Toyota's car-buff president makes Lexus his pet project
05-07-13, 02:15 AM
#16
I don't know, I kind of disagree (I know...why am I disagreeing with Toyoda?), Lexus does have a story.
The original LS400 coming in and taking the market by surprise, and Lexus' pursuit of perfection and their legendary customer service. Lexus wasn't delivered by a magical stork but it still has a decent origin story.
The original LS400 coming in and taking the market by surprise, and Lexus' pursuit of perfection and their legendary customer service. Lexus wasn't delivered by a magical stork but it still has a decent origin story.
Its a real luxury to have a beautifully made car that isn't in the shop all the time, and when it does require service, the costs are comparable to your regular Toyota.
05-07-13, 06:27 AM
#17
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Well there is cultural differences and while German Marques brag on their history its not in Japanese culture to so that. We all can agree what Lexus has done in 25 years is remarkable.
I don't think he is abandoning quality etc, he's just putting passion and his gut instinct ahead for a change. We all know how slow and methodical Lexus moves which usually does create a hit product but hey can't continue this way, times have changed.
I don't think he is abandoning quality etc, he's just putting passion and his gut instinct ahead for a change. We all know how slow and methodical Lexus moves which usually does create a hit product but hey can't continue this way, times have changed.
05-07-13, 10:01 AM
#18
Lexus has in the past talked about how it's the most profitable brand.
Well, IRR is great and all, but if the chips are small then business has very little growth. Volume of money is often times a much better metric of success.
My point is, I'd like to see Lexus enter niches that traditionally would not meet their IRR targets as a means to grow their brand. At some point, any product must start taking market share from existing players, and right now Lexus doesn't fit enough people's criteria when BMW, Audi, & MB sell a vehicle for just about any and every occasion/preference, and continue to add products in between what little gaps remain in their line-ups.
Well, IRR is great and all, but if the chips are small then business has very little growth. Volume of money is often times a much better metric of success.
My point is, I'd like to see Lexus enter niches that traditionally would not meet their IRR targets as a means to grow their brand. At some point, any product must start taking market share from existing players, and right now Lexus doesn't fit enough people's criteria when BMW, Audi, & MB sell a vehicle for just about any and every occasion/preference, and continue to add products in between what little gaps remain in their line-ups.
05-07-13, 10:43 AM
#19
Lexus has in the past talked about how it's the most profitable brand.
Well, IRR is great and all, but if the chips are small then business has very little growth. Volume of money is often times a much better metric of success.
My point is, I'd like to see Lexus enter niches that traditionally would not meet their IRR targets as a means to grow their brand. At some point, any product must start taking market share from existing players, and right now Lexus doesn't fit enough people's criteria when BMW, Audi, & MB sell a vehicle for just about any and every occasion/preference, and continue to add products in between what little gaps remain in their line-ups.
Well, IRR is great and all, but if the chips are small then business has very little growth. Volume of money is often times a much better metric of success.
My point is, I'd like to see Lexus enter niches that traditionally would not meet their IRR targets as a means to grow their brand. At some point, any product must start taking market share from existing players, and right now Lexus doesn't fit enough people's criteria when BMW, Audi, & MB sell a vehicle for just about any and every occasion/preference, and continue to add products in between what little gaps remain in their line-ups.
05-07-13, 12:29 PM
#21
This year, worldwide sales should top 500,000 -- just shy of their all-time high of 518,300 in 2007, said Mark Templin, executive vice president of Lexus International.
In the United States, sales peaked at 329,177 in 2007, capping 12 straight years of growth. They slid in three of the five years since, with the only increases being a 6 percent gain in 2010 and a 23 percent rise, to 244,166, last year. Templin aims to surpass 260,000 in 2013.
In the United States, sales peaked at 329,177 in 2007, capping 12 straight years of growth. They slid in three of the five years since, with the only increases being a 6 percent gain in 2010 and a 23 percent rise, to 244,166, last year. Templin aims to surpass 260,000 in 2013.
Good to hear this news, as Lexus is still my favorite brand, I was disappointed from 2007 and on, but knew they will come back as the best
05-07-13, 04:41 PM
#22
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problem is that MB and Benz need to grow in order to stay alive in the future, where volumes matter... Lexus does not need to grow at any cost... Lexus's mission in Toyota portfolio is to be profitable - for everything else they have Toyota's that sell 9 million per year.
Last edited by ydooby; 05-07-13 at 05:05 PM.
