Calif. Dealers Resist Lincoln Facility Rules
The California New Car Dealers Association is pushing back against factory policies threatening financial penalties for failing to build standalone Lincoln stores.

Factory executives have cited research showing the majority of luxury-vehicle buyers prefer to shop in dedicated spaces as they urge Ford dealers to build standalone Lincoln showrooms.
Photo courtesy Lincoln Motor Co.
SACRAMENTO, Calif. — California New Car Dealers Association President Brian Maas has sent a letter asking Ford Motor Co. CEO Jim Hackett to reverse policies threatening to withhold margin, co-op payments, and Black Label editions of Lincoln vehicles to dealers operating dual facilities who fail to build standalone showrooms for Ford’s luxury brand, according to an Automotive News report.
The letter is part of the CNCDA’s response to a series of communications sent by Ford to 150 dealers in Lincoln’s 30 biggest U.S. markets between April and August of this year. Citing research showing highline buyers prefer to visit dedicated spaces, the factory reversed a decade’s worth of policies promoting shared facilities, threatening to withhold $100,000 annual co-op payments, 3.5% of margin on new-vehicle sales, and Black Label editions of Lincoln vehicles from dealers who don’t already stock them, the report said.
Maas is quoted as sharing “serious concerns” about the new policies in his letter, which requests a response from Hackett by Dec. 8.
“By withholding 3.5% of a dealer’s margin, Ford/Lincoln penalizes each dealer that operates a dual Ford-Lincoln facility hundreds of thousands of dollars per year,” he wrote, in part. “This could push many otherwise profitable dealers into the red.”
Maas also claims Ford’s policies violate a section of California’s franchise laws restricting factories from requiring standalone facilities under “unreasonable” circumstances.
“It is plainly apparent that Ford/Lincoln is implementing these policies to coerce dealers into separating their dualed Ford-Lincoln dealerships,” he wrote, according to the report.
More Dealer Ops

Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins
A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.
Read More →
Timing the Market Can Hurt Long-Term Program Performance
For dealer-owned reinsurance entities, avoiding volatility entirely can mean falling behind inflation and missing market rebounds that drive long term surplus growth. Missing just a handful of strong market days can materially impact cumulative returns—an important reminder for long horizon trust and investment strategies.
Read More →
Dealer Ads and the FTC
The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.
Read More →
Used Autos Supply Dwindles
The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.
Read More →
Managing Risk Effectively Through Changing Times
The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.
Read More →
Survey Reveals What Won't Fix What's Breaking Car Sales
AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.
Read More →
IA American Appoints Two Execs
Senior vice presidents of the company's agent and dealer channels chosen to support general agents and help auto dealers with sales and performance.
Read More →
Cox Automotive Acquires Inspection Firm
Full ownership of Alliance Inspection Management, or AiM, meant to unlock growth for Manheim inspection capabilities
Read More →
Assurant Expands Partnership With Holman
Extended collaboration delivers training, products and performance development to 30 newly acquired Holman dealerships
Read More →
Franchises, Throughput Down in First Half
A handful of states see franchise growth through June, while EV sales per store boost overall business in U.S.
Read More →