Toyota's car-buff president makes Lexus his pet project
05-08-13, 07:53 AM
#31
well it is all about profit while delivering best cars and service possible of course... but yeah, thats how it works. They are not chasing volumes.
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.
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.
Working for an oil and gas company, it's very apparent that if we sit still, our revenues decline exponentially year over year, because production rates always fall as you deplete a reservoir. Well, the same thing applies to any business, sometimes it's just not as apparent. A good car today is an outdated car tomorrow, and the customer that bought a car today needs something different tomorrow due to life changes - if the brand doesn't offer something that fits their needs as well as a competitor, you've just lost a sale.
Don't conflate volumes with brand growth - one is the means and one is the ends. Brand growth is about value, it's about recogniition, and it's about association. The ideal is that owning a Lexus should be viewed as an experience, not just a tangible possession. When you think of luxury, you should think of Lexus. When you think of service, you should think of Lexus. When you think of performance, you should think of Lexus. When you think of "custom", you should think of Lexus. These associations are what allows BMW to sell a ****ty 320i for ~$35k - because at some point the brand becomes more important than the product. That's why the LFA was created, and that's the Lexus motto.
05-08-13, 08:45 AM
#32
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Lexus needs to be Inspirational brand to allow Toyota to move up to Aspirational brand. This will get people away from the Lexus is just fancy Toyota, to people actually thinking that owning a Toyota is like owning something made by the same people that make Lexus. This will take a long time, but it needs to start, and it seems it has.
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.
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.
With the new GS and IS, it seems like Akio Toyoda is finally making changes in that direction (Lexus as foremost priority and from which all technological innovations and design philosophy flows DOWN to the rest of Toyota.)
05-08-13, 09:06 AM
#33
Lexus Test Driver
05-08-13, 11:22 AM
#34
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Lexus needs to be Inspirational brand to allow Toyota to move up to Aspirational brand. This will get people away from the Lexus is just fancy Toyota, to people actually thinking that owning a Toyota is like owning something made by the same people that make Lexus. This will take a long time, but it needs to start, and it seems it has.
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.
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.
I'm glad to hear that Akio Toyoda is now going to personally make sure that from now on the former will be the case!
Last edited by ydooby; 05-08-13 at 11:28 AM.
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