Ford Motor Company (F): Doing It Right the First Time

If you take that example, and apply it to the roughly 300 Lincoln dealers, it equals $12 million in cash payments to dealers. That’s still a drop in the bucket for Ford, and investors should be glad if this is all it takes to correct the frustrations and financial implications from the delayed MKZ. If consumers are willing to give Lincoln a second chance during its rebranding and vehicle launches, Lincoln’s No. 1 goal needs to be rolling out a quality product. Even if this means taking extra time to get it right the first time.

“Clearly the changeover at the plant has not gone as smoothly as we had planned,” Van Dyke said in the broadcast. “That being said, Lincoln’s No. 1 priority is to deliver world-class craftsmanship and quality. We get the chance to relaunch the Lincoln brand once, and we have to get it right.”

Bottom line
It seems the good news keeps coming for Ford during the U.S. automotive market rebound. Its January and February sales were great, and investors should expect the company to post solid first-quarter numbers. Management is confident enough in sales and operating efficiencies that it doubled its dividend. Ford is still dependent on the F-Series for much of its profits, but that is expected to slowly change as new mid-size vehicles gain in popularity. Expect the Fusion, Focus, Escape, and Explorer to help expand Ford’s market share and revenue.

The next step is to take that success and incorporate it with Lincoln’s revival, which I believe can be done. Ford has learned lessons from its past; I think management will put Lincoln in a position for success, and these incentives aren’t enough to change my mind. Not even close. I expect Ford to get it right the first time — this time around.

The article Ford: Doing It Right the First Time originally appeared on Fool.com and is written by Daniel Miller.

Fool contributor Daniel Miller owns shares of Ford. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.