Mercury News coverage of the new IS
08-08-05, 03:56 PM
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Mercury News coverage of the new IS
Nothing new really but includes many quotes from Jim Colon, the vice president of sales and dealer development of Lexus, including:
Thanks to origin2000 @ my.is for finding the article.
http://www.ledger-enquirer.com/mld/m...e/12309512.htm
Posted on Fri, Aug. 05, 2005
New Lexus: IS it enough?
AUTOMAKER TRIES AGAIN VS. BMW 3-SERIES WITH IS 350, IS 250
By Matt Nauman
Mercury News
When Lexus introduced the IS 300 in 2000, it said the edgy sports sedan would attract young, male buyers who might otherwise opt for a BMW 3-Series.
It did, but not too many of them.
Lexus executives predicted they would sell 24,000 IS models a year. Sales neared that in 2001 (22,486), but they've been dropping ever since. In 2004, Lexus dealers sold fewer than 10,000 IS 300 sedans and wagons. BMW dealers sold more than 100,000 3-Series models.
It's not a totally fair comparison as Lexus also sells the ES 330, a more conservative sedan that's also in the near-luxury segment with its around-$30,000 price range.
Still, there's no doubt the IS 300 didn't put much of a scare into BMW.
So, come October, Lexus will try again.
This time, it will offer something more and something different. The more is the 2006 IS 350, which will have a segment-leading 306 horsepower from its 3.5-liter V-6 engine.
The different is the IS 250. It probably will be cheaper than BMW's 325i, and it will come in both rear- and all-wheel-drive variants.
What IS owners want, said Jim Colon, the brand's vice president of sales and dealer development, ``is stronger, bolder styling and a heavier dose of performance without compromising the core values of what makes a Lexus a Lexus.''
The new IS 250 and IS 350 models ``will send a loud and clear message to our competitors,'' Colon said in Napa last month at a media introduction.
Jack Nerad, editorial director of Kelley Blue Book's www.kbb.com Web site, was impressed after driving the new models. But he questioned whether they truly will compete with the BMW 3-Series.
``That's a tough bar to try to reach,'' he said. ``I think they've come close to that bar. My personal impression is they're not quite at that bar. I think the car will probably appeal to Lexus buyers more so than the BMW buyer.''
Longer, wider
The car is built in Japan on platforms modified from the larger GS sedans. The new IS is longer and wider with a longer wheelbase than the previous model. Both engines are new. So are the car's suspension systems and brakes.
The rear-wheel-drive IS 250 comes with a 204-horsepower, 2.5-liter V-6 engine and either a six-speed manual or automatic transmission. The IS 250 AWD comes with the same engine, all-wheel-drive and a six-speed automatic with steering-wheel-mounted paddle shifters.
The rear-wheel IS 350 has a 306-horsepower, 3.5-liter V-6 and a different six-speed automatic.
With the IS 350, Colon said, ``we have taken dead aim at class-leading performance.'' The car will go from 0 to 60 mph in 5.6 seconds and have a top speed of 142 mph. The 2005 IS 300 with its 215-horsepower in-line six-cylinder and manual transmission could get to 60 mph in 6.8 seconds.
Colon insists the first-generation IS, sold from the 2001 to 2005 model years, was a success for Lexus.
It attracted young buyers with a median age of 29 vs. 39 for a median 3-Series buyer. In fact, only one other vehicle, the tC from Toyota's youth-oriented Scion division, has younger buyers than the IS, Colon said. It also attracted new people to Lexus showrooms -- 90 percent of IS 300 buyers were first-time Lexus owners.
Still, Colon said, the original IS ``did not have the true characteristics of what makes a Lexus.'' It was sporty, but not sporty enough. It was fun, and it offered the Lexus name and dealer network, but wasn't luxurious enough.
This time around, the IS models will have roomier, classier interiors highlighted by Optitron chronometer-like gauges. Eight air bags, a 13-speaker audio system and a six-disc in-dash CD changer are standard fare.
