GS69

http://motoring.asiaone.com/Motoring...16-328278.html

The Lexus brand has reorganised its global structure to increase its focus on the Asia-Pacific region. Toyota's luxury division has spun off from the Japanese car giant and created a separate Lexus Group, says deputy chief officer Kazuo Ohara.

Mr Ohara was in Singapore last week to present the new face of Lexus with its 'spindle' grille and arrowhead lamps, as embodied by the new GS executive saloon.

When the 1st Lexus model was introduced to the world in 1989, the marque was considered part of Toyota Motor Corp and did not have a formal head. But last year, the Lexus Group was placed under the direct governance of Toyota president Akio Toyoda, with his personal commitment to the brand.

More importantly, Lexus says that it has become an entity in its own right to improve business focus, especially in the Asia-Pacific. The aim is to grow the brand with an emphasis on faster decision-making, resulting in better cars being built.

In 2010, the Asia-Pacific region - including Russia and the Middle East - accounted for 20 per cent of global Lexus sales of 410,000 cars. By 2020, the target is to increase this to 30 per cent by growing the China and other Asian markets.

The new structure will not only give Lexus a coherent global strategy, but also a stronger voice for all the regions - something that is important given the strong demand for its luxury models.

'We continue to see good growth in the Asian and China markets, with the new GS leading Lexus sales,' says Mr Ohara.

The No 2 man in Lexus adds that things are also going well for the brand in its biggest market, the US, whose automotive market is showing signs of recovery.

He is also confident that the problem with quality issues has been ironed out, something which is vindicated by the 2011 Initial Quality Study by the respected JD Power marketing research company.

1 advantage that Lexus has is its wide range of petrol-electric hybrid models.

'Hybrid remains Lexus's unique selling point,' says the legally trained Mr Ohara. 'With the energy and pollution issues facing the world, there is good potential for hybrid cars.'

He adds that because electric vehicles still have unresolved issues, the hybrid vehicle remains 'the most realistic technology for this era'.

And despite the increasing hybridisation of German luxury models, Mr Ohara does not seem too worried.

'The European carmakers are well-known for their diesel models, so how much resources they will invest in hybrid vehicles is not certain,' he points out.

1 thing he is less certain of is how long the sophisticated hybrid technology will hold sway before it is overtaken by the next clean technology.

'I cannot give a trendline as to when this will happen. But with many countries concerned about fuel economy, the hybrid with its excellent fuel consumption will continue to have a niche in these markets.'

mordecai

A very good idea. I'm living in China now (for short term) and one thing I've noticed is the wide variety of cars on the road here. Probably 3-4 times as many as in the US, including the Chinese brands obviously as well as European brands not found in the US market such as Alfa Romeo, MG, Citroen, etc.. Another thing is the number of Audi's...you would think they were Corolla's over here by the sheer number of them on the road. I've seen a couple of Lexus in the one I've been here versus the dozens of Audis I see every day. Lexus would be wise to give some focus to the Chinese and Asia-Pacific market as there can be a great potential for growth here.

spwolf

i think in general, Asian market is their 2nd best bet after US market, and ahead of Europe.
I checked their financials few days ago and most profit came from Asia-Pacific market as well as most of the growth in sales. In countries like Thailand, Malaysia, Indonesia, Toyota is #1 brand and in some holds almost 50% of the market.

LexFather

Glad to see Lexus finally adjust per region. They don't do too bad in Asia but could do much better.