05-07-13, 04:48 PM
#23
And that's exactly the bean counter mentality that Akio is trying to get away from. That all-for-profit mentality is what has stopped Lexus from growing further as a premium brand and Akio knows that. Lexus needs to offer more expressive and individualized options, trim levels and variants in their premium models in order to be seen to be more premium and less cookie cutter. We're not talking about models that are covered by the "9 million per year" Toyota-branded cookie cutter units they sell, but actual premium vehicles that fit into individual tastes. Give people the options and variants they want and they'll pay a premium for them and view the brand as a more premium one. This is the one thing that Lexus trails the Germans by a huge margin and I'm Akio's right brain already sees that.
Like I've mentioned before, BMW and Porsche excel at offering customization and all options. If you advertise something like HUD or a night view camera, I WANT IT! Duh Lexus.
05-07-13, 05:26 PM
#24
Most worldwide growth in premium brands, including BMW, MB and Audi, came from cheap models. I have been in A1 recently and if it had Toyota badge, Europeans would laugh how bad it is. Same goes with many of their other models, basically everything under $50-$60k might not even be called luxury, and this is what they sell most world wide.
Problem with Lexus and customization's is TPS, nothing else. It is very thing that makes Toyota tick. Plus the fact that you cant really do non-refundable deposit in the US. This is why Europe gets so many different options while US doesnt.
So I doubt Lexus would grow if they offer USB on 3IS, or optional leather... but they will grow if they deliver more cheaper cars... Yaris based and more... basically every Toyota a Lexus would be thing to do if they are following ze Germans.
05-07-13, 05:37 PM
#25
and also, lets not forget that they are making big advances when it comes to options... for instance, we all complained about interior colors before GS came out... now we have really nice interior options such as tan or red... even classic colors are different... Then we have F-Sport models which get quite different look and feel. there are many examples like that.
In some European countries, you can get 3IS in 18 different option configurations... BUT, you have to leave non refundable deposit (usually 10% of purchase price), and wait up to 4 months, courtesy of TPS. Neither of which would work in the US.
I am sure if they offered turbo's, superchargers, diesels, V8's, 500 options, we would all find something to complain about. As soon as one of the complains get eliminated, someone finds something else and ignores all the progress.
In some European countries, you can get 3IS in 18 different option configurations... BUT, you have to leave non refundable deposit (usually 10% of purchase price), and wait up to 4 months, courtesy of TPS. Neither of which would work in the US.
I am sure if they offered turbo's, superchargers, diesels, V8's, 500 options, we would all find something to complain about. As soon as one of the complains get eliminated, someone finds something else and ignores all the progress.
05-07-13, 05:51 PM
#26
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Well said. What you build on the Lexus website you essentially can't get on the lot. And shipping these cars via region East or West really puts a hamper on folks including myself. I'd like a GS with HUD, but there are none here.
Like I've mentioned before, BMW and Porsche excel at offering customization and all options. If you advertise something like HUD or a night view camera, I WANT IT! Duh Lexus.
Like I've mentioned before, BMW and Porsche excel at offering customization and all options. If you advertise something like HUD or a night view camera, I WANT IT! Duh Lexus.
It seems like everything is a sea of grey, silver, white, black with black, grey, beige interiors with the occasional blue........
Lexus allocation has always been iffy and it seems dealerships have NO INTEREST in being experts in the F-sport program.
05-07-13, 06:12 PM
#27
Maybe it depends on the German dealerships as I've been to a few here and its the same, good luck finding some red leather..... I got pointed to a used S4 manual
It seems like everything is a sea of grey, silver, white, black with black, grey, beige interiors with the occasional blue........
Lexus allocation has always been iffy and it seems dealerships have NO INTEREST in being experts in the F-sport program.
It seems like everything is a sea of grey, silver, white, black with black, grey, beige interiors with the occasional blue........
Lexus allocation has always been iffy and it seems dealerships have NO INTEREST in being experts in the F-sport program.
05-08-13, 05:47 AM
#30
Lexus Test Driver
And that's exactly the bean counter mentality that Akio is trying to get away from. This all-about-profit mentality you're trying to defend is what has stopped Lexus from growing further as a premium brand and Akio knows that. It's the Toyota brand's mission to be profittable, while the Lexus brand's mission should be to provide a halo for the company. Lexus needs to offer more expressive and individualized options, trim levels and variants in their premium models in order to be seen to be more premium and less cookie cutter. We're not talking about models that are covered by the "9 million per year" Toyota-branded cookie cutter units they sell, but actual premium vehicles that fit into individual tastes. Give people the options and variants they want and they'll pay a premium for them and view the brand as a more premium one. This is the one thing that Lexus trails the Germans by a huge margin and I'm sure Akio's right brain already sees that. He just needs to overcome the old-school guys within Toyota.
Right now Toyota is bread and butter, and Lexus is seen as the way to get more margin out of a high end Toyota. Kind of like buying that same bread, but in a fancy bag at Panera.