jruhi4

Lexus will add stores, not dealers
by David Barkholz
Automotive News



DETROIT -- In the coming years, Lexus will add stores, but not dealers, said Mark Templin, Lexus general manager.

Lexus has enough dealers at 178, he said. Those dealers own and operate 224 outlets across the country, Templin told the Automotive News World Congress this morning.

Lexus will stick with dealers who have made a commitment to continuously improving the buying experience of customers, he said.

In the past three years, Lexus dealers have spent $1 billion on new stores and upgrades, Templin said. " We're trying to create a feeling in our car dealerships more of a luxury hotel than a car dealership," Templin said after his presentation.

Lexus dealers also are enhancing their Web sites to appeal to young and more mature buyers alike, he said.

They are making their Web sites more interactive, including virtual tours of the dealerships, their vehicles and even staffs, he said. " Today, the Internet is the shopping tool for everybody," he said.

The dealerships also want to have creature comforts so that buyers and prospective buyers can " hang out" if they like, Templin said.

Maintenance and service also are important to the standards that Lexus has helped to elevate nationally since launching in the United States 20 years ago.

Almost all stores have a price menu for repairs and maintenance so customers can feel assured they're paying the same as everybody else for service, Templin said.

In his speech, Templin said Lexus expects U.S. vehicle sales in 2008 to hover around 16 million units, or slightly lower than in 2007. And looking ahead three years, he's bullish.

He said sales should rise to 18 million vehicles by 2010 driven, in part, by about 4.5 million new young drivers getting on the road annually.

Those young drivers have more than $2.3 trillion in buying power, Templin said. What's more, they'll inherit $17 trillion in the coming years, or nearly three times the current national debt.

Toyota has products and price points for all those buyers, Templin said. Scion appeals to the young who want to customize their cars, while Toyota and Lexus offer comfort, luxury and performance along the way.

http://www.autonews.com/apps/pbcs.dl...8&Profile=1018

encore888

Thanks for the article link!

So I guess that means that Lexus will not take on new dealer franchises, but existing dealer partners will expand and add more "Lexus stores" -- like how Tustin Lexus' owners opened Newport Lexus last year.

4TehNguyen

iTrader: (1)

quality over quantity. spamming dealerships around is a very bad thing to do

jruhi4

Exactly. Here in southeast Florida, Lexus of West Kendall (same ownership as Lexus of Kendall) is another similar example.

RXSF

...lexus of fremont near me has a salon parlor inside the dealership, and a cafe.

ill just take my loaner car and jet

LexBob2

The trend continues. Lexus Of Orland Park (IL) moved into a new showplace facility in late '06, and just a few months earlier opened a new and equally nice dealership in nearby NW Indiana.

LexFather

Its another showing of great vision. They won't oversaturate dealers with more dealers, instead keeping them happy with profits.

They see dealerships becoming more a place to relax and hang out instead of just a place people dread to go.

rominl

iTrader: (4)

that's a good thing. it's time to improve the current dealerships

Och

iTrader: (3)

They need more dealerships in Brooklyn, I used to get MUCH better service at Plaza Honda than I get at Bayridge Lexus.

DASHOCKER

iTrader: (2)

The Bayridge Lexus experience is similar to getting your car serviced at a Mobil station. Even the showroom is a hole in the wall imo. Lexus of Rockville Centre, Rallye Lexus is a bit better but small. Build some state of the art facilities Lexus! Rallye's BMW dealership reminds me of the Guggenheim Museum. Huge & just amazing inside and out.