jtanoyo1

What do you guys think about this new marketing strategy from Toyota. Obviously, we know that a lot of the local Japanese folks buy Lexus badges and try to "americanize" their rides as much as possible. So I am sure there will definitely be a market for a Lexus vehicle.

But think about it, a Toyota Crown Majesta in a toyota dealership and down the road a Lexus LS430 in a Lexus dealership. Both carry the same engine, the same reliability, the same service, the same performance, and somewhat similar looks. Why would the Toyota be cheaper, I am assuming here? Or what would make a potential buyer turn away from the toyota dealership and go down to the lexus dealership and pay a premium for a brand whom everyone knows belong to the same family?

Is this going down the same route as a VW and Audi? They both share many similar parts and some are even built on the same platform (vw golf and Audi A3 for instance). Yet they both got their own markets. But this I can understand why. VW in term of quality, fit and finish, service and branding fall quite far from Audi. So far in fact they almost got nothing to do with each other except for the fact that they are owned by the same company.

I hope that Toyota won't purposely "bring down" their Toyota brand just so their new baby Lexus has a chance in the local Japanese market place. What do you guys think?

encore888

I don't know much about the Japanese market, aside from tourist visits to Tokyo, but from what I've read in recent articles, the Japanese market already has a higher service standard--a Lexus advantage in the US. There's also an 'everyone is middle class' mentality, discouraging extravagance, and yet now there is a significant market for high-end marques such as BMW and Benz. Here is where Toyota runs a problem, as it is the largest manufacturer of cars sold in Japan. So, by making 150 Lexus dealerships, can they reverse the recent trend of high-end Toyotas' declining sales? I think possibly. Only 3 models--the IS, GS, and SC--but gorgeous dealerships, G-Book service, fine amenities, and the exciting new GS/IS models plus the fantastic SC ex-Soarer.

Can it be done? I wonder how well the average Japanese will think of Lexus as 'just Toyota.' I personally think of Lexus as Toyota-supported, but a Lexus IS a Lexus first and foremost. Toyota understands that, we understand that. It's that differentiation that gives the Lexus brand distinctiveness. This is something special. Will the discerning Japanese connoisseur find Lexus palatable? I wonder if the German cars in Japan have the same quality travails as they do here in the US. I think that the reliability, refinement, and excellent design and luxury of Lexus automobiles, plus the added cachet of the distinctive nameplate, are working in Lexus' favor. Whether that will be enough to capture the Japanese luxury consumers' imagination---we'll have to wait and see...but for a company as successful as Toyota, I wouldn't bet against them...and even then, you can bet they have the resources to keep working to make things better.

LexFather

It was going to happen eventually, Lexus coming home. I am sure though even Lexus is surprised at their success in such a short time. Lexus and Toyota are seperating more and more as Lexus becomes one piece at a time, a true global luxury powerhouse. I suspect they will succeed in Japan much quicker than in Europe, where they struggle.

It just shows how Lexus is seriously committed to being a top tier luxury brand as they fight Benz and BMW for supremecy. No one thought what Lexus is doing was possible from a Japanese luxury brand!!

Lexus was always a Lexus, only in Japan was it a Toyota. This does cause mass confusion (just ask the Lexus haters) . Now, no Lexus will be a Toyota. Lexus continues to move up, prices are going up, hybrids are expensive, the next LS will be more expensive than ever. Lexus is climbing that hill into super exclusivity.

Let Toyota handle the masses like they do now. Heck some Toyotas are Lexus Like anyway, in execution (Solara, Avalon, Sienna etc)

flipside909

It's a great idea...long awaited...but we lose that touch of using JDM Toyota branded pieces for our Lexus' now. The exclusivity in that sense is gone now.

Lil4X

It would seem a good strategy to install the Lexus brand at home, then slowly make some features available as Lexus exclusives. This could be done my introducing new technologies in the Lexus (for example, an improved laser cruise control), making it available in the "exclusive" line - in lower production numbers - two or three years before making it an option in the standard line.

US automakers did this for years rather successfully. It gave them the opportunity to get their suppliers sorted out in a low-volume production setting before releasing the product to general use.

A second advantage might be to slowly allow a bit more spread between the marques - creating additional sales on "exclusivity" rather than actual content. You'd be amazed how many parts were shared between the 70's El Dorados and Monte Carlos. For example - a $27 door hinge (new) for a Chevy Monte Carlo was a direct replacement for the same part on the Cadillac El Dorado - except for the $98 price tag - for the same rather crude forging! Expanded across a number of car lines, this is the quick way to profitability.

At the same time, while a Dodge Caravan can be optioned-up to the level of a Chrysler Town & Country (with similar prices), but the Chrysler outsold the highest-content Dodge product 3 to 1. It's all in the image, baby. . . .

