How Lexus intends to fight back for the rest of 2009
07-13-09, 09:32 AM
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How Lexus intends to fight back for the rest of 2009
Sputtering Lexus has high hopes for entry-level models
by Kathy Jackson - Automotive News
After outselling BMW and Mercedes for nine straight years, Lexus has fallen back in the luxury-import pack in 2009.
Overall luxury sales are off, but Lexus down 34.1 percent for the first six months compared with 2008 has been hit harder than its two main rivals.
In the first half, Toyota's prestige brand trailed BMW by 3,503 units and was ahead of Mercedes by fewer than 5,000 units. Last year Lexus led BMW by more than 5,000 units in the first six months and had a 17,000-unit margin over Mercedes.
What's wrong with Lexus?
For one thing, company executives admit that they depend too much on RX crossover sales at a time when luxury buyers are seeking smaller cars, including entry-level coupes and convertibles. Lexus officials point out that coupes and convertibles last year accounted for more than one-third of volume for the BMW 3 series, which far outsells Lexus' IS range.
They say Lexus isn't attracting enough 25- to 49-year-olds, the age group that flocks to the 3 series.
Now Lexus is battling back with new entry-level models: the IS convertible and a dedicated hybrid. It also plans a new dealer training program and edgy, provocative ads, all in the name of wooing away some of that BMW traffic.
Lexus attracted plenty of 45-year-olds two decades ago when the brand debuted in the United States. And they have remained loyal to the brand, Lexus General Manager Mark Templin says.
"Now those buyers are 65," he says.
Through April of this year, the median age of Lexus buyers was 53, according to the Power Information Network. That compared with 46 for BMW buyers and 50 for Mercedes-Benz.
In June, Lexus jumped into the entry-level luxury convertible fray with the IS 250C and 350C. But its most dramatic new step is the HS 250h sedan, the brand's first dedicated hybrid and the first entry-level luxury hybrid on the market.
Templin says the goal is to attract buyers as young as 25.
Tech talk
Understanding technology is one way to connect with younger buyers. On Wednesday, July 15, Lexus begins what Templin says will be the "most comprehensive dealer training program" ever for the new hybrid sedan, which goes on sale in August.
Bob Allan, manager of dealer education for Toyota Motor Sales U.S.A., says employees at each of Lexus' 228 dealerships will get comprehensive in-store training on the HS, including the Enform telematics and navigation system that will debut on the HS.
In the past, Allan says, Lexus spent heavily on events such as the Taste of Lexus, a multicity tour that included ride-and-drives and food and drink to introduce vehicles to the dealers and consumers.
But with so much technology on new cars, it's time to get down to business, Allan says. He says the training will cost 85 to 90 percent less than the city tours, which sources say cost about $1 million per city.
"We want our sales force to be able to explain the features, to present things in a way that show value for the customer," he says.
Allan uses Bluetooth communication as an example.
"Are we making it user-friendly?" he says. "It's been around forever, but we're still working on that. It's still one of the No. 1 issues."
Michael O'Brien, chairman of the Lexus dealer council, says the new approach is the right one.
"To stay on top is a continuous battle, and that starts with training," says O'Brien, owner of two Lexus stores in the Seattle area. "We have to make sure we can take it from the salesperson and put it in the consumers' brain."
The BMW way
O'Brien, who also owns a BMW store, says BMW has excelled at attracting younger, enthusiastic drivers with its 3 series. He says the IS sedan and the new convertible are beginning to do that for Lexus.
"The IS convertible is going off the shelves," O'Brien says. BMW "creates a lot of volume" with the 3 series, he says, and "that's what we're trying to do" with Lexus.
Mike McGrath, who owns two Lexus stores in Chicago, says margins are holding up. He says he believes Lexus will leapfrog the competition with vehicles like the HS, which at 35 mpg is the best in the Lexus lineup.
"The HS will be our high-tech vehicle and a taste of what's coming in the future," McGrath says. "It's the beginning of a whole new era. They haven't made any announcements, but I believe there will be more hybrids or other high-tech vehicles like electrics in our future."
Of course, Lexus still relies heavily on the RX, which was redesigned in February and is gaining momentum. With sales of 39,969 in the first six months of the year, the 2010 RX far outsells the luxury crossover competition.
The RX's 6.0 percent year-to-year decline through June is far better than the 18.5 percent drop in 2008. A hybrid version of the RX went on sale in June.
Still, Templin doesn't expect sales to begin turning around until December. He expects some improvement in 2010 and "good, steady growth" in 2011.
"I'm not worried where we are right now," he says. "As the year goes on, we will gain share and sales due to the new product. It's our goal to be the best, not the biggest."
