Cardiome to pay $20 million, settle debt deal with Merck






(Reuters) – Cardiome Pharma Corp said it will pay former partner Merck & Co $ 20 million by March 31 to settle debt obligations related to a licensing deal for a heart drug.


Shares of Cardiome jumped as much as 51 percent to 37 Canadian cents on the Toronto Stock Exchange on Tuesday. Its U.S.-listed shares also rose 52 percent on the Nasdaq.






The company said in September that Merck returned the global marketing and development rights for intravenous and oral versions of their heart drug, six months after dropping the development of the oral version.


The drug vernakalant is an experimental treatment for chronic atrial fibrillation, a heart rhythm disorder that can lead to stroke and heart failure.


Cardiome, which had a cash balance of $ 53.6 million at the end of September, owed Merck $ 50 million. Merck had granted Cardiome an interest-bearing credit facility of up to $ 100 million.


The companies signed the collaboration and licensing agreement for vernakalant in April 2009.


“Complete resolution of our $ 50 million debt obligation to Merck removes a significant financial and operational overhang for Cardiome,” said William Hunter, interim CEO of Cardiome, which develops drugs for diseases of the heart and circulatory system.


The settlement will terminate the credit facility and will release and discharge the collateral security taken in respect of the advances under the line of credit, Cardiome said in a statement.


Brokerage firm Canaccord Genuity raised its price target on the stock to 40 cents from 35 cents.


(Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Roshni Menon)


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This Kid Dances Better Than a Cheerleader






We realize there’s only so much time one can spend in a day watching new trailers, viral video clips, and shaky cell phone footage of people arguing on live television. This is why every day The Atlantic Wire highlights the videos that truly earn your five minutes (or less) of attention. Today:


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So we were ready to toss this video aside after the first few seconds. Our thinking: we have seen way more “Gangnam Style” videos than we ever wanted to … but, we’re glad we stayed for the whole thing. 


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In the coming weeks nerds will proclaim that you will need to see The Hobbit despite its terrible reviews. When they do, and they will, just show them this trailer and its really solid Sean Bean theorem: 


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So this is Frank Ocean singing Radiohead (quite well). And this is also the video which you should have handy the next time your boss catches you YouTubing that terrible (but really great) Ke$ ha song. 


Old dogs, new tricks? 


Wireless News Headlines – Yahoo! News


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North Korea’s new leader burnishes credentials with rocket






SEOUL/TOKYO (Reuters) – North Korea successfully launched a rocket on Wednesday, boosting the credentials of its new leader and stepping up the threat the isolated and impoverished state poses to its opponents.


The rocket, which North Korea says put a weather satellite into orbit, has been labeled by the United States, South Korea and Japan as a test of technology that could one day deliver a nuclear warhead capable of hitting targets as far as the continental United States.






“The satellite has entered the planned orbit,” a North Korean television news-reader clad in traditional Korean garb triumphantly announced, after which the station played patriotic songs with the lyrics “Chosun (Korea) does what it says”.


The rocket was launched just before 10 a.m. Korea time (9 p.m. ET on Tuesday), according to defense officials in South Korea and Japan, and easily surpassed a failed April launch that flew for less than two minutes.


The North American Aerospace Defense Command (NORAD) said that it “deployed an object that appeared to achieve orbit”, the first time an independent body has verified North Korean claims.


North Korea followed what it said was a similar successful launch in 2009 with a nuclear test that prompted the United Nations Security Council to stiffen sanctions that it originally imposed in 2006 after the North’s first nuclear test.


The state is banned from developing nuclear and missile-related technology under U.N. resolutions, although Kim Jong-un, the youthful head of state who took power a year ago, is believed to have continued the state’s “military first” programs put into place by his deceased father Kim Jong-il.


North Korea lauded Wednesday’s launch as celebrating the prowess of all three Kims to rule since it was founded in 1948.


“At a time when great yearnings and reverence for Kim Jong-il pervade the whole country, its scientists and technicians brilliantly carried out his behests to launch a scientific and technological satellite in 2012, the year marking the 100th birth anniversary of President Kim Il Sung,” its KCNA news agency said.


