Yahoo Finance Ford's Lincoln Continental looks to make a comeback
The New York International Auto Show launches this week, and Ford (F) is looking to make a statement.
The automaker plans to unveil its new Lincoln Continental concept at the show, as part of an effort revive its luxury car image. Ford CEO, Mark Fields, said in a press release that the concept will showcase “what’s to come next year as we introduce our new Lincoln Continental full-size luxury sedan.”
After more than half a century of production, the full-size Lincoln Continental was discontinued in 2002. The resurgence of the brand is most likely due to increased demand for luxury cars in China, according to Yahoo Finance’s Aaron Task.
"It is about China, where the Lincoln Continental brand has a lot of resonance. It was the car of Presidents and movie stars back in the 50s and 60s," he says. "That brand image still exists in China, where I don't think it does here in the United States."
Task points out that Lincoln received a "positive bump" in brand recognition last year after a Jim Carrey spoof of a Lincoln MKZ commercial went viral. Even so, Lincoln still has a long way to go as a luxury brand in the U.S. Task adds.
"Most American car buyers when they think of a luxury car, if they're thinking of an American car, they're thinking of a Cadillac first… so I think this is largely a play about their opportunity in China," he says.
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The Lincoln on display at the auto show will include a fold out back seat table with an attached tablet computer and champagne bottle storage. Task points out that selling luxury vehicles could boost Ford's bottom line.
"The thing about large vehicles and luxury vehicles is that there's a much bigger margin for the automaker. They can sell all the Ford Focus' they want, and that's not really going to drive the bottom line as much as if they can get some traction with this Lincoln Continental, either in China or United States or both," he says. "It's going to generate a tremendous amount of incremental revenue and margin for the company."
