Lexus new compact SUV
02-04-08, 06:51 AM
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Lexus new compact SUV
Lexus considers new compact SUV
Posted on Monday 4 February 2008
Sales of SUVs may be slowing but that hasn’t stopped carmakers around the world developing new models to cater for the competitive market. Mercedes-Benz just took the wraps off its new GLK compact SUV and now Lexus is considering building a small SUV of its own. The official stance thus far has been to ignore launching a new model but the increasing number of vehicles in the compact-luxury segment has got Lexus executives to rethink their stance.
Officials have reason to be wary. The compact SUV market already has several strong competitors in the form of the BMW X3, Acura RDX and Infiniti EX35, and soon it will be joined by the new Mercedes GLK and upcoming Audi Q5. Speaking with Automotive News, Toyota America Chief Jim Lentz said a small Lexus SUV could be a response to the “urbanization” of Gen Y buyers and empty-nest boomers, which studies have found is an expanding market.
The new model would be positioned below the current RX350 (pictured), Lexus’ smallest SUV model, and would be priced around the $30,000 mark. To keep costs low engineers would use an AWD version of the Toyota RAV4 platform but developers are still worried about creating a luxury vehicle that would sell in this price range.
Posted on Monday 4 February 2008
Sales of SUVs may be slowing but that hasn’t stopped carmakers around the world developing new models to cater for the competitive market. Mercedes-Benz just took the wraps off its new GLK compact SUV and now Lexus is considering building a small SUV of its own. The official stance thus far has been to ignore launching a new model but the increasing number of vehicles in the compact-luxury segment has got Lexus executives to rethink their stance.
Officials have reason to be wary. The compact SUV market already has several strong competitors in the form of the BMW X3, Acura RDX and Infiniti EX35, and soon it will be joined by the new Mercedes GLK and upcoming Audi Q5. Speaking with Automotive News, Toyota America Chief Jim Lentz said a small Lexus SUV could be a response to the “urbanization” of Gen Y buyers and empty-nest boomers, which studies have found is an expanding market.
The new model would be positioned below the current RX350 (pictured), Lexus’ smallest SUV model, and would be priced around the $30,000 mark. To keep costs low engineers would use an AWD version of the Toyota RAV4 platform but developers are still worried about creating a luxury vehicle that would sell in this price range.
02-04-08, 07:53 AM
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In Mexico, such a vehicle would be quite popular. The RAV4 and the CRV are the best selling vehicles from Toyota and Honda here, respectively, so even if it didn't have a fan base in the U.S., the rest of the world where the economies are a bit tougher, would probably welcome such a vehicle. I see more RDXs around here than any other Acura model.
It would be interesting to see what engine they might use in such a setup as they would probably have to keep it under that of the RX350 for market reasons, but then again who knows.
It would be interesting to see what engine they might use in such a setup as they would probably have to keep it under that of the RX350 for market reasons, but then again who knows.
02-04-08, 08:50 AM
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The story was actually originated by Automotive News' Mark Rechtin, who has written quite a bit on Lexus future product developments. That story, by the way, has also been posted on Automotive News' sister publication AutoWeek. Here it is:
Autoblog's commentary makes sense:
The $64,000 question, as I see it, is what precise configuration the 3rd-generation Lexus RX will take. If it retains its present size, 2-row seating and FWD-centric platform, then a sub-RX might indeed butt heads with the RX. If, on the other hand, the RX either grows enough to gain a usable third seat (à la 2nd-generation Toyota Highlander) or, as some rumo(u)rs have it, moves to the RWD-centric IS/GS platform (I'm personally skeptical this will happen), then that would create room for a smaller CUV in the Lexus lineup.
Lexus may add a small SUV for urban buyers
Toyota may build a compact Lexus SUV--even though company executives repeatedly have denied interest in the niche.
The little Lexus would compete with the BMW X3, Acura RDX and Infiniti EX35 crossovers--and the coming Mercedes-Benz GLK and Audi Q5 crossovers.
Executives worried that such an offering would diminish the Lexus brand and overlap with Toyota-badged vehicles.
But the proliferation of vehicles in the compact-luxury segment has led the executives to rethink their stance.
Jim Lentz, Toyota Motor Sales U.S.A. president, says a small Lexus SUV could be a response to the "urbanization" of Gen Y buyers and empty-nest boomers.