Washington condemned Wednesday’s launch as a “provocative action” and breach of U.N. rules, while Japan’s U.N. envoy called for a Security Council meeting. However, diplomats say further tough sanctions are unlikely to be agreed at the body as China, the North’s only major ally, will oppose them.


“The international community must work in a concerted fashion to send North Korea a clear message that its violations of United Nations Security Council resolutions have consequences,” the White House said in a statement.


Japan’s likely next prime minister, Shinzo Abe, who is leading in opinion polls ahead of an election on December 16 and who is known as a North Korea hawk, called on the United Nations to adopt a resolution “strongly criticizing” Pyongyang.


BEIJING BLOCK


China had expressed “deep concern” prior to the launch which was announced a day after a top politburo member, representing new Chinese leader Xi Xinping, met Kim Jong-un in Pyongyang.


On Wednesday its tone was measured, regretting the launch but calling for restraint on possible counter-measures, in line with previous policy when it has effectively vetoed tougher sanctions.


“China believes the Security Council’s response should be cautious and moderate, protect the overall peaceful and stable situation on the Korean peninsula, and avoid an escalation of the situation,” Chinese Foreign Ministry spokesman Hong Lei told journalists.


Bruce Klingner, a Korea expert at the Heritage Foundation, told a conference call: “China has been the stumbling block to firmer U.N. action and we’ll have to see if the new leadership is any different than its predecessors.”


A senior adviser to South Korea’s president said last week it was unlikely there would be action from the U.N. and that Seoul would expect its allies to tighten sanctions unilaterally.


Kim Jong-un, believed to be 29 years old, took power when his father died on December 17 last year and experts believe the launch was intended to commemorate the first anniversary of the death.


The April launch was timed for the centennial of the birth of Kim Il Sung, the grandfather of its current ruler.


Wednesday’s success puts the North ahead of the South which has not managed to get a rocket off the ground.


“This is a considerable boost in establishing the rule of Kim Jong-un,” said Cho Min, an expert at the Korea Institute of National Unification.


There have been few indications the secretive and impoverished state, where the United Nations estimates a third of the population is malnourished, has made any advances in opening up economically over the past year.


North Korea remains reliant on minerals exports to China and remittances from tens of thousands of its people working on labor projects overseas.


The 22 million population often needs handouts from defectors who have escaped to South Korea in order to afford basic medicines.


Given the puny size of its economy – per capita income is less than $ 2,000 a year – one of the few ways the North can attract world attention is by emphasizing its military threat.


Pyongyang wants the United States to resume aid and to recognize it diplomatically, although the April launch scuppered a planned food deal.


It is believed to be some years away from developing a functioning nuclear warhead although it may have enough plutonium for around half a dozen nuclear bombs, according to nuclear experts.


The North has also been enriching uranium, which would give it a second path to nuclear weapons as it sits on vast natural uranium reserves.


“A successful launch puts North Korea closer to the capability to deploy a weaponized missile,” said Denny Roy, a senior fellow at the East-West Center in Hawaii.


“But this would still require fitting a weapon to the missile and ensuring a reasonable degree of accuracy. The North Koreans probably do not yet have a nuclear weapon small enough for a missile to carry.”


Pyongyang says that its development is part of a civil nuclear program, but has also boasted of it being a “nuclear weapons power”.


(Additional reporting by Jumin Park and Yoo Choonsik in SEOUL; David Alexander, Matt Spetalnick and Paul Eckert in WASHINGTON; Linda Sieg in TOKYO; Sui-Lee Wee in BEIJING; Rosmarie Francisco in MANILA; Writing by David Chance; Editing by Raju Gopalakrishnan)


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Elijah Wood, Aaron Paul rally fans to save north Hollywood taco joint






LOS ANGELES (TheWrap.com) – Elijah Wood and Aaron Paul are on a mission to save a North Hollywood taco stand.


The actors are rallying fans around Henry‘s Tacos, which has been on the corner of Tujunga and Moorpark for 51 years and is closing December 31 due to a conflict with the building’s landlord.






In an announcement posted on Facebook, the stand’s owner, Janis Hood, said that running the restaurant is too much of a burden for her – but the landlord, Mehran Ebrahimpour, isn’t allowing “prospective buyers committed to continuing the tradition” to take over the lease.


