bitkahuna

iTrader: (20)

Lexus - leader or follower?

I've recently been thinking about Lexus' model history, now some 25 years of it! I've been reflecting on what has made the brand unique, and what hasn't, and at what time.

The original Lexus launch of the LS400 was a MASSIVE event in automotive history. It told the world it should deserve better. Better quality, better refinement, better value, better dealers, better service, better design. Lexus didn't follow ANYONE in that moment. The original ES250 was just a Camry in nicer clothes so the new brand didn't launch with just one model.
The first ES300 that came soon after was another MAJOR event - showing than an even more affordable vehicle could be made to impreccable precision, refinement, with many unique features like the white lit needles on the black guages.

The first GS300 was very special too, an elegant Giugaro design with a Lexus interior. The car was a little heavy, a little expensive, and not that fast, but still very special, and unique.

The original SC300/SC400 were wonderful in providing Lexus quality and style in an elegant 2+2 touring coupe. The 400 getting the same stunning V8 from it's big brother LS, and the 300 getting the stout normally aspirated I6 from the Supra. Lexus even offered a stickshift version of the SC300.

The first generation RX was launched, which while not a sporty vehicle, DEFINED A NEW CATEGORY OF VEHICLES - the luxury compact utility vehicle. It was breathtaking in its audacity and unique design and features, and sold like hot cakes to those wanting a refined comfortable and practical vehicle, but not wanting a 'traditional' (body on frame at the time) SUV, or unreliable Jeep, etc.

Then came the second generation GS, with the SC's 300 and 400 engines, which brought many of us to become strong enthusiasts and owners of the brand. The GS with its unique optitron guages, no-leather boot gated shifter (thank you Lexus!), and optional HID headlights, combined with an unforgettable ad campaign, generated HUGE excitement.

The first IS was a rebranded Toyota model (Altezza) with a 'youthful' sporty interior, not so much consistent with the other Lexus models, but it brought a TON of younger buyers in. Then as used prior models began to become more affortable, even more enthusiasts jumped into the brand.
So we can see these early days were one home run after another. One strong blast after another of brand impact, which, with a small but overall stellar dealer network, made Toyota's giant investment pay off.

That takes us to around 2005 or so...

Competing brands had now had over a decade to pick themselves up off the floor after a knockdown blow, and begin an onslaught of new models, bringing their own unique flavors, heritage, while trying to also take a few pages out of Lexus' book.

Many Lexus models from this time on were less audacious, and more derivative from what had come before. There were new features, improved handling, but also noticable cost cutting in materials. I refer to this as Lexus dark period. There were also model failures for the first time, like the HS - not a bad vehicle, but frumpy looking, and a questionable value.

In the last 4+ years though, Lexus has regrouped, decided to be audacious and bold again, and is making new marks. The most stunning statement of course is the decade long development of the LF-A, a completely irrational, but most wonderful exotic car, that would be made in small numbers (500) for Lexus to say "THIS is what we're capable of." While I question the impact/exposure it's given the brand, it's an amazing vehicle, and no doubt has lead to breakthroughs that we see filtering into other models (similar guages in the latest IS F-Sport).

So why does this thread ask if Lexus is a leader or a follower? Clearly from the above it has been almost entirely a leader, staking out new ground, and simply not following the herd. Well those German brands in particular, began bringing out design elements and features FIRST, which Lexus ended up copying. BMW with its iDrive, and Audi with its MMC controller dial, then Lexus with remote touch. Audi with big bold grills, and then Lexus with F-Sport big bold grills. While Lexus has been able to leverage its Toyota Prado and Landcruiser to make a 3 model utility vehicle range with the unique RX, the German brands began offering a wide range of different utility vehicles, from actual CUV/SUV designs (X5, X3, X1, ML, MLK, GL, GLK, Q7, Q5...) to tall and hatchback versions of its sedans (X6, Gran Sport, CLS, A7...)... Lexus has had little answer to these but is now about to offer a small CUV (NX), and of course has the unique small hybrid CTh.
Speaking of hybrids, of course this is an area where Lexus has again been a LEADER. The sales results overall aren't great in the U.S., largely because the marketing message has been mixed - is it more performance, more refined, or more efficient? well, some of each? but at what extra cost? It has given Lexus a chance to make some headway in Europe though, where the market has been dominated by pricey but fuel-efficient diesels and turbo-diesels which Lexus isn't a player in (it had the IS220d which was not well liked).