Toyota's advanced product strategy group is studying a demographic trend--people who are "sick of the suburbs, but who don't want to give up the utility of their SUV," he said.
"A small luxury SUV might be the right product for that environment," Lentz said.
But he said a $30,000 compact SUV might not work because of luxury features that would be sacrificed to hit the price.
Going smaller than the RX 350 crossover would require an all-wheel-drive version of the RAV4 platform.
The RX 350 starts at $38,165. The BMW X3 is about the same price, but the Acura RDX and Infiniti EX35 cost thousands less.
http://www.autoweek.com/apps/pbcs.dl...753513171/1065
Toyota may build a compact Lexus SUV--even though company executives repeatedly have denied interest in the niche.
The little Lexus would compete with the BMW X3, Acura RDX and Infiniti EX35 crossovers--and the coming Mercedes-Benz GLK and Audi Q5 crossovers.
Executives worried that such an offering would diminish the Lexus brand and overlap with Toyota-badged vehicles.
But the proliferation of vehicles in the compact-luxury segment has led the executives to rethink their stance.
Jim Lentz, Toyota Motor Sales U.S.A. president, says a small Lexus SUV could be a response to the "urbanization" of Gen Y buyers and empty-nest boomers.
Toyota's advanced product strategy group is studying a demographic trend--people who are "sick of the suburbs, but who don't want to give up the utility of their SUV," he said.
"A small luxury SUV might be the right product for that environment," Lentz said.
But he said a $30,000 compact SUV might not work because of luxury features that would be sacrificed to hit the price.
Going smaller than the RX 350 crossover would require an all-wheel-drive version of the RAV4 platform.
The RX 350 starts at $38,165. The BMW X3 is about the same price, but the Acura RDX and Infiniti EX35 cost thousands less.
http://www.autoweek.com/apps/pbcs.dl...753513171/1065
However, two problems face Lexus. First, the possibility of overlap with some of Toyota's offerings could cannibalize sales on both fronts (Lexus would likely utilize the AWD RAV4's platform), and the current RX350 isn't what we'd call a porker. Secondly, in order to hit the $30,000 price point, some of the luxury amenities buyers expect couldn't be offered. While a vehicle in the $30,000+ realm lines up nicely with some of the offerings from Acura (around $33k for the RDX) and Infiniti ($35k for the EX35), the BMW X3 is still around $38,000 and the Audi Q5 should be priced about the same.
http://www.autoblog.com/2008/02/04/l...-urban-buyers/
http://www.autoblog.com/2008/02/04/l...-urban-buyers/
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02-04-08, 11:11 AM
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Interesting but there's already quite an overlap in the Toyota/Lexus SUV market in terms of prices.
Here, the 4Runner and Highlander can run up into the $50k range with the Sequoia in the $65k range all CAD. The RX starts at just under $50k with the new price adjustment with the RXh starting at just under $60k.
I don't know if I want to see a $40k Lexus SUV. That's where the RDX and EX sits (The RAV4 tops out around the mid $30k with the base Highlander 4x4 the high $30k). The RX is such a big leap from the Highlander, it makes its entry price almost worth it. It's everything a Lexus SUV should be. To have a "cheaper" version slotted below it, I don't know what they can possibly leave out.
Again, if the market demands it, who am I to say, since they are in the business of making profits.
The only way I see it is if the RX goes upmarket (like the MDX did) and start at $55k and the new one starts at $45k.
Here, the 4Runner and Highlander can run up into the $50k range with the Sequoia in the $65k range all CAD. The RX starts at just under $50k with the new price adjustment with the RXh starting at just under $60k.
I don't know if I want to see a $40k Lexus SUV. That's where the RDX and EX sits (The RAV4 tops out around the mid $30k with the base Highlander 4x4 the high $30k). The RX is such a big leap from the Highlander, it makes its entry price almost worth it. It's everything a Lexus SUV should be. To have a "cheaper" version slotted below it, I don't know what they can possibly leave out.
Again, if the market demands it, who am I to say, since they are in the business of making profits.
The only way I see it is if the RX goes upmarket (like the MDX did) and start at $55k and the new one starts at $45k.
02-04-08, 12:52 PM
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That's precisely what they were saying last year, but maybe between rising gas prices and the increases in the Corporate Average Fuel Economy (CAFE) numbers that were just signed into law, Lexus is now thinking of selling it in North America as well...