Ford to invest $1 billion into troubled Lincoln brand

Ford Motor Company has promised to invest $1 billion in Lincoln by 2014 in a bid to revive its troubled luxury brand.

The announcement was made to nervous Lincoln dealers at a meeting two weeks ago between the dealers and Ford executives. Ford CEO Alan Mulally was also present.

Earlier this month, we reported on how Lincoln was working on a revival plan which will see it unveil seven new and updated models in the next few years. But the brand made that promise of new vehicles last year and still no new models have debuted. Dealers have become anxious about not having new products to sell while still being asked to make investments in improving dealer services and showrooms.

Now, Ford has put up the financial backing to make that happen.

Lincoln sales are down for the first 5 months of 2011 by 7.5 percent to less than 35,000 units compared to 2010. Wtih less than 1 percent of market-share in the United States, the brand risks becoming unviable if it continues its slide.

Dealers were told at the meeting that the brand could see sales dip below 80,000 units for 2011 but were assured that Lincoln would sell over 150,000 vehicles by 2015 with a revamped lineup.

"We're fully committed to making Lincoln a world-class luxury brand with compelling vehicles and an exceptional consumer experience to match," said Lincoln spokesman Timothy Elliott in the Detroit News story.

But many analysts are skeptical that the brand can be revived to the point where it can compete against the likes of domestic rival, Cadillac, let alone the import brands such as Lexus and BMW.

Even GM CEO Dan Akerson has thrown in his two cents, telling the Detroit News he thinks Lincoln is finished:

"You might as well sprinkle holy water. It's over."