Lexus Rejects Sub $30,000 Car
Lexus has been making some pretty drastic changes recently. The one thing you can count on them not doing, however, is pandering to the teeming masses with a cheap car. It seems Lexus hasn't forgotten that exclusivity is a big part of being luxurious.
In a recent interview with Automotive News, Lexus USA's general manager spoke on the strategy that BMW and Mercedes are adopting with the CLA and 1 Series. "We will not head down below $30,000" he said. "We have Toyota and Scion to handle that price level for us." Boom.
What interesting is that this whole question was brought about because of what the German luxury manufacturers are doing. While Mercedes, BMW, and Porsche (i.e. Volkswagen) are both trying to expand their volume, Lexus' is primarily trying push upscale into the high-margin market.
Toyota, of course, is the largest manufacturer of automotive vehicles in the world by volume. They have no competition when it comes to selling cars at any price range aside from the luxury market. Bob Carter, Toyota USA's senior vice president, admitted that flexibility is a boon to Toyota. "By not diluting its brand image, Lexus will stay focused... it lets Lexus hit on higher levels, in segments more traditionally associated with luxury."
It looks like the CT is as low as it gets folks. And you know what? I don't think that's a bad thing.