MKZ Sedan Expected Bright Spot in Otherwise Stagnant Lincoln Sales

Lincoln sales are projected to run even with year-ago for May at about 7,300 units, despite an expected record monthly volume for the brand’s revamped MKZ sedan, top executives say.

In April, Lincoln deliveries rose 15.9% from like-2012 levels to 7,615 units, WardsAuto data indicates, with the all-new ’13 MKZ midsize sedan driving that growth with a 106.7% gain.

When Ford reports May sales Monday, the MKZ again will lead the way for the brand, which is attempting to regain a foothold in the U.S. luxury-vehicle market.

“We’ll probably sell around 3,300 units, and the record was 3,000 in 2007, which was about when we launched (the original) MKZ,” Jim Farley, executive vice president-global marketing, sales and service and Lincoln, says in a conference call with journalists.

Monthly sales for the revamped sedan should average about 3,000 units from now on, he says.

About 25% of MKZ customers are selecting the hybrid model, priced the same as the conventional gas-powered version at $35,925, not including an $875 destination and delivery charge.

Ford plans to increase MKZ hybrid production at the Hermosillo, Mexico, assembly plant to keep pace with demand.

“In some parts (of the country), MKZ hybrid stocks are getting critically low,” Farley says.

Lincoln’s new concierge service, which guides potential customers through the buying process online, also is said to be gaining traction, as is the brand’s “date night” marketing ploy that loans potential customers an MKZ for a night to go along with a $100 gift certificate for dinner.

“About 90% of (date night) participants are positively influenced to consider the product,” Farley says. “So it’s having the desired effect of people sampling the brand.”

The MKZ is drawing a record number of conquest buyers to the brand, most of whom are trading out of Lexus, BMW and Cadillac models.

Additionally, the new sedan is gaining traction in markets where Lincoln has struggled, including California and New York, two traditional luxury-car hotbeds.

A surprisingly strong market for the MKZ is Texas, Farley notes. “Texas is the fastest-turning location for the hybrid. It’s not what you think about Texas, where we do well with pickups, so it’s encouraging to us.”

Matt VanDyke, director-global Lincoln, admits the success of the MKZ is hurting the performance of other models, including the flagship MKS fullsize sedan. But he says the auto maker is working to rectify that.

“One important learning is how to continue to be successful with other vehicles in the portfolio,” he says. “The MKZ is in a different place with its freshness.”

The midsize sedan is the first of four new products Lincoln will launch over the next four years. Next up is a production version of the MKC cross/utility vehicle concept shown at the 2013 North American International Auto Show in Detroit.

Farley says the small-premium-CUV segment is one of the hottest in the industry, led by the Mercedes GLK and Acura RDX.

“As a challenger brand, we’re committed to executing in mainstream segments, like with the MKZ, and in segments that are growing with not as much competition, like small-premium utility,” he says.

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