Lexus dealers feedback to TMC
#46
#47
#48
#49
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i finally read through the whole document more carefully, and there are some good points.
yeah, the 4GS is especially crucial, not just about design, but pricing.
ooooooooh, let's see how lexus plays this out.
I love how they say the GS has become irrelevant in the segment. truth.
But here in the US, at least lexus doesn't have to be concerned about the A6.
audi will price themselves out of the market; i don't expect many sales of the new a6.
lexus has a unique problem- as products get stale, sales decline.
but the germans have been able to keep up the momentum, even on their stale products.
yeah, the 4GS is especially crucial, not just about design, but pricing.
ooooooooh, let's see how lexus plays this out.
I love how they say the GS has become irrelevant in the segment. truth.
But here in the US, at least lexus doesn't have to be concerned about the A6.
audi will price themselves out of the market; i don't expect many sales of the new a6.
lexus has a unique problem- as products get stale, sales decline.
but the germans have been able to keep up the momentum, even on their stale products.
Batman, I agree with the comments from spwolf and TRDFantasy, and your thoughts about a lack of responsiveness to the rapidly changing market but disagree on the notion of not having any new engines since 2006. In the last 5 yeas, Lexus has delivered the world's first hybrid sport sedan (GS 450h), an all new corporate V8 (LS 460), world's first hybrid V8 (LS 600hL), an incredible high performance V8 (ISF), a 30MPG hybrid V6 (RX 450h) and one of the most advanced, high performance exotic engines in recent memory (LFA) which you did acknowledge.
That is a good bit of R&D right there, especially for the LFA. People bish and say that Lexus is behind on R&D and performance technology, and then so conveniently forget that they just finished an incredible super car that BMW, Mercedes, and Audi can't touch. Most of the tech in the R8 comes from elsewhere in the Audi parts bin and the top end engine was sourced from Lamborghini. Lexus built the LFA themselves, from scratch... nearly every component is unique to the car and you can't say that for the SLS or
R8.
That is a good bit of R&D right there, especially for the LFA. People bish and say that Lexus is behind on R&D and performance technology, and then so conveniently forget that they just finished an incredible super car that BMW, Mercedes, and Audi can't touch. Most of the tech in the R8 comes from elsewhere in the Audi parts bin and the top end engine was sourced from Lamborghini. Lexus built the LFA themselves, from scratch... nearly every component is unique to the car and you can't say that for the SLS or
R8.
LS had 11 world firsts
CT has worlds first usage of bamboo (real bamboo) and a new age environmentally friendly plastic.
HS is the most recyclable car and also uses new age plastics that are better for the enviroment
Remote Touch was introduced and hailed
First with LED lights and the only brand with LEDS lights offered in 4 vehicles
LFA is more extreme than anything BMW, Audi has built. Only the old SLR Mercedes can match it with technology
First 8 speed automatic
surely I'm misssing quite a few things
and people can hate hybrids all they want, they are by far the MOST TECHNOLOGICALLY ADVANCED CARS ON THE ROAD and Lexus debuts them first and has FIVE of them
After 11 years Lexus is going to lose the crown for legitimate reasons
-older product
-better competition
-recall/bad publicity
and its somehow the end of the world?
#50
Lexus can sell RXs and ESs like the 5 O'Clock Free Crack Giveaway until the last day of the last year of the model cycle...same goes for the BMW 5 series and 3 series, and Merc E Class. Sales of the 7 series, X3, C Class, ML, etc all taper off as they age...
This isn't a Lexus-specific problem. It's a product problem, but just like Lexus has homeruns and has-beens, so does everyone else.
#52
Wow, a lot was packed into that memo. I agree with most, but not all. Seems that Lexus dealers are really looking after themselves in some of the comments, instead of the overall brand imaging.
they want less standard options in vehicles so that the base price is low (value orientation). Do we really want to attract value oriented buyers? This will prevent Lexus from moving more upscale in the market, which they have already lost sight of with the 29K CT. Do they really want Lexus to become the new BMW where they nickel and dime you for every option?