The reason, Hood believes, is because she “unwittingly” angered him by nominating Henry’s to become for a Historic Cultural Monument a year ago. Ultimately, the city council never voted on her request, but the damage was done.


Once loyal customer Wood heard the news, he immediately took to Twitter: “Los Angeles institution, Henry’s Tacos to shut,” Wood tweeted. “Please retweet. Very sad situation.”


Over 250 followers and counting have heard his cry, including a few famous friends like Aaron Paul, Colin Hanks and “Bridesmaids” director Paul Feig.


“This can’t happen. Save LA history,” Feig added, after retweeting Wood’s words.


But instead of just wishing for a Christmas miracle, Paul has a plan – not to mention a cool opportunity for his fans. The “Breaking Bad” star is asking “the masses” to join him for lunch this coming Sunday.


“We must save @HenrysTacos from closing,” he tweeted. “Come join me for lunch this Sunday at 2pm!! Join the masses and eat some tacos!! Tell your friends.”


While he may bring Henry’s some extra business before serving its last burrito, owner Hood makes it seem like the chances of changing Henry’s fate are slim.


“The current prospective buyers have agreed to all the landlord’s terms, but he has ceased communicating with them,” she wrote. “Therefore, I have given my notice and it has been accepted by the landlord.”


Neither Hood nor Ebrahimpour immediately responded to TheWrap’s request for comment.


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Pensions plans ‘will cost jobs’







The CBI has renewed its attack on a European scheme aimed at strengthening pension finances – claiming it will lead to thousands of job cuts.






The proposals, first outlined by the European Commission in 2010, aim to make company pension schemes more robust if the firm goes bust.


But the CBI said the plans were “completely unnecessary” and would add billions to schemes’ costs.


The UK government is continuing to press for the plans to be dropped.


Costs and jobs


One of the Commission’s aims is to bring the solvency rules for occupational pension schemes in three years time in line with its so-called “Solvency 2″ rules, which will be aimed at strengthening the finances of insurance companies.


This would mean that a company pension scheme would need to cover the full cost of pensions, in case the employer went bust. Normally, a scheme never has to cover the full cost of paying pensions all at once.


A study for the CBI by economic consultants Oxford Economics claimed that the changes could result in extra costs of £350bn over 10 years and 180,000 jobs could be lost.


“Imposing £350bn more costs on business would be a disaster for the economy and for pension saving,” said CBI chief policy director Katja Hall.


“The long-term economic outlook is so fragile and uncertain that it is crazy to entertain proposals which would cost jobs and cut so deeply into our long-term growth and competitiveness.


“We have a tough regulatory system in this country, so these changes are completely unnecessary.”


‘Reckless’


The plans have been criticised by the National Association of Pension Funds (NAPF), the TUC, and the Institute of Chartered Accountants of England and Wales (ICAEW).


In June, Pensions Minister Steve Webb said the government remained “resolute” in its determination to fight off the Commission’s plan and to make the European authorities “see sense”.


He said the rules would be pointless and so onerous for employers that more schemes would simply be shut down altogether.


“I continue to meet senior Commission officials, to persuade them to rethink their reckless plans,” he said.


The Commission said it had yet to make any firm legislative proposals.


BBC News – Business


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New tests could hamper food outbreak detection






WASHINGTON (AP) — It’s about to get faster and easier to diagnose food poisoning, but that progress for individual patients comes with a downside: It could hurt the nation’s ability to spot and solve dangerous outbreaks.


Next-generation tests that promise to shave a few days off the time needed to tell whether E. coli, salmonella or other foodborne bacteria caused a patient’s illness could reach medical laboratories as early as next year. That could allow doctors to treat sometimes deadly diseases much more quickly — an exciting development.






The problem: These new tests can’t detect crucial differences between different subtypes of bacteria, as current tests can. And that fingerprint is what states and the federal government use to match sick people to a contaminated food. The older tests might be replaced by the new, more efficient ones.


“It’s like a forensics lab. If somebody says a shot was fired, without the bullet you don’t know where it came from,” explained E. coli expert Dr. Phillip Tarr of Washington University School of Medicine in St. Louis.