Youth movement
Lexus says it wont give up its luxury crown without a fight. It is
Adding greener, sportier and less expensive vehicles to attract younger buyers
Placing more emphasis on dealer product training and less on promotional parties
Producing more provocative commercials
Trying to be a telematics lead
Luxury leaders
The top-selling luxury brands / January through June 2009 sales / change from 2008
BMW 93,563 28.9%
Lexus 90,060 34.1%
M-Benz 85,130 28.7%
Acura 51,082 34.4%
Cadillac 48,583 45.2%
http://www.autonews.com/article/2009...307139968/1197
by Kathy Jackson - Automotive News
After outselling BMW and Mercedes for nine straight years, Lexus has fallen back in the luxury-import pack in 2009.
Overall luxury sales are off, but Lexus down 34.1 percent for the first six months compared with 2008 has been hit harder than its two main rivals.
In the first half, Toyota's prestige brand trailed BMW by 3,503 units and was ahead of Mercedes by fewer than 5,000 units. Last year Lexus led BMW by more than 5,000 units in the first six months and had a 17,000-unit margin over Mercedes.
What's wrong with Lexus?
For one thing, company executives admit that they depend too much on RX crossover sales at a time when luxury buyers are seeking smaller cars, including entry-level coupes and convertibles. Lexus officials point out that coupes and convertibles last year accounted for more than one-third of volume for the BMW 3 series, which far outsells Lexus' IS range.
They say Lexus isn't attracting enough 25- to 49-year-olds, the age group that flocks to the 3 series.
Now Lexus is battling back with new entry-level models: the IS convertible and a dedicated hybrid. It also plans a new dealer training program and edgy, provocative ads, all in the name of wooing away some of that BMW traffic.
Lexus attracted plenty of 45-year-olds two decades ago when the brand debuted in the United States. And they have remained loyal to the brand, Lexus General Manager Mark Templin says.
"Now those buyers are 65," he says.
Through April of this year, the median age of Lexus buyers was 53, according to the Power Information Network. That compared with 46 for BMW buyers and 50 for Mercedes-Benz.
In June, Lexus jumped into the entry-level luxury convertible fray with the IS 250C and 350C. But its most dramatic new step is the HS 250h sedan, the brand's first dedicated hybrid and the first entry-level luxury hybrid on the market.
Templin says the goal is to attract buyers as young as 25.
Tech talk
Understanding technology is one way to connect with younger buyers. On Wednesday, July 15, Lexus begins what Templin says will be the "most comprehensive dealer training program" ever for the new hybrid sedan, which goes on sale in August.
Bob Allan, manager of dealer education for Toyota Motor Sales U.S.A., says employees at each of Lexus' 228 dealerships will get comprehensive in-store training on the HS, including the Enform telematics and navigation system that will debut on the HS.
In the past, Allan says, Lexus spent heavily on events such as the Taste of Lexus, a multicity tour that included ride-and-drives and food and drink to introduce vehicles to the dealers and consumers.
But with so much technology on new cars, it's time to get down to business, Allan says. He says the training will cost 85 to 90 percent less than the city tours, which sources say cost about $1 million per city.
"We want our sales force to be able to explain the features, to present things in a way that show value for the customer," he says.
Allan uses Bluetooth communication as an example.
"Are we making it user-friendly?" he says. "It's been around forever, but we're still working on that. It's still one of the No. 1 issues."
Michael O'Brien, chairman of the Lexus dealer council, says the new approach is the right one.
"To stay on top is a continuous battle, and that starts with training," says O'Brien, owner of two Lexus stores in the Seattle area. "We have to make sure we can take it from the salesperson and put it in the consumers' brain."
The BMW way
O'Brien, who also owns a BMW store, says BMW has excelled at attracting younger, enthusiastic drivers with its 3 series. He says the IS sedan and the new convertible are beginning to do that for Lexus.
"The IS convertible is going off the shelves," O'Brien says. BMW "creates a lot of volume" with the 3 series, he says, and "that's what we're trying to do" with Lexus.
Mike McGrath, who owns two Lexus stores in Chicago, says margins are holding up. He says he believes Lexus will leapfrog the competition with vehicles like the HS, which at 35 mpg is the best in the Lexus lineup.
"The HS will be our high-tech vehicle and a taste of what's coming in the future," McGrath says. "It's the beginning of a whole new era. They haven't made any announcements, but I believe there will be more hybrids or other high-tech vehicles like electrics in our future."
Of course, Lexus still relies heavily on the RX, which was redesigned in February and is gaining momentum. With sales of 39,969 in the first six months of the year, the 2010 RX far outsells the luxury crossover competition.
