Trends in a bad economy. Is Lexus doing the right thing?
#1
Trends in a bad economy. Is Lexus doing the right thing?
After a difficult 2008, Lexus (and most automotive brands in general) needs to modify their plans to accommodate to the rapidly changing economic horizon.
For example, Acura (HoMoCo) has stopped their progressive plans to go bigger (to the dismay of most CL members). In lieu, they have decided to stick with FWD 4/6-cylinder vehicles. Will this ultimately be a wise decision?
But how about Lexus?
Their plans include introducing a new (entry-level priced) hybrid, increasing the technology and luxury of their entry-level models such as the RX350/450h and ES350, and "downsizing" the SC430 to the IS350c. All appropriate decisions, but is it enough?
How about their plans on the opposite end of the spectrum? Should they build the LF-A? The GS-F? Should the GX be discontinued, leaving the LX as the lone ultra-lux SUV?
What are your thoughts?
Any advice for Lexus?
Discuss.
For example, Acura (HoMoCo) has stopped their progressive plans to go bigger (to the dismay of most CL members). In lieu, they have decided to stick with FWD 4/6-cylinder vehicles. Will this ultimately be a wise decision?
But how about Lexus?
Their plans include introducing a new (entry-level priced) hybrid, increasing the technology and luxury of their entry-level models such as the RX350/450h and ES350, and "downsizing" the SC430 to the IS350c. All appropriate decisions, but is it enough?
How about their plans on the opposite end of the spectrum? Should they build the LF-A? The GS-F? Should the GX be discontinued, leaving the LX as the lone ultra-lux SUV?
What are your thoughts?
Any advice for Lexus?
Discuss.
#2
Just for offering the HS250h alone I think Lexus is on the right track, not to mention that the new RX hybrid's FE is pretty impressive.
Advises for Lexus:
- Get the hybrid ES out ASAP
- Make a hybrid model of the next IS (3IS)
- Don't waste your energy on the current GS but make the next one sportier and offer a F variant
- Offer a sport package on the current LS, this car doesn't need a F
- Take your time with the LF-A, make sure that it'll kick butt but please do make it, Lexus needs a halo car.
- Please update the SC ASAP, use what you haven learned with the LF-A test program, delete the light weight materials, dumb down its performance a bit and make some cosmetic changes then you'll have a new SC on your hand.
Advises for Lexus:
- Get the hybrid ES out ASAP
- Make a hybrid model of the next IS (3IS)
- Don't waste your energy on the current GS but make the next one sportier and offer a F variant
- Offer a sport package on the current LS, this car doesn't need a F
- Take your time with the LF-A, make sure that it'll kick butt but please do make it, Lexus needs a halo car.
- Please update the SC ASAP, use what you haven learned with the LF-A test program, delete the light weight materials, dumb down its performance a bit and make some cosmetic changes then you'll have a new SC on your hand.
#3
Should they build the LF-A? The GS-F?
The F stuff would of been great in the early 2000. Not today.
Should the GX be discontinued,
leaving the LX as the lone ultra-lux SUV
In lieu, they have decided to stick with FWD 4/6-cylinder vehicles. Will this ultimately be a wise decision
and "downsizing" the SC430 to the IS350c.
modify their plans to accommodate to the rapidly changing economic horizon
#5
I think Toyota/Lexus is doing a good job in "diversify" products line. So far, it almost dominate in every segment. Whether its Truck - Mid size sedan - hybrid - luxury, they still doing good. Personally, the company overall standing great in comparing to some car company.
Toyota doesn't need aggressive change to current line up, because they have small/hybrid for the High price gas, or SUV/Truck when gas low, and Luxury for people who just have the $$$. They manufacture facilities allow them to easily change production of different model, or increase/slow product line. They're having more product line coming out to for change in buy habit.
ES Hybrid is for OLDer buyer age group. Just like IS for younger buy age group.
In term of F-model, sooner or later, they have to step into the ring. IS-F was good at getting their feet wet.
Overall, Lexus have lots of product in their porfolio + they're test the desgin in scion/toyota badge. Continue improvement in their current product lines to solidify Lexus moto "Pursue of Perfection"
Toyota doesn't need aggressive change to current line up, because they have small/hybrid for the High price gas, or SUV/Truck when gas low, and Luxury for people who just have the $$$. They manufacture facilities allow them to easily change production of different model, or increase/slow product line. They're having more product line coming out to for change in buy habit.
ES Hybrid is for OLDer buyer age group. Just like IS for younger buy age group.
