Wednesday, April 4, 2012

Jaguar, Lincoln or Volvo: Which Brand Is Worth Keeping?

There was a time when Ford had the luxury equivalent of three little pigs.

I'm not sure if Jaguar, Lincoln and Volvo were the industry equivalent of straws, sticks and bricks. But they were by all measures an ungodly mess of marques that bled billions out of Ford's coffers by 2007.

Something had to be done. Enter Alan Mulally who blew out two of the brands, and only kept Lincoln after a Deliverance level of squealing by managers and executives at Ford.

In today's exercise, you will need to pick one brand for Ford to keep. Yes, crystal balls and Monday morning quarterbacks are a common thing at most automotive blogs.  So instead of shooting from the hip of the modern day, let's look back to the time that was the late, late, late Bush era and figure out which brand offered the most potential.

Volvo had once been a leader in functional, safe and durable designs. Ye olde classic bricks of pre-Ford times had been built using the Kalmar approach to outlast the conspicuous fashions of their days. By 1989, Volvo had even offered a 740 model that was designed to last an average of 17 long Nordic winters according to the Swedish PR machine. Buying a Volvo back in the day truly meant buying a keeper par excellence.

Unfortunately, the bid to transform Volvo into an uber-Yuppie brand throughout the 2000′s had been an epic failure. 10 models, 0 hits by 2007.  The XC90 and S80 were as unpopular, as the C30 and S60 were overpriced. Come to think of it, all Volvos by this time were overpriced.

Jaguar was a classic case of buying sizzle instead of steak. The $2.4 billion toilet flushing of a buyout in 1989 ($4.4 billion in today's dollars) was followed with billions more in Ford's failed attempt to rejuvenate a marque that had back in Thatcher's time, released the auto industry version of an age old  grandfather clock.

To undo the damage and rebuild what truly never was, Ford bequeathed Jaguar some of the most distinctive designs and beautiful interiors of modern times. Everyone considers styling to be purely subjective. However the XJ's and XK's of the late 90′s could have become market leaders if Ford had fewer luxury laden mouths to feed throughout the 2000′s. By 2007 Jaguar had once again become a luxury laggard.

Lincoln was the automotive equivalent of Alzheimers by 2007. The Town Car was already destined for the dustbin. The MKX and MKZ, two acronymed models that were as compromised as an MBA new hire,  were even less competitive when it came to sales.  As a historical footnote of the worst type, the Lincoln Mark LT pickup battled it out with the Lincoln Blackwood and Chevy SSR for worst sales flop of the decade.

What else was left? Oh, SUV's. Plenty of opportunity for profit there. But while Escalades, Land Cruisers, and Range Rovers were still ringing up the profits, Hummer H2s, Dodge Aspens and Lincoln Navigators were rapidly becoming also-ran's.  Despite offering competitors in five different luxury markets, most Lincoln dealerships were unable to move the metal.

So guess what folks. You have to keep one. Which will it be? Swedish style, British luxury and American ingenuity are all on the table. Which one is most worth it in today's marketplace? Discuss.

 

 

 



from The Truth About Cars http://www.thetruthaboutcars.com




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