So this brings us to now... and I can't help but look back and think again at how stunning the LS400 launch was. The current LS is VERY nice, relatively good value, but it doesn't make the German brand management hang their head in shame (or panic) as it once did. The latest IS is impressive, but I don't think BMW is worried about their 2/3/4 models being impacted too much. The latest GS is a good offering, but again, I don't think BMW, Audi, or Mercedes are concerned much all by it. It's interesting to note that as the GS has become more 'sporty' from the factory, those other models seem to become less sporty, more, dare I say, 'Lexus-like'? While Lexus is trying to add noise to the cabin when you put your foot down, the German brands are canceling it out.

Finally let's look at drivetrains. Lexus has been particularly slow in changes here. Granted Lexus engines have been almost all EXCELLENT from the start, but with a slew of turbocharged offerings from Europe to improve weight/efficiency while still offering decent power, and more and more gears each year, Lexus appears to be trying now to FOLLOW and catch up to others.

The new NX is derivative and a follower in some ways (turbo i4, compact CUV), but probably leads in some areas, by having the new IS interior largely brought over.

So at this point the jury is out. Will Lexus be found guilty of following going forward, or of leading with the very important next generation RX and LS? The RC also promises lots of excitement too. I am excited to find out where this story goes.

Hopefully I have most of the data points right, but forgive me where I've made errors. And whether you agree or not, thanks for reading. I'm going to go hide now.

Hoovey689

iTrader: (16)

Here's my short take for now while at work

Truthfully I think they are both. Any strengths make them a leader in the industry/segment and anything else they may just drag their feet or rather focus on matters they think are more important than what the competition may be up to.

rominl

iTrader: (4)

same here, i think they are both. in some areas they are clear leader. in some areas they are being conservative follower (for good reasons)

LexFather

All the major brands are a bit of both (leaders/followers).

I'll be honest I skimmed it, but were hybrids mentioned? That is huge. Lexus started luxury hybrids and everyone followed suit. The CT was the first all hybrid hatchback (you hate it but it is a worlds first). The HS while failing here was also a first, hybrid only luxury sedan. The HS also debuted a ton of features at a price point cars today are finally getting. Lexus debuted LED headlights and Audi got all the kudos. Lexus got their F-sport program together and now BMW/Caddy have M/V sport. Has Lexus followed, of course and they continue to do so.

-_-

chikoo

At this very moment in time, Lexus is playing catchup. No doubt about it. I do hope and wish it catches up and overtakes the Germans once again.

spwolf

agreed too... i dont think we can say any brand is significantly better. Hybrids and upcoming sports cars seem to be something quite interesting for Lexus.

Hoovey689

iTrader: (16)

Yup they all have strengths and weaknesses. As much as we like to say rag on Honda for their offerings (or lack of rather), they have some of the best assembly of any automaker out there. Assembled like a Swiss watch

Och

iTrader: (3)

Its 50/50 really. They are certainly leading with LFA super car, and their hybrids are undeniably the most advanced, and they have more hybrids than any of their competitors - but they are lagging in many other areas, probably as a result of concentrating too many resources on developing hybrid tech.

SW17LS

I think 2005/2006-2011/2012 was a bad time for Toyota in general. I think in a lot of ways they lost their way as a company, and Lexus suffered as well. In that time, the competition has made strong progress as the gap between Lexus and others when it comes to quality, refinement, reliability, dealer experience, etc has significantly narrowed.

