Lincoln to dealers: go electric or pull out now

Posted on October 14, 2022
General
Lincoln to dealers: go electric or pull out now

Lincoln is telling dealers to invest in upgrades to sell electric vehicles or get out of the brand now.

The details of this policy, which seems similar to what parent company Ford is doing to its dealers, were first reported by Automotive News (subscription required), but were confirmed by Lincoln spokesperson Anika Salceda-Wycoco to Motor Authority confirmed it.

Lincoln offers dealers the option to enroll in one of two tiers, depending on market size. Dealers in the top 130 markets will invest just under $900,000 in upgrades to sell EVs, while the rest will invest just under $500,000.

A portion of this funding will go toward charging infrastructure, including DC fast charging stations and Level 2 AC stations. The amount of charging stations will be determined by dealer tiers.

Dealers must also agree to non-negotiable pricing, a single point of contact with customers, and an expanded online presence for sales and service.

Dealers who accept these conditions may register starting this month. The registration period ends December 15. After this period, dealers will not have the opportunity to return to the Lincoln brand until the second registration period begins in 2026.

Dealers who fall outside of either registration period must stop selling Lincolns once the Lincoln brand transitions to EVs. Lincoln plans to unveil its first EV later this year, which is expected to be an all-electric version of the Aviator. Four more EVs will reportedly be unveiled by 2026, including an all-electric Navigator, bringing the EV lineup to an all-electric lineup by 2026.

Elements of Lincoln's dealership plan, including non-negotiable pricing, phased EV investment, and registration periods, continue the plans recently discussed by parent company Ford's Model E electric business unit. Lincoln's showrooms and service centers will remain separate from the Model E outlets.

General Motors has offered buyouts to Cadillac dealers unwilling to shift the Cadillac brand to EVs, but about one-third have opted to give up their franchises in exchange for selling EVs; GM has also offered buyouts to Buick dealers;

[18] [19] [20] [21] [22] [23] [24] [25] [26] [27] [28] GM has offered buyouts to Cadillac dealers who are not willing to shift their Cadillac brand to EVs, and GM has offered buyouts to Buick dealers, Both brands are expected to be all-electric by the end of the decade.

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