In term of F-model, sooner or later, they have to step into the ring. IS-F was good at getting their feet wet.
Overall, Lexus have lots of product in their porfolio + they're test the desgin in scion/toyota badge. Continue improvement in their current product lines to solidify Lexus moto "Pursue of Perfection"
Last edited by speed_Demo; 01-08-09 at 12:04 PM.
#6
#7
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#8
If Lexus wants to remain a "nice, luxury" car maker then by all means kill the F program. But just as the Germans are working towards improving their reliability issues, Lexus has the capability of playing the performance game and truly competing with them.
I have mentioned this before....while I love my F, I am in a bit of a dilemma when I think about the future and where I'd like to go with my next vehicle. With no disrespect to current Lexus' owners, there is no vehicle in the line up that is able to compete with the performance models from the other companies. There is no competitor to the E63 or CLS 63 AMG, or the M5/6, or RS5/6. Not to mention SUV's with the ML63 or upcoming X5/6 M.
I would suspect that there are many Lexus owners that have left for the Germans when they decided they wanted a higher performing car. The IS F probably kept some from leaving, myself included. This, in spite of the fact that they know going in that the reliability and luxury of the Germans is not going to match a Lexus.
If Lexus truly wants to compete with the Germans on a global scale, it is essential that they compete against all of the line ups from Germany. If they can do that, wouldn't that make them the ultimate manufacturer in the world?....luxury, reliability and performance.
#10
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Phil I wouldn't really bring up what Honda has done with Acura as they have shown absolute cluelessness the past few years as well as making possibly the ugliest lineup around. They don't know what they are doing, period.
Pagemaster I'm sorry but that post is way off, really holds not much weight or has not much solid ground to stand on. Its borderline silly.
Phil it is crystal clear Lexus managment simply is some of the best around. They rarely make a big mistake. Their track record is proven.
This is not the first difficult time for Lexus. The "dark ages" for Lexus are described as 1994-1996 or so. They had minimal new product and the yen hit them in the head. They also were threatned with a 100% tariff.
What people FAIL to realize is the economy will rebound and be STRONGER than ever. The seeds already planted will just take longer to grow. However you MUST plant or have planted them. Acura missed that memo.
What is most important is to continue to see the future. Do NOT think this is the end.
The "F" brand is essential. There will continue to be younger buyers and its CLEAR people want a performance Lexus. The IS-F forum here is very busy and even I am surprised by the amount of owners. Lexus buyers are also affluent and the "F" brand needs to be extended. The current GS is no homerun but hopefully the next GS gets an "F". The LS "F-sport" is coming. The IS-F did the UNIMAGINABLE. It showed people will pay the EQUIVILENT if not MORE for a model that competes with M and AMG. That is a feat in itself.
Lexus clearly is again, way way WAY ahead of the curve with hybrids. No other Luxury brand has as many and most don't have one. THey are the first generation so they will only get better. Guess what, gas prices are low now but WILL get higher, maybe higher than before b/c of KEY EMERGING MARKETS.
Those markets are where the growth is for autos, mostly cheap/small ones. The HS may look kinda silly now but in 3 years, its going to sell like hotcakes.
I also do hope a ES hybrid and more come, GX, LX, etc.
There has been NOTHING to support clearly that the SC or even LF-A are dead. They are coming. The SC just is historically a car with a long cycle.
Lexus continues to forge ahead in Europe and in other markets like Russia and China. They are going to truly be a global powerhouse by 2025 (IMO).
Lexus is showing it can keep its core luxury roots and also offer sport. They have stated that quality is back at job 1. They have a clear vision of where they want to be. That vision came home to Japan in 2006.
I don't expect sales in America to top 300k for Lexus like it did in 2007. That year was just one we may not see for another decade. However, Lexus will beat the 2007 sales and extend that in America in the future.
Finally, the bad economy in America IS GOOD FOR LEXUS. They will truly learn they cannot depend on America and really need to invest in Europe and other markets. This is a lesson I am sure many within the company preached but it fell on deaf ears.
Go Lexus!!
Pagemaster I'm sorry but that post is way off, really holds not much weight or has not much solid ground to stand on. Its borderline silly.
Phil it is crystal clear Lexus managment simply is some of the best around. They rarely make a big mistake. Their track record is proven.
This is not the first difficult time for Lexus. The "dark ages" for Lexus are described as 1994-1996 or so. They had minimal new product and the yen hit them in the head. They also were threatned with a 100% tariff.
