sedans will offer the line, powered by the brand’s first-ever twin-turbo power engines. The enhanced 3.6-liter V-6 engine makes 420 horsepower and is paired with an eight-speed automatic transmission.

VSport branding

Cadillac VSport features a twin turbo V-6 engine.

The Future of Branding

Likely, we’ll see the introduction of more sub-brands moving forward. As both Daix and O’Brien indicated, if a sub-brand doesn’t succeed, it can be ended. On the other hand, the start up costs for launching a new brand are huge, requiring the creation of a separate dealer network. With sub-branding, the network is already in place and promotional costs can be contained.


See Also — BMW Spartanburg Plant Slated for $1 Billion Expansion

Photos courtesy of BMW, Lincoln and Cadillac.

Filed Under: Special Tagged With: AMG, BLACK LABEL, BMW, BRANDING, CADILLAC, Lincoln, M SERIES, Mercedes-Benz, SCION, Toyota, VSPORT

Is the Lincoln Black Label Dressed For Success?

August 19, 2013 by admin 4 Comments

Lincoln Black Label

When your model line is thin and lacking outstanding products, you can patiently wait for the development of new models or strike out in a new, quicker direction for immediate results. As the luxury brand for the Ford Motor Company, Lincoln has chosen to do both in an effort to compete in a segment dominated by Lexus, Mercedes-Benz, BMW and others. Look at Lincoln right now and you see a premium version of the Ford brand, models that share platforms with mainstream Ford across the board.

Lincoln Black Label

Craftsmanship and Concierge Services

Lincoln desperately needs fresh, original product and with Ford slow to respond, it is taking the aforementioned “quicker direction” to renew customer interest. Specifically, the Lincoln Black Label program has been announced, what the company describes as “…a new and higher level expression of Lincoln design, style, materials, craftsmanship and personal service and experience.”

How Lincoln’s shrinking customer base will respond to these changes is not known, but it is a stop-gap measure until the brand finds its footing again. This past week, Lincoln Black Label was showcased on its MKZ sedan and MKC Concept, with the company confirming that it will gradually find its way across the entire Lincoln line.

Three Foundational Elements

Speaking at a news conference in advance of the 2013 Pebble Beach Concours d’Elegance was Jim Farley, executive vice president of Global Marketing, Sales and Service and Lincoln. “The new Lincoln Motor Company is built on three foundational elements – design, quality and personal service; Black Label represents our highest expression of these elements.” Farley added that customers want to feel a “personal connection” for the products and services they desire, something Black Label intends to fulfill.

Farley explained that Lincoln and Black Label dealers will “collaborate to create a consistent, personal and integrated client shopping and ownership experience.” What Black Label customers will find is a full suite of elevated customer services to be announced when the sub-brand is introduced in early 2014. Figure that Lincoln is still working out the particulars of this program and enlisting dealers to participate.

Lincoln Black Label

Three Black Label themes are being introduced: Indulgence, Center Stage and Modern Heritage. Lincoln describes “Indulgence” as a Chroma Couture exterior and Truffle interior. Its “Center Stage” package offers a Black Tie exterior and a Jet Black with Foxfire Red accents interior. Lastly the “Modern Heritage” theme comes with what it describes as a Confidential White tri-coat exterior with a Vianca interior.

Affected models will be wrapped in speciality Venetian leathers, a hide standard that fewer than one percent of all leathers meet. Besides the seating, Venetian leather will be draped and stitched across the dashboard, the center stack and on door panels. Lincoln will also make use of natural woods including Ziricote in the Indulgence, prized for its natural beauty. Alcantara, a trade-marked high-end material will grace the headliner, visors and pillars and trim the floor mats.

New Lincoln Models

It will take the better part of a year for Lincoln to roll out Black Label with a late 2014 introduction planned. In the meantime, Auto Trends has learned that the MKC Concept, a compact crossover utility vehicle, will be green-lighted for production and a second new model mostly likely will be announced sometime in 2014. Thus, Lincoln will both flesh out its product line with new models and expand the products within that line by rolling out Black Label.

Ford’s Black Label approach and new models comes as Lincoln finds itself trailing Cadillac which outsells Lincoln by a 2-to-1 margin. As recently as 1998, Lincoln was the top-selling luxury make in America, but has been outgunned by the three German luxury brands, two Japanese luxury brands and Cadillac over much of the past decade. And with Ford introducing Lincoln to China, it will be investing billions to revive a brand that has languished.

Lincoln Black Label


See Also — Black Label: 2017 Lincoln Continental

Lincoln Black Label Photos courtesy of the Ford Motor Company.

Filed Under: Automotive News Tagged With: BLACK LABEL, Ford Motor Company, Jim Farley, Lincoln, LINCOLN MKC CONCEPT, LINCOLN MKZ

Ford’s Risky Reductive Lincoln Approach

June 17, 2013 by admin 2 Comments

The Ford brand is sailing smoothly, bolstered by hot-selling and exciting products ranging from its burly F-Series pickup truck line down to its tiny Fiesta subcompact. Arguably, we are witnessing the best product mix in the history of the blue oval brand and with a new F-150 truck due out next year it may only get better.

Lincoln Motor Company

Luxury Brand Sell-Off

The Ford Motor Company’s strategy with its eponymous brand has paid off, but it has come at a sacrificial price. The company had to finish selling off its premium brands including Aston Martin, Land Rover, Jaguar and Volvo, dump most of its stake in Mazda and kill its Mercury brand. Lincoln was spared, but its product mix has been less than stellar as the automaker has taken a risky and reductive approach to its premium car line.