I think since 2012 Lexus has been doing very well, in every area except when it comes to powertrains. While I am perfectly happy with the powertrain in my 4GS, I think they hurt themselves when it comes to these terrific new cars by carrying over the old powertrains. They left the competition a huge selling proposition to use...

spwolf

powertrains last certain time on the market, when Lexus just got out with them in 2006, it took everyone years to respond. A lot of them still dont have better engine than 2GR-FSE.

New 2.0t coming out to replace 2.5l V6 is certainly needed, but lets not forget that it is crammed with tech previously not available, and if Toyota made a turbo in 2010, it would not be this. And then they would not be doing this one in 2015, but likely 3-4 years later.

SW17LS

2006 was 8 years ago. Thats a long time. They should have at least had a bump in power or something when the 4GS and 3IS came out so they could hang their hat on it being a "new" engine.

I'm not saying they should have been new in 2010, I'm saying they should have been new when the new GS and IS came out.

RNM GS3

Besides reliability, not sure in what area Lexus still a Leader at all?

Their latest products (4GS, 3IS, RC, refreshed LS) have been better overall but MB Audi and BMW are way ahead in terms of overall model lineup, Performance, and Luxury features.

Also Cadillac, Jaguar, Porsche will all have new models on the way and are growing rapidly in popularity.

Lexus needs to really focus, they cant afford to make bad decisions.

Mr. Burns

This is an interesting question and a concept that's rife with misconception.

It is common belief on internet forums that Lexus started out copying Mercedes. The reality is, as you put it, Lexus in its early days was actually a very innovative brand in both design and engineering, not to mention customer service and potentially marketing as well. None of the first set of Lexus models were derivative of Mercedes, not even the LS400. Many were copied by others as time wore on (SC400 most common to be copied). This is primarily the reason Lexus was successful, since simply emulating Mercedes is not enough for a new brand to gain any traction. There has to be some unique and desirable element to set it apart.

I think the only derivative Lexus model to date was the 2nd gen LS400 and 3rd gen LS430. I disagree with you that in 2005 the cars became more derivative. 2005 saw the debut of L-finesse, and the styling of cars like the 3GS and 2IS are being copied to this day (Jag XF and Acura ILX respectively). The LS460 was also a very elegant and unique design, I see the 2007 LS460 in every new BMW 7 I see. It was also the purveyor of the current style of dual exhaust tips we see on every car now. In this generation Lexus also began focusing more on hybrids, which most other luxury brands had shunned in favor of diesels. Lexus was clearly doing its own thing here. But I do agree that the 2005+ models relative to their competition lost some ground in terms of competitiveness and desirability due to complacency. This is being rectified now, but IMO it's taken too long and the brand has been damaged by it somewhat.

Of course today Lexus is again blazing a different trail, continuing the focus on hybrids, remaining conservative on the adoption of forced induction, and introducing some of the most radical, and original styling in the industry. I'm not saying Lexus doesn't follow in some areas, but overall the brand has a unique identity and direction that lends it a level of credibility not found in pretenders like Infiniti, Acura, Buick, Hyundai, Lincoln, and even Jaguar.

RNM GS3

Now that i thought about it - i think Lexus is Leading in exterior design compared to other Luxury brands.
Spindle grill, 2 part headlights, and imo some of the best attention to detail by far.

Sal Collaziano

One of the major problems for Lexus right now - is that all the other brands have caught up. Build quality and reliability are very high for Mercedes, BMW and Audi. It's not like it used to be. And now you have Cadillac to deal with (new flagship coming) - as well as Hyundai and Kia - who've come a long way in a generation or two. Have you taken a close look at the K900 or 2015 Genesis? If so, can you imagine what the next Equus is going to be like?

Lexus designs have improved greatly. Performance is something I feel they shouldn't forget about for too long...