spwolf

all of the volume expansion of Audi, BMW and MB is coming from low end. There is no reason why I shouldnt be able to buy a Lexus if I want small city car, and of course overpay for it compared to small Toyota.

Toys4RJill

But compared to the peers of Lexus, they would need something to compete head on. Lexus will not allow the competition to attract all the low end buyers and have nothing for themselves. Toyota does not compete with Audi BMW or MB at the low end.

Hoovey689

iTrader: (16)

Probably just a design study. Personally I'd say no. CT (albeit expanded range with Sedan variant, more powertrains) should be their cheapest model, they have Toyota and Scion to drive volume and rumors suggest future Scion could become upscale. Audi has to build lower end cars because VW wants to dominate the #1 sales position for 2018. BMW and Mercedes can't let this happen so match flame with flame lol. Lexus should focus on brand image and expanding upmarket. A new generation of Lexus's are upon us and they are cresting if not passing the six digit mark. Show people why they are worth the price. $0.02

BNR34

iTrader: (1)

That thing is just small, it aren't gonna be cheap.

Kinda like the Aston Martin Cygnet or a BMW i3, a luxed up tiny car

spwolf

well not like those... probably just like A1 or Mini.

Thing is, when you compare Mini, 1, A1, A3 to base CT200h in Europe (and probably China, Japan, etc), there is significant price difference between CT and base models from Audi/BMW/MB. Around here for instance, 1 series always has affordable special editions with mid-spec equipment and 110hp engine for something like $10k less than base CT200h. Then you get A1 and Mini for $15k less.

So what you have in the end is people who might prefer Lexus, buying into BMW, Audi just because Lexus does not offer anything similar... No matter how much they try, Yaris cant be car for poor and wealthy at the same time.

So yeah, I bet that Lexus Worldwide will end up having at least 3-4 brand new models in next 5 years... maybe more... in lower range this mini, small SUV as well as CT sedan... then large coupe, large suv. Easily.

There is no other way to satisfy global markets, gotta have the range that your competition has.

Nextourer

No. Lexus Canada has two vehicles starting below Cdn$40,000. (CT: $31,300, IS250 RWD $37,900. The NX starts at $41k in Canada). In addition, the PDI (Freight) in Canada is around $2,000 which is more than what is charged in the U.S. (e.g. a 2015 CT200h F Sport has an MSRP of $40,000. There's anywhere between $5,000-$8,000 worth of taxes, fees and levies tacked on top of that depending on province/territory).

Anyway I digress. Lexus doesn't need a more affordable car. The Germans (except VAG), need to because they don't really have a non-luxury brand (not counting MINI or smart), while the Japanese do.

If anything, the down market trend of the Germans will affect the non-luxury brands. A B250 in Canada is within range of the midrange Camry/Accord/Fusion and top end 6, Malibu and even entry level Acuras. Arguably, the 3-pointed star has more cachet and as a hatchback, is more practical than the midsize family sedan. Maintenance is include for 4 years/80,000km. However, to aim for that price point, something's gotta give and if you're used to Mercedes and BMWs of old, the plastics aren't as nice. The CT200h, while not as nice as an ES, at least feels like a $30,000 car (and on par with some Acuras). It's just kinda small.

In short, I wouldn't like to see Lexus go further down than the CT. If I move up to a Lexus, I have expectation associated with the name and I want to feel like I actually paid for a luxury vehicle (and the associated price) rather than pay Toyota prices with cut-rate materials just to have an L-badged vehicle on the driveway.

chromedome

I say, why not? The CT is a fancy Prius and the ES is a super-giant Camry but that doesn't stop people from buying them nor do they dilute the Lexus brand. One important distinction about Mercedes, BMW and Porsche making smaller cars is that they're reaching downwards. They already have strong brand reputations and that trickles down, so even a base 1 series with a weedy engine and fabric seats is still a BMW. The cheap models are the gateway drug to the larger ones.

Contrast that with Acura and VW. An RLX will always be seen as an overpriced Accord and a Phaeton is just a bigger Passat. Lexus is lucky because Toyota managed to build a luxury brand from scratch and their reputation for quality - what's left of it - is instilled all the way from the CT to the LS. I think the typical Lexus buyer wouldn't be cross-shopping cheaper Toyotas but would look at a cheaper Lexus instead.