What the Aviator's Revival Signals for Ford Investors
Although it varies widely how you define "luxury," the rule of thumb has generally been that luxury sales account for roughly 10% of total sales, yet generate roughly 30% of profits. It's those lopsided profits that make luxury brands so important for global automakers -- especially considering the automotive industry is extremely capital intensive, luxury vehicles simply offer a bigger bang for an automaker's buck.
Enter the Aviator
Lincoln plans to show its new crossover with the reborn Aviator name at the New York auto show, and the automaker confirmed it would be based off the next-generation Ford Explorer large crossover due to hit the roads in 2019. The Aviator and the unnamed SUV launched pre-2020 could help boost Lincoln's stalling U.S. sales, but the strategy is likely aimed at China, where Ford's crosstown rival, General Motors (NYSE: GM), is watching its Cadillac brand thrive.