Lincoln dealers say they are reluctant to invest in pricey upgrades to their stores until Ford Motor Co. reveals more details about Lincoln's future lineup.

Ford is asking some dealerships to spend more than $1 million to remodel buildings and make other improvements to meet new standards that have yet to be spelled out, several dealer sources say.

"I say show me the money," said Larry Taylor, owner of Beau Townsend Ford-Lincoln Mercury in Vandalia, Ohio.

"They told us there would be no new products for about 24 months. I don't know how the stand-alone Lincoln dealers are going to make it, especially those dealers who have to spend $2 million on their upgrades."

Taylor is also a member of the Ford Lincoln Mercury National Dealer Council.

Ford plans to cut at least 200 of 1,200 U.S. Lincoln franchises, mostly in the top 130 metro markets, reported Automotive News. It wants to rehabilitate the sagging luxury brand with fewer, more profitable dealerships.

Ford has begun offering some Lincoln dealers cash - in one case about $1.5 million and in another just over $300,000 - to give up the franchise if they're not in a "preferred location" or won't make the recommended improvements.

"My facility is in excellent shape," one dealer said. "I plan on doing nothing here but selling Lincolns - unless Ford comes up with a lot more money."

Some dealers see tough negotiations ahead with the factory. Some are rejecting buyout offers as too low. And others wonder about the commitment to product. Ford has said it will spend $2 billion to upgrade Lincoln's lineup.

No to status quo

Lincoln spokesman Christian Bokich said the "status quo is not an option" when it comes to the changes Lincoln wants to see in stores. If the dealers decline to meet new standards for facilities and customer service, they can negotiate a price to give up the Lincoln franchise.

If the two sides can't agree on a price, the legal options become murky. But Ford's real leverage could come from getting tough with incentive money if dealers refuse to comply.

At an October meeting with Lincoln dealers, Ford said Lincoln stores not in compliance with upgrade requirements by fall 2011 would face limitations on incentive money.

The negotiations come at a time when Ford is paying down $27.3 billion in debt, and the company intends to play hardball in forcing dealers to make a decision. But some dealers insist that Ford can't make them invest or exit -- especially if the settlement offers are unreasonable.

Ford has started meeting individually with Lincoln dealers to outline expectations for facility improvements and to offer cash compensation to some who choose to leave. Some stores would require more extensive investment than others.

The dealers who have met with Ford say the automaker wants a decision before Dec. 31.

2 cases in point

In one major metro market, a dealer said Ford offered him about $1.5 million to relinquish his Lincoln franchise.

The dealer asked for anonymity because he plans to keep selling Lincolns. But the dealer says Ford's offer for Lincoln is "very low." He owns a large Lincoln-Mercury dealership and sells nearly 1,000 new vehicles a year. The dealer earns nearly $2 million in annual profits. Ford's offer, the dealer says, should be closer to $5 million.

"So they're just offering me one year of earnings," the dealer said. "For some stores that's fair because they're losing money, but for us, it's not."

The dealer rejected Ford's offer and says he will not comply with Ford's requested $2 million in facility changes.

A second dealer in the same market estimates Ford's desired remodeling would cost at least $1.5 million. Ford offered that dealer just more than $300,000 to give up the franchise.

"'Insulted' isn't a harmful enough word to describe it," the dealer said. "It's asinine. I'm getting my numbers together and going back. I'm not going to accept this."

A Lincoln spokesman says there is no formula for compensation offers because offers are made on an individual and market-by-market basis.

Ford does have a Mercury formula, though. It's based on the average number of new vehicles sold at a dealership from 2007 through 2009, times a per-unit amount that ranges from $1,500 to $2,500 depending on the dealer's average percentage of Mercury sales as compared with the store's total sales.

Some dealers are refusing Ford's exit offers and are hesitant to upgrade stores because Ford has yet to reveal its future Lincoln products. Dealers say they can't make a business decision without the facts.

At the October meeting, Ford told dealers it will take about two years to rebuild the Lincoln lineup and at least four years for many buyers to add Lincoln to their consideration lists.

Lincoln now sells three cars, two crossovers and a full-sized SUV. Supplier and company sources say Lincoln will add a vehicle based on Ford's global compact car platform.

As Ford continues to meet with Lincoln dealers, it will slowly roll out specifics on the dealership requirements, dealers say.

"They showed us pictures and renderings, but nothing specific," said Bob Tasca Jr., a Rhode Island dealer and head of Lincoln Mercury's dealer council. "A lot of these details will be rolled out over the next year. There will be a plan and some type of time line."

Specifics wanted

At the meeting, Ford told dealers that maintenance for four years or 50,000 miles, such as oil changes, will be included in the price for all Lincoln vehicles. Also, beginning Jan. 1, a new slate of owner privileges, such as providing the same Lincoln model loaner vehicle for Lincoln warranty work, better roadside service and a dedicated team of Lincoln customer service people will kick in.

Dealers also must agree to wash and detail every Lincoln vehicle at every service visit.

Ford is telling dealers that it would like a distinct look for Lincoln showrooms, but Ford and Lincoln franchises can share a rooftop.

Lincoln spokesman Bokich said: "The key to success is consistency."

But an East Coast Lincoln-Mercury dealer said: "They cannot force us to upgrade. So you'll get a stalemate that results in two classes of dealers -- the fools who upgrade and the ones who are at acceptable levels but haven't upgraded."