It is no secret that Ford Motor Company (NYSE: F) has spent an exorbitant amount of money in the European market. In fact, the company has spent, and wasted, so much money, that some investors are saying the results Ford has to show for their efforts to enter the European market are so poor, that it would do some good for both the company and investors to have never thrown money at Europe at all.

In the company’s second quarter report, it reported regional losses despite its efforts to make a name for itself in the European market. This topic will be one of the key factors in determining how close the auto company is to breaking even. This move could have prevented Ford from losing $1.6 billion in profits last year, and saved Ford $3.5 billion in lost profits since 2012.

Ford could turn itself around in Europe by introducing products with higher margins, such as Licoln, its luxury vehicle lineup.

Is Lincoln Ford’s Answer?

Lincoln, Ford Motor’s luxury brand, has been void of innovation and new products up until the past few years. Prior to the recession in 2008, in which Ford suffered massive losses, Ford had been heavily investing into its luxury brands, which include Land Rover, Jaguar, and Aston Martin, but not Lincoln.

In order to gain capital, Ford sold these luxury brands off. Now, struggling to find a way to strategically turn its brand around, Ford was left with only one luxury brand to work with – Lincoln.

Unfortunately, that turnaround process took much too long. Ford is not planning to debut Lincoln in Europe, where the market is already saturated with Europe auto companies’ own luxury brands, including Mercedes-Benz, Audi, and BMW, all of which have seen decades of worldwide success.

What Ford needs to do, in addition to reducing capacity for production and cutting costs, is to make higher margins and prices from sales of luxury cars. This will be critical in bringing about Ford’s break even date and profitability.

Instead of Lincoln, Ford Should Focus on Vignale

Vignale is Ford’s upscale trim, a step above even the titanium trim that is available in the United States.

Ford’s Vignale models, which will be released in Europe in 2015, will have their own design cues and sport a price tag that is 10% greater than the premium Titanium trim. For hopes that the introduction of such premium features will entice customers to step up and choose the option to purchase the trim instead of opting for a luxury vehicle from a competitor.

As of now, Ford has announced plans for making a Vignale version of the Mondeo (Fusion) and S-Max crossover in Europe. No doubt that Ford will have many more chances for Ford to add more premium Vignale trim models to its collection as it launches more vehicles to Europe.

Within the next 5 years, Ford plans to debut twenty five new vehicles in Europe, including the Edge and the Mustang. These new models will increase sales, which will boost Ford’s top and bottom lines, as well as encourage more foot traffic for Ford dealerships.

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