The RX's 6.0 percent year-to-year decline through June is far better than the 18.5 percent drop in 2008. A hybrid version of the RX went on sale in June.
Still, Templin doesn't expect sales to begin turning around until December. He expects some improvement in 2010 and "good, steady growth" in 2011.
"I'm not worried where we are right now," he says. "As the year goes on, we will gain share and sales due to the new product. It's our goal to be the best, not the biggest."
Youth movement
Lexus says it wont give up its luxury crown without a fight. It is
Adding greener, sportier and less expensive vehicles to attract younger buyers
Placing more emphasis on dealer product training and less on promotional parties
Producing more provocative commercials
Trying to be a telematics lead
Luxury leaders
The top-selling luxury brands / January through June 2009 sales / change from 2008
BMW 93,563 28.9%
Lexus 90,060 34.1%
M-Benz 85,130 28.7%
Acura 51,082 34.4%
Cadillac 48,583 45.2%
http://www.autonews.com/article/2009...307139968/1197
07-13-09, 09:41 AM
#2
Super Moderator
Lexus need more models and more model variations period. The reason MB and BMW are not affected as much by the market collapse is because they have kept adding new models to fill more niches while Lexus has been doing nothing in this regard.
They haven't added a single new model since like a decade ago with the new IS. The new HS is the first new Lexus model in a decade and it isn't out yet, and the IS-C just available this month is the first new convertible in a LONG time. They definitely need more coupes and verts, and maybe a smaller SUV as well ...
They haven't added a single new model since like a decade ago with the new IS. The new HS is the first new Lexus model in a decade and it isn't out yet, and the IS-C just available this month is the first new convertible in a LONG time. They definitely need more coupes and verts, and maybe a smaller SUV as well ...
Last edited by Gojirra99; 07-13-09 at 09:46 AM. Reason: typo
07-13-09, 10:46 AM
#3
Lexus Fanatic
NOW they realize they need more coupes?
they should've had an IS and GS coupe ages ago.
we've been begging for this for a long time.
it's too bad it seems Lexus never reads Lexus message boards, like CL, for consumer feedback. Also, there is no way to directly contact Lexus to either pitch ideas, or bish about something.
they should've had an IS and GS coupe ages ago.
we've been begging for this for a long time.
it's too bad it seems Lexus never reads Lexus message boards, like CL, for consumer feedback. Also, there is no way to directly contact Lexus to either pitch ideas, or bish about something.
07-13-09, 11:04 AM
#4
Much like what Andrew mentioned above, and like myself and others have been saying for years now, Lexus' lineup has simply lost it's luster in the eyes of younger consumers. The IS line is really the only thing that offers any sort of lure to peope my age (22) and IMO is also their sorely missed opportunity.
Younger buyers make more emotional purchses, not necessarily rational ones. Lexus has always been completely rational and conservative- to a fault at some points, as this article shows.
I can't believe that they chose not to create an IS coupe with this generation of the car, and no, the hardtop convertible doesn't count. Yes, they went from one model, the IS 300, to several (IS 250, IS 250 AWD, IS 350, IS F, ISc) which has been wonderful, but Lexus was playing catch-up to begin with. A coupe is a vital part of the entry-level lineup, and Lexus doesn't have one.
People my age pay attention to design, technology, and performance- we are the MTV generation of "gotta have the latest and greatest, and gotta have it now". Lexus mentioned a few years ago that they were going to start to make more updates to models on a yearly basis, not just wait until a refresh to make changes. What ever happened with that? Yes we got the IS F and now the ISc, but what about the sedan- the core product? They reshaped the front seat backs to provide more rear seat leg room in 07 and 08, then changed the grille, tail lights and wheels for 09. Is that the type of change they were referring to? If so I am laughing.
Lexus should have dropped the 3.0L DI V6 into the IS and scrapped the 2.5L 250 at the refresh. That would have given the car a much needed shot in the arm and a significant advantage over it's rivals, not to mention an opportunity for a solid marketing blitz. A coupe version could have been priced a few hundred dollars below the sedan and would have been an absolute slam dunk/home run with younger buyers. People my age don't have kids or families and many of them are young professionals making a decent living- we don't have a need for sedans and also care about horsepower and the driving experience. What are these people buying? 3 Series coupes, G37 coupes, A/S5s, Mustang GTs or Camaros, and sometimes CPO Porsches and the like. Lexus has N O T H I N G to offer.
Mercedes has the new GLK and redesigned C class, while BMW has the 1 series, 3 series, 3 series coupe, and X3. Audi has the S/A5, Q5, A4, and A3 while Infiniti has the G37 which is probably the most popular model with younger buyers. Lexus has...the IS. The ES is the last thing that someone my age would be caught dead driving and the RX is seen as a mom-mobile.