The federal Centers for Disease Control and Prevention warns that losing the ability to literally take a germ’s fingerprint could hamper efforts to keep food safe, and the agency is searching for solutions. According to CDC estimates, 1 in 6 Americans gets sick from foodborne illnesses each year, and 3,000 die.


“These improved tests for diagnosing patients could have the unintended consequence of reducing our ability to detect and investigate outbreaks, ultimately causing more people to become sick,” said Dr. John Besser of the CDC.


That means outbreaks like the salmonella illnesses linked this fall to a variety of Trader Joe’s peanut butter might not be identified that quickly — or at all.


It all comes down to what’s called a bacterial culture — whether labs grow a sample of a patient’s bacteria in an old-fashioned petri dish, or skip that step because the new tests don’t require it.


Here’s the way it works now: Someone with serious diarrhea visits the doctor, who gets a stool sample and sends it to a private testing laboratory. The lab cultures the sample, growing larger batches of any lurking bacteria to identify what’s there. If disease-causing germs such as E. coli O157 or salmonella are found, they may be sent on to a public health laboratory for more sophisticated analysis to uncover their unique DNA patterns — their fingerprints.


Those fingerprints are posted to a national database, called PulseNet, that the CDC and state health officials use to look for food poisoning trends.


There are lots of garden-variety cases of salmonella every year, from runny eggs to a picnic lunch that sat out too long. But if a few people in, say, Baltimore have salmonella with the same molecular signature as some sick people in Cleveland, it’s time to investigate, because scientists might be able narrow the outbreak to a particular food or company.


But culture-based testing takes time — as long as two to four days after the sample reaches the lab, which makes for a long wait if you’re a sick patient.


What’s in the pipeline? Tests that could detect many kinds of germs simultaneously instead of hunting one at a time — and within hours of reaching the lab — without first having to grow a culture. Those tests are expected to be approved as early as next year.


This isn’t just a science debate, said Shari Shea, food safety director at the Association of Public Health Laboratories.


If you were the patient, “you’d want to know how you got sick,” she said.


PulseNet has greatly improved the ability of regulators and the food industry to solve those mysteries since it was launched in the mid-1990s, helping to spot major outbreaks in ground beef, spinach, eggs and cantaloupe in recent years. Just this fall, PulseNet matched 42 different salmonella illnesses in 20 different states that were eventually traced to a variety of Trader Joe’s peanut butter.


Food and Drug Administration officials who visited the plant where the peanut butter was made found salmonella contamination all over the facility, with several of the plant samples matching the fingerprint of the salmonella that made people sick. A New Mexico-based company, Sunland Inc., recalled hundreds of products that were shipped to large retailers all over the country, including Target, Safeway and other large grocery chains.


The source of those illnesses probably would have remained a mystery without the national database, since there weren’t very many illnesses in any individual state.


To ensure that kind of crucial detective work isn’t lost, the CDC is asking the medical community to send samples to labs to be cultured even when they perform a new, non-culture test.


But it’s not clear who would pay for that extra step. Private labs only can perform the tests that a doctor orders, noted Dr. Jay M. Lieberman of Quest Diagnostics, one of the country’s largest testing labs.


A few first-generation non-culture tests are already available. When private labs in Wisconsin use them, they frequently ship leftover samples to the state lab, which grows the bacteria itself. But as more private labs switch over after the next-generation rapid tests arrive, the Wisconsin State Laboratory of Hygiene will be hard-pressed to keep up with that extra work before it can do its main job — fingerprinting the bugs, said deputy director Dr. Dave Warshauer.


Stay tuned: Research is beginning to look for solutions that one day might allow rapid and in-depth looks at food poisoning causes in the same test.


“As molecular techniques evolve, you may be able to get the information you want from non-culture techniques,” Lieberman said.


___


Follow Mary Clare Jalonick on Twitter at http://twitter.com/mcjalonick


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US designates Syria’s Jabhat al-Nusra front a ‘terrorist’ group at lightning speed






The US State Department designated the Jabhat al-Nusra militia fighting Bashar al-Assad’s government in Syria a foreign terrorist organization today.


The speed with which the US government moved to designate a fairly new group that has never attacked US interests and is engaged in fighting a regime that successive administrations have demonized is evidence of the strange bedfellows and overlapping agendas that make the Syrian civil war so explosive.






