RE: Lincoln marquee all but dead?
And the soon to be released Zephyr.
Wixom plant to lose Lincoln LS
Ill-fated plant may cut 250-280 employees
August 23, 2005
BY JAMIE BUTTERS
FREE PRESS BUSINESS WRITER
Ford Motor Co. notified workers at the Wixom Assembly Plant on Monday that production of the Lincoln LS would end with the 2006 model year next spring or summer, company spokespeople confirmed.
The move is expected to eliminate 250 to 280 jobs and perhaps seal the fate of the plant.
This summer the large, old plant stopped making the Ford Thunderbird coupe, and by this time next year, it looks like it will be making only the Lincoln Town Car and doing a little work on the Ford GT premium sports car.
As Ford's traditional domestic brands have lost market share year after year, the company has found itself losing money on its automotive business and needing to close plants. Wixom has long been seen by analysts as a plant in danger of being closed, presumably when Ford and other locally based automakers negotiate a new national contract with the UAW in 2007.
"They're not earmarked for" new models, Joe Langley, an analyst at automotive forecaster CSM Worldwide in Farmington Hills, told Bloomberg News about the Wixom plant. The Town Car may move to a St. Thomas, Ontario, factory that produces Ford Crown Victoria and Mercury Grand Marquis cars, he said.
All three cars are made on the same platform, or basic mechanical design.
Ford spokeswoman Anne Marie Gattari said the automaker had nothing further to announce about the future of the Wixom factory, which opened in 1957.
Before ending production of the T-bird, the Wixom plant employed about 1,800 hourly and salaried workers. That move was expected to eliminate about 200 jobs, and end of LS production is expected to take away 250 to 280. So by this time next year, employment would likely be between 1,320 and 1,350.
LS never struck a chord with consumers, who saw it as neither sporty enough nor luxurious enough to compete with BMWs or other premium brands, said Karl Brauer, editor in chief of consumer Web site Edmunds.com.
"There was always a question of what exactly the car was supposed to be," he said. "It never seemed to have a real strong identity one way or the other."
Sales last year fell 20% to 28,000, and sales are down 18% so far this year despite, swelling incentives.
According to Edmunds' proprietary study of actual transaction prices, a high-end LS without options has a suggested retail price of $44,250. The invoice price paid by dealers is $40,586. But customers actually end up paying only $36,653 after all incentives and promotions, such as Ford's employee-pricing offer.
"That's painful," Brauer said. "The car never did as well as it should have."
Lincoln spokeswoman Lydia Cisaruk said the brand's lineup has been well served by the LS.
"It's helped bring a lot of new and younger customers to Lincoln," since its introduction in 1999, she said.
Starting with this model year, Lincoln will have a new car model at the low end of its range. The Zephyr, made in Mexico, will start under $30,000. Fully loaded, it will run up to $35,575.
Zephyr is fundamentally similar to the Ford Fusion and Mercury Milan sedans, which are also made in Hermosillo, Mexico.
Combined with the Mark LT luxury full-size pickup, Zephyr signals a new era for Lincoln, Cisaruk said.
"We are beginning a new chapter for Lincoln. ... You can consider it a renaissance."