Toyota's Lagging Lexus and Scion Brands

john · 2009-07-28T00:37:41+00:00

Looks like the two best selling Lexus models are still modifiedCamrys. That's understandable. GS is a zombie and essentially nobodywants the LS."When it comes to Lexus, the issue is pretty clear: The luxury brandis far too dependent on just two of its nine models. The ES330/350sedan and RX350 line account for two-thirds of sales. The GS sedanlineup—rear-wheel-drive sedans meant to take on German brands—haven'tcaught on, selling just 3,500 cars this year. "Lexus needs to find away to get more consideration and higher sales volume for some ofthese other models, which haven't seemed to hit the mark like theother two," says Jim Hall of 2953 Analytics, a Birmingham (Mich.)design and marketing consultancy.Inaba sees two problems he needs to tackle: First, he says, Toyota hasbeen making too many decisions about new models and designs in Japan."We are becoming more regionally focused now and pushing decisionsdown to the places where the vehicles will be sold," he said. To thatend, several "global" job titles have been eliminated. Second, hebelieves Toyota's vehicle designs must be jazzed up. "It's been a faircriticism that our designs do not have enough excitement," he said.The GS, notes consultant Hall, has been a very good sedan, but ittakes on neither the BMW 3 Series nor the Mercedes E Class in size,performance, or price. "It's in the middle and that can be a toughplace to be," Hall says. "That car needs to take on one or the otherin sales volume for Lexus to grow." Unit sales this year for five ofLexus' nine product lines will total less than 10,000 each."

Jul 28, 2009 43 Replies

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C. E. White 17 years ago

Unfortunately, the "L" adds thousands more than the real value of the upgrades. If people refused to pay thousands extra for what is essentially a Camry with a higher trim package, Toyota would quit screwing them. I understand the desire for nicer appointments. I don't understand the willingness to pay thousands more for a few hundred dollars worth of fluff. Just becasue you can afford it, doesn't make it logical. I guess PT Barnum was right.

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Elmo P. Shagnasty 17 years ago

Only to bad negotiators.

Everything's negotiable. Toyota isn't screwing anyone. People who want those trim packages are apparently willing to pay a price that YOU'RE not willing to pay; that doesn't mean they're being screwed. It just means you're envious of them and their ability to get that stuff.

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