The State Department says Jabhat al-Nusra (or the “Nusra Front“) is essentially a wing of Al Qaeda in Iraq, the jihadi group that flourished in Anbar Province after the US invaded to topple the Baathist regime of secular dictator Saddam Hussein. During the Iraq war, Sunni Arab tribesmen living along the Euphrates in eastern Syria flocked to fight with the friends and relatives in the towns along the Euphrates river in Anbar Province.


Think you know the Middle East? Take our geography quiz!


The terrain, both actual and human, is similar on both sides of that border, and the rat lines that kept foreign fighters and money flowing into Iraq from Syria work just as well in reverse. Now, the jihadis who fought and largely lost against the Shiite political ascendancy in Iraq are flocking to eastern Syria to repay a debt of gratitude in a battle that looks more likely to succeed every day.


The Nusra Front has gone from victory to victory in eastern Syria and has shown signs of both significant funding and greater military prowess than the average citizens’ militia, with veterans of fighting in Iraq, Afghanistan, and Libya among its numbers.


The US of course aided the fight in Libya to bring down Muammar Qaddafi. In Afghanistan and Iraq, the chance to fight and kill Americans was the major drawing card.


In Iraq, the US toppled a Baathist dictatorship dominated by Sunni Arabs, opening the door for the political dominance of Iraq’s Shiite Arab majority and the fury of the country’s Sunni jihadis. In Syria, a Baathist regime dominated by the tiny Alawite sect (a long-ago offshoot of Shiite Islam) risks being brought down by the Sunni majority. Iraq’s Shiite Prime Minister Nouri al-Maliki is in the odd position of now rooting for a Baathist regime to survive, frightened that a religiously inspired Sunni regime may replace Assad and potentially destabilize parts of his country from Haditha in Anbar’s far west to the northern city of Mosul.


For the US, the situation is more complicated still. The Obama administration appears eager for Assad to fall, but is also afraid of what might replace him, not least because of Syria’s chemical weapons stockpile. If the regime collapses, the aftermath is sure to be chaotic, much as it was in Libya, where arms stores were looted throughout the country. The presence of VX and sarin nerve gas, and the fear of Al Qaeda aligned militants getting their hands on it, has the US considering sending in troops to secure the weapons.


That’s the context in which today’s designation was made – part of an overall effort to shape the Syrian opposition to US liking, and hopefully have influence in the political outcome if and when Assad’s regime collapses. But while the US has been trying to find a government or leadership in waiting among Syrian exiles, Nusra has been going from strength to strength. Aaron Zelin, who tracks jihadi groups at the Washington Institute for Near East Policy, notes in a recent piece for Foreign Policy that 20 out of the 48 “martyrdom” notices posted on Al Qaeda forums for the Syria war were made by people claiming to be members of Nusra.


Zelin writes that it’s highly unusual for the US to designate as a terrorist group anyone who hasn’t attempted an attack on the US. In fact, the US only designated the Haqqani Network in Afghanistan, which had been involved in attacks on US troops there for over a decade, this September.


His guess as to why the US took such an unusual step?


The U.S. administration, in designating Jabhat al-Nusra, is likely to argue that the group is an outgrowth of the Islamic State of Iraq (ISI). While there is not much open-source evidence of this, classified material may offer proof — and there is certainly circumstantial evidence that Jabhat al-Nusra operates as a branch of the ISI.


Getting Syria’s rebels to disavow Jabhat al-Nusra may not be an easy task, however. As in Iraq, jihadists have been some of the most effective and audacious fighters against the Assad regime, garnering respect from other rebel groups in the process. Jabhat al-Nusra seems to have learned from the mistakes of al Qaeda in Iraq: It has not attacked civilians randomly, nor has it shown wanton disregard for human life by publicizing videos showing the beheading of its enemies. Even if its views are extreme, it is getting the benefit of the doubt from other insurgents due to its prowess on the battlefield.


Will it hurt the group’s support inside Syria? It’s hard to see how. The US hasn’t formally explained its logic yet, but it’s hard to see how that will matter either. The rebellion against Assad has raged for almost two years now and the country’s fighters are eager for victory, and revenge. The US has done little to militarily assist the rebellion, and fighters have been happy to take support where they can get it.


