Lincoln localizes production after two bumper years

Lincoln Motor Co will start producing cars in China by late 2019 after two very successful years in the world's largest car market, it announced on Monday.

According to its plans, Lincoln will build a new SUV with its joint venture partner Changan Automobile in Southwest China's Chongqing city.

Lincoln said the model will be sold exclusively in the Chinese market, and it will continue to import vehicles made at its facilities in North America for Chinese customers.

SUVs are now the fastest-growing car segment in the country. Statistics from the China Passenger Car Association show that 1.55 million SUVs were sold in China in the first two months of 2017, surging 20.1 percent year-on-year.

Lincoln President Kumar Galhotra said: "Lincoln product and ownership in China is resonating with Chinese customers even beyond our expectations.

"We are now taking Lincoln to the next level by building a new SUV in China to join a dynamic lineup of imported cars and SUVs."

Lincoln China President Amy Marentic said producing cars in China makes sense as the brand moves from a smaller luxury player to one that boasts a fast growing number of fans in the country.

She said building in China will help Lincoln to meet growing customer demand, expand faster in China, become more responsive to changing customer preferences, improve the company's speed to market and reduce shipping and logistics costs.

"We're excited about the opportunity to further tailor Lincoln vehicles for Chinese customers, while delivering exacting quality and attention to detail," Marentic said.

"As we grow, we will continue to enhance the personally tailored, thoughtful customer relationships that set Lincoln apart from other brands in China."

Fast-growing brand

Since its arrival in China two years ago, Lincoln has been the fastest-growing premium car brand in the country, as its growing lineup and tailored service - called the Lincoln Way - are winning the hearts of Chinese customers.

Lincoln sold 32,558 cars last year in the country, a surge of 180 percent year-on-year, almost 10 times the average growth rate of other top-10 luxury brands' sales in China. Five of Lincoln's top-10 dealerships worldwide in terms of sales are located in the country.

Lincoln has thus far introduced five models to the Chinese market, fulfilling a promise it made when it arrived in China in late 2014.

Besides the iconic flagship sedan Continental, which it launched in November, the cars on sale in the country are the MKZ sedan and three members of its SUV family, ranging from the new small premium utility MKC and the mid-size premium utility MKX, to the full-size SUV Navigator.

Lincoln will showcase two new models at the forthcoming Shanghai auto show, which will kick of in late April.

The new models will further expand the brand's ever-growing lineup.

Lincoln had 65 stores and seven branches running in China by the end of 2016, and plans to increase the number to 80 stores and 20 branches this year.

Consulting firm PricewaterhouseCoopers said Lincoln now has the highest dealership customer satisfaction rating in the industry.

Galhotra said: "The reason the Lincoln Way is named the Lincoln Way, with the word 'way' in there, is because it is kind of a way of life for us. Most car companies have a cycle plan of products, for us it is a similar cycle plan of experiences."

Beyond the brick-and-mortar stores, Lincoln has extended the experience online with a move called the Virtual Lincoln Way.

Users can now browse the cars they like and make a down payment through the WeChat instant-messaging app, as well as tour a virtual dealership, have live video chats with dealers and arrange at-home test drives in Beijing and Shanghai.

"When we set our strategy, whether it is a product strategy or dealer strategy or consumer strategy, it is all about making people's lives a little bit easier and a little more effortless," said Marentic.

"As Lincoln is increasingly the choice for China's new generation of luxury buyers who prefer individuality, we look forward to bringing our one-size-fits-one experience to even more Chinese customers," she said.

lifusheng@chinadaily.com.cn

(China Daily 03/14/2017 page15)