Toyota’s Lexus Expands Lead Among U.S. Luxury Models (Update1)
By Alex Ortolani

Nov. 3 (Bloomberg) -- Toyota Motor Corp.’s Lexus said U.S. sales rose 20 percent in October, increasing its lead on Bayerische Motoren Werke AG’s namesake brand among luxury models.

Deliveries rose to 19,502 vehicles for Lexus, the Toyota City, Japan-based automaker said today. BMW, second in luxury sales, fell 19 percent to 16,443, the Munich-based company said.

Lexus and Daimler AG’s third-ranked Mercedes-Benz gained on BMW in October. BMW lost ground as unemployment and low consumer confidence have tempered sales of high-end vehicles, said Christopher Hopson, an analyst with IHS Global Insight.

“Consumers are still showing some fiscal austerity right now and may still be cautious until we see better footing,” said Hopson, who is based in Lexington, Massachusetts. “Luxury sales should rise with the economy.”

BMW’s lower sales also reflected limited inventory of 2010 models, which began arriving at dealerships in mid-October October, the company said in a statement.

The results were a second double-digit gain for Lexus after it posted a 12 percent U.S. sales increase in September, while BMW rose 2.1 percent, compared with weak year-earlier results. Lexus sold 168,910 vehicles in the U.S. this year through October, ahead of BMW’s 160,666.

Mercedes-Benz gained in October, with its name brand climbing 21 percent to 18,193 vehicles, the Stuttgart, Germany- based parent company said.

The gain came from “a more stable economic environment relative to last year” and new products such as the GLK-Class sport-utility vehicle, Ernst Lieb, president of the Mercedes- Benz’s U.S. division, said in a statement.

Audi, Lincoln Fall

Volkswagen AG’s luxury Audi division said sales fell 1.1 percent to 7,358 vehicles. Volkswagen, based in Wolfsburg, Germany, said the decline was because of the introduction of a new A4 sedan in October 2008.

Ford’s Lincoln line dropped 9 percent to 6,735 vehicles, the Dearborn, Michigan-based automaker said in a statement. The automaker’s total sales gained 3.1 percent in the month.

General Motors Co.’s Cadillac sales rose 22 percent in the month to 11,602 vehicles, the automaker said on its Web site.

High-end vehicle sales will probably rise more in December than the year-earlier month because of a steep drop from the slowing economy in 2008, Hopson said.

To contact the reporters on this story: Alex Ortolani in Southfield, Michigan, at aortolani1@bloomberg.net
Last Updated: November 3, 2009 17:25 EST

Oct. 23--A little more than a year ago, Acura rolled out a redesigned TL sedan, the vehicle that was supposed to invigorate sales and clarify the brand's identity.

The timing couldn't have been much worse for the Honda-owned luxury brand.

About that point, the auto industry began its historic sales slump, and the new Acura wasn't immune. Sales of the TL, built in Marysville, were down 27 percent through September.

"It wasn't a good time to introduce any car, really," said Ed Kim, director of industry analysis for AutoPacific, a research group in Tustin, Calif. "Given that the car was scheduled to launch last year, there was nothing they could do about it but try to make the best of it."

Despite the poor sales, Acura officials say they have plenty to feel good about.

They say the TL's sales outperformed many other vehicles in the entry-level luxury segment, and they are confident that the TL's design and engineering advances will lead to strong sales once the economy recovers.

"I think things have gone pretty well," said Jeff Conrad, Acura's vice president for sales.

Dealers sold 25,882 of the redesigned TL from January to September, compared with the 35,659 sold last year over the same period.

Acura will fall far short of the 70,000 in annual sales it set as a goal for the TL last year, before the scope of the recession was known. That level would have represented a return to the TL's sales level from just a few years ago.

Conrad says that any fair assessment of the TL must acknowledge the treacherous market conditions.

"In that environment, I'm fairly happy," he said.

Acura was launched in the mid-1980s as an upmarket brand for Honda. The TL was introduced in the mid-1990s and became the brand's flagship.

Central Ohio has a vested interest in Acura's success. The TL and the RDX crossover are assembled in Marysville, so disappointing sales have a ripple effect for Honda and for the hundreds of local parts suppliers that are involved in the production.

The new TL was part of a line-wide redesign for Acura, with a chrome front grille and more-muscular styling. The automotive media generally praised the vehicle's engineering but had mixed feelings about the styling.

One of Acura's goals was to make its image more sporty, said Jessica Caldwell, senior analyst for Edmunds.com. She thinks the response to the vehicle has fallen short of the manufacturer's goals.

"They had some high hopes for this vehicle," she said. "It's no secret that Acura has been struggling for the last few years."

AutoPacific's Kim thinks Acura executives are on the right track when they try to give the brand a more distinctive identity. But he thinks the mission is far from accomplished.

"I'm not sure they're going far enough in differentiating their brand," he said.