What people FAIL to realize is the economy will rebound and be STRONGER than ever. The seeds already planted will just take longer to grow. However you MUST plant or have planted them. Acura missed that memo.
What is most important is to continue to see the future. Do NOT think this is the end.
The "F" brand is essential. There will continue to be younger buyers and its CLEAR people want a performance Lexus. The IS-F forum here is very busy and even I am surprised by the amount of owners. Lexus buyers are also affluent and the "F" brand needs to be extended. The current GS is no homerun but hopefully the next GS gets an "F". The LS "F-sport" is coming. The IS-F did the UNIMAGINABLE. It showed people will pay the EQUIVILENT if not MORE for a model that competes with M and AMG. That is a feat in itself.
Lexus clearly is again, way way WAY ahead of the curve with hybrids. No other Luxury brand has as many and most don't have one. THey are the first generation so they will only get better. Guess what, gas prices are low now but WILL get higher, maybe higher than before b/c of KEY EMERGING MARKETS.
Those markets are where the growth is for autos, mostly cheap/small ones. The HS may look kinda silly now but in 3 years, its going to sell like hotcakes.
I also do hope a ES hybrid and more come, GX, LX, etc.
There has been NOTHING to support clearly that the SC or even LF-A are dead. They are coming. The SC just is historically a car with a long cycle.
Lexus continues to forge ahead in Europe and in other markets like Russia and China. They are going to truly be a global powerhouse by 2025 (IMO).
Lexus is showing it can keep its core luxury roots and also offer sport. They have stated that quality is back at job 1. They have a clear vision of where they want to be. That vision came home to Japan in 2006.
I don't expect sales in America to top 300k for Lexus like it did in 2007. That year was just one we may not see for another decade. However, Lexus will beat the 2007 sales and extend that in America in the future.
Finally, the bad economy in America IS GOOD FOR LEXUS. They will truly learn they cannot depend on America and really need to invest in Europe and other markets. This is a lesson I am sure many within the company preached but it fell on deaf ears.
Go Lexus!!
#11
I couldn't possibly disagree more with this statement. For years Lexus has been criticized as being "nice, luxury" vehicles that could not compete with the Germans on a performance level. This has been the crux of Lexus' identity crisis recently. Introducing the IS F showed that they are willing and capable of competing with MB, BMW and Audi on all levels now. (Please don't turn this into a track car debate, I'm not saying the F is better than the others, nor am I proclaiming the Germans to be the "ultimate" cars, just that the F is competitive).
If Lexus wants to remain a "nice, luxury" car maker then by all means kill the F program. But just as the Germans are working towards improving their reliability issues, Lexus has the capability of playing the performance game and truly competing with them.
I have mentioned this before....while I love my F, I am in a bit of a dilemma when I think about the future and where I'd like to go with my next vehicle. With no disrespect to current Lexus' owners, there is no vehicle in the line up that is able to compete with the performance models from the other companies. There is no competitor to the E63 or CLS 63 AMG, or the M5/6, or RS5/6. Not to mention SUV's with the ML63 or upcoming X5/6 M.
I would suspect that there are many Lexus owners that have left for the Germans when they decided they wanted a higher performing car. The IS F probably kept some from leaving, myself included. This, in spite of the fact that they know going in that the reliability and luxury of the Germans is not going to match a Lexus.
If Lexus truly wants to compete with the Germans on a global scale, it is essential that they compete against all of the line ups from Germany. If they can do that, wouldn't that make them the ultimate manufacturer in the world?....luxury, reliability and performance.
If Lexus wants to remain a "nice, luxury" car maker then by all means kill the F program. But just as the Germans are working towards improving their reliability issues, Lexus has the capability of playing the performance game and truly competing with them.
I have mentioned this before....while I love my F, I am in a bit of a dilemma when I think about the future and where I'd like to go with my next vehicle. With no disrespect to current Lexus' owners, there is no vehicle in the line up that is able to compete with the performance models from the other companies. There is no competitor to the E63 or CLS 63 AMG, or the M5/6, or RS5/6. Not to mention SUV's with the ML63 or upcoming X5/6 M.
I would suspect that there are many Lexus owners that have left for the Germans when they decided they wanted a higher performing car. The IS F probably kept some from leaving, myself included. This, in spite of the fact that they know going in that the reliability and luxury of the Germans is not going to match a Lexus.
If Lexus truly wants to compete with the Germans on a global scale, it is essential that they compete against all of the line ups from Germany. If they can do that, wouldn't that make them the ultimate manufacturer in the world?....luxury, reliability and performance.