Also, not to be underestimated is the halo effect which Lexus is still building. The LF A will do wonders for brand image and this generation of LS has contributed to elevating the company as well, but the brand as a whole is still lacking much passion or excitement. Plenty of status, class, and luxury but almost nothing enticing or truly interesting. Excitement and interest is what brings people into the showroom, especially younger people who are more focused on the emotional aspects of a car, not the ones on the spec sheet. The IS F and F sport parts are both two huge steps in the right direction, but they still need to do more. SMG style transmissions, more wheel options, more interesting interior colors and options, and better sport packages on the GS, RX, SC, and LS would go a long way in creating some simple curb appeal in the eyes of younger buyers. IMO, the lame-duck GS also doesn't help the IS at all- it's far less interesting and to many people my age, anything but aspirational. The 5 Series and E are both interesting, tech-laden performance luxury sedans that represent a huge step up from either the C or 3 (even when considering the outgoing E). The GS is kind of..."oh...yeah...". SC is dead and gone while Mercedes seems to make the SL better nearly every year. The biggest update that the Lexus got was a 6AT. The Mercedes has had a major refresh, new engines and transmissions, and has several variants.
If you haven't figured it out by now, Lexus is an afterthought for younger buyers. G37 coupe, Audi A/S5, and BMW 3 series coupes are what is on their radar. Sedans come second to coupes which are more emotional and interesting. Even in that segment, Lexus often comes second to BMW and Mercedes, and increasingly Audi.
Time will tell how the HS will fare but I don't know that I see it being much of a volume model or huge success with younger buyers. This is a sure bet with the tech/enviro crowd but that has somewhat limited appeal. Their core, entry level product (the IS) needs to be more dramatic and more interesting next time around. The RX is sized such that there may not be much need for a smaller or less expensive SUV and younger buyers often wouldn't be caught dead in one because it is seen as a suburban cruiser for middle aged women. Some sort of crossover/wagon based on the IS platform (think Venza, in theory) might be a good concept as well.
Younger buyers make more emotional purchses, not necessarily rational ones. Lexus has always been completely rational and conservative- to a fault at some points, as this article shows.
I can't believe that they chose not to create an IS coupe with this generation of the car, and no, the hardtop convertible doesn't count. Yes, they went from one model, the IS 300, to several (IS 250, IS 250 AWD, IS 350, IS F, ISc) which has been wonderful, but Lexus was playing catch-up to begin with. A coupe is a vital part of the entry-level lineup, and Lexus doesn't have one.
People my age pay attention to design, technology, and performance- we are the MTV generation of "gotta have the latest and greatest, and gotta have it now". Lexus mentioned a few years ago that they were going to start to make more updates to models on a yearly basis, not just wait until a refresh to make changes. What ever happened with that? Yes we got the IS F and now the ISc, but what about the sedan- the core product? They reshaped the front seat backs to provide more rear seat leg room in 07 and 08, then changed the grille, tail lights and wheels for 09. Is that the type of change they were referring to? If so I am laughing.
Lexus should have dropped the 3.0L DI V6 into the IS and scrapped the 2.5L 250 at the refresh. That would have given the car a much needed shot in the arm and a significant advantage over it's rivals, not to mention an opportunity for a solid marketing blitz. A coupe version could have been priced a few hundred dollars below the sedan and would have been an absolute slam dunk/home run with younger buyers. People my age don't have kids or families and many of them are young professionals making a decent living- we don't have a need for sedans and also care about horsepower and the driving experience. What are these people buying? 3 Series coupes, G37 coupes, A/S5s, Mustang GTs or Camaros, and sometimes CPO Porsches and the like. Lexus has N O T H I N G to offer.
Mercedes has the new GLK and redesigned C class, while BMW has the 1 series, 3 series, 3 series coupe, and X3. Audi has the S/A5, Q5, A4, and A3 while Infiniti has the G37 which is probably the most popular model with younger buyers. Lexus has...the IS. The ES is the last thing that someone my age would be caught dead driving and the RX is seen as a mom-mobile.
Also, not to be underestimated is the halo effect which Lexus is still building. The LF A will do wonders for brand image and this generation of LS has contributed to elevating the company as well, but the brand as a whole is still lacking much passion or excitement. Plenty of status, class, and luxury but almost nothing enticing or truly interesting. Excitement and interest is what brings people into the showroom, especially younger people who are more focused on the emotional aspects of a car, not the ones on the spec sheet. The IS F and F sport parts are both two huge steps in the right direction, but they still need to do more. SMG style transmissions, more wheel options, more interesting interior colors and options, and better sport packages on the GS, RX, SC, and LS would go a long way in creating some simple curb appeal in the eyes of younger buyers. IMO, the lame-duck GS also doesn't help the IS at all- it's far less interesting and to many people my age, anything but aspirational. The 5 Series and E are both interesting, tech-laden performance luxury sedans that represent a huge step up from either the C or 3 (even when considering the outgoing E). The GS is kind of..."oh...yeah...". SC is dead and gone while Mercedes seems to make the SL better nearly every year. The biggest update that the Lexus got was a 6AT. The Mercedes has had a major refresh, new engines and transmissions, and has several variants.