That reductivism is evident in every product it sells: not a single model is truly unique to the Lincoln brand. Instead, customers are served up model after model that could just as easily be sold as Fords. Only those vehicles would be passed off as top-of-the-line models in Ford showrooms.

For instance, the Lincoln Navigator and Ford Expedition are twins. As are the Ford Edge and Lincoln MKX, the Ford Taurus and the Lincoln MKS, and the Ford Fusion and the Lincoln MKZ. The Lincoln MKT shares its platform with the Ford Flex, but we can give Ford some credit for differentiating these vehicles enough to note that the MKT’s polarizing face has nothing on the Flex.

Same Song, Different Stanza

Last week, Reuters reported that Ford may develop new models for Lincoln, particularly in the fastest growing segments. Those segments are compact sedans and compact SUVs, two areas where the brand has yet to compete. Only the story is not new: we have been hearing Ford promising to revive Lincoln for several years now. Indeed, in Sept. 2010 Auto Trends reported that Ford had said that it would “…introduce seven all-new or substantially updated Lincoln models over the next four years.”

 Lincoln Motor Company

  • Founded in 1917
  • Acquired by Ford in 1922
  • Sold 82,150 units (US) in 2012
  • US sales down 10.5 percent through May 2013
  • US luxury segment leader in 1998
  • Eighth-ranked US luxury brand
  • Five model lines

That isn’t happening unless you count mild refreshes of the MKT and MKX and add those to the more substantial changes made to the Lincoln MKZ. The numbers game could be stretched a bit further by counting the Lincoln MKZ Hybrid separately, but who is buying that? Not Lincoln’s customers, not Lincoln’s competitors and certainly not this writer.

Lincoln MKC Concept

For its credit, Ford has been showing off its Lincoln MKC concept at auto shows this year, a model that shares its platform with the current Ford Escape. As the MKT is to the Ford Flex, the MKC is different enough from the Escape to warrant attention. Until you look under the hood. That’s where you will discover that 1.6- and 2.0-liter EcoBoost four-cylinder engines are proposed, motors that fit well with some Ford products, but seem out of place in a Lincoln.

That’s a shame because Ford has also promised that Lincoln would receive unique powertrains, engines in particular, as well as distinctive sheet metal and special interiors. We know this because Automotive News, AutoGuide.com and others reported told us so in Jan. 2011, based on comments made by Derrick Kuzak, Ford’s group vice president of global product development, at Detroit’s auto show.

Nearly 2 1/2 years have passed since those comments were made and there is nothing really new in sight. Or at least not a model that has been given the green light as in making the Lincoln MKC concept a production reality.

Instead, Ford apparently is taking a scaled down or reductive approach to Lincoln, hoping that customers will accept the MKZ for what it really is: a premium sedan that has no intention in competing with luxury models. Sure, the MKZ can be compared to the Lexus ES 350 as both are entry-point models for each respective brand, but at least with Lexus you get a full suite of authentic luxury models to transition to if you choose. Lincoln offers no such choice.

Is Trouble Brewing?

America’s three major automakers — General Motors, the Ford Motor Company and the Chrysler Group — have taken their lumps, borrowed money or have been bailed out, and still must battle stiff global competition. Big pickup trucks and luxury vehicles are the two most significant moneymakers, the former a Detroit strong suit, the latter currently being enjoyed by GM only. Smaller Chrysler is staying solvent largely because of profitable Jeep and Ram, while Ford continues to rely heavily on its F-Series to stay competitive and profitable.

Ford, however, is worried. GM’s large pickup trucks — the Chevrolet Silverado and GMC Sierra — have arrived. On the surface, these trucks offer an evolutionary update with new sheet metal, revised interiors, fresh technologies and more efficient engines. But, the models are new and will likely erode Ford’s pickup truck leadership.

Cadillac continues to define itself as a true luxury brand as both the ATS and CTS are taking on everything that Europe has to deliver. The SRX is to Cadillac what the MKC should be to Lincoln, and a new Escalade is waiting in the wings. The XTS is a decent large sedan while the ELR, not likely to be a big seller, will at least bring PHEV credentials to the Cadillac line. GM sells twice as many Cadillacs as Ford does Lincoln — profitable models that are bolstering its bottom line. Add in Buick and GM sells nearly four times as many premium models as does the Ford Motor Company.

Earnings and China

Ford’s overexposure in Europe is dragging down earnings and it remains well behind GM in China. Plans to introduce Lincoln to China won’t happen until the second half of 2014 and the brand’s receptivity may disappoint shareholders especially given its weak product line. Chinese luxury car consumers are much more sophisticated than some might think, people with deep pockets and a desire to associate themselves only with the exclusive models. Lincoln will battle against the usual players, established brands that have the credibility and product line to match. (see Lincoln Bets That China Investment Will Pay Off)

The Ford Motor Company may yet have a few aces up its sleeve, but it needs to reveal them now. Global markets are changing fast and Ford stock is still trading at less than half the $30+ share seen in the late 1990s. Paying CEO Alan Mulally $29.5 million annually may seem like a wise investment, but if Ford botches the next generation F-150 and fails to revive Lincoln, the company may find itself in a world of hurt and its rock star in retirement.


See Also — Lincoln MKC: Luxurious, Entry-Level Crossover

Screen shot of the Lincoln Motor Company website.

Filed Under: Automotive News Tagged With: Alan Mulally, CADILLAC, Ford Motor Company, GM, Lincoln, LINCOLN MKC HYBRID, LINCOLN MKZ, LUXURY CARS

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