#12
So far Lexus is doing great. They did sell more vehicles in 2007 and 2008 than BMW and Mercedes Benz in the U.S. I'm sure Lexus will sell more vehicles in 2009 than BMW or Mercedes Benz in the U.S.
With the upcoming HS 250h, Lexus will dominate the entry level and hybrid market. Let's look at this in more detail. First entry level, Lexus has:
IS 220d (European Market)
IS 250 manual
IS 250 automatic
IS 250 awd
IS 250 C (arriving summer 2009)
IS 350 automatic
IS 350 C (arriving summer 2009)
IS F (Performance)
HS 250h (arriving Fall 2009)
ES 350
For hybrids, Lexus definitely dominates and mostly covers all levels. Lexus hybrids are:
HS 250h (Entry Level)
RX 450h (Entry Level)
GS 450h (Mid-Level)
LS 600h L (Top-of-Line)
For the mid-level sedans Lexus has:
GS 350
GS 350 awd
GS 450h
GS 460
GS F (Performance, hopefully Lexus makes)
For the Top-of-the-line which Lexus dominates, Lexus has:
LS 460
LS 460 awd
LS 600h L
For coupes, Lexus has entry level and a mid-level:
IS 250 C
IS 350 C
SC 430 (Hopefully Lexus updates to the SC 460 w/380 hp V8)
For SUV's, Lexus has entry level, mid-level and Top-of-the-line:
RX 350
RX 450h
GX 470
LX 570
Hopefully in the near future Lexus brings the LF-A, exotic super sports car.
The RX sells the most, then the ES, IS followed by the LS.
Lexus should have all it's bases covered. Keep up the great work Lexus!
As one can see Lexus is positioning itself with lots of entry level vehicles, three sedan models (IS, ES & HS) and of course one SUV (RX).
With the upcoming HS 250h, Lexus will dominate the entry level and hybrid market. Let's look at this in more detail. First entry level, Lexus has:
IS 220d (European Market)
IS 250 manual
IS 250 automatic
IS 250 awd
IS 250 C (arriving summer 2009)
IS 350 automatic
IS 350 C (arriving summer 2009)
IS F (Performance)
HS 250h (arriving Fall 2009)
ES 350
For hybrids, Lexus definitely dominates and mostly covers all levels. Lexus hybrids are:
HS 250h (Entry Level)
RX 450h (Entry Level)
GS 450h (Mid-Level)
LS 600h L (Top-of-Line)
For the mid-level sedans Lexus has:
GS 350
GS 350 awd
GS 450h
GS 460
GS F (Performance, hopefully Lexus makes)
For the Top-of-the-line which Lexus dominates, Lexus has:
LS 460
LS 460 awd
LS 600h L
For coupes, Lexus has entry level and a mid-level:
IS 250 C
IS 350 C
SC 430 (Hopefully Lexus updates to the SC 460 w/380 hp V8)
For SUV's, Lexus has entry level, mid-level and Top-of-the-line:
RX 350
RX 450h
GX 470
LX 570
Hopefully in the near future Lexus brings the LF-A, exotic super sports car.
The RX sells the most, then the ES, IS followed by the LS.
Lexus should have all it's bases covered. Keep up the great work Lexus!
As one can see Lexus is positioning itself with lots of entry level vehicles, three sedan models (IS, ES & HS) and of course one SUV (RX).
Last edited by Trexus; 01-09-09 at 10:05 AM.
#13
Overall I think Lexus is doing well.
Things I think they need:
- IS coupe (not hard top vert, coupe) - - - - - then we can have an IS-F coupe
- GS-F
- at least one wagon (more for the EU than NA)
As for the hybird thing, I think Honda may be on to something with the FCX Clairity so be wary of that (continued hybrid/alternative power advancement is good)
I think there should probably be an F version and hybrid version for every vehicle in the line up (they're getting there now, so keep going). Note: Just because the option is available for order doesn't mean they need to pre-make a bunch of them.
Things I think they need:
- IS coupe (not hard top vert, coupe) - - - - - then we can have an IS-F coupe
- GS-F
- at least one wagon (more for the EU than NA)
As for the hybird thing, I think Honda may be on to something with the FCX Clairity so be wary of that (continued hybrid/alternative power advancement is good)
I think there should probably be an F version and hybrid version for every vehicle in the line up (they're getting there now, so keep going). Note: Just because the option is available for order doesn't mean they need to pre-make a bunch of them.