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European Identity Crisis for Lexus

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Old 04-19-11 | 11:21 AM
  #61  
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Originally Posted by bitkahuna
no - e-classes are more practical. diesels for economy. bigger trunks and passenger space. simple.
Again double standard. Taxi-cab E-class=Okay. Taxi-cab Ford Crown Vic or anything else= hahaha, pos

Originally Posted by bitkahuna
not at all. in europe parking is tighter and roads are tighter and gas is hugely expensive, so an e-class makes perfect sense. in the u.s., we're fat slobs with big roads and still cheap gas, so a crown vic makes sense.
I agree about the differences in roads, I am talking about the image.

Originally Posted by bitkahuna
then i humbly suggest you're not really seeing the difference in the markets and the loooong history of each.



and they've been doing it for DECADES before lexus even launched. so this is not some double standard.



ok, that's crazy talk. you say europeans act like their streets are paved with gold yet now you're saying they should grovel and thank americans? it is what it is. they've offered cars americans like. americans bought them. enough said.



we haven't bought them because they're not offered here for the most part, because it has not been economical (with high european labor rates) to bring them over. now they have factories in the u.s. things will likely change.
C'mon Paul you know I am not ignorant to European automotive lifestyle. I may not be from there but I get more Euro mags than American ones. Again I'm not refuting that Lexus did not offer what Europeans want. I just find some double standards in regards to the brand and I find that the European mags pawn off this superior image every month bashing most anything not European and rarely giving something not Euro a fair shake. They (like some articles here) refuse to acknowledge the purpose of a vehicle instead they bash it based on what they THINK it should be.

Originally Posted by bitkahuna
true, but then why do the 5 and E class sell so well in the u.s.? are they simply better or do you think the u.s. consumer is stupid?



disagree. they're not giving others a fair shake because lexus hasn't had a compelling enough product line FOR EUROPE, has a tiny dealer network, and doesn't advertise much. in short, they haven't given it a big enough effort yet.
I've said a trillion times the E/5 will always be the sales leader here and with good reason. More models to choose from, they have image, they rarely put out an overall bad product and people overlook reliability.

I don't know if I completely agree with the fair shake but I agree they have not prioritized Europe like they did America. It also seems most of the rest of the world is happy with the products that do well in America in regards to Lexus sales outside America/Europe.


Originally Posted by bitkahuna
not sure why you seem to be taking this so personally, americans aren't being bashed - the article is about Lexus, a Japanese brand! and bmw and mercedes were dominating in the u.s. (in terms of mid to higher end sporty and luxury sedans) since the 60s and 70s, with only competition from lazyboy sofas on wheels like cadillacs. lexus' BODY BLOW in 1989(?) was perfectly executed with great follow-up (SC, for example, and later RX, although the 1GS was a misfire and the 2SC was a dud really). but mb and bmw have regrouped, learned, and are executing well now. it's a wonderful time for consumers. lexus is doing well in the u.s., but the honeymoon is over.
Maybe its b/c every time I look up there is some article crapping on Lexus for whatever reason(s). Again Mr. Green did not point out Lexus true opportunities in Europe. Instead its a bash a hybrid article and Lexus needs medication. Meanwhile the same can be said for the Euro brands in their quest to chase every single niche while losing core DNA.

If you read these mags/articles hell watch Top Gear they make America seen like the car dump of the world. Its old and tiring. Europe loves small 4 cylinder diesels and some ugly vehicles and you don't see the media or anyone laughing at them constantly.

Originally Posted by bitkahuna
notyou mean in the u.s., or in europe? in europe at least, a stripped 520D is hands down a better buy, better drive, and makes more sense than an ES or GS350.



it isn't confusing because they do a good job at keeping common themes throughout their line, and if nothing else, a prominent badge. to expand sales, eventually these brands have to add models and again, market analysis told them i'm sure that a 1 series for example was necessary to attract a younger single buyer as the 3 got bigger and bigger and more expensive over time. any brand wants to get consumers 'on the train' and upsell them over time.
Oh agreed, the Germans have done a great job with this and Lexus has done a decent job expanding its lineup. Every expert article points at more volume needed for these brands. FYI from my understanding Lexus could possibly account for 50% of Toyota's profits.

