Everything Lexus is Doing Right (and Wrong) in 2023!

Intro

Nearly 35 years ago Lexus shocked the world with the brilliant LS 400 sedan. The company has turned out several hits since then and expanded their model line and market share significantly. However, Lexus and the automotive landscape as a whole has changed quite a bit over the last few decades. As this is being written, we are closing the books on the 2023 model year. Lexus is still going strong and offers a solid lineup of vehicles. There is no doubt they are doing a lot of things right. But they are also doing some things wrong. We examined where Lexus is in 2023 and highlighted five things they are getting right today and five things they are getting wrong.

Wrong # 5 – EV Strategy

The automotive industry is moving quickly to all-electric vehicles. However, Lexus has been slow to adapt. They have a number of hybrid vehicles in the lineup but right now only the RZ is a full electric. Compare that to BMW that offers the i4, i5, i7 and iX. Audi and Mercedes-Benz have a similar selection of all-electric vehicles. To be fair, Lexus and Toyota's strategy of exploring may technologies simultaneously seems smart. Still, Lexus is playing catchup in the EV world, especially when it comes to range and power figures.

Right #5 – Dealership Experience

The Lexus dealership experience has been top notch since the beginning and that continues to this day. J.D. Power ranked Lexus as number one for dealer service in 2023. It was the second year in a row that Lexus took that honor. Lexus beat Porsche and Cadillac, which ranked second and third respectively. Nobody treats customers better than Lexus.  

Wrong #4 – No Halo Model

In 2023 Lexus offers no halo model to create a buzz in the industry. The LC is a great car and turns some heads, but it is no LFA. Lexus has a slew of models in the $50K to $120K range, but really nothing above that. Mercedes has the Maybach line, BMW has the XM and even Ford has vehicles like the GT and Mustang GTD. Lexus could use a halo vehicle that gets the brand in the spotlight again.

Right #4 – Safety Technology

Lexus is all about safety and they don’t limit the technology to just the most expensive models. Take the bread-and-butter RX line. The base RX 350 FWD model has the same full complement of safety technology features as top RX 500h model. And they are all standard. Lexus seems to be making safety one of the key selling points of the brand.

Wrong #3 – Losing Luxury Competitive Advantage

When Lexus started in 1989 they built the LS 400 that offered the same luxury and performance of the Mercedes-Benz S-Class but at a reduced price. In 2023 the Korean brands seem to be taking a page out the Lexus playbook and are starting to beat them at their own game. For example, the Genesis brand offers a number of luxurious SUVs and sedans. Some of these models have style and luxury that you would expect to see in a Bentley for a fraction of the price. From a luxury perspective Lexus is not at the top of the mountain right now.  

Right #3 – CPO Program

U.S News & World Report named the L/Certified Lexus CPO program as the top CPO program available in 2023. This is the sixth consecutive year that the Lexus program has taken home this honor. Highlights of the program include a bumper-to-bumper warranty with no mileage limits that can run as long as six years. You get a free service loaner, travel interruption coverage, two free oil changes, four free tire rotations, and roadside assistance. It is a feature packed program that is better than anything else out there.

Wrong #2 – Lacking True F Model

Lexus has many vehicles that have the letter F in the model name. But most are watered down F Sport Performance models that have different wheels, and maybe a bit different suspension but are not all out F models that put performance over everything else. The RC F is still in the lineup for 2023 but even that car is getting long in the tooth at this point. And while it makes good power it is more suited for cruising than devouring a racetrack. We would love to see Lexus step up and come out with some F cars that can go toe to toe with a CT4-V Blackwing, a C63 or an M3.

Right #2 – Overall Quality

Lexus still builds high quality vehicles. The J.D. Power U.S. Vehicle Dependability Study for 2023 ranked Lexus has the top brand. The industry average was 186 problems reported per 100 vehicles. Lexus led the way with 133 reported problems out of 100 cars. Genesis was second with 144. If you buy a Lexus you will get a quality machine that will last a long time. Lexus built their brand on that notion, and it is as true in 2023 as it ever was.

Wrong #1 – Lacks Sophistication of German Rivals

A Lexus may have outstanding quality, but does it have the sophistication of the Germans? The Lexus ES is a comfortable and well-built car. But the driving character is dull when compared to an Audi A6 or BMW 5 Series. It is mostly the same story across the lineup. Other makers seem to be able to make cars that are comfortable when they need to be but can also deliver spirited performance when called upon. Lexus leans a bit too much on the comfort side.

Right #1 – Solid V8 Vehicle Lineup

The world may be going EV, but we still love a V8. And Lexus offers several vehicles that even in 2023 still have a V8 under the hood. The GX, IS 500, RC F, and LC all still offer a naturally aspirated V8 engine in 2023 (although that's changing for the GX in 2024). These engines are probably not long for this world but they are still here today for us to enjoy, so we have to give Lexus kudos for that.

Images: Lexus