If you haven't figured it out by now, Lexus is an afterthought for younger buyers. G37 coupe, Audi A/S5, and BMW 3 series coupes are what is on their radar. Sedans come second to coupes which are more emotional and interesting. Even in that segment, Lexus often comes second to BMW and Mercedes, and increasingly Audi.
Time will tell how the HS will fare but I don't know that I see it being much of a volume model or huge success with younger buyers. This is a sure bet with the tech/enviro crowd but that has somewhat limited appeal. Their core, entry level product (the IS) needs to be more dramatic and more interesting next time around. The RX is sized such that there may not be much need for a smaller or less expensive SUV and younger buyers often wouldn't be caught dead in one because it is seen as a suburban cruiser for middle aged women. Some sort of crossover/wagon based on the IS platform (think Venza, in theory) might be a good concept as well.
07-13-09, 11:12 AM
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They say Lexus isn't attracting enough 25- to 49-year-olds, the age group that flocks to the 3 series.
The IS combinations of features are terrible. You can't have AWD and the 3.5L in the same package. With BMW you can. Coupe, convertible or four door. Manual or automatic transmission.
07-13-09, 12:43 PM
#6
Lexus Fanatic
Alot of these buyers want convertibles (okay got that now), coupes, AWD, and potent engine choices. Some even want all of these things with a manual transmission.
The IS combinations of features are terrible. You can't have AWD and the 3.5L in the same package. With BMW you can. Coupe, convertible or four door. Manual or automatic transmission.
The IS combinations of features are terrible. You can't have AWD and the 3.5L in the same package. With BMW you can. Coupe, convertible or four door. Manual or automatic transmission.
lexus can appear so stubborn.
How much R&D would it take to turn a 4-door IS into a 2-door?
just delete the rear doors, move the B pillar back several inches, and put some sheet metal on it. the IS is already small enough to be coupe size.
Give consumers a choice: offer a sedan, and a proper coupe that is no more than $1000 more expensive.
Right now, lexus is forcing people to pay $7000 more for a 2-door IS. That hits the wallet too hard.
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07-13-09, 01:31 PM
#8
Lexus Fanatic
Much like what Andrew mentioned above, and like myself and others have been saying for years now, Lexus' lineup has simply lost it's luster in the eyes of younger consumers. The IS line is really the only thing that offers any sort of lure to peope my age (22) and IMO is also their sorely missed opportunity.
Younger buyers make more emotional purchses, not necessarily rational ones. Lexus has always been completely rational and conservative- to a fault at some points, as this article shows.
I can't believe that they chose not to create an IS coupe with this generation of the car, and no, the hardtop convertible doesn't count. Yes, they went from one model, the IS 300, to several (IS 250, IS 250 AWD, IS 350, IS F, ISc) which has been wonderful, but Lexus was playing catch-up to begin with. A coupe is a vital part of the entry-level lineup, and Lexus doesn't have one.
People my age pay attention to design, technology, and performance- we are the MTV generation of "gotta have the latest and greatest, and gotta have it now". Lexus mentioned a few years ago that they were going to start to make more updates to models on a yearly basis, not just wait until a refresh to make changes. What ever happened with that? Yes we got the IS F and now the ISc, but what about the sedan- the core product? They reshaped the front seat backs to provide more rear seat leg room in 07 and 08, then changed the grille, tail lights and wheels for 09. Is that the type of change they were referring to? If so I am laughing.
Lexus should have dropped the 3.0L DI V6 into the IS and scrapped the 2.5L 250 at the refresh. That would have given the car a much needed shot in the arm and a significant advantage over it's rivals, not to mention an opportunity for a solid marketing blitz. A coupe version could have been priced a few hundred dollars below the sedan and would have been an absolute slam dunk/home run with younger buyers. People my age don't have kids or families and many of them are young professionals making a decent living- we don't have a need for sedans and also care about horsepower and the driving experience. What are these people buying? 3 Series coupes, G37 coupes, A/S5s, Mustang GTs or Camaros, and sometimes CPO Porsches and the like. Lexus has N O T H I N G to offer.