Originally Posted by bitkahuna
exactly because they're smart - they're all "X" brand, just different sizes. the rx, gx, and lx have NOTHING IN COMMON at all, which is a mistake. audi does Q3 Q5, Q7... same deal. mercedes is a bit more obscure and less cohesive, the 3 letter designation with 'K' means smaller, so the GLK is small utilitarian, then the M, GL, and G, then there's the out of place R class which hasn't done well (no surprise).

so branding and positioning and consistency is hugely important. one of your favorite companies Apple understand this. that's why the iphone 5 won't be called the x-phone.



some people are going to rip lexus and every other brand, no matter what they do. get over it.



completely agree with all of the above. lexus came out with a diesel that was DOA. bad move, and does more damage than they realize. that's actually disrespecting the euro consumer, which isn't a great thing to do if you're trying to build a brand.



i think the euro brands are far more consistent, have been at it longer, and are also extremely aggressive, because unlike lexus, they don't have a parent brand to fall back on for revenue!
I think consumers see the RX, LX, GX together. Lexus has done a good job making their cars share similar cues (IMO) while looking different. Only Bangle had that courage at BMW. Otherwise all German cars look the same just in different sizes. Not knocking it, it works and that is that.

Agreed on your points about branding. I also agree with the diesel offering.

The bottom line is Lexus will never sell 500,000-600,000 cars or so like the Germans do in Europe. That will never happen. I think they would love to see 100,000 a year.

Again, its tiring reading crappy written articles just wanting to bash on Lexus/Toyota for any reason without truly getting to the core of the issue. If he had really taken the time to point out the real problems (like we all here have) I would respect the article.

Instead now countless Europeans get to read another Lexus sucks article. The power of the press.
Old 04-19-11 | 11:27 AM
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Originally Posted by DustinV
Those people claiming that "Europeans don't care about reliability" have no idea what they're talking about.

Reliability is important here and for most Europeans their European cars are reliable enough. If they weren't these people would switch brands. It's that simple. I think the biggest difference between Americans and Europeans is how we react to the problem. A broken cup holder isn't a big deal here. When their radio doesn't work, the average European doesn't write a letter to Consumer Reports to complain about it - he has the problem fixed and gets on with life. I think that Americans, and keep in mind that I am American, overreact sometimes to what is actually a small problem. True, these problems shouldn't happen, but they do. Cars are complex machines and things can go wrong.

I care about reliability. It's not the thing I care about most, but I do care about it. I've had no issues whatsoever on my last two Benzes and my current BMW or VW. My Volkswagen, just like my BMW, is a used car and it now has over 120,000 km on its back - no problems so far.
Euro cars should be more reliable in Europe since most are stripped out and lack the options most cars here have. We can all fairly assume a base A1 with A/C will be a lot more reliable than an AWD loaded A8 that is sold here.

I do agree that a lot of people here overact to small problems and expect cars to be perfect.

Originally Posted by DustinV
I wonder how many Lexus CT200h or ES owners actually know that their car is FWD. Most people buying cars aren't enthusiasts. They don't know or don't care about such matters as to which wheels are being driven.

Small luxury is difficult to sell in North America, that's true, but times are changing and the success of the CT200h in America is showing that Americans are waking up and realizing that "big is not always better".

I think the 1 series 5-door wouldn't be a smart move for BMW for North America because of BMWs image in that market. They stand for sporty luxury/business/sports sedans and only the 1er coupe /convertible fits that image in North America.

I love my 118d and how it performs. I have all the speed I'll ever need. Hell, the top speed and high-speed handling abilities of my 118d will most likely put to shame a more powerful Camry V6 for instance. Who's laughing now?

Americans laugh at the smaller engines and cars that the Europeans drive and Europeans laugh at the overpowered and oversized cars that we drive. Culture clash. Period.
Big difference. ES/CT buyers likely are not supposed to be enthusiasts. BMW 1 series owners are supposed to be, that is what BMW says, that is what fanbois say that is what magazines say. Yet here we are, 80% think its FWD. Just goes to show how important IMAGE is and that is something I will never argue against. Works for Germans, works for Lexus. Sometimes it hurts the Germans (reliability) sometimes it hurts Lexus (lack of sport and Europe issues).

I think we both can agree if gas prices rise, we will continue to see a shift to smaller Euro engines offered here. That said unlike Europe, Americans do not want stripped out luxury cars. They want the feeling of luxury with the addition of MPG.

