Quote:
Originally Posted by crysalis_01
Again, your arguing point I agree with. I too wish Lincoln was making exciting to drive sport sedans along with money printing SUV's. But they have to work up to that point. Lets look at the numbers provided by MEDSIN above, ATP's and sales totals, and the revenue you and I both are speaking to. Which is the better path for Lincoln to be taking right now?
ATS @ $44,791×17,723units = $793,830,893
Or
MKZ @ $39,299 x 25,343units = $995,954,557
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I would caution against the assumption that Lincoln is earning $39k for the nearly 10,000 MKZ that sold to fleet. I can't tell you how much they averaged but safe to assume fleet has much lower margins than retail.
But lets give them the benefit of assuming all cars were sold at retail prices, including the Continental. There's still the fact that the Cadillac buyer has 4 sedans to choose from vs Lincoln's 3 (soon to be 2).
Cadillac - $2.82B
ATS: 17,723 x $44,791 = $794M
CTS: 13,172 x $54,642 = $720M
XTS: 16,389 x $53,047 = $869M
CT6: 6,707 x $65,331 = $438M
Lincoln - $1.31B
MKZ: 25,343 x $39,299 = $996M
Cont: 1,997 x $54,381 = $109M
MKS: 4,647 x $43,527 = $202M
Buick - $1.45B
Regal: 18,524 x $31,796 = $589M
LaCrosse: 22,329 x $38,679 = $864M
As you can see, Buick is probably the better comparison to Lincoln currently. With only these two sedans, Buick generates more revenue than ALL of Lincoln's sedans combined. I realize Buick is "upscale" and Lincoln is allegedly "luxury" but given both operate on reskinned econo-platforms and generate similar sales and similar revenue, it is a more appropriate comparison than Cadillac. If we are talking CUVs/SUVs then I think a comparison to Cadillac can be made.
Ultimately I don't think Lincoln should try and compete in the luxury-sport market for many reasons but mainly it just wouldn't be profitable for them. Lincoln is on the right track for Lincoln. Compete between Buick, Lexus and Acura. There's plenty of money to be made there.