Even though Lincoln dealers don’t have any EVs to sell yet, the high price Ford requires for these dealers to sell electric vehicles could be a serious problem.
As the automotive market transitions away from traditional internal combustion vehicles and toward electric models, more companies are reporting high costs for dealership transitions to add new equipment required to sell these futuristic models. Does it seem right to announce fees to transition toward a vehicle type that isn’t yet available? It might be when you consider how soon some of these EVs will arrive.
When Will The First Lincoln EV Arrive?
Before the end of this year, Lincoln will have an electric vehicle in the lineup. This new model should be similar in size to the current Aviator SUV. This will only be the beginning of the transition made by Lincoln toward electrification. We should see one new Lincoln EV every year going forward until the end of 2026. By the end of the decade, the current Lincoln lineup will become completely obsolete. Lincoln, like so many other luxury brands, plans to completely transition to an electrified lineup by this date.
How Much do Dealers Need to Pay to Sell EVs?
If you believe in the term “you have to spend money to make money,” you’ll better understand the cost of upgrading current Lincoln dealers to have locations made for selling these new vehicles. The announcement that a change to an appropriate infrastructure to sell EVs comes with a high price tag. Current Lincoln locations will have the choice to change or to stay the same, but the change will need to take place before the end of the decade. Dealers that don’t make this transition will no longer be able to sell Lincoln vehicles, especially when the entire lineup will be made of electric vehicles.
What Do Dealerships Receive for Their Large Investment
The cost to transition the top-tier dealer locations that are responsible for nearly 90% of the sales for this brand is $900,000. This seems like an incredibly high price, but this price allows dealer locations to receive two DC fast chargers and seven Level 2 chargers, along with the other required infrastructure changes. Not all Lincoln locations will need to make this change, but these top-tier locations will certainly need to put forth this investment to upgrade their locations.
The Lincoln stores that are in smaller markets and sell fewer models will have a smaller investment required to change toward electric vehicles and away from the current gas-powered machines. These smaller stores require an investment of $500,000 to make required upgrades which gives them one fast charger and four Level 2 chargers.
In addition to the cost of these upgrades, all of these Lincoln dealers also must agree to non-negotiable pricing for the EVs being sold. This will avoid some of the troubles we see today with dealers price-gouging high-demand electric vehicles. Lincoln locations also need to create a greater online presence for sales and service, which can make these locations more attractive to young buyers to buy these new electric vehicles.
When do Current Lincoln Dealers Need to Make These Changes?
Dealers that intend to sell the newest Lincoln electric vehicles over the next few years have until mid-December to commit to this investment. Those that choose not to make this commitment could have to wait until 2026, when the next enrollment period arrives for dealers to invest in selling new EV models. It will be interesting to see how many dealers actually begin the upgrades this year and how many wait.
How Many Small Stores Will Go Out of Business?
If the top-tier stores are responsible for 90% of the Lincoln sales, those locations in the 10% bracket might choose not to sell EVs. Some of these stores might be a combination of Ford and Lincoln locations and could simply focus only on the Ford models, leaving their Lincoln customers to visit the top-tier dealers if they want to buy a Lincoln EV. Is it worth a portion of the 10% of overall Lincoln sales to spend $500,000 to upgrade the dealership location?
Could the Lincoln Star Concept Become a Production Model?
The Lincoln Star concept model brings new design language inside and out to offer the future design qualities of this brand. It’s unknown whether or not the features offered in this concept model will arrive in the first, fourth, seventh, or not all in the EV market from this brand. If you were looking for an electric vehicle that resembles the Transformers that we saw in the movies, the Lincoln Star concept is that electric vehicle. This SUV showed up with a lot of features that make it easier to access everything.
A Picture Worth So Many Words
The photo above tells quite a story about what the Lincoln Star could be. You see all of the doors open, the rear hatch open, and the front trunk open and sliding outward. This gives you the idea that this new concept model could be extremely versatile and packed with incredible qualities that might make this vehicle one of the most useful and impressive. The front trunk is made to slide out to offer easier access to the cargo carried in this area. The doors open with opposing hinges, which means a large area for entry and exit from the vehicle. The rear hatch provides access to a generous cargo area.
If any aspects of the Lincoln Star concept make it to the market, we’ll see Lincoln electric SUVs that are useful, comfortable, and packed with luxury features. These are certainly expected qualities of this brand. Will the Lincoln dealers in your area be part of this transition to selling EVs, or will they wait until the next wave to get involved in this new market? Those dealers that see the Lincoln Star become a production model might not want to miss out on potential EV sales over the next few years.
This post may contain affiliate links. Meaning a commission is given should you decide to make a purchase through these links, at no cost to you. All products shown are researched and tested to give an accurate review for you.