Glad they brought up outdated technology such as blind spot assistance: Lexus cars really need:
some sort of blind spot technology
a better pre-collision technology such as distronic plus on mercedes vehicles that will bring you to a stop
some sort of night vision
more HUD
3D capability on Nav
better voice command such that one can just say "123 Front street san francisco" in one line instead of going through menus
better center instrument display. I dont care of the RX has an OLED screen, it is still pixelated and is still mono colored, and other brands are moving towards better graphics
Tire pressure read outs on all models
massaging seats in the front for premium models
better special interior combo colors (not the nasty blue in the IS series)
just to name a few
they want less standard options in vehicles so that the base price is low (value orientation). Do we really want to attract value oriented buyers? This will prevent Lexus from moving more upscale in the market, which they have already lost sight of with the 29K CT. Do they really want Lexus to become the new BMW where they nickel and dime you for every option?
Glad they brought up outdated technology such as blind spot assistance: Lexus cars really need:
some sort of blind spot technology
a better pre-collision technology such as distronic plus on mercedes vehicles that will bring you to a stop
some sort of night vision
more HUD
3D capability on Nav
better voice command such that one can just say "123 Front street san francisco" in one line instead of going through menus
better center instrument display. I dont care of the RX has an OLED screen, it is still pixelated and is still mono colored, and other brands are moving towards better graphics
Tire pressure read outs on all models
massaging seats in the front for premium models
better special interior combo colors (not the nasty blue in the IS series)
just to name a few
#53
I don't see how Lexus dealerships can gripe about the success of their own products. Looks like me like this article was simply written by people who are either in denial of the huge success of the RX and ES, or who simply don't understand it. The fact is that these are the Lexus bread-and-butter cars for a reason. This is the type of vehicle that Lexus built its success on, what the clear majority of its buyers want (no matter what their age). You aren't going to force them to turn to BMWs and Audis when that is not the vehicles they want.
I do agree, though, that Lexus needs to address some falling quality-standards.....and start building cars again like they did in the 1990s'. But, even there, the RX doesn't seem to have shown the quality-drop that some other Lexus models have.
I do agree, though, that Lexus needs to address some falling quality-standards.....and start building cars again like they did in the 1990s'. But, even there, the RX doesn't seem to have shown the quality-drop that some other Lexus models have.
I have to agree here. Pretty quickly the document became a terrible read because it became obvious that it's typical salesman blathering. These dealers want everything in their products - even the impossible - because that's what they think they need in order to sell cars. Audi does this? We need to do it too! BMW does this? Add it on! Benz does this? Well we don't, so we have to do it to be able to sell like them! They want shorter product cycles and faster refreshes and more models and even more variants and for Lexus to lead in technology and innovation and making a marketing blitz while keeping costs low and having competitive pricing and offering dealers more sales incentives and all the while also increasing quality standards. A lot of this is utterly contradictory.
I agree with many individual things that the dealers said in the document, but in all, it's more a good example why salesmen should never be allowed to run companies or really even do anything particularly important in corporate.
I agree with many individual things that the dealers said in the document, but in all, it's more a good example why salesmen should never be allowed to run companies or really even do anything particularly important in corporate.
Have to agree on the SC though. And an entry level roadster/coupe. And an IS coupe. lol.
#54
In January 2009 I bought my mother a brand new 2009 ES350 loaded with Navigation, ventilated seats, premium plus (everything but the glass roof, ML and semi-aniline) for $37,100. A BMW 328i with a smaller engine but the same options would be $43,500 (if you get it for $500 over invoice) and this is a smaller car with less power. A 335i would be $10k more.
So I do think the ES is a bargain, and if you do the math so is the RX.
So I do think the ES is a bargain, and if you do the math so is the RX.
#55
It's plain and simple. Lexus numbers are down because their core models are old and due for replacement. Once they arrive, the numbers will spike and no one will ever remember this article. Fast forward five years later and the same accusations will pop up, with the same finger pointing, the same fix, and the same numbers trend.
Repeat chorus.
Repeat chorus.
#56
Toyota is a secretive company, always has been. There were a few leaks over the past few years, but Toyota has clamped down on the leaks.
