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Problem is that most non-enthusiast car buyers don't recognize such things as premium unique platforms, RWD architecture, structural integrity/rigidity and other features under the surface. Such things are lost on them.
Then why can Mercedes and BMW cater to those that do recognize such things when Lexus somehow has to cater to the lowest common denominator?
^^ One can argue that Mercedes and BMW buyers also don't care about those things. All they care about is the badge on the front. That alone probably drives 80% of the reason to buy a premium vehicle.
But this gets away from the point that Lexus should not be afraid to offer a premium vehicle, with premium features at a premium price. They have the brand recognition, and theres more room than ever for them to offer a highly optioned ES, IS, etc and still present a value proposition compared to the germans. We have Lexus afraid to offer a loaded F Sport over $50k when the 3 and C both total out over $60k loaded. $55k gets us a loaded IS F Sport and we've still got $5-8k cushion.
But this gets away from the point that Lexus should not be afraid to offer a premium vehicle, with premium features at a premium price. They have the brand recognition, and theres more room than ever for them to offer a highly optioned ES, IS, etc and still present a value proposition compared to the germans. We have Lexus afraid to offer a loaded F Sport over $50k when the 3 and C both total out over $60k loaded. $55k gets us a loaded IS F Sport and we've still got $5-8k cushion.
I am not sure if you think Lexus is run by little boys that are constantly "afraid"? That word does not belong in business world.
As we know, Lexus USA likes limiting top end price of their vehicles to make the vehicles look more affordable. They also like limiting unpopular options so their production is more efficient.
Whenever they actually added expensive versions that are sold in Europe, China and Japan, buyers in US have not purchased them.
You could have purchased GS 450h instead of 350... it is much better vehicle. Instead you (and me too) complained of "high price" and wanted Lexus to drop it by $8k in order for us to buy it.
So in the end, GS450h sells 500 copies per year in the USA and 10,000 around the World.
Clearly Lexus is right here and "we" (the buyers) have proven not to actually buy these.
It is funny to see these things pop up, where people say they want same top end equipment as what Japan gets, then when it is offered, everyone complains how expensive it is and how they will buy something else.
RC and NX threads are full of people right now complaining about the pricing and saying that they wont buy them if they are over certain price. Which is why Lexus limits the price by limiting options.
^^ One can argue that Mercedes and BMW buyers also don't care about those things. All they care about is the badge on the front. That alone probably drives 80% of the reason to buy a premium vehicle.
and a lot of their owners buy base versions :-).
So if we are to follow what Germans are doing right now and what sells for them - it means $33k base IS with cloth seats and halogen lights and 180hp engine. Yay.
26-year Toyota worker wins 10-millionth Camry in factory raffle
One of around 200 original employees at the plant
Tom Keith, a Toyota’s Georgetown factory worker, won a brand new Toyota Camry hybrid in a random drawing among around 7,000 other workers.
Keith, a member of the Quality Control Department and a Toyota employee for a whopping 26 years, was the winner of the 10 millionth Camry manufactured in the plant since 1988. He is one of around 200 employees at the factory who have been there since its opening.
“I’m in shock,” the 26-year veteran of Toyota commented after he found out he is the winner. “I’m going to surprise my wife. She works at the Scott County Library and drives a 2007 Avalon. I’m going to go over there this afternoon, move her car out and park the new Camry in her space. She’s going to scream”.
I am not sure if you think Lexus is run by little boys that are constantly "afraid"? That word does not belong in business world.
As we know, Lexus USA likes limiting top end price of their vehicles to make the vehicles look more affordable. They also like limiting unpopular options so their production is more efficient.
Being "afraid" is not a childish attribute. If Lexus is limiting options on higher end models because they believe US consumers will unfairly judge their vehicles because of the loaded price point...then they are by definition "afraid" of the outcome if they take that course of action. Its simple english.
Whenever they actually added expensive versions that are sold in Europe, China and Japan, buyers in US have not purchased them.
I'm not sure how you can make that statement. So nobody has ever bought a UL LS430? I had one, I've seen lots of them. Lexus had those options back in the LS400 days and were "afraid" to offer them here. What other expensive versions of their vehicles offered in Europe China & Japan have they attempted to offer here? Again, we're talking about options they are already building in cars and could offer here for another 2-5k on top of the loaded price of the car. $55k for a loaded IS350 AWD F Sport with all the luxury features people are upset the car doesn't have is STILL a deal!
You could have purchased GS 450h instead of 350... it is much better vehicle. Instead you (and me too) complained of "high price" and wanted Lexus to drop it by $8k in order for us to buy it.
Here's the thing...I don't think its a much better vehicle. I don't like hybrids, and even had the GS450h been the same price as the GS350 I would not have chosen the GS450h.
Thats a different issue though with more at work than just features. The only feature that the GS450h has over the 350 is LED headlights...and the hybrid drive which I've already said has no value to me.
The key is though...I bought a GS 350 even though the GS450h was $70k. Offering the GS450h didn't cost Lexus the sale. I could have spent about $5k more and gotten a GS350 with ML, radar cruise, etc, features I would have liked but I opted not to buy them because it made the car more than I wanted to spend. BUT, people buy the car with those features, just look around here. The highest optioned cars will always be the slowest sellers...but that doesn't mean they shouldn't be offered.
is funny to see these things pop up, where people say they want same top end equipment as what Japan gets, then when it is offered, everyone complains how expensive it is and how they will buy something else.
RC and NX threads are full of people right now complaining about the pricing and saying that they wont buy them if they are over certain price. Which is why Lexus limits the price by limiting options.
They complain on forums, forums are not the buying population. If they don't complain about price, they complain about lack of options as I am doing here.
The common theme is that people will complain. BUT, competitors are able to offer highly optioned models at higher prices...and if Lexus ever truly wants to be regarded in the same way BMW and MB are...then they need to stop being afraid to charge money for a great car. Look at Audi...5 years ago Audi was a joke...in some ways their cars are more expensive than their MB and BMW counterparts...Audi is doing very well...and their image is FAR improved.
If Lexus doesn't believe that their car is worth buying at a certain price, what should we believe?
Looking over the pictures again, gotta say 2015 Camry is going to be very competitive with these prices and updated look inside and out. Considering how much they sell of the current model, they might reach their capacity limit with this facelift.
Looking over the pictures again, gotta say 2015 Camry is going to be very competitive with these prices and updated look inside and out. Considering how much they sell of the current model, they might reach their capacity limit with this facelift.
Camry is a strong refresh, and really what should have debuted for the 2012. Addresses the main points of contention. Hated that molded in "stitching" on the knee pads of the current 2012 - 2014.5 Camry.
I think Georgetown is already running at near capacity, and it'll be even tighter with Lexus ES coming on line, and no more extra capacity from Subaru's Indiana plant.
I think TMS is simply hoping that sales volumes can stay high without the super boosted incentives that they're currently propping the Camry up with.
Camry is a strong refresh, and really what should have debuted for the 2012. Addresses the main points of contention.
Interior maybe, but we were not ready for this exterior in 2012... GS looked like a spaceship back then and now it is pretty boring looking compared to the rest of the lineup :-)
I believe they have capacity up to 500k a year... so they likely can do a bit more. They will be extending plant for ES and I bet they will also do the same for 2017 when the contract with Subaru ends... or maybe they plan importing some from Japan? We will see soon.
08-28-14, 11:38 AM