Mercedes has the new GLK and redesigned C class, while BMW has the 1 series, 3 series, 3 series coupe, and X3. Audi has the S/A5, Q5, A4, and A3 while Infiniti has the G37 which is probably the most popular model with younger buyers. Lexus has...the IS. The ES is the last thing that someone my age would be caught dead driving and the RX is seen as a mom-mobile.
Also, not to be underestimated is the halo effect which Lexus is still building. The LF A will do wonders for brand image and this generation of LS has contributed to elevating the company as well, but the brand as a whole is still lacking much passion or excitement. Plenty of status, class, and luxury but almost nothing enticing or truly interesting. Excitement and interest is what brings people into the showroom, especially younger people who are more focused on the emotional aspects of a car, not the ones on the spec sheet. The IS F and F sport parts are both two huge steps in the right direction, but they still need to do more. SMG style transmissions, more wheel options, more interesting interior colors and options, and better sport packages on the GS, RX, SC, and LS would go a long way in creating some simple curb appeal in the eyes of younger buyers. IMO, the lame-duck GS also doesn't help the IS at all- it's far less interesting and to many people my age, anything but aspirational. The 5 Series and E are both interesting, tech-laden performance luxury sedans that represent a huge step up from either the C or 3 (even when considering the outgoing E). The GS is kind of..."oh...yeah...". SC is dead and gone while Mercedes seems to make the SL better nearly every year. The biggest update that the Lexus got was a 6AT. The Mercedes has had a major refresh, new engines and transmissions, and has several variants.
If you haven't figured it out by now, Lexus is an afterthought for younger buyers. G37 coupe, Audi A/S5, and BMW 3 series coupes are what is on their radar. Sedans come second to coupes which are more emotional and interesting. Even in that segment, Lexus often comes second to BMW and Mercedes, and increasingly Audi.
Time will tell how the HS will fare but I don't know that I see it being much of a volume model or huge success with younger buyers. This is a sure bet with the tech/enviro crowd but that has somewhat limited appeal. Their core, entry level product (the IS) needs to be more dramatic and more interesting next time around. The RX is sized such that there may not be much need for a smaller or less expensive SUV and younger buyers often wouldn't be caught dead in one because it is seen as a suburban cruiser for middle aged women. Some sort of crossover/wagon based on the IS platform (think Venza, in theory) might be a good concept as well.
Younger buyers make more emotional purchses, not necessarily rational ones. Lexus has always been completely rational and conservative- to a fault at some points, as this article shows.
I can't believe that they chose not to create an IS coupe with this generation of the car, and no, the hardtop convertible doesn't count. Yes, they went from one model, the IS 300, to several (IS 250, IS 250 AWD, IS 350, IS F, ISc) which has been wonderful, but Lexus was playing catch-up to begin with. A coupe is a vital part of the entry-level lineup, and Lexus doesn't have one.
People my age pay attention to design, technology, and performance- we are the MTV generation of "gotta have the latest and greatest, and gotta have it now". Lexus mentioned a few years ago that they were going to start to make more updates to models on a yearly basis, not just wait until a refresh to make changes. What ever happened with that? Yes we got the IS F and now the ISc, but what about the sedan- the core product? They reshaped the front seat backs to provide more rear seat leg room in 07 and 08, then changed the grille, tail lights and wheels for 09. Is that the type of change they were referring to? If so I am laughing.
Lexus should have dropped the 3.0L DI V6 into the IS and scrapped the 2.5L 250 at the refresh. That would have given the car a much needed shot in the arm and a significant advantage over it's rivals, not to mention an opportunity for a solid marketing blitz. A coupe version could have been priced a few hundred dollars below the sedan and would have been an absolute slam dunk/home run with younger buyers. People my age don't have kids or families and many of them are young professionals making a decent living- we don't have a need for sedans and also care about horsepower and the driving experience. What are these people buying? 3 Series coupes, G37 coupes, A/S5s, Mustang GTs or Camaros, and sometimes CPO Porsches and the like. Lexus has N O T H I N G to offer.
Mercedes has the new GLK and redesigned C class, while BMW has the 1 series, 3 series, 3 series coupe, and X3. Audi has the S/A5, Q5, A4, and A3 while Infiniti has the G37 which is probably the most popular model with younger buyers. Lexus has...the IS. The ES is the last thing that someone my age would be caught dead driving and the RX is seen as a mom-mobile.