Originally Posted by DustinV
Nope, you're wrong.

The "stripper" models of these cars are mainly sold to taxi and police fleets and these don't even account for 1/3 of total sales. And - these cars will be equipped with vinyl, automatic transmissions, navigation etc. But that's not the point. These are cars being used for a specific purpose that don't require certain features.

The vast majority of private-bought premium cars are nicely equipped from the factory and even better equipped once they're customized by the client. In fact it's difficult to sell a premium car in Europe today that has no features and this is precisely the reason why many European premium cars now offer more and many customers equip it with features that they want and will later stabilize the value of the car when they try to sell it.

So you are saying over 50% of Euro cars are sport package equipped. We both know that is not true. Which means most are standard suspension vehicles.

I'll respond to that initial long post later

Last edited by LexFather; 04-19-11 at 11:32 AM.
Old 04-19-11 | 11:32 AM
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Originally Posted by 1SICKLEX
Again double standard. Taxi-cab E-class=Okay. Taxi-cab Ford Crown Vic or anything else= hahaha, pos
By all accounts the Ford Crown Victoria is a GOOD QUALITY CAR. It uses simple but proven technology, is reliable, well-built and spacious. Running costs in regards to fuel might be high, though. Personally I'd opt for a classier Mercury Grand Marquis, but that's just me.

Americans simply think that cars that are used as taxis must be "bad" without putting my thought into it. The facts are clear. Taxi duty is one of the toughest jobs any car can perform. And because of this taxi drivers probably have a preference for cars that are up to the task of handling the strain of this job. These cars are virtually running all day and have to perform in daily stop-and-go-traffic conditions - which puts a lot of strain on the components (brakes, engine, transmission, clutch etc.).

It's safe to say that the E class and Crown Victoria are well up to performing this task. And in the case of the E class, this is great advertising for the higher-sped models as this indicates a quality car.

And I am actually saddened by the fact the Crown Victoria is being phased out of taxi and police duty across America. To me that car is an icon, a symbol.
Old 04-19-11 | 11:47 AM
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Originally Posted by 1SICKLEX
Big difference. ES/CT buyers likely are not supposed to be enthusiasts.
There are different kinds of enthusiasts. The enthusiasts that like to drive and have control over their cars etc. would never be seen dead in a Lexus ES or CT200h.

But those people are minority.



Originally Posted by 1SICKLEX
BMW 1 series owners are supposed to be, that is what BMW says, that is what fanbois say that is what magazines say. Yet here we are, 80% think its FWD. Just goes to show how important IMAGE is and that is something I will never argue against. Works for Germans, works for Lexus. Sometimes it hurts the Germans (reliability) sometimes it hurts Lexus (lack of sport and Europe issues).
Most BMW customers aren't enthusiast. That goes for any brand, for that matter.

What the BMW fanboys say is irrelevant. BMW is a business and businesses are there to make money. Money is made through selling your products. Products are sold through marketing. Marketing attributes special features or capabilities to a product that are supposed to convince your prospective customers.

It's safe to say that most BMW customers want a quality car with a sporty image. Will they ever make use of that sporty drive? Hardly.

Only a small, miniscule amount of people buying cars from any brand are true enthusiasts. In the case of BMW, such people buy the car because they believe it is the car for their needs etc.



Originally Posted by 1SICKLEX
I think we both can agree if gas prices rise, we will continue to see a shift to smaller Euro engines offered here. That said unlike Europe, Americans do not want stripped out luxury cars. They want the feeling of luxury with the addition of MPG.
We agree.

And I know that features are important in America and you can bet that the European brands will adapt their products accordingly as they have done in the past.




Originally Posted by 1SICKLEX
So you are saying over 50% of Euro cars are sport package equipped. We both know that is not true. Which means most are standard suspension vehicles.
I fail to see how the sport package has any relevance here.

Most people aren't driving enthusiasts, remember? They want something comfortable so when they see the tick box with the optional sport package, you can bet that they'll skip over it.

Many people believe that the standard suspension is already good enough for their requirements. In one of the last Auto Motor und Sport issues there was an article on the W211 E class and Airmatic. Airmatic was an option and it sales in Europe weren't that great. The reason for this was simple. Most people testdrove a standard model and a model equipped with Airmatic and felt that Airmatic didn't offer any advantages over the standard suspension. This logic can also be applied to other features such as manual A/C control vs automatic A/C control etc.

