Lentz on Lexus: Few Regrets
#31
Lexus Test Driver
There's been no problem bringing out the RC when they did. They needed a sporty two-door, which everyone else already has and uses for brand recognition. Having the 3-row SUV is obviously needed, but hardly makes a difference whether it beats the coupe to the market or not. Both were needed and Lexus delivered on one, as they should have.
As far as gas prices, they are still inflated and certainly not affordable here in CA (still almost $4/gallon for premium). So there's some consolation not bringing out another low-mpg vehicle right away.
And I disagree with Lentz about not offering lesser, near-luxury cars. They help the brand, not hurt. MBZ, Audi, and BMW are all enjoying success with their entry models. If they are done right, they enhance the brand. Maybe he's forgetting the CT, or has a bad taste in his mouth due to that model's struggle to reach customers (hatches are a bad idea for luxury cars).
As far as gas prices, they are still inflated and certainly not affordable here in CA (still almost $4/gallon for premium). So there's some consolation not bringing out another low-mpg vehicle right away.
And I disagree with Lentz about not offering lesser, near-luxury cars. They help the brand, not hurt. MBZ, Audi, and BMW are all enjoying success with their entry models. If they are done right, they enhance the brand. Maybe he's forgetting the CT, or has a bad taste in his mouth due to that model's struggle to reach customers (hatches are a bad idea for luxury cars).
#32
Pole Position
A bigger CUV for the market would have hurt minimal to the Lexus bottom-line, while earning rich dividends. So why not? Even more so, when Lexus was very early entrant to Luxury CUV market. Why is QX 60 selling so well, even with a subpar dealer network and a less reliable vehicle? Why could Lexus not do anything sooner? Perhaps with the profits from its bigger CUV, it actually could have built a better RC, by not borrowing from three platforms
When it comes to CUV market one of the reason if not the biggest one why Lexus holds the whole market by the cojones is because they took the risk and created the market by debuting RX. Before them there were no luxury CUVs so they didn't go out asking people how would they like to improve their Audi Q3 or X3. They might have sensed that people would prefer more posh SUV instead of crude Land Cruisers, Pajeros , Discoveries and what not/
And as far as the 3 row seater goes they had HPX debut ten years ago and they didn't do nothing about. Someone was afraid to push play thus costing them to enter the market late.
#33
Lexus Fanatic
iTrader: (1)
Sporty cars bring people into the dealership. Even if they are looking for a big family hauler. People want the car they buy to be associated with the special cars that brand sells.
Then we have the people who really like sporty cars come for a look. They want to know how our sporty car stacks up against the others.
Then there are the sporty car buyers. There are still lots of coupe lovers out there and if Lexus doesn't have one, someone else will.
I sell cars. I can tell you the RC brings in lots of curious people. Many end up buying a GS or IS but really wanted the RC. Then there are the families that come in for an RX but the dad just wants to get a look at that RC he read about. Lentz is crazy if he doesn't believe the RC is important for Lexus sales.
Then we have the people who really like sporty cars come for a look. They want to know how our sporty car stacks up against the others.
Then there are the sporty car buyers. There are still lots of coupe lovers out there and if Lexus doesn't have one, someone else will.
I sell cars. I can tell you the RC brings in lots of curious people. Many end up buying a GS or IS but really wanted the RC. Then there are the families that come in for an RX but the dad just wants to get a look at that RC he read about. Lentz is crazy if he doesn't believe the RC is important for Lexus sales.
#34
Lexus Champion
Sporty cars bring people into the dealership. Even if they are looking for a big family hauler. People want the car they buy to be associated with the special cars that brand sells.
Then we have the people who really like sporty cars come for a look. They want to know how our sporty car stacks up against the others.
Then there are the sporty car buyers. There are still lots of coupe lovers out there and if Lexus doesn't have one, someone else will.
I sell cars. I can tell you the RC brings in lots of curious people. Many end up buying a GS or IS but really wanted the RC. Then there are the families that come in for an RX but the dad just wants to get a look at that RC he read about. Lentz is crazy if he doesn't believe the RC is important for Lexus sales.
Then we have the people who really like sporty cars come for a look. They want to know how our sporty car stacks up against the others.
Then there are the sporty car buyers. There are still lots of coupe lovers out there and if Lexus doesn't have one, someone else will.
I sell cars. I can tell you the RC brings in lots of curious people. Many end up buying a GS or IS but really wanted the RC. Then there are the families that come in for an RX but the dad just wants to get a look at that RC he read about. Lentz is crazy if he doesn't believe the RC is important for Lexus sales.
It is about getting bodies into the showroom. If there are no bodies in the showroom, how do you sell?
And it is not just the Dads. It is also the boys (and girls) who are attracted by the fire-engine- / Ferrari-red sports cars or convertibles. I probably would not have spent as much time in the showroom if my young son did not want to sit in the IS 350C convertible and operate the roof.
#35
Pole Position
Sporty cars bring people into the dealership. Even if they are looking for a big family hauler. People want the car they buy to be associated with the special cars that brand sells.
Then we have the people who really like sporty cars come for a look. They want to know how our sporty car stacks up against the others.
Then there are the sporty car buyers. There are still lots of coupe lovers out there and if Lexus doesn't have one, someone else will.
I sell cars. I can tell you the RC brings in lots of curious people. Many end up buying a GS or IS but really wanted the RC. Then there are the families that come in for an RX but the dad just wants to get a look at that RC he read about. Lentz is crazy if he doesn't believe the RC is important for Lexus sales.