Also, not to be underestimated is the halo effect which Lexus is still building. The LF A will do wonders for brand image and this generation of LS has contributed to elevating the company as well, but the brand as a whole is still lacking much passion or excitement. Plenty of status, class, and luxury but almost nothing enticing or truly interesting. Excitement and interest is what brings people into the showroom, especially younger people who are more focused on the emotional aspects of a car, not the ones on the spec sheet. The IS F and F sport parts are both two huge steps in the right direction, but they still need to do more. SMG style transmissions, more wheel options, more interesting interior colors and options, and better sport packages on the GS, RX, SC, and LS would go a long way in creating some simple curb appeal in the eyes of younger buyers. IMO, the lame-duck GS also doesn't help the IS at all- it's far less interesting and to many people my age, anything but aspirational. The 5 Series and E are both interesting, tech-laden performance luxury sedans that represent a huge step up from either the C or 3 (even when considering the outgoing E). The GS is kind of..."oh...yeah...". SC is dead and gone while Mercedes seems to make the SL better nearly every year. The biggest update that the Lexus got was a 6AT. The Mercedes has had a major refresh, new engines and transmissions, and has several variants.
If you haven't figured it out by now, Lexus is an afterthought for younger buyers. G37 coupe, Audi A/S5, and BMW 3 series coupes are what is on their radar. Sedans come second to coupes which are more emotional and interesting. Even in that segment, Lexus often comes second to BMW and Mercedes, and increasingly Audi.
Time will tell how the HS will fare but I don't know that I see it being much of a volume model or huge success with younger buyers. This is a sure bet with the tech/enviro crowd but that has somewhat limited appeal. Their core, entry level product (the IS) needs to be more dramatic and more interesting next time around. The RX is sized such that there may not be much need for a smaller or less expensive SUV and younger buyers often wouldn't be caught dead in one because it is seen as a suburban cruiser for middle aged women. Some sort of crossover/wagon based on the IS platform (think Venza, in theory) might be a good concept as well.
A true unique IS coupe like the G37 coupe would have been great instead of the 2 door oddly styled heavy hardtop convertable we got which will appeal mainly to women and not male customers. Then again I don't think the G37 coupe is a huge seller like the last G35c was for Infiniti as I don't see many new ones on the road. I still think the IS conv will be a decent to good seller for Lexus even if it is a disappointment to enthusiasts. I also think the HS will sell pretty well as long as there is no mark up if gas prices go up and it is priced right, even though many may not like it or its styling there is a market for that type of vehicle and it makes much more sense then the slow selling and answer to the question no one was asking for GS450h or LS600h.
The IS-F is something younger people are interested in and want to read about and test drive but it is way too expensive for most younger buyers to consider purchasing unless they are buying it used. I don't think Lexus needs another SUV. They have plenty. The current GS is in desperate need for a redesign and the next model needs to be a big hit focusing more on being a drivers/enthusiasts car instead of the forgettable mediocre one we have now that was plagued with problems in the beginning. I would not even bother with doing a GSf with a v-10 in the current GS as the car is just not much on the radar and beyond getting much enthusiasm for. I would save everything for the next generation and get it out faster instead of letting the current one linger for a long time to blow the competition away.
07-13-09, 01:41 PM
#10
Lexus Fanatic
lexus can appear so stubborn.
How much R&D would it take to turn a 4-door IS into a 2-door?
just delete the rear doors, move the B pillar back several inches, and put some sheet metal on it. the IS is already small enough to be coupe size.
Give consumers a choice: offer a sedan, and a proper coupe that is no more than $1000 more expensive.
Right now, lexus is forcing people to pay $7000 more for a 2-door IS. That hits the wallet too hard.
How much R&D would it take to turn a 4-door IS into a 2-door?
just delete the rear doors, move the B pillar back several inches, and put some sheet metal on it. the IS is already small enough to be coupe size.
Give consumers a choice: offer a sedan, and a proper coupe that is no more than $1000 more expensive.
Right now, lexus is forcing people to pay $7000 more for a 2-door IS. That hits the wallet too hard.
Lexus should do what Infiniti did with the G35 coupe and make it more into a sports car/coupe with unique styling and a performance upgrade instead of just chopping 2 doors off of a sedan. If that is all Infiniti did with the G35c was taking the rear doors off of the sedan and make some minor styling changes it would not have been near the hit it was or gained all the respect it did. The G35c was more like a 350z with a nicer interior and a rear seat with better styling then just a 2 door G35 sedan and that is why I and many liked it so much. I would hope if Lexus did do a proper IS coupe or a coupe sized similarly to the IS that it would be a unique sporty head turning design and not like the one we have now that more or less looks like a 2 door sedan with an odd rear end for the conv. I will take the lighter and much better looking sedan over the current IS conv anyday.
07-13-09, 01:48 PM
#12
Super Moderator
A white one with the top down followed me for a while yesterday. I weaved through traffic to see if he would follow and he did, until finally, he had to exit.