Options, although much is standard on the top-line IS 350 model, include 18-inch wheels, leather seats, 10-way adjustable front seats, a power moonroof, a navigation system and a 14-speaker, 300-watt Mark Levinson audio system.
Prices won't be announced until closer to the car's October sale date, but Colon vowed it would be ``the best value in the segment.'' The 2005 IS 300 sedan and SportCross hatchback wagon sells for $30,280 to $31,650. The 2006 BMW 325i and 330i sedans sell for $30,995 to $36,995.
Other new models
The introduction of the IS this fall will conclude a busy year for Lexus, which hadn't introduced a new car in several years before launching the GS sedans in the spring. It also started selling its first hybrid, the RX 400h sport-utility, in midyear.
Toyota, which owns the Lexus brand, will sell the new IS in Europe, Asia and North America.
Colon said Toyota is ``going to look'' at adding coupe and wagon versions to the IS lineup. Merrill Lynch auto analyst John Casesa, in a research report issued last month, said Lexus will be putting out coupe and convertible versions of the IS in addition to the sedan.
Going from less than 1,000 sales a month to 40,000 a year is a ``very, very high'' target, and one that Nerad said Lexus might have trouble reaching.
That's especially true with such strong competitors as the 3-Series, Mercedes-Benz C-Class, Infiniti G35 and others.
One key, Colon said, is the continuing growth of affluence in the United States. Luxury-car sales, which used to represent just 8 percent to 10 percent of the market, now account for 12 percent, and that number is growing.
Lexus will be targeting technology-savvy young buyers, Colon said, describing them as ``aspirational sport consumers.'' Marketing for the new car will focus strongly on the Internet.
One innovative plan, which launched this week, is to form a mosaic of the new IS from photographs submitted online by potential buyers. The car and those photos will not only show up on the Web but also on an electronic billboard in New York's Times Square.
``For these consumers,'' Colon said, the Internet is ``how they are entertained, how they do business, how they socialize, how they winnow down their purchase decisions.''
Colon said Toyota is "going to look" at adding coupe and wagon versions to the IS lineup. Merrill Lynch auto analyst John Casesa, in a research report issued last month, said Lexus will be putting out coupe and convertible versions of the IS in addition to the sedan.
http://www.ledger-enquirer.com/mld/m...e/12309512.htm
Posted on Fri, Aug. 05, 2005
New Lexus: IS it enough?
AUTOMAKER TRIES AGAIN VS. BMW 3-SERIES WITH IS 350, IS 250
By Matt Nauman
Mercury News
When Lexus introduced the IS 300 in 2000, it said the edgy sports sedan would attract young, male buyers who might otherwise opt for a BMW 3-Series.
It did, but not too many of them.
Lexus executives predicted they would sell 24,000 IS models a year. Sales neared that in 2001 (22,486), but they've been dropping ever since. In 2004, Lexus dealers sold fewer than 10,000 IS 300 sedans and wagons. BMW dealers sold more than 100,000 3-Series models.
It's not a totally fair comparison as Lexus also sells the ES 330, a more conservative sedan that's also in the near-luxury segment with its around-$30,000 price range.
Still, there's no doubt the IS 300 didn't put much of a scare into BMW.
So, come October, Lexus will try again.
This time, it will offer something more and something different. The more is the 2006 IS 350, which will have a segment-leading 306 horsepower from its 3.5-liter V-6 engine.
The different is the IS 250. It probably will be cheaper than BMW's 325i, and it will come in both rear- and all-wheel-drive variants.
What IS owners want, said Jim Colon, the brand's vice president of sales and dealer development, ``is stronger, bolder styling and a heavier dose of performance without compromising the core values of what makes a Lexus a Lexus.''
The new IS 250 and IS 350 models ``will send a loud and clear message to our competitors,'' Colon said in Napa last month at a media introduction.
Jack Nerad, editorial director of Kelley Blue Book's www.kbb.com Web site, was impressed after driving the new models. But he questioned whether they truly will compete with the BMW 3-Series.
``That's a tough bar to try to reach,'' he said. ``I think they've come close to that bar. My personal impression is they're not quite at that bar. I think the car will probably appeal to Lexus buyers more so than the BMW buyer.''
Longer, wider
The car is built in Japan on platforms modified from the larger GS sedans. The new IS is longer and wider with a longer wheelbase than the previous model. Both engines are new. So are the car's suspension systems and brakes.
The rear-wheel-drive IS 250 comes with a 204-horsepower, 2.5-liter V-6 engine and either a six-speed manual or automatic transmission. The IS 250 AWD comes with the same engine, all-wheel-drive and a six-speed automatic with steering-wheel-mounted paddle shifters.
The rear-wheel IS 350 has a 306-horsepower, 3.5-liter V-6 and a different six-speed automatic.
With the IS 350, Colon said, ``we have taken dead aim at class-leading performance.'' The car will go from 0 to 60 mph in 5.6 seconds and have a top speed of 142 mph. The 2005 IS 300 with its 215-horsepower in-line six-cylinder and manual transmission could get to 60 mph in 6.8 seconds.
Colon insists the first-generation IS, sold from the 2001 to 2005 model years, was a success for Lexus.
It attracted young buyers with a median age of 29 vs. 39 for a median 3-Series buyer. In fact, only one other vehicle, the tC from Toyota's youth-oriented Scion division, has younger buyers than the IS, Colon said. It also attracted new people to Lexus showrooms -- 90 percent of IS 300 buyers were first-time Lexus owners.
Still, Colon said, the original IS ``did not have the true characteristics of what makes a Lexus.'' It was sporty, but not sporty enough. It was fun, and it offered the Lexus name and dealer network, but wasn't luxurious enough.
This time around, the IS models will have roomier, classier interiors highlighted by Optitron chronometer-like gauges. Eight air bags, a 13-speaker audio system and a six-disc in-dash CD changer are standard fare.
Options, although much is standard on the top-line IS 350 model, include 18-inch wheels, leather seats, 10-way adjustable front seats, a power moonroof, a navigation system and a 14-speaker, 300-watt Mark Levinson audio system.
Prices won't be announced until closer to the car's October sale date, but Colon vowed it would be ``the best value in the segment.'' The 2005 IS 300 sedan and SportCross hatchback wagon sells for $30,280 to $31,650. The 2006 BMW 325i and 330i sedans sell for $30,995 to $36,995.
Other new models
The introduction of the IS this fall will conclude a busy year for Lexus, which hadn't introduced a new car in several years before launching the GS sedans in the spring. It also started selling its first hybrid, the RX 400h sport-utility, in midyear.
Toyota, which owns the Lexus brand, will sell the new IS in Europe, Asia and North America.
Colon said Toyota is ``going to look'' at adding coupe and wagon versions to the IS lineup. Merrill Lynch auto analyst John Casesa, in a research report issued last month, said Lexus will be putting out coupe and convertible versions of the IS in addition to the sedan.
Going from less than 1,000 sales a month to 40,000 a year is a ``very, very high'' target, and one that Nerad said Lexus might have trouble reaching.
That's especially true with such strong competitors as the 3-Series, Mercedes-Benz C-Class, Infiniti G35 and others.
One key, Colon said, is the continuing growth of affluence in the United States. Luxury-car sales, which used to represent just 8 percent to 10 percent of the market, now account for 12 percent, and that number is growing.
Lexus will be targeting technology-savvy young buyers, Colon said, describing them as ``aspirational sport consumers.'' Marketing for the new car will focus strongly on the Internet.
One innovative plan, which launched this week, is to form a mosaic of the new IS from photographs submitted online by potential buyers. The car and those photos will not only show up on the Web but also on an electronic billboard in New York's Times Square.
``For these consumers,'' Colon said, the Internet is ``how they are entertained, how they do business, how they socialize, how they winnow down their purchase decisions.''
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