DETROIT - Ford Motor Co. has invited Lincoln dealers to a meeting in October to discuss its plans to breathe new life into the lagging luxury brand at a critical time for many of its U.S. retailers, Reuters reported.

The meeting is scheduled for Oct. 4 at Ford's headquarters.

It will mark the first gathering of Lincoln dealers since Ford, Lincoln and Mercury dealers all met in April 2008, just as the No. 2 U.S. automaker was beginning to win back market share under CEO Alan Mulally.

The dealer meeting comes as Ford prepares to phase out its Mercury brand and negotiates with dealers on compensation for dropping the brand.

"It will be a Lincoln update... giving dealers a look at how Ford will now work with Lincoln as an exclusive, luxury brand," Ford spokesman Christian Bokich said.

Ford's discussions with dealers are expected to include investment to enhance dealerships to lure the luxury buyer.

Bokich would not say whether investments to upgrade showrooms would be part of the new plan for selling Lincolns.

Bokich said it is important that Lincoln dealers show that "the customer experience is better."

Mercury was created in 1939 by Edsel Ford, son of Ford's founder, Henry. It was intended to be a stepping stone between the Ford brand and Lincoln, a strategy modeled after General Motors Co.'s "brand ladder" between Chevy and Cadillac.

Of roughly 1,700 Mercury dealerships, most are paired with Ford or Ford and Lincoln. There were 264 Lincoln-Mercury dealerships at the end of July.

Many of those dealers have depended on Mercury for the bulk of their sales and some see an uncertain future when they are reliant only on Lincoln.

Some Mercury dealers have been offered payouts of $300,000 to $400,000 each by Ford in a bid to avoid a protracted legal battle, a source familiar with the discussions has said.

Bokich declined to comment on compensation being offered to Mercury franchise holders because negotiations were ongoing.

Ford will end production of Mercury vehicles within the next two months, Bokich said.