Lexus to Reportedly Drop HS 250h Hybrid Due to Dismal Sales
11-10-11, 05:04 AM
#1
Lexus to Reportedly Drop HS 250h Hybrid Due to Dismal Sales
Really no surprise.
The HS really never had a chance with it's highly optioned cost and design.
http://www.dailytech.com/Quick+Note+...ticle23229.htm
Auto Quick Note: Lexus to Reportedly Drop HS 250h Hybrid Due to Dismal Sales
Brandon Hill (Blog) - November 8, 2011 7:22 PM
Lexus HS 250h could get kicked to the curb
When it comes to hybrid vehicles, Toyota has had plenty of success with its Prius, Camry, and Highlander. Toyota's Lexus division also has a few hybrids in its portfolio, but premium pricing means that sales of these models pale in comparison to their plebeian Toyota counterparts. One model in particular, the HS 250h, is sinking in the marketplace.
Left Lane News (via Ward's Auto) is reporting that the Lexus division is looking to kill the HS 250h after it only found 205 U.S. buyers in October of this year. For the January through October 2011 period, sales for the hybrid dropped nearly 73 percent compared to the same period last year to fewer than 2,400 units.
The HS 250h has plenty of strikes against it; one of which is the pricing. The vehicle has a starting price of $37,000. The second issue is that the Lincoln MKZ Hybrid is larger, more fuel-efficient, and undercuts the HS 250h by a few thousand dollars. The third problem is that its CT 200h sibling starts at around $30,000, offers better fuel efficiency, greater cargo flexibility, and livelier handling.
In addition, the CT 200h appeals to a younger clientele that Lexus is desperately seeking -- the HS 250h on the other hand attracts a much older buyer (and not very successfully as the sales numbers prove).
Lexus has its work cut out for it if wants to build a successor to the HS 250h that actually strikes a chord with consumers. They could start by dropping the price, upping the fuel efficiency, and giving the vehicle an exterior that would actually make onlookers' pulse rise instead of flatline.
Sources: Left Lane News, Wards Auto (Subscription)
The HS really never had a chance with it's highly optioned cost and design.
http://www.dailytech.com/Quick+Note+...ticle23229.htm
Auto Quick Note: Lexus to Reportedly Drop HS 250h Hybrid Due to Dismal Sales
Brandon Hill (Blog) - November 8, 2011 7:22 PM
Lexus HS 250h could get kicked to the curb
When it comes to hybrid vehicles, Toyota has had plenty of success with its Prius, Camry, and Highlander. Toyota's Lexus division also has a few hybrids in its portfolio, but premium pricing means that sales of these models pale in comparison to their plebeian Toyota counterparts. One model in particular, the HS 250h, is sinking in the marketplace.
Left Lane News (via Ward's Auto) is reporting that the Lexus division is looking to kill the HS 250h after it only found 205 U.S. buyers in October of this year. For the January through October 2011 period, sales for the hybrid dropped nearly 73 percent compared to the same period last year to fewer than 2,400 units.
The HS 250h has plenty of strikes against it; one of which is the pricing. The vehicle has a starting price of $37,000. The second issue is that the Lincoln MKZ Hybrid is larger, more fuel-efficient, and undercuts the HS 250h by a few thousand dollars. The third problem is that its CT 200h sibling starts at around $30,000, offers better fuel efficiency, greater cargo flexibility, and livelier handling.
In addition, the CT 200h appeals to a younger clientele that Lexus is desperately seeking -- the HS 250h on the other hand attracts a much older buyer (and not very successfully as the sales numbers prove).
Lexus has its work cut out for it if wants to build a successor to the HS 250h that actually strikes a chord with consumers. They could start by dropping the price, upping the fuel efficiency, and giving the vehicle an exterior that would actually make onlookers' pulse rise instead of flatline.
Sources: Left Lane News, Wards Auto (Subscription)
11-10-11, 05:49 AM
#2
Pole Position
With all it had going against it from the start, the CT was just the final nail in the HS coffin.
Drop price, and don't make it look like a Corolla S. Then it may have a chance the next go 'round -- if there is one.
Drop price, and don't make it look like a Corolla S. Then it may have a chance the next go 'round -- if there is one.
11-10-11, 06:09 AM
#3
As I've said for a while, between CT and forthcoming IS and ES hybrids, there was never really a long term position (or need) for the HS in Lexus' lineup anyway, IMO. It was a bad decision all around.
Even though the HS has sold well in places like Japan, I still think that once we see hybrid variants of the IS and ES, the HS will be a global flop in it's current form.
Even though the HS has sold well in places like Japan, I still think that once we see hybrid variants of the IS and ES, the HS will be a global flop in it's current form.
11-10-11, 07:29 AM
#4
Lexus Fanatic
iTrader: (20)
a used HS could be a bargain. 
11-10-11, 08:47 AM
#6
Guest
Posts: n/a
Just a bad case of bad. Bad forecasting, bad advertising/marketing, bad inventory now, bad pricing, bad looks. Now our family member loves their HS and it has more technology than anything else in this price range and more (let me say optional) technology than some other entire luxury brands. It also is eco friendly with some of the features it offers. That said I just think 3 sedans at the same price point is a tough reach. We chatted before about it should have been a coupe so it stands out. Ours listed over $45,000 MSRP and that is a tough offer unless you are a techie that values MPG. Otherwise its a tough sell. Then the base model without the tech package is a tough sell as its main draw is MPG which isn't class leading compared to the MKZ. I've NEVER seen a touring model either with the tuned suspension.
But it still did better than the ZDX, TL, M37/56, Z4, EX
The CT is much smaller than the HS, I've driven both extensively and they don't compete at all. The CT is sportier and offers less tech. I doubt the CT hurt the HS as it was already hurting. Today the issue is now people want the HS as gas climbs but there is no inventory. Dealer had to much inventory, now they have none. This hasn't helped sales at all.
Overall this is what happens when you don't have complete focus.
Its amazing to me to see the focus on Lexus wanting to fail. I guess I'll have to do write-ups on some other cars that completely stink in regards to sales since the media is giving them a pass.
But it still did better than the ZDX, TL, M37/56, Z4, EX
The CT is much smaller than the HS, I've driven both extensively and they don't compete at all. The CT is sportier and offers less tech. I doubt the CT hurt the HS as it was already hurting. Today the issue is now people want the HS as gas climbs but there is no inventory. Dealer had to much inventory, now they have none. This hasn't helped sales at all.
Overall this is what happens when you don't have complete focus.
Its amazing to me to see the focus on Lexus wanting to fail. I guess I'll have to do write-ups on some other cars that completely stink in regards to sales since the media is giving them a pass.
11-10-11, 09:21 AM
#7
I always wondered who would buy the HS250h when the CT200h exists. I'd think most people deciding between the HS and the CT would just go for the CT. It looks way better in my opinion and like the article states the CT gets better MPG, more cargo room and more it handles better.
Hybrid IS would be awesome
Hybrid IS would be awesome
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11-10-11, 09:43 AM
#8
Lexus gave me a HS250h loaner once. I absolutely hated it. Corolla like dimensions, unnatural brake feel, buggy hybrid drivetrain and I couldn't believe the price. Let this car die please.
11-10-11, 11:07 AM
#11
Lexus Fanatic
I had a feeling this thing would never take off when I first saw it. It has a ton of cool features and nice technology but I cat get over the corrola resemblance.
11-10-11, 11:20 AM
#13
Lexus Fanatic
I think the ES hybrid would be a great choice. Its has to be a top seller for Lexus so why not. Im sure many buyers would rather not to have to up to the GS450h to get a mid sized hybrid from Lexus