Most of the money or weapons flowing into the country for rebels has come from Gulf states like Saudi Arabia and Qatar and some of that support, of course, has ended up in the hands of Islamist militias like Nusra.


Usually the US doesn’t like support flowing to its designated terrorist organizations, and leans on countries like Saudi Arabia to cut off support. But in this case, a doctrinaire enforcement of its will could look like helping Assad (who has insisted everyone fighting his government is a terrorist since long before Nusra even existed).


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Australian prank call radio to donate profits to nurse’s family






CANBERRA (Reuters) – The Australian radio station behind a prank call to a British hospital will donate its advertising revenue until the end of the year to a fund for the family of the nurse who apparently took her own life after the stunt, the company said on Tuesday.


Southern Cross Austereo, parent company of Sydney radio station 2Day FM, said it would donate all advertising revenue, with a minimum contribution of A$ 500,000 ($ 525,000), to a memorial fund for the nurse, Jacintha Saldanha, who answered the telephone at the hospital treating Prince William’s pregnant wife, Kate.






The company has suspended the Sydney-based announcers, Mel Greig and Michael Christian, scrapped their “Hot 30″ programme and suspended advertising on the station in the wake of the Saldanha’s death. Southern Cross said it would resume advertising on its station from Thursday.


“It is a terrible tragedy and our thoughts continue to be with the family,” Southern Cross Chief Executive Officer Rhys Holleran said in a statement.


“We hope that by contributing to a memorial fund we can help to provide the Saldanha family with the support they need at this very difficult time.”


(Reporting by James Grubel; Editing by Robert Birsel)


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Gabrielle Aplin tops UK charts with Power of Love






LONDON (Reuters) – English singer Gabrielle Aplin scored her first British number one on Sunday with a cover of the Frankie Goes To Hollywood hit “The Power of Love”, the Official Charts Company said.


Aplin climbed to number one from sixth place with the song, which first entered the charts in 1984 and is the theme for a Christmas television advert for British retailer John Lewis.






In the album charts, Olly Murs, a former runner-up in television’s X-Factor talent contest, held on to the top spot with his release “Right Place Right Time”, but saw his “Troublemaker” slip to third place in the singles ranks.


American singer Pink was the week’s highest climber in the singles top ten, jumping to eighth place from number 26 with “Try”.


(Reporting by Tim Castle; editing by Jason Webb)


Music News Headlines – Yahoo! News


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Lincoln Wants to Torch the Airport Limo






Last summer, as Ford Motor’s (F) marketing team confronted the daunting challenge of trying to make its fusty old Lincoln luxury line hip again, their New York ad agency came up with what seemed like a dream solution: Film a youngish, A-list actor like Leonardo DiCaprio behind the wheel of the brand’s sleek new MKZ model, but don’t let viewers see his face. The star’s familiar voice would tell what seemed like a personal tale. “You’ve seen me in movies. I’ve met presidents.” At the end of the commercial, though, the actor would walk away without ever being revealed, while the camera would spin to show the car and an announcer intones: “Introducing the Lincoln Motor Company.” Ford staffers loved it.


Jim Farley, Ford’s Lincoln chief, killed the plan for the 60-second spot. “It’s not going to break through,” Farley said, according to his marketing director, Matt VanDyke. “Find me something that’s going to break through.” In late December, Lincoln will air a commercial that opens with the immolation of an old Town Car—the ubiquitous, mundane airport taxi that both defines and dogs the brand. From the flames, phoenix-like, emerges the new MKZ sedan. “The tricky part is getting noticed,” says Farley, who helped Toyota Motor (TM) introduce its Lexus luxury line. “You don’t have much time because you haven’t earned the right to be in people’s minds.”






After decades of decline, the same can be said about Lincoln. Ford’s lagging luxury brand hasn’t been hip since JFK was in the White House, and sales have plummeted 63 percent since they reached their peak in 1990. BMW-loving baby boomers have long rejected Lincoln as Dad’s ride—nearly 35 percent of Lincolns are sold to buyers 65 or older, according to auto researcher Edmunds.com. About 14 percent of Lincoln owners are more than 75 years old; only 2 percent of BMW (BMW) and Audi drivers are that age.


