Lincoln shrinking its dealership network

Lincoln cut 100 U.S. dealerships in 2023 and plans to cut 100 more this year in an effort to boost profitability from its retail network, Automotive News reported last week.

This will reportedly leave Lincoln with roughly 400 U.S. dealerships by the end of 2024. That’s about 40% fewer than in 2021, but still more than most other luxury brands, Automotive News noted.

Lincoln boutiques and dealerships

Lincoln boutiques and dealerships

Lincoln is reportedly offering dealers buyouts on a case-by-case basis. Most Lincoln franchisees also sell cars and trucks from the brand’s parent Ford, and the company is reportedly offering more Ford-brand inventory as sweetener, as well as “special incentive plans for loyal customers.”

The effort is aims to increase throughput at the remaining dealerships, as well as leave Lincoln with fewer dealerships paired with Ford showrooms, according to the report. Lincoln currently has 164 standalone showrooms.

Lincoln boutiques and dealerships

Lincoln boutiques and dealerships

Following along with Ford, Lincoln in 2022 told dealers to invest in upgrades to sell EVs or bail out of the brand. But the decision to shrink Lincoln’s dealership network isn’t related to whether dealers signed up for that program, Lincoln president Dianne Craig told Automotive News. Last year, more than one-third of Lincoln’s dealerships had said “no thanks” to that program, which Automotive News now reports as being “essentially on hold.”

Despite the planned EV shift, Lincoln doesn’t currently have any all-electric models in its lineup. Its next new model will be the redesigned 2024 Lincoln Nautilus, due to start sales later this year with straight gasoline and hybrid powertrains only. The Aviator also loses its plug-in hybrid powertrain for 2024, leaving the Corsair as the only Lincoln with a plug until the first EVs arrive in 2025.

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