Lexus needs to start thinking more upscale instead of cheaper cars.

 

This small suv would be in the $ 40.000,00 range. Or about € 45.000,00 in Europe.

 

Lexus needs to think overall profit, which is the bottom line. If a lower priced, smaller SUV, at the expense of some prestige, brings in more longterm profit, they should do it. I don't see why they couldn't add a compact SUV at $30-$35k base, bump up prices for the RX and lengthen it a bit for the next gen, which they'd probably do anyway, maybe ditch the GX, and then they'd still have three. If they get rid of the LX in favor of the Sequoia-based JX, like the rumors say, they can up the size of the RX a tad more and they'll have three SUVs, compact, mid-sized, and large, all at least $30-35k in price.

 

NO.....If you want to expand your market and increse your sales, you make your products available to MORE people, NOT fewer. There are a whole lot more people out there with 25K to spend on a car than there are with 80K.


Granted, the Jaguar X-class was not a success, but that was due primarily to quality glitches.....a problem that Lexus generally doesn't have.

 

You are forgetting that they have a TOYOTA brand for affordable/economic cars. What's the point of creating the LEXUS brand if more exclusivity & prestige is not a higher priority for the brand, & if there is any significant overlap in price range between the 2 brands etc. ?

There MUST be MORE product differentiation between the two brands, not less. They want to expand the market for LEXUS by creating higher end models, there is a market for these cars. They can expand the market for sub$30k cars by offering more & better TOYOTA cars.

 

Lexus needs to compete with and beat the other luxury companies, though. So if they all offer $30k compact SUVs, Lexus should, too, despite having Toyota.

 

If I were the decision maker for Lexus, I will just sit back & watch them dilute their brands with cheapo pretend luxury models. Besides, Lexus has more to catch up in the luxury market at the top end & sportier cars than at the bottom end, that's where they should concentrate their resources & effort on.

They might as well introduce 4 cylinder Integra/RSX /TSX /EL competitors too .

 

Yeah, I see your point. But if you think about it, brand dilution aside, it wouldn't take that much in terms of resources and effort, and the profit would more than offset the relatively minimal amount of work they'd have to put in.

 

The more expensive your car/SUV, the bigger the profit. So Lexus needs to ditch any plan of a smaller SUV and continue to go upmarket.

There was NEVER been a 4 cylinder Lexus, something that is a very great and luxurious accomplishment.

And I agree with Sexy, let Toyota battle and stay in the lower price range and Lexus go upward. It is confusing to consumers when a luxury badged car is priced less than a KIa.

Lexus in America is already pushing the envelope with sales, Lexus sales were UNHEARD of 15 years ago. the top Selling luxury brand barely sold 100k cars. Lexus is now 3 TIMES that amount. And they have not done it with rebates, and cheap lease deals, and sales and offering cheap products. They have done it by convincing consumers there is no better car/SUV for the price.

Lexus has never stated they are chasing to be #1 in sales though they do enjoy the moniker. I think some of the other short sighted brands want to just knock Lexus off the #1 position by selling cheaper and cheaper cars and SUVs.

Awful move.