6a621  comp lincoln50  01  inline405 Lincoln Wants to Torch the Airport LimoGetty Images(5)


Now Ford is trying to reposition 90-year-old Lincoln as a boutique brand that appeals to Gen Xers not beholden to the German luxury lines. Gone are ads featuring white-haired actor John Slattery, one of the stars of television’s Mad Men. At a press conference at New York’s Lincoln Center for the Performing Arts on Dec. 3, Ford Chief Executive Officer Alan Mulally revealed that comedian Jimmy Fallon has been hired to produce (but not star in) the luxury line’s first-ever Super Bowl spot, using script suggestions from Twitter users. The automaker also debuted a new TV commercial starring an actor portraying Abraham Lincoln—a first for the brand that shares his name—and featuring cameos of classic owners Clark Gable and Dean Martin leaning against the fenders of an MKZ. FDR also makes an appearance.


“They shouldn’t ditch their history, but it’s important that they signal change,” says Leslie Butterfield, global chief strategy officer for consultant Interbrand (OMC). “There needs to be something that says this brand has changed, something’s been added, something’s been modernized, something’s fresh about it.”


Stressing a brand’s advanced age can be off-putting to younger buyers. Audi, Volkswagen’s resurgent luxury line, doesn’t pitch its German heritage. Instead, it focuses on what’s next. “People always ask me, ‘Why don’t you guys talk about your history?’ ” says Scott Keogh, president of Audi of America. “That’s not what drives us. What drives us is: Man, how do we come up with the next solution? What’s the next thing? We’re, like, a restless company.”


Lincoln is being selective about the heritage to which it harks back—the glamour of Gable and the flowing Lincolns of that era as opposed to the land yachts of the ’90s. And yet, VanDyke says they ultimately felt they had to take on that stigma with the burning Town Car commercial. When the MKZ emerges from the flames, an announcer says: “It’s not what you think.” VanDyke admits “that was a white knuckler in terms of presenting it to” Mulally and Ford’s top brass. “But they said, ‘Hey, that’s what people think, and that’s what we should directly challenge.’ ”


Ford’s conflicted view of Lincoln’s past highlights the task of repositioning a brand with a trunkful of baggage. They see value in Lincoln’s history as a presidential limo, but President Kennedy, assassinated in a Lincoln Continental, won’t appear in an ad. They debated whether to cut a scene in the upcoming Abraham Lincoln spot that included an American flag on a presidential limo, because luxury buyers aren’t drawn to American brands. (They left the flag in.) “The world is not waiting for another luxury car,” says Cameron McNaughton, head of Lincoln’s new ad agency HudsonRouge, a unit of global ad giant WPP (WPPGY). “If Lincoln is going to succeed, it needs to be brave.”


Ford’s $ 1 billion bet to restock the Lincoln lineup with seven new models by 2015 is a gamble. General Motors (GM) spent twice as much to overhaul Cadillac more than a decade ago. Audi spends €2 billion ($ 2.6 billion) a year on technology and product development, Keogh says. “Ford has got to have reasonable expectations with Lincoln,” says Michelle Krebs, an analyst with Edmunds.com. “The MKZ is a very fine car, but does it really compete with a BMW 3 Series? It’s not even on the same shopping list.”


6a621  comp lincolnchart50 405b Lincoln Wants to Torch the Airport Limo


BMW and Daimler’s (DAI) Mercedes-Benz each outsell Lincoln by more than 3 to 1. Rather than try to dislodge drivers of German vehicles from their cars, VanDyke says Lincoln is seeking “curious” luxury buyers not beholden to brands. Lincoln figures those buyers make up a quarter of the luxury market, though Farley says Ford’s ambition is not to return Lincoln to the top-selling luxury spot in the U.S., a position it last held in 1999. “We’re about personal service. It’s really small, like a small tailor shop,” Farley says. “It’s not huge waiting lounges, Wi-Fi, and cappuccino machines. That wouldn’t be our brand.”


The bottom line: Ford is spending $ 1 billion to revamp Lincoln’s lineup. Changing the luxury line’s fusty image could be a bigger challenge.


With Jamie Butters


Businessweek.com — Top News


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