We at Mercurypedia came across this great interview via Automotive News, on the dying of Lincoln-Mercury dealers. Since Ford’s dealership reduction efforts began in 2006, the number of stand-alone Lincoln-Mercury dealerships is down more than 42 percent. The biggest driver of the reduction has been the push for Lincoln-Mercury and Ford stores to merge in metro markets, something the automaker previously discouraged.

At the beginning of 2009, there were 357 Lincoln-Mercury stores in the United States, down from 619 three years prior. Ford CEO Alan Mulally talked about the future of Lincoln and the stand-alone Lincoln-Mercury dealership with Associate Publisher Peter Brown, Editor Jason Stein and Staff Reporter Amy Wilson.

The number of Mercury nameplates is shrinking. You’re pushing for more dual Ford-Lincoln-Mercury stores. What is your intention for stand-alone Lincoln Mercury dealerships? Is eliminating them part of the strategy?

Our focus is on a distribution network where they can be profitable. Many people really like the volume and the breadth of having Ford-Lincoln-Mercury together.

But is there enough for the stand-alone Lincoln Mercury dealers?

I think in the future you will see more and more dueling of the dealerships.

Will we eventually see the stand-alone Lincoln Mercury store go away?

I think we’ll see more Ford-Lincoln-Mercury dealerships.

Any tips for how the remaining stand-alones can stay in business and make a profit?

I think we’ll just see more Ford-Lincoln-Mercury dealerships.

But does that make sense in the metro areas?

I think we’ll see more Ford-Lincoln-Mercury dealerships.

Volvo will soon be sold. How do you create a credible luxury business with Lincoln when those dedicated Lincoln-Mercury dealerships are declining? What’s the plan for Lincoln?

Lincoln is a great brand. And many people believe we have the finest Lincoln family now that we’ve ever had. And we’re going to keep enhancing it. They’re not just rebadged Fords going forward. We really believe Lincoln has a great name in the United States and a lot of people believe it would be a good brand worldwide, too.

Is there a chance you could expand it globally?

Yeah, but our focus right now is to really make a compelling luxury United States Lincoln brand.

In the U.S., is the goal to compete head-to-head with Cadillac, with Lexus?

Lexus and Cadillac are two good brands.

Stand-alone Lincoln-Mercury dealers are worried about their brands declining as Lincolns and Mercurys become sales tools to sell Ford vehicles in dualed stores.

I’ll share a recent experience: I was driving a Lincoln MKS and visiting a stand-alone Ford store, and I was sitting in the car in front of the showroom for a few minutes. There was a salesman outside on the sidewalk right in front of this Lincoln MKS, and he starts talking it up to a customer, but then the punch line was: “Well, this is pretty much the same as the Taurus, the Taurus actually looks even better. I have the Taurus around the side, and it costs $10,000 less. Come look at the Taurus.”

That wasn’t a Ford-Lincoln-Mercury store, but that salesman saw that Lincoln and he jumped right on it to use it as a sales tool.

I understand. And the answer clearly is the brand promise. Maybe in the past, there hasn’t been as much differentiation between a Lincoln and a Ford. But clearly with what we’re doing going forward, that Lincoln product is going to be a more of a luxury brand promise. The whole bar’s moving up because the Ford vehicles are getting better and all the luxury brands are getting better.

But part of the brand promise is the experience at the dealership.

Most people that dual have an enhanced experience with the dealership, too, with the service. If you go to the ones that are really successful with that, they really provide the extra attention and care that the Lincoln buyers really expect and really value.

But you have to get them to buy the Lincolns first. And if the sales guy thinks it’s easier to sell him the Ford, you’re going to sell fewer Lincolns, won’t you?

I know your one example. But we’ve got a lot of people that are buying Lincolns, and they love Lincolns. The people that have dualed stores know they want to have an experience that fits the vehicle that they’re selling, so they’ll do it to be successful. They’ll have two different experiences.

Even within the same store?

Yeah, if you go to the stores that are doing it well, they really have an enhanced experience. A lot of stores are doing it very well. But it absolutely starts with the product itself. And I think that’s a neat thing that you’re capturing. It has to be a different brand promise. You just can’t have a warmed-over Ford and have a luxury brand called Lincoln, not in today’s environment.

Original piece: Auto News