If Toyota's gigantic R&D budgets over the last few years don't clearly indicate to you and other critics that BIG things are coming with future Toyota and Lexus models, then I don't know what will.
Still not willing to call out BMW and Benz for the same things you're calling out Lexus for I see.
#57
^^ In all fairness, bmw and mercedes are making great strikes in exterior design, new engine, interior design and materials, and overall quality.
as a side note, the CLS550 is now on mbusa.com and it is 3K cheaper than the outgoing model with more standard features...Lexus needs to pay attention. It has the new 4.6 liter DI, bi turbo engine whipping out 403 hp with epa est 16/24 which isnt stellar, but is far better than the 14/21 of the outgoing 5.5 liter 380 hp
as a side note, the CLS550 is now on mbusa.com and it is 3K cheaper than the outgoing model with more standard features...Lexus needs to pay attention. It has the new 4.6 liter DI, bi turbo engine whipping out 403 hp with epa est 16/24 which isnt stellar, but is far better than the 14/21 of the outgoing 5.5 liter 380 hp
#58
Yeah I share many of the same frustrations as the dealers.
In particular I'm glad they called out Lexus for:
I am curious to hear the reaction of the Lexus Fanboys. TRDFantasy went nuts once when someone suggested Lexus is in bad shape, and 1SICKLEX has recently asserted that Lexus is a technology leader, has great powertrains and that he prefers long 7+ year cycles on luxury cars.
In particular I'm glad they called out Lexus for:
- Excessively long product lifecycles of 7 or 8 years instead of consistent 6 year cycles for all products.
- Being a follower and not a leader in technology
- Failing to share plans (if they exist at all) to offer a competitive powertrain strategy and thereby implying that Lexus powertrains are not good enough
- Failure to invest in aspirational models like SC, a more sporty SUV, GS, LS, IS coupe, and excessive reliance on cheap near-luxury models like ES and RX.
- Lax CPO Standards relative to BMW and Mercedes
- Increasingly unacceptable quality standards
I am curious to hear the reaction of the Lexus Fanboys. TRDFantasy went nuts once when someone suggested Lexus is in bad shape, and 1SICKLEX has recently asserted that Lexus is a technology leader, has great powertrains and that he prefers long 7+ year cycles on luxury cars.
#59
Read the letter. I find that many elements are quite constructive. Interesting that they complain so much about lack of follow up and answers.
Two major comments
1) Lexus doesn't know what it's strategy is. If it did it wouldn't have dealers proposing so many contradictory asks eg they want a bargain version of the GX without leather seats as an entry 7 seater while still complaining about lack of sales of the luxury models.
2) Dealers should hold themselves to the standards they hold Lexus. Most of my issues with Lexus have been how the dealers have conducted themselves. In my opinion, Lexus would be better off doing away with the dealer network and selling direct to the customer. It could control standards way better that way.
Two major comments
1) Lexus doesn't know what it's strategy is. If it did it wouldn't have dealers proposing so many contradictory asks eg they want a bargain version of the GX without leather seats as an entry 7 seater while still complaining about lack of sales of the luxury models.
2) Dealers should hold themselves to the standards they hold Lexus. Most of my issues with Lexus have been how the dealers have conducted themselves. In my opinion, Lexus would be better off doing away with the dealer network and selling direct to the customer. It could control standards way better that way.
#60
While some defend Lexus' innovation record I continue to believe they are completely lagging. I don't see how anyone can say a company is an innovation leader when they were the last company to switch from cassette deck to MP3 player, the last luxury player to introduce HD navigation, a company that still hasn't figured out an easy way to enter addresses into the nav.
And the idea that there is a massive R&D budget which will leapfrog everyone in 2013 with new products is also ridiculous. A good R&D function would update every vehicle every couple of years to keep them current in tech. Not launch an p to date vehicle, and then let it fall behind the times for 6 of the 8 years of the production cycle.
But Lexus will be fine. Brand Loyalty is a strong thing, and there will always be a segment that buys cars from the worlds number four luxury car manufacturer. I could not imagine TRDFantasy in anything else.