Ford’s (F) Lincoln, Toyota’s (TM) Lexus Tops for Dependability

Luxury cars unsurprisingly topped the J.D. Power & Associates’ annual study of vehicle dependability, with Ford Motor Co.’s Lincoln brand in the No. 1 position, and Toyota's (NYSE:TM) Lexus right behind them.

Bloomberg noted, "Lincoln led the industry for the first time in the survey’s 21-year history as owners reported 101 problems per 100 vehicles, J.D. Power said today in a statement. Toyota’s Lexus improved to second place, with 109 problems, from fourth place last year, and the automaker’s namesake brand moved up one spot to fifth with 122."

Higher-scoring manufacturers retain more buyers as well as service business for their dealers, according to J.D. Power. The industry averaged 151 problems per 100 vehicles in this year’s survey, which polls buyers after three years of ownership. That’s down from 155 last year and 167 in 2009.

“Automakers, as a whole, have made significant improvements in reducing traditional problems” the past several years, David Sargent, vice president of auto research at the Westlake Village, California-based firm, said in a statement.

Seven of the top eight brands were luxury nameplates, as Tata Motors Ltd. (TTMT)’s Jaguar ranked third and Porsche SE’s namesake finished fourth. After Toyota at fifth, Honda Motor Co.’s Acura improved to sixth place, and Daimler AG (DAI)’s Mercedes-Benz jumped to eighth.

Ford was trading at $14.36, gaining $0.18, or 1.30 percent, as of 1:33 PM EDT. Toyota was at $82.01, up $1.60, or 1.99 percent.




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Ford (NYSE:F) Confirms Number of Lincoln Dealership Cuts

Ford Motor Co. (NYSE:F) has been talking about cutting Lincoln dealerships for several months, and today confirmed they're going to slash the number of existing Lincoln dealerships from 434 to 325.

That represents the exact number Ford communicated to its dealers last October, but they had never officially confirmed the numbers until today.

The cuts will primarily be focused on the 130 top metro areas in the U.S., which account for close to 85 percent of the luxury vehicle market, although smaller dealerships will be cut as well.

Ford will be putting new minimal requirements in place in order for dealers to be allowed to continue selling the luxury car, which sales have been anemic in comparison to luxury offerings of competitors.

Ford marketing chief Jim Farley said, "If we don't get the throughput in the major metro markets right-sized, then the transformation of Lincoln is going...to need a different plan. This transformation is going to hinge on several things working including the (dealer) network."

Ford was trading at $16.19, up $0.47, or 2.99 percent, as of 2:30 PM EST.