The sport package is (and should always be) an option for those few who really want it. Besides, a normal European luxury car without a sport package is a capable handler. I hear that Mercedes' has been for decades "softening up" the suspensions on their non-AMG cars heading for America, because the average Mercedes customers there doesn't want something sporty. My ex-C200 CDI W204 and W211 E230 drove pretty dynamically I might add. My C class was a sport model, but my E class was a base "Classic" trim edition with a comfort-biased suspension - yet I never had any handling problems, even when I drove the car in a sporty fashion.

And I should also add that most people don't drive around corners at high speed. Once again, most folks out there want something comfortable.
Old 04-19-11 | 11:48 AM
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Well kind of Mike, Europeans read reliability reports as much as everyone else, however they also have perceived notions like everyone else - that say that German cars are top when it comes to reliability (even if German Magazines dont rate German reliability well).

Just like people in US think Toyota and Honda are best quality cars, no matter the recalls.
Old 04-19-11 | 11:50 AM
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in any case, there was an survey how taxi drivers do not buy MB anymore, but buy other cars, especially asian (in Germany).

They used to buy old E-class a lot everywhere, because they were known for reliability, when that reliability dropped, taxi drivers turned to other cars too :-)
Old 04-19-11 | 11:53 AM
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When I was in France last year, I saw more LS600h's in a couple of days than I see here in NYC in several months. I've also seen a lot of Prii, and RX-h.

I barely saw any Japanese cars besides hybrid Lexus and Toyotas. I also saw some FX at the airport, I think they were rentals.

I also saw crapload of Lexii in former USSR. In Kiev, its probably just as popular as it is here in NYC.

And the funny part, all the Lexii I saw were the expensive models. Not a single el-cheapo ES.
Old 04-19-11 | 11:58 AM
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Originally Posted by Och
When I was in France last year, I saw more LS600h's in a couple of days than I see here in NYC in several months. I've also seen a lot of Prii, and RX-h.

I barely saw any Japanese cars besides hybrid Lexus and Toyotas. I also saw some FX at the airport, I think they were rentals.

I also saw crapload of Lexii in former USSR. In Kiev, its probably just as popular as it is here in NYC.

And the funny part, all the Lexii I saw were the expensive models. Not a single el-cheapo ES.
Well, big reason for big drop in Lexus sales in europe - from 70k to 27k was that Russia had huge economic downturn and it was Lexus's biggest market in Europe.

But lets keep things in perspective, despite subjective measures, Toyota is 7th-9th best selling car company in Western Europe. It only sells really good in some countries that do not have their own car production like Ireland and Scandinavian countries, Greece, etc.
Old 04-19-11 | 12:06 PM
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Just a photo I took in Kiev - in front of the same building are two LX, one GX/Prado, one LS600h and one S class.

The bottom line, some people like their luxury cars the proper way... others are happy with a badge and a windshield :

European Identity Crisis for Lexus-uvytp.jpg

European Identity Crisis for Lexus-tbx9t.jpg
Old 04-19-11 | 12:07 PM
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Nice pic...is that you squatting in the first one
Old 04-19-11 | 12:15 PM
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btw, a lot of media laughed at CT200h doubling European sales...

so I checked March 2011 sales for Lexus Germany:
1. CT200h: 209
2. RX450h: 79
3. IS: 78
4. LS: 6
5. GS: 6

So far, so good :-).
Old 04-19-11 | 12:18 PM
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Originally Posted by 1SICKLEX
Nice pic...is that you squatting in the first one
No man, thats some old dude.
Old 04-19-11 | 12:23 PM
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For comparo, Lexus sold 1437 in March 2011 in Russia

:-)
Old 04-19-11 | 12:26 PM
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Originally Posted by Och
No man, thats some old dude.
I know I was kidding.

Spwolf thanks for the info
Old 04-19-11 | 12:27 PM
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Keep in mind, Russia is a huge country, but with a relatively small population and only a handful of cities where people are able to afford Lexus vehicles. Also, Japanese vehicles are often more expensive in Russia vs their European competitors, because in order to deliver them from Japan, you carry them from Eastern to Western Russia, which means something like this.




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