Sunday, 7 October 2012

Can Ford build an Audi?


The September 5th issue of Autocar contains a very interesting interview with Ford CEO Allan Mulally - a man who managed to turn the fortunes of both Boeing and Ford for the better. He must now face the same challenge that all automakers are sweating over – a contracting market dominated by Volkswagen with their easily scaled, high profit, MQB platform. Autocar’s Steve Cropley asks the difficult question; ‘How come Volkswagen is doing so well in Europe’. Mulally points out that they do exceedingly well in their home market as well as China going on to say, ‘the VW Group is mostly VW and Audi. The Volume is VW, but most of the profits come from Audi’.

‘The Volume is VW, but most of the profits come from Audi’

If this is the case you have to wonder why exactly Ford sold off all of their premium brands such as Jaguar and Volvo, but Mulally stands firmly by his decision. So what, then, is Fords answer to Audi? ‘VW have a great family, and in a way we’re doing the same with Lincoln.’ says Mulally in his interview with Autocar.

That seems like a pretty strong hint at Lincolns future direction to me, to take the fight to the German premium brands. If this really is Mulally’s intention, will it work? The task looks gargantuan from every angle, Lincoln’s are sold only in America, they have 5 models. Compared to Audi, the American brand looks like a minnow, Audi boasting a worldwide market and 12 models, a number which will only continue to grow if their concepts are anything to go by.

The task looks gargantuan
from every angle


Things weren’t always this way however. At the start of the 1970’s both Lincoln and Audi were selling three models focused largely on their respective home markets. Audi’s range was headed by the forward looking 100 mid size executive, while Lincoln had introduced their big, bold, and in my opinion rather beautiful Continental Mk V. Whether you’d rather be swanning around in a Audi 100 coupĂ© or a Lincoln Mk III is down to personal preference, but the Lincolns prestige is obvious, while Audi was only just starting on the road to becoming a recognised luxury brand.

The Lincoln Town Car and Audi V8 Quattro – The companies fortunes have been travelling in opposite directions since these cars were around at the beginning of the 90’s

In the last 20 years Audi has gone from underdog to premium car cash cow. Lincoln on the other hand has stagnated, the once great Continental name died in ’97 when it adorned a rather unexciting front wheel drive saloon. Aside from the successful Navigator, Lincoln sales in the USA have been un-impressive. What hope could there possibly be of this brand conquering the premium world in the same way that Audi has?

dynamically the Ford is
the superior car

Despite the enormity of the task, there are a few things that provide a glimmer of hope. Firstly Ford has shown themselves fully capable of engineering a fantastic car, personally if given the choice between Mondeo and A4 I would go for the former every time, dynamically the Ford is the superior car. Of course the car from the blue oval can’t match the Audi’s image, presence, or interior quality and that’s why the Mondeo struggles for sales while A4’s are everywhere. Assuming Ford is easily capable of building an Lincoln with dynamics superior to an Audi, that leaves them with presence, interior quality and image to bring up to scratch.

Presence

Presence is probably one of the biggest contributing factors to Audi’s success, big grilles LED daytime running lights and strong lines create a car that’s highly suited to tailgating on the outside lane of the M25. An Audi also looks good on your drive, bland enough to be liked by many but with enough class to make it desirable. Can Lincoln match this? They certainly have one advantage that Audi do not, heritage. The Continental IV is arguably one of the best looking cars ever, it’s got bags of presence without the need for superfluous air intakes or LED lighting. It does strong lines so much better than anything Audi has ever produced. Lincolns current range is respectable looking, if perhaps a little too orientated on the American market, but the potential is there.


Interior Quality

Another strong draw for Audi buyers is the legendary interior quality. Audi has been leading the way with perceived quality for years. The story with Lincoln is predictable, once their interiors were as adventurous as their lavish exteriors but more recently they have descended into typical American car mediocrity, with unpleasant looking plastics and dated switchgear. Recent times have seen American cars strive to improve quality in an attempt to fight off imported models, but there’s still some way to go to get near Audi. Raising the perceived quality sufficiently would perhaps be the biggest challenge for Lincoln were it not for their total lack of image, something you’ll find an abundance of at Audi.


Image

Image is the impossible mountain to climb for Lincoln. In America it seems the brand has a whiff of the elderly about it, an image the latest designs are clearly trying to dismiss. Outside of the US however the brand has very little image at all.  This could be a blessing or a curse, but past examples show it more as a curse - just ask Infiniti or Cadillac about their UK sales. Lexus show that it can be done, they have built a solid image as a luxury car maker in the last 12 years, but despite cars like the LF-A and IS-F it’s hardly the enviable ‘cool’ image that Audi sells millions of cars on the back of.

The new Lincoln MkZ - good looking enough to take on Audi?

Realistically then, Lincoln will not be competing with Audi on an equal footing anytime soon, but that’s hardly surprising - even Mercedes and BMW are wondering how exactly to cultivate the same sort of ‘hip’ image in their brands. That’s not to say things couldn’t work out for Lincoln though. Cadillac’s efforts in Europe have surely served as an example of how not to do it, while matching Infiniti’s efforts doesn’t seem unrealistic.

The key is time. It will take time, lots of investment in good cars and marketing to get the Lincoln brand into a good position. Whether Ford can be committed enough remains to be seen, but there’s no doubt the German’s are running away with the profits and Ford are not the only brand wanting a piece of the action. At the moment Lincoln just makes for an interesting prospective new challenger.

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