Then we have the people who really like sporty cars come for a look. They want to know how our sporty car stacks up against the others.
Then there are the sporty car buyers. There are still lots of coupe lovers out there and if Lexus doesn't have one, someone else will.
I sell cars. I can tell you the RC brings in lots of curious people. Many end up buying a GS or IS but really wanted the RC. Then there are the families that come in for an RX but the dad just wants to get a look at that RC he read about. Lentz is crazy if he doesn't believe the RC is important for Lexus sales.
#37
Lexus Fanatic
Originally Posted by Fizzboy7
And I disagree with Lentz about not offering lesser, near-luxury cars. They help the brand, not hurt. If they are done right, they enhance the brand.
#39
Lexus Champion
Well you can sell all the crossovers you want if the market demands it. You can even price them right up there with other premium brands if you can convince enough buyers that the leather, wood and "L" logo is worth it.
The Lexus brand is basically three things: upmarket reliability, luxury and smoothness.
But if you want to play in the Germans' backyard, then you have to go back to your roots which is pricing. When that first LS400 came to the U.S. it was priced well below its German competition.
Sure it was an S class knockoff, but it was a better Benz than the car it copied. Rich people decided that a $20,000 discount might be worth it.
The RC F is not going to stir the auto writers' souls but then they're looking at the price and seeing M4 sticker shock.
A three row crossover? IMHO just buy a Sienna awd and you're done. Most 4wd vehicles rarely see a dirt road or a muddy rut.
The Lexus brand is basically three things: upmarket reliability, luxury and smoothness.
But if you want to play in the Germans' backyard, then you have to go back to your roots which is pricing. When that first LS400 came to the U.S. it was priced well below its German competition.
Sure it was an S class knockoff, but it was a better Benz than the car it copied. Rich people decided that a $20,000 discount might be worth it.
The RC F is not going to stir the auto writers' souls but then they're looking at the price and seeing M4 sticker shock.
A three row crossover? IMHO just buy a Sienna awd and you're done. Most 4wd vehicles rarely see a dirt road or a muddy rut.
Last edited by MattyG; 05-12-15 at 07:09 PM.
#40
Lexus Fanatic
iTrader: (1)
To further show how important sporty cars are with indirect sales, we have an LFA in our showroom. Men. women and kids all flock to it. They are impressed Lexus has this car. They learn something they didn't know....that Lexus has a halo car the likes of Ferrari and Lamborghini. They learn the LFA DNA flows through the brand to the other models. It does impact sales and for good reason.
BMW and Mercedes sell coupes. So does Audi. Why wouldn't we do the same? It's a no brainer.
BMW and Mercedes sell coupes. So does Audi. Why wouldn't we do the same? It's a no brainer.
#41
Lexus Fanatic
To further show how important sporty cars are with indirect sales, we have an LFA in our showroom. Men. women and kids all flock to it. They are impressed Lexus has this car. They learn something they didn't know....that Lexus has a halo car the likes of Ferrari and Lamborghini. They learn the LFA DNA flows through the brand to the other models. It does impact sales and for good reason.
BMW and Mercedes sell coupes. So does Audi. Why wouldn't we do the same? It's a no brainer.
BMW and Mercedes sell coupes. So does Audi. Why wouldn't we do the same? It's a no brainer.
#42
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Well you can sell all the crossovers you want if the market demands it. You can even price them right up there with other premium brands if you can convince enough buyers that the leather, wood and "L" logo is worth it.
The Lexus brand is basically three things: upmarket reliability, luxury and smoothness.
But if you want to play in the Germans' backyard, then you have to go back to your roots which is pricing. When that first LS400 came to the U.S. it was priced well below its German competition.
Sure it was an S class knockoff, but it was a better Benz than the car it copied. Rich people decided that a $20,000 discount might be worth it.
The RC F is not going to stir the auto writers' souls but then they're looking at the price and seeing M4 sticker shock.
A three row crossover? IMHO just buy a Sienna awd and you're done. Most 4wd vehicles rarely see a dirt road or a muddy rut.
The Lexus brand is basically three things: upmarket reliability, luxury and smoothness.
But if you want to play in the Germans' backyard, then you have to go back to your roots which is pricing. When that first LS400 came to the U.S. it was priced well below its German competition.
Sure it was an S class knockoff, but it was a better Benz than the car it copied. Rich people decided that a $20,000 discount might be worth it.
The RC F is not going to stir the auto writers' souls but then they're looking at the price and seeing M4 sticker shock.
A three row crossover? IMHO just buy a Sienna awd and you're done. Most 4wd vehicles rarely see a dirt road or a muddy rut.
#44
Pole Position
Absolutely. Its a cycle of idiots, gas prices go down once in a blue moon people run to get full size SUVs, prices go back up within a quarter they rush to get rid of them for a fraction of a purchased price. How come Lexus didn't see this trend repeating over and over for last decade and introduced a proper hybrid LX or something. If there was one vehicle that would benefit from hybrid setup its LX, I remember posting about it when current LX gen debuted.
But again what's scary in Lentz's interview is the way he implies how this was a choice between three row SUV and two door car. I mean you cant tell me that Toyota cant develop the both at the same time.
But again what's scary in Lentz's interview is the way he implies how this was a choice between three row SUV and two door car. I mean you cant tell me that Toyota cant develop the both at the same time.
#45
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