In recent years, Lincoln's journey in China has witnessed a mixture of highs and lows, echoed by the longstanding presence of many other luxury automobile brands in the regionCelebrating a decade since its reentry into the Chinese market, news has circulated suggesting a potential merger crisis involving Lincoln China as it appears to be pulling back under the umbrella of its parent company, Ford.

This shift is reportedly aimed at strengthening Ford China's operational grip on its business and streamlining costs through shared resourcesAs a result, Lincoln's role as Ford's dedicated sales and service company in China is set to be diminished, and functions related to sales, marketing, and customer service will merge into the larger Ford China structure.

The response from Lincoln China amidst these rumors has been somewhat reassuring

Starting from 2025, they plan to integrate their financial systems with Ford China, which is framed as a move to simplify the often-complex internal financial framework for better operational efficiencyHowever, Lincoln reassures stakeholders that its business operations will remain as they are, and it will continue to function independently in the Chinese market as a wholly-owned subsidiary of Ford.

In addition to financial restructuring, the internal landscape at Lincoln China is set for a revision in its dealership modelAimed at ensuring healthy dealer operations and brand development, Lincoln China has begun to dynamically adjust the scale of its dealer networkThis includes closing down poorly performing 4S stores located in less accessible areas, with plans to reduce their network of dealerships from 150 to approximately 115. Lincoln also intends to enhance its dealer presence in more consumer-centric locations by establishing 1S and 2S stores focused on luxury brand initiatives.

These changes have sparked speculation that this level of channel reform might hint at larger issues concerning Lincoln's commitment and viability in the competitive landscape of the Chinese market, especially against the backdrop of declining sales numbers over the last few years

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Recent market data indicates that in the first 11 months of this year, Lincoln's total sales plummeted to 48,300 vehicles, marking a significant 17.7% decrease compared to the previous yearNovember alone saw sales drop to only 4,251 vehicles—a staggering decline of 37.2% year-over-yearIf this trend continues, Lincoln may find itself even closer to 50,000 sales, which would revert back to 2018 levels.

Lincoln once enjoyed the status of being called the "presidential vehicle" in China, a symbol of American luxury that captivated manyMuch of this success was steered under the leadership of former president Mao Jingbo, who spearheaded Lincoln’s efforts to localize and adapt in the thriving Chinese market.

In 2020, under Mao's guidance and with 20 years of experience in the luxury car industry, Lincoln China kicked off a process of domestic production

Consequently, that year marked the introduction of models such as the Lincoln Aviator and Nautilus, alongside Lincoln's first sedan, the Lincoln ZThis strategy seemingly paid off, propelling Lincoln into the limelight among second-tier luxury brandsSales surged dramatically from 46,600 vehicles in 2019 to 91,600 in 2021, allowing the Chinese market to surpass the US as Lincoln's largest global market.

However, good times did not lastIn 2022, the rise of electric vehicles and domestic competitors caused a seismic shift in the marketLincoln, which lagged in adapting to the electric vehicle trend, began to lose its edge against a backdrop of fierce competitionAs a consequence, Lincoln China's annual sales dropped 13.4% to 79,300 vehicles that year.

September 2022 marked a pivotal leadership change when Mao Jingbo departed the company

Zhu Meijun, who held various key roles within Lincoln China and Ford, stepped in to face the steep challenges aheadDespite his extensive experience within Ford, sales continued to decline under his tenure, with 2023 marking a significant drop again where the total stood at just 71,600—an 11.7% decrease, making Lincoln one of the largest decliners among second-tier luxury brands.

It is essential to highlight that reports surfaced indicating that Zhu took the reins not willingly, but due to a lack of available senior candidates within the organizationMany insiders expressed concerns that his strategy was merely about minimizing risks until retirement rather than actively seeking growthThis passive approach has frequently been cited as a factor contributing to Lincoln's decline.

After Zhu, significant time transpired without any new models being introduced in the Chinese market, including fresh electric offerings

Currently, Lincoln's lineup includes only five models: the Lincoln Z, Aviator, Nautilus, and imported Navigator and Aviator versionsAlthough a hybrid variant of the Lincoln Z and Aviator was launched this year, the lack of differentiation in terms of operational mechanics and powertrains, when compared to traditional combustibles, has led to a lukewarm market response.

Several months later, Ford China announced that Jia Mingdi would take over as president of Lincoln ChinaKnown as the "father of Audi under SAIC," Jia has a robust background with over 26 years in the industry, having been part of significant projects at SAIC Volkswagen and contributing to the establishment of SAIC Audi.

However, even with such significant credentials and a wealth of experience in the luxury and joint venture market, Jia's tenure has not turned around Lincoln’s fortunes