It actually look pretty good from my rear-view mirror, when you cannot see the odd looking rear-end
07-13-09, 01:52 PM
#13
Guest
Posts: n/a
You have to read what NOT was said. 
They basically acknowledged that the 3 (and German cars) sell differently. Not with the one model way Lexus has traditionallly done (with great success) in the past but with offering different variations of one model.
I saw it as them saying but not having it printed "we are going smaller, with more choices and more varients of models in the future".
It doesn't happen overnight but Lexus is about learning. Look at how the GS 300 had the same engine from 93-05, then got a new engine then became the 350. The IS/GS/LS line now offers AWD, LWB, etc, and other varients previously missing on previous versions.
Actually Nissan did that, its a Nissan Skyline. What Infiniti did is slap badges on it. Semantics but that is huge error. The IS the G37. What Nissan/infiniti needs to do is offer more engine choices. I totally agree the G35 was a hit b/c of price and it just looks fantastic even stock.
The IS-c doesn't share much with the IS sedan, I believe hood and headlights...
We should expect a coupe next time around.
They basically acknowledged that the 3 (and German cars) sell differently. Not with the one model way Lexus has traditionallly done (with great success) in the past but with offering different variations of one model. I saw it as them saying but not having it printed "we are going smaller, with more choices and more varients of models in the future".
It doesn't happen overnight but Lexus is about learning. Look at how the GS 300 had the same engine from 93-05, then got a new engine then became the 350. The IS/GS/LS line now offers AWD, LWB, etc, and other varients previously missing on previous versions.
I don't want just a 2 door version of the IS350 sedan and I would be disappointed if that is all they did and all the effort they put into it by just getting rid of the 2 rear doors like has been done with older Accord/Camry coupes when they did not get unique styling like the newer ones, frankly I would just buy the 4 door IS if all they did was lop the rear doors off and make some subtle styling changes and say here is our coupe.
Lexus should do what Infiniti did with the G35 coupe and make it more into a sports car/coupe with unique styling and a performance upgrade instead of just chopping 2 doors off of a sedan. If that is all Infiniti did with the G35c was taking the rear doors off of the sedan and make some minor styling changes it would not have been near the hit it was or gained all the respect it did. The G35c was more like a 350z with a nicer interior and a rear seat with better styling then just a 2 door G35 sedan and that is why I and many liked it so much. I would hope if Lexus did do a proper IS coupe or a coupe sized similarly to the IS that it would be a unique sporty head turning design and not like the one we have now that more or less looks like a 2 door sedan with an odd rear end for the conv. I will take the lighter and much better looking sedan over the current IS conv anyday.
Lexus should do what Infiniti did with the G35 coupe and make it more into a sports car/coupe with unique styling and a performance upgrade instead of just chopping 2 doors off of a sedan. If that is all Infiniti did with the G35c was taking the rear doors off of the sedan and make some minor styling changes it would not have been near the hit it was or gained all the respect it did. The G35c was more like a 350z with a nicer interior and a rear seat with better styling then just a 2 door G35 sedan and that is why I and many liked it so much. I would hope if Lexus did do a proper IS coupe or a coupe sized similarly to the IS that it would be a unique sporty head turning design and not like the one we have now that more or less looks like a 2 door sedan with an odd rear end for the conv. I will take the lighter and much better looking sedan over the current IS conv anyday.
Semantics but that is huge error. The IS the G37. What Nissan/infiniti needs to do is offer more engine choices. I totally agree the G35 was a hit b/c of price and it just looks fantastic even stock. The IS-c doesn't share much with the IS sedan, I believe hood and headlights...
We should expect a coupe next time around.
07-13-09, 01:53 PM
#14
Lexus Fanatic
no self respecting 20-35 year old will buy an HS ugly car.
i'm not in the market for an IS coupe. but if i were, I would not spend $7000+ more for one.
god damn look at the base price IS350 = 36700
ISc = 43900+
i'm not in the market for an IS coupe. but if i were, I would not spend $7000+ more for one.
god damn look at the base price IS350 = 36700
ISc = 43900+
Last edited by dunnojack; 07-13-09 at 01:57 PM.
07-13-09, 01:55 PM
#15
You'll be surprised.
Plenty of young and intelligent "green do-good'ers" will love it, as much as many others who already own a Prius.
And with the influential tentacles of young Hollywood A-listers that eat up hybrid technology, the HS may find a similar name recognition that the Prius has benefited from in the past...
Plenty of young and intelligent "green do-good'ers" will love it, as much as many others who already own a Prius.
And with the influential tentacles of young Hollywood A-listers that eat up hybrid technology, the HS may find a similar name recognition that the Prius has benefited from in the past...