Lincoln Adjusts U.S. Supply, China Market Remains Key

Ford Motor Company announced on August 12 local time that it will expand Lincoln production in the United States starting from 2030 and gradually cease importing Lincoln models from China to supply the U.S. market.

On August 14, Ford China told Wall Street News that China is a strategic market for Lincoln, with its Chinese operations being a crucial component of its global business. Chinese factories will continue to produce Lincoln vehicles for the Chinese market and other relevant export markets.

Ford faces pressure in the U.S. market due to tariffs and regulations. Currently, Lincoln Nautilus models exported from China to the United States face tariffs of approximately 52.5%, while regulations concerning connected vehicles have added uncertainty. Ford has chosen to shift more of the supply for vehicles sold in the U.S. back to domestic factories, using existing Navigator and Aviator production lines in Kentucky and Chicago as the basis for expansion. The company expects this move to create thousands of direct and indirect jobs.

The Lincoln Nautilus sold approximately 33,700 units in the United States in 2025, remaining the brand's flagship model in the country. In the first seven months of 2026, cumulative sales exceeded 20,000 units; although this represents a slight year-on-year decline, the model remains a significant pillar of Lincoln's U.S. sales. Overall Lincoln brand sales in the United States exceeded 100,000 units in 2025, maintaining relative stability. Shifting more U.S. supply to local production is both a response to policy-related costs and a move to consolidate this core base.

Ford further stated to Wall Street News that China is a strategic market where it will continue to provide products and services based on the needs of Chinese consumers, while driving upgrades in products and customer experience. Additionally, Chinese factories will continue to produce Lincoln models for the Chinese market and other relevant export markets.

The actual performance in the Chinese market is more complex. Lincoln's sales in China amounted to approximately 49,000 units in 2025, a year-on-year decline of about 13.6%. Entering 2026, pressures became more evident, with cumulative sales in the first half of the year falling below 13,000 units, a year-on-year drop of over 20%. Monthly sales have mostly hovered between 1,000 and 2,000 units. While the Nautilus remains the absolute mainstay, the overall scale has significantly widened the gap compared to a few years ago.

Nevertheless, Ford continues to single out China as a strategic market for operation. Public statements emphasize local consumer demand and product experience upgrades, rather than redefining market status based solely on sales figures. Production arrangements clearly point to serving the Chinese market and other related export markets, rather than contracting in tandem with adjustments to U.S. supply.

For Ford, despite various challenges in the market, China remains key.