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Lexus looks to expand lineup
Brand expects to get back in U.S. luxury sales race

DETROIT -- After taking a tumble in 2011, Lexus is gearing up for a big year with nine new or updated products that it hopes will deliver a 21 percent sales surge and put the brand back in the hunt for the U.S. luxury sales crown.

Toyota Motor Corp.'s top-shelf brand is also eyeing an expanded lineup that could include a car-based, seven-seat people mover and fresh variants of its CT entry-level hatchback, as well as a sporty coupe drawing from the Lexus LF-LC hybrid concept unveiled at the Detroit auto show.

A phaseout of the low-end, slow-selling HS dedicated hybrid also could be down the road. And the brand gradually will shift from body-on-frame trucks to unibodies.

But one thing Lexus won't do is dip down-market into smaller segments.

Top executives who outlined the strategy to Automotive News say the goal is to enliven the brand, make it sportier and infuse it with emotion. Lexus surrendered its 11-year reign as the best-selling luxury brand in the United States last year. Japan's March 11 earthquake hurt sales by constraining production. But executives concede their traditionally staid lineup needs more allure.

Lexus is targeting a 21 percent sales increase in 2012, said Mark Templin, Lexus general manager. That would push U.S. sales to around 240,000 units, from 198,552 in 2011.

"We will grow more than any other luxury brand this year," Templin said on the sidelines of the show. "Our base plan is 240,000. But we think we can exceed that by a pretty good margin."

Karl Schlicht, the Japan-based global head of product planning and marketing, said this year's aggressive product rollout will put Lexus "back in the hunt" for the U.S. luxury sales title. Last year BMW took the title and Mercedes edged Lexus for second place.

Lexus will launch nine new or updated models this year, plus three F-Sport variations, Templin said. The rollout includes the redesign of four of Lexus' core sedan lines, starting with the GS 350 and GS 450h sport sedans arriving in February, followed by reworked versions of the ES 350, IS 250 and 350 and LS 460 and 600h. The LX SUV will also be refreshed this year.

Meanwhile, Lexus wants new segments to drive future growth.

Schlicht said the CT 200h, which arrived last summer, is ripe for new variants and that the brand also needs a sporty coupe. Meanwhile, his team is still weighing the launch of a seven-seat, car-based crossover, after years of study and several concepts.

Lexus previewed its future coupes with the LF-LC hybrid concept shown at the Detroit show. Schlicht put the price range of a possible production version between $100,000 and $130,000.

But there is ample room for other coupes below that, executives say.

Templin wants a coupe for the sector evacuated by the SC 430, which was priced around $70,000 before the car was killed in 2010.

Lexus' future will be shaped just as much by the segments in which it dials down.

First on the chopping block may be the HS. Sales of the hybrid, which was introduced in 2009, plunged 73 percent to 2,864 units last year.

"It's a car that doesn't necessarily fit the long-term needs of the brand in the U.S.," said Jim Lentz, president of Toyota Motor Sales U.S.A.

Also watch for a shift toward unibody crossovers, from frame-based SUVs such as the LX and GX. Today's car-based trucks have sufficient towing power and don't need the heavy frames, Lentz said.

"By 2025, I think one can assume that most of the frame-based vehicles will be gone," he said.

Lexus also has no plans to dip below the CT 200h into smaller segments being explored by rivals such as Mercedes with the B class and BMW with the 1 series. Lexus doesn't need to go small because it can meet the government's corporate average fuel economy standards by averaging in mpg from the Toyota brand.

Lentz said: "I don't think we need to go below CT in terms of luxury content or in terms of price point."

Read more: http://www.autonews.com/article/2012...#ixzz1jbIW0uet

GiantsFan

iTrader: (9)

People better watch out... lexus is about to come out with all all out blitz!!!

rominl

iTrader: (4)

with what i see so far i think 2012 is going to be a great year for lexus, with a lot of new models and most importantly the hype and attention achieved by all the news and concept

SNiiP3R

iTrader: (3)

I think Lexus really needed this kick in the butt, I just wish that it was not caused by the earthquake. IMHO, Lexus was too comfortable being the best selling luxury brand and did not want to make any drastic changes, but now they have to fight again which means there should be something new and exciting coming.

MPLexus301

iTrader: (3)

Sounds very exciting

If the GX goes unibody, I suppose that there is little need for a different 7 seat midsize CUV/SUV.

A while back, someone on the forum was in a focus group for a CT-based FWD coupe/hatch car. I wonder if that is still in the plans?

They obviously need an SUV smaller than the RX.

IS/GS coupes would be welcome additions.

Another SC would, of course, be great.

I think there could be room in the lineup for IS coupes, GS coupes, SC, and LF-LC at the top end. That would do amazing things for the brand

Guy Legend

Summary:

• More high-end and midrange sporty coupes
• Possible 7-seat crossover
• Variants on CT 200h nameplate
• Shift to unibody trucks from body-on-frame
• No small car range below CT

Looks like Lexus was in a lull period and is about come back hard. Was bound to happen since all their sedans are getting updated at nearly the same time. Excited to see what coupes are in store.

PhilipMSPT

iTrader: (5)

Not only does Lexus need a refresh, but they need to stay fresh.

Back in 2005/2006, Lexus redesigned all their sedans (MY06/07). We got the new GS, IS, ES, and LS; as well as the IS-F.

Then, by 2009, everything got stale. We got the HS and RX. No one heralded the GX nor LX. The SC got killed with no replacement. The LFA was great, but it wasn't for the masses.

Now, 2012 is rolling in, and 2005/2006 is gonna happen all over again. Will the hype die within a few years? Hopefully not...

RXSF

they have to be #1 again this year. Or else, we cant blame it on the earthquake and supply issues last year

spwolf

well hype will certainly die down for models that are 5-6 years old :-)

PhilipMSPT

iTrader: (5)

The problem with the past is that the hype died down after 2-3 years.

Lexus didn't come out with any spectacular changes nor models. New products were clustered, not spread about.

If there should be a "cycle" of new products, Lexus should come out with one newly designed sedan every year, not four new sedans every six years.

spwolf

or simply update them more in between...

IS and LS and ES are still doing good, it is only GS that completely died.

Cluster will be even bigger this time around.

I8ABMR

this is going to be a great year for Lexus. I am glad they are finally heading into the direction I have been screaming about for the last 4 years. We need more passion, sport, and more options. Thanks Lexus

Mr. Burns

The GS died rapidly and epically, they need to avoid that with the 4GS. I still remain skeptical of Templin's claims, and am not very fond of the direction Lexus is taking.

Big Andy

I don't undertsand this comment - the CT is the same size as a 1-series and not quite as big as a B-class.

spwolf

as if the writer knows wtf is he talking about anyway... what Lentz said that they wont go below 30k in price basically.

lets not expect too much of automotive writers... few sentences above MB and Lexus were fighting over 2nd place, which is simply not true (BMW and MB were fighting for first)