Faraaz23

Its a very good strategy. It gives Toyota a chance to go much more upmarket in their home country to compete with MB and BMW better. It will definitely seperate them from their rival Nissan (I don't consider Honda or Mitsubishi as much of a threat at all for the higher-end car market). Besides the exceptional customer service that Lexus will be offering Japan, it will afford them some prestige that the regular Toyota badge didn't provide before. But in the future, Lexus has said that it is going to differentiate its line up from Toyota models. That means when the new LS comes out in a year or two... the Crown, while being an excellent car, isn't going to be that close to LS in its specs. And from what I know, they are not even selling the LS. I believe its the current soarer/SC430, the new GS and new IS. So I'm thinking the first LS they're gonna get is gonna be the completely redesigned one anyway.

jrock65

Lexus Japan's next model will probably be the LS, which means that the end is near for the Celsior. So the Altezza, Aristo, Soarer and Celsior are gone now.

I'm wondering, will they make a Lexus version of the Windom (ES)? Or would Japanese consumers think that it's just a rebadged Camry under a Lexus name?

Also, do they sell the Highlander or the RX equivalent in Japan? (I'm pretty sure that they don't sell the GX or the LX equivalent in Japan. I could be wrong though.)

One more thing. Don't they have a really old V12 sedan above the Celsior in Japan? Wonder what's gonna happen to that. It'd be weird if the flagship Toyota is more expensive and more exclusive than the flagship Lexus.

flipside909

Even if they made the Windom a valid Lexus ES model, it would be just like the Toyota Soarer into the Lexus SC430 as we know it.

Highlander - Klueger V
RX330 - Harrier

The V12 sedan is the Toyota Century....which hasn't really changed in the last decade or two:
http://toyota.jp/Showroom/All_toyota_lineup/Century/

bitkahuna

iTrader: (20)

It's an excellent idea. Even if there's some product overlap the sales and service experience should be far more upscale at the Lexus dealership.

Celicamaro

Sales and service of regular Toyota and Nissans are already superior to anything we can get from a Lexus or infiniti dealer here. So Lexus better take it to the next level if they want to impress their own people who are already use to superior quality and services. Toyota shouldn't build Lexus here and send them back for sale in Japan, many of us here like the fact that Lexus are made in Japan and not in america. The Japanese customers are even more demanding of this. The reason Lexus dealers does so well here is cuz Toyota dealers services suks so much.

LexFather

Please do not put Nissan And Toyota in the same breath. Nissan has far sub-par quality and dealer service looking at consumer reports and jd power ratings. If your going to state Toyota service is as bad as you say it is, how about posting a link proving it?

Celicamaro

I meant the Nissan and Toyota dealers in Japan offers superior services and quality than what we get here from Lexus and Infiniti. I don't need facts to prove that toyota dealers here suk, my opinion is always right and so is yours.

encore888

Wow, now that's OLD!!!! Even the previous gen V12 S-class is supermodern by comparison. But then again, aren't we looking at a future V12 from Lexus?

jtanoyo1

This was my exact concerns. Just because Lexus will be introduced in the local home market, Toyota might need to "axe" a lot of its lineups. As you have said, the Aristo, Soarer, Celsior, Altezza, etc will be gone. This might actually leave Toyota with "bottom-feeder" cars, vehicles for the masses so to speak.

Or could it be that Lexus is introduced at home just to avoid market confusion about what car is actually what overseas?

By the way,

RX = Harrier, GX = Prado, LX = Landcruiser and yes, they are all avalable locally in Japan too. Which brings back to my original question, would Lexus dealerships end up cannibalizing the Toyota brand and become direct competitors to its sibling? Lexus is a premium marquee brand, but in Japan until today, there has not been a "higher, more luxurious" brand within the Toyota market. Would the coming of Lexus in Japan suddenly turn the Toyota brand into a "lesser" brand?

I find all this quite strange if you ask me. Lexus does real well in the US for the simple reason that back when Lexus was introduced, the toyota brand simply doesn't get enough "respect" from both the industry and the consumers. Lexus was toyota's answer to "look, whatever it is that you guys do, we can do it much better, much advanced and somewhat cheaper!"

But they don't need to bring this message home. Everyone here in Asia knows what a great brand Toyota is. Heck, 4 of the cars in my house are Toyota! I am just afraid that Lexus might end up like Infiniti here. Nissan is such a strong brand that Infiniti has zero chance of surviving here. The 2nd hand market for infiniti cars is SO bad that people are afraid to buy new Infinitis. Even the new Nissan Teana (supposedly a replacement for the Cefiro which is a Nissan equivalent for the Infiniti I30, I think?) doesn't even dare to bear the Infiniti mark.

jrock65

http://www.detnews.com/2005/autosins...C01-254551.htm

2005 JD Power survey:

Lexus: 904
Infiniti: 901
Industry avg.: 871
Toyota: 858
Nissan: 847

Seems like Toyota is "sub-par", in every sense of the word. Not much better than Nissan. Lexus isn't much better than Infiniti in the survey either.