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BMW and MB be afraid...

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Old Sep 1, 2006 | 08:23 PM
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Default BMW and MB be afraid...

For my personal selfish ways... I dont like this news being I like exclusive things... but I gotta admit I was jumping for joy when I read this...

Here's what I predicted for the new Lexus IS-series last September...

Agent001 submitted on 09/29/2005 Official Bell & Ross Timestamp: 11:51 PM

No matter what the pundits say (That it is still not as good as a 3-series), AutoSpies.com predicts that within twelve months of its release, the competitors will be wondering what hit them...

It's better looking than the new 3-series or C-Class, fit/finish is outstanding and its performance is excellent.

The unit forecast is over 40k for the first year.

That's more than three times what they sold last year.

And anyone in the car business knows that if you're an executive and you forecast units, you'd BETTER make the number, or you're HISTORY.

All auto execs are famous for being ultra conservative when they forecast (it's called protecting your rear!)so this kind of swagger is unheard of, unless you're POSITIVE you have a winner.

Common sense tells me that if they make the forecast (and we predict they will), then those extra sales gotta come from somewhere.

And that somewhere is from BMW and Mercedes dealerships.

Get ready to see some bloodshed...

And here's what has happened even after all the pundits said I would be wrong...

The new Lexus IS-series is not only on target to meet the initial forecast of 40k units, it's poised to EXCEED it by 40%!!!!

So far this year they have sold 37,347 units.

Based on an average of 4,668 units per month so far, they are poised to sell 56,020 units by the end of the year which would be an increase of 40% over the original forecast!!!
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Old Sep 1, 2006 | 08:41 PM
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My observations, I spot many new paper plated 2IS's then 3 series...still see many C-Class though.
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Old Sep 1, 2006 | 08:43 PM
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I suspect the IS is taking sales from a number of vehicles in this segment...3-series, C-class, TL, G35, etc...
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Old Sep 1, 2006 | 08:55 PM
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Default It's all relative...

If Lexus is meeting (and exceeding) their goals, then that's fine.

However, is BMW or Mercedes reaching their goals in sales? If they are, then they're doing "as well" as Lexus in regards to sales numbers and predictions. If not, then that is when they should get worried...
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Old Sep 1, 2006 | 09:22 PM
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Originally Posted by FrankyJ
For my personal selfish ways... I dont like this news being I like exclusive things... but I gotta admit I was jumping for joy when I read this...
That's actually funny.

Consider the fact that 325i, 325xi, 330i combine to outsell IS250, IS250 AWD, and IS350. 6092 vs 5553.

3 has outsold IS every single month. In addition, considering that the BWM is down in month of august for annual summer break that cuts back on the east cost sales. It still beats IS.

Have you actually look at the numbers?

Quick comparison since introduction.
3 series (3 model) IS (3 model)
8/06 6092 5553
7/06 6057 4848
6/06 7462 4461
5/06 7657 4605
4/06 7949 4715
3/06 7062 5210
2/06 6642 3882
1/06 6604 4073
12/05 7469 4518
11/05 7697 4447

I took out 10/05 sales figure as 2IS was new that month hence data is skewed.

In late Jan to feb, BMW had recall on 3/5 that resulted in cars being delayed at VPC. Hence slight drop in sales. July and August are typical slow month for BMW as BMW prepares and shutsdown for summer vacation. In addition, BMW is also doing E90's mid-life upgrade. I am still suprised that E90 still sold over 6K unit per month. Since 06 E90 production ended in late july and will not resume until 1st week of september.

The 335i/328i E90 won't arrive until October. So I expect to see a dip in september as well as october number for E90 (west coast transit is 3 weeks longer than east coast).

To make statment that BMW needs to be afraid is ignorant as best. However, Mercedes does needs to be worried as C-class is getting killed. But for a old car, it's holding its own against the new IS. It would be more interesting to see what will happen to the IS when new C-class debuts. As the IS competes with C more than it does with the 3.
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Old Sep 1, 2006 | 09:28 PM
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^^^
6092 vs 5553 is very, very close. That's less than 400 vehicles difference.
And remember the 3-series has been around for decades, while the IS is in its second generation. In one year, to go to within striking distance is excellent. Not to mention the IS has been flying off the lots, and is one of the hottest selling vehicles on the market (in terms of dealership arrival-to-sold time). Also take into account discounts and special pricing...
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Old