rominl

iTrader: (4)

and with leasing taking a much more important role in the luxury market these days, the value of reliability is weighed less too.

TangoRed

Hardly. In 2006 they sold over 27k of them, in 2007 they sold 23k of them, then they hit a wall after 2008 like most other luxury cars. http://www.goodcarbadcar.net/2011/01...s-figures.html

EDIT: Oh I see, you meant low point as in the fact that it had the carryover engine.

Still not better than the 30k they sold in 2006. http://www.goodcarbadcar.net/2011/01...s-figures.html

Definitely agree here.
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UDel

The new GS losing a somewhat affordable V8 option and just carrying over the same 6 cylinder form the previous gen I think really hurt the image and desirability of the 4th Gen even if it is a much better drivers car. The hybrid GS is not impressive and carries a huge price tag, sales are basically non existent for it. The GS-F is priced too high and I don't think many people are aware of it, the German competitors having well over 500hp does not help though I think buyers would look past that if the GS was priced lower. Most tests seem to show the 4th GS350 not being as quick as the 3rd Gen GS350 which does not help and it also gets really bad fuel economy for a modern 6 cylinder..

The new IS had carry over engines from the 2nd Gen with the same power and are not as quick so no real excitement for the new Gen. The new 4 cyl does nothing for the IS, most seem to prefer the IS250. When the 2nd Gen IS came it had a engine with over 80hp more then the 220hp IS300 and was much quicker, quickest in class and its interior was a huge improvement and one of the nicest in class so it was a much bigger deal and there was more buzz about it. The IS-F helped with the image where there is no IS-F for the current IS. The new IS interior is sportier but many say not as nice as the previous IS.

Then there is the ES which is still a huge seller and in some ways makes spending so much more on the GS or around the same on a IS redundant unless you really value sport/rwd/some extra quality/attention to detail.

The LS460 is a bit long in the tooth while German competitors are newer and on another level when it comes to power, performance, luxury, looks, options, size, etc.

G Star

iTrader: (2)

Dumping money on people is a leasing strategy? I think you give BMW a little too much credit there.

RNM GS3

It is if you know your customers.
BMW i think made a decision that their target market keeps cars for 3-5years at most.
They make it easier to get in and out of leases plus offer full maintenance program during the period.

If their core clients kept cars for over 5 years, their strategy would change.

Plus now CPO sales are a big revenue generator as well.

coolsaber

See with Lexus and their famed reliability they can do one of 2 things:

1) They can sit on their pricing, and hope that loyal customers just love their product and conquest customers hate their current vehicle and buy in.

2) They can dump in some trunk money to cash/finance buyers or lease incentives. Either way they make it attractive to both customers. Leases get flexibility, and you will have a nice selection of L cars at lease end which unlike other CPOVs are pretty lucrative since "reliability and durability on a Lexus is famed". Financed cars are the financed persons probs lol

GS69

http://www.autonews.com/article/2017...ility-vehicles

CHICAGO -- Lexus is still short on supplies of its popular utility vehicles after limited availability led to a 26 percent fall in sales last month.

"It's getting better throughout February," Jeff Bracken, general manager of Toyota's luxury brand, told Automotive News on the sidelines of the Chicago Auto Show, but supplies likely won't normalize until March.Bracken said Lexus sold so many units in December that it went into the new year strapped for utility vehicles such as its top-selling RX, leading to a softer January than expected.

Bracken: V-6 faces critics.

Lexus sold 15,572 vehicles in January vs. just over 41,000 in December. Sales of utility vehicles were about 50 percent of the mix last month for Lexus while the market was closer to 65 percent, he added. Bracken said that he hopes to get light-truck supplies back up to support about 60 percent of sales and that the company has a plan to do so.

As for the next-generation LS sedan unveiled last month in Detroit, Bracken said it has received good reviews for its styling, but the engine choice has puzzled some critics.

"If there's a question, it's the V-6 twin turbo," Bracken said. Although the flagship sedan's power and acceleration match those of luxury rivals, he said, "I think there are still some journalists that are like "Nah, but it isn't a V-8.'"

The new V-6 could find its way into other Lexus vehicles such as the LC coupe should the motor find favor with consumers, Bracken said. "We will now have the benefit and the insight of how this is accepted in the marketplace.

"You can reach Laurence Iliff at liliff@crain.com

bitkahuna

iTrader: (20)

unusual candor about the v6. wonder what his japanese bosses think about that.

41,000 in december?

G Star

iTrader: (2)

Any more sales hits in Feb is going to make it hard for Lexus to do well in 2017 because they're not releasing any high volume models this year.

RNM GS3

Hard to hide the truth.

TT 6cyl are nothing special and are used in midsize cars. At this point it is OLD technology.
Flagships need a true V8 TT in mainstream model.

Issue with Lexus is they have limited platforms to develop new engines since their top sellers are FWD based SUVs/cars.
There is not enough economies of scale to support so many different engines i guess.
Although it can be used in next gen of F cars, if there is a next gen.

I'm shocked they dont realize the IS / GS / RC sales suck due to the old underpowered engines.
Infiniti and Genesis is putting their TT V6s in everything even, not even mentioning Merc, BMW and Audi who had them for awhile.

The new one for Merc will be a 3.0 Inline 6 with electric turbocharger to eliminate turbo lag completely.

mmarshall

That's because it is potentially a serious issue, and one that management cannot afford to simply ignore or overlook.


What matters is what the marketplace thinks about it, more so than the bosses in Japan. Even if they reprimand him for speaking out, that won't solve the problem.

Part of the problem, though, can be laid on government....not necessarily management. CAFE rules are forcing smaller engines (often with turbos) on a public that doesn't necessarily WANT smaller engines or turbos. It's not a healthy situation...though Trump, fortunately, does not seem overly-sympathetic to stricter CAFE rules. They may (?) be repealed during his Adminstration, if enough Republicans in Congress go along.

Still, the number of vehicles Lexus has been able to sell or lease with the spindle-grilles is quite surprising, considering the number of negative-hits those spindles get on the forums. Of course, forum-speak is not always the same as the general public.