Hoovey689

iTrader: (16)

UPDATE: 5/30/2014

'Signature' Series Lexus's coming within two years. May be be black/red interiors limited to roughly 500 units depending on model. Think of it as Lexus doing Black Diamond, Pebble Beach, Coach Edition, Thundercloud Edition and Sport Design special models once again

rominl

iTrader: (4)

thank you hoovey, our trusted source here on clublexus!

good news good news. it's all good progress imho

Hoovey689

iTrader: (16)

^ Yeah I was happy to hear 'special editions' would start coming back to Lexus. There's another dealer meeting in Austgust or September so hope to share more info

rominl

iTrader: (4)

we are counting on you

Hoovey689

iTrader: (16)

lol you're farther plugged into the automotive community than me Henry

Hoovey689

iTrader: (16)

Heard today the original allotment of 20,000 NX's has been upped to 40,000 units. Lexus is shooting for volume and wants to regain the sales crown. Consumers should be stoked, but from a business standpoint Lexus dealers are left . When the 3IS released a year ago it was being sold for near invoice on a brand new car. Local dealers are left undercutting each other as there is no 'One Price' which Lexus needs to switch too as far as the dealer network is pushing for, some uniformity. From an image standpoint it somewhat dilutes the brand as well being less exclusive and more attainable. In the end it really only matters that Lexus's are first and foremost about quality THEN quantity

Hoovey689

iTrader: (16)

First page updated with SC information

cino

iTrader: (1)

I don't mind them shooting for sales crown, but it's hard to build that much car without drop in quality control. Hope I'm wrong though.

bitkahuna

iTrader: (20)

yeah that's wrong imo - lexus mothership toyota builds millions of vehicles with impeccable quality. quality isn't just the type of leather, trims, etc., it's how consistently and precisely it's been put together and whether it has defects after delivery. toyota's record is stellar.

RNM GS3

NX will be a monster hit for Lexus and generate a ton of profits since it shares most of the mechanical parts with the RAV4.

RC should do well also.

Lexus really needs to get some decent engines into the GS and LS plus where is the GSF??????

LexFather

GS F is next summer

mmarshall

The NX and the Lincoln MKC should be two great new additions to the compact/luxury SUV market this year. Only, if the truth were known, Lincoln probably has a lot more at stake riding on the MKC introduction than Lexus does with the NX. Lincoln is starting (currently) from a much lower position in the marketplace, the result of some dumb recent marketing decisions....and Lincoln doesn't have the wider product-spread of Lexus to fall back on if the MKC is unsuccessful (though I think the MKC will succeed). Lexus, in contrast, will not be anywhere near folding if the NX is not a success, and, if necessary, can afford to drop it like it did the HS250....though, again, I think that the NX will also be a success.

GS69

Lexus Lifts Cap on How Many Stores a Group Can Own

Lexus dealers are cheering the brand’s having expanded a cap that had limited retailers to owning no more than 6 Lexus stores.

Going forward, a dealership group can own as many as eight outlets, several sources informed of last month’s decision told Automotive News. That gives several groups that were maxed out on Lexus room to buy the brand’s stores once again and therefore means more potential buyers if a Lexus dealer wants to sell. Most public retailers were at or near the old cap.

The move is expected to spur Lexus dealership acquisition activity, which has been scarce in recent years.

“This will increase the value of these franchises because the most well-funded buyers who were at their maximum franchise number are now in the market again to acquire more,” said Erin Kerrigan, managing director of Kerrigan Advisors, a dealership brokerage firm in Irvine, Calif.

Lexus declined to confirm the expansion or comment on its plans. But sources with knowledge of the move gave 2 reasons:

1. Likely pressure from dealers. Potential sellers felt the cap limited the value of their stores because some of the industry’s most active acquirers were on the sidelines for Lexus transactions. And potential buyers want to grow with Lexus but felt discouraged by the factory.

2. Plans by Lexus to expand its dealership network. A bigger cap gives Lexus room to award new points to top retailers that had been maxed out.

Lexus sales were up 19% through May, better than other major luxury brands and the overall industry’s 5 percent gain.

Some groups confirmed that they’ll be on the hunt for Lexus stores again.

“Lexus is a premium brand, and we believe it fits well within our brand mix,” Tony Pordon, executive vice president of investor relations and corporate development for Penske Automotive Group Inc., wrote in an e-mail. “If an opportunity came up to represent the Lexus brand in another location in the United States, we would definitely be interested in learning more.”

Penske, the nation’s 2nd largest retailer, had been at its limit, Pordon confirmed.

Sonic Automotive Inc., the country’s fourth-largest retailer, also was maxed out, President Scott Smith told Automotive News.

“It’s a great brand,” Smith said. “If a good Lexus opportunity came along, we’d certainly be wanting to look at it.”

The move makes Lexus stores worth more, Smith said. “If they’re at their cap, they’re stifling the natural value of these dealerships because the big fish can’t fish.”

Hendrick Automotive Group also already had six Lexus stores, according to its Web site. Hendrick did not respond to a request for a comment.

Lexus is the only brand with a numerical cap on the number of stores a retailer is allowed to own, said Alan Haig, president of Haig Partners, a dealership brokerage firm in Fort Lauderdale, Fla. Accordingly, even groups with room under the cap were very picky about which Lexus deals they would consider buying. A dealership group that could buy only one more might want to wait for the perfect store rather than maxing out with the purchase of 1 that wasn’t exactly what the group wanted.

The change likely will increase values most for Lexus stores in smaller or medium-sized markets, Haig said. Just 3 Lexus store transactions have been reported publicly over the past 3 years, he said. But top retailers inevitably will become maxed out again under the new cap.

“It’s a positive development,” Haig said. “It’s just not a final solution.”

Hoovey689

iTrader: (16)

Speaking of dealerships, Lexus is updating their Dealer Design Language. Lexus of Omaha and Kansas City Lexus are two of the first to shed the classic column/pillar gold look

Old


Newer


Here's a rendering of what my store will look like. They break ground in August. As you can see Lexus is going for modern. With a new Spindle design language why not the dealerships

Newest

MPLexus301

iTrader: (3)

I actually kinda like the "Newer" rendering most. The "newest" one looks a bit cold to me..like a generic building in a business park.