Photo credit: Duge

Photographed at the Beijing Auto Show in April 2024

After taking over the reins from Zhu Meijun nearly six months ago, Jia Mingdi seems unable to lead Lincoln China to a 'second spring,' with sales and presence gradually weakening.

Data shows that in August, Lincoln sold only 4,260 vehicles in China; in the nearly six months leading up to that month, cumulative sales were 26,700 vehicles, averaging less than 4,500 vehicles per month. Last year, they sold just over 70,000 vehicles, and in 2022, nearly 80,000 vehicles, with sales declining year-on-year for two consecutive years. This year, sales are likely to continue to decline.

Many believe that Jia Mingdi is in a 'catch-22' situation, as Lincoln's product line is incomplete and its transition to new energy vehicles is lagging. Especially in terms of new energy vehicles, Lincoln China has yet to launch a pure electric model, leaving Jia Mingdi with no cards to play until the first pure electric model is introduced to the Chinese market.

During the recent Chengdu Auto Show, Jia Mingdi told the media, '(Lincoln) pursues high-quality sales, does not measure success by sales figures, and does not participate in price wars. At the same time, Lincoln values sales but does not solely pursue them. Quality is more important than quantity, and value is more important than numbers.'

These remarks seem more like a compromise and attempt to save face after failing to reverse declining sales. With only four months left in the year, can Lincoln China and Jia Mingdi find a breakthrough to return to growth?

1

Sales Showing Signs of Fatigue ●

Lincoln Motor Company is one of the early leaders in luxury automobiles in the United States and entered the Chinese market early on, but it has been up and down over the decades, showing clear signs of fatigue in recent years.

Lincoln first entered China in the 1980s as a 'luxury brand' and 'presidential limousine,' pioneering parallel imports. At the time, a stretched Lincoln could sell for over a million yuan.

However, with Cadillac, Lexus, and other brands still far from the Chinese market, and domestic consumption of luxury cars not yet sensitive, Lincoln's sales were dismal despite the high price tag. Coupled with the financial crisis, Lincoln ultimately withdrew from the Chinese market in 2008.

This was not the end of Lincoln's journey in China, however. After weathering the financial crisis, Lincoln returned to the Chinese market in April 2014. This time, the domestic automotive market had changed, and Lincoln quickly entered a growth trajectory, exceeding 10,000 sales in its second year.

Stimulated by the upgrade of automobile consumption and other bonuses, Lincoln caught up with the booming luxury car market in China. In 2016 and 2017, sales in China reached 32,600 and 54,100 vehicles, respectively, with growth rates of 179.95% and 66.24%.

In the following years, even as growth slowed, under the leadership of the 'iron lady' of marketing, Mao Jingbo, Lincoln's brand voice and sales continued to climb. In 2018, sales reached 55,300 vehicles, and in 2021, they surged to 91,600 vehicles.

Just as everyone was expecting Lincoln's annual sales in China to exceed 100,000 vehicles, a cold shower was poured. 2022 marked a watershed moment for Lincoln in China, with cumulative sales falling short of 80,000 vehicles, a double-digit decline year-on-year, and ranking far below fellow second-tier luxury brands such as Cadillac, Lexus, Volvo, and Jaguar Land Rover.

Moreover, the downward trend continued in 2023, barely maintaining sales of just over 70,000 vehicles. This year, the situation seems to be worsening. According to Autohome data, Lincoln sold only 26,700 vehicles in China in the six months leading up to August, averaging less than 4,500 vehicles per month.

According to Sina Auto, which uses new vehicle compulsory insurance data as its statistical basis, Lincoln sold a cumulative 25,800 vehicles in China in the first seven months of this year, down about 13,700 vehicles from the same period last year, which totaled 39,500 vehicles. Although there are still a few months left in the year, the difficulty in stopping the decline is clear.

Undeniably, traditional luxury car markets have faced challenges in recent years due to the rise of domestic mid-to-high-end new energy brands, especially for second-tier luxury brands like Lincoln. However, in terms of sales rankings, Lincoln appears to be in the most awkward position compared to its competitors.

2

Changing Leadership Does Not Help ●

When discussing Lincoln China, several figures are inevitably mentioned: the former 'hero' Mao Jingbo, the subsequent Zhu Meijun, and the current Jia Mingdi. Among them, Mao Jingbo and Jia Mingdi are discussed more frequently due to their past experiences and achievements.

Mao Jingbo, former Vice President of Mercedes-Benz (China) Automotive Sales Co., Ltd., joined Lincoln as President of the China region in July 2018. Before her arrival, Lincoln's sales in China were growing annually, but the growth rate had slowed and lagged behind other second-tier luxury brands.

To change this situation, Mao Jingbo leveraged her 20 years of marketing and brand communication experience in the automotive industry to accelerate Lincoln's localization. She not only enriched the product line but also connected the brand concept with Chinese elements, making Lincoln increasingly visible and one of the fastest-growing luxury brands in China during those years, creating the 'Lincoln phenomenon.'

However, at its peak, Mao Jingbo 'unexpectedly left' in 2022, and Lincoln China had to announce a change in leadership, with Zhu Meijun, who had previously served as Executive Vice President of Lincoln China and Vice President of Marketing at Changan Ford's National Sales Service Organization, taking over.

Perhaps due to Zhu Meijun's relatively low-key style, Lincoln China did not undergo many fresh or impressive changes under her leadership. She stated that Lincoln's sales target in China for 2023 was to exceed 100,000 vehicles, emphasizing doing the right thing, adhering to the Lincoln Way, and continuously improving Lincoln's brand reputation through value-based marketing.

Unfortunately, Lincoln sold only just over 70,000 vehicles in China in 2023, a year-on-year decline that also tarnished Zhu Meijun's reputation.

In early April of this year, Ford China announced that Jia Mingdi would succeed Zhu Meijun as President of Lincoln China and report to Ford China President and CEO Wu Shengbo and Lincoln Global President Dianne Craig, while Zhu Meijun officially retired from the company on May 1.

This change in leadership caught many off guard, but there was more anticipation in the market. Before joining Lincoln China, Jia Mingdi had a long career at SAIC Motor, serving in various senior positions, including General Manager of SAIC Volkswagen Audi Business Unit and Executive Vice President of Sales and Marketing at SAIC Volkswagen.

Judging from his resume, Jia Mingdi helped drive SAIC Volkswagen's sales to new heights during his tenure. According to relevant data, he contributed to SAIC Volkswagen's sales of 18 million vehicles during his time there. It seemed he was a sales expert and had the potential to lead Lincoln China back to growth.

However, more than five months after taking office, we have yet to see an improvement in Lincoln China's sales. It appears that changing leadership is not a 'miracle cure,' and Jia Mingdi may not have found the right approach for Lincoln China yet.

3

Serious Product Gap ●

To attribute Lincoln's current difficulties in China solely to senior management would be inaccurate. There are many factors at play. From a broader perspective, the traditional luxury car market is fiercely competitive, with overall growth slowing, and autonomous new high-end brands like NIO, Xpeng, and Li Auto are posing challenges to Lincoln, making it difficult for it to recover in the short term.

Even BMW, Mercedes-Benz, and Audi, once stable players in China's luxury car market, have seen their positions shaken. To maintain market share, they have had to repeatedly reduce prices in the terminal market. Meanwhile, brands like NIO, Xpeng, Li Auto, AITO, and Zeekr have emerged, redefining the core advantages of the high-end market.

Lincoln itself also has many shortcomings. One common complaint is the 'product gap.' Although Lincoln China has introduced several updated models in recent years, it has not launched a single new model since the introduction of the locally produced Lincoln Z in March 2022.

With the pace of automotive product updates in China clearly accelerating, Lincoln is undoubtedly lagging behind. Its current lineup of Navigator, Aviator, Nautilus, and Corsair are all old products for Chinese consumers, lacking freshness.

At the same time, Lincoln is struggling with its transition to new energy vehicles. It has launched hybrid versions of the Corsair, Nautilus, and Lincoln Z, but none have achieved significant sales.

In terms of pure electric vehicles, Lincoln only unveiled a new pure electric concept car on April 21, 2022. The production version of this concept car will be Lincoln's first pure electric model. During its centennial celebration at the end of 2022, Zhu Meijun once again presented Lincoln's first pure electric concept car, The Lincoln Star, but the company did not disclose a timeline for its production.

Although the electrification transition of traditional luxury car brands is generally slow, Lincoln's transition pace among second-tier luxury brands is still much slower than others. It is no wonder that many people say Jia Mingdi is in a 'catch-22' situation, as even an experienced marketer is powerless without new products.

During this year's Chengdu Auto Show, Jia Mingdi admitted, 'Since joining Lincoln, I've been thinking about where our customers are every day when I get in the car. Later, I came to terms with it. China is a huge market with nearly 30 million annual vehicle sales. As long as I can accurately identify 1% of our target audience and convert half of them into customers, that's the best two-way result.'

While these words may seem relaxed, Jia Mingdi undoubtedly feels some anxiety beneath the surface. For him, halting the decline without new products is the biggest challenge before him.

Author | Li Li

Source | CarVisibility

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