Which U.S. Car Brand Should China Buy?

April 4th, 2014
Lincoln: Could it be sold to China?

Lincoln: Could it be sold to China?

When you and I go shopping for a new or used car, we start by thinking about the features we want, the brands we’re attracted to and the price we want to pay.

It’s a similar process when corporations look for a brand they want to acquire. The problem for corporations is that buying used is the only option and there’s a lot less inventory available. However, acquiring a brand is much easier than starting a new one.

Automakers in China have wanted a piece of the U.S. auto market for at least a decade, but have lacked the ability to break into the country.

Now, things are about to get serious.

Automotive News says,

Beijing Automotive Group, Daimler’s Chinese partner, said it wants to buy a “mid to high-end brand” in Europe or the United States to boost its global presence and it already has candidates in mind.

BAG has been in the market for a European brand for over a year, and the fact that it’s looking here says it’s run out of options there. Eastern companies are buying up Western brands, a Chinese company now owns Volvo and Jaguar/Land Rover belongs to an Indian company.

What car brands in the U.S. could BAG possibly have its eye on, especially considering it wants something at least somewhat high-end? The options here are limited, and no brands officially have a ‘for sale’ sign in the window. This is pure speculation on my part, but I have the perfect candidate in mind:

Lincoln.

Think about it. Lincoln is struggling, bad, under Ford’s control. The cars have taken ridicule for being nothing more than expensive Fords while sales in America have languished behind fellow-domestics Cadillac and Buick. Ford would be wise to give up its interest in the brand and focus on what it does really well: build Fords.

Ford has a history of selling brands it doesn’t want anymore to foreign companies. It has owned, and sold, Volvo, Jaguar/Land Rover and Aston Martin.

Selling Lincoln will put a cork in the flow of money coming out of Ford’s coffers while giving a Chinese company access, finally, to the U.S. market.

It makes perfect sense.

Which U.S. car brand should be sold to Beijing Automotive Group?

-tgriffith

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