‘Compromise solution' on Lincoln stores?

Lincoln's make meeting likely will be a sounding board for dealers to express concerns about the indefinitely paused Lincoln Commitment Program and a chance for executives to further sell retailers on investing in standalone stores.

The brand last year launched an initiative to persuade roughly 80 dual Ford-Lincoln dealerships in the top 30 U.S. markets to create separate stores, citing data showing luxury buyers want to shop in a luxury environment. Although a handful have opened new dealerships — and increased sales — the company late last year paused the program because some dealers pushed back.

At least one state dealer group has publicly called on Lincoln to amend rules that allow it to withhold money from retailers who choose not to participate.

"We've had feedback on both sides," Joy Falotico, Lincoln's president, told Automotive News. "We'll see what we need to do to come together and potentially revise and enhance the program. We'll have to find a compromise solution."

Lincoln says virtually all dealerships that build a separate showroom experience sales increases. Retail sales at the 72 standalone stores open before the program was announced rose 48 percent from 2014 through 2017, compared with 18 percent for the brand overall.

"We absolutely believe in the data and importance of brand-exclusive facilities, consistent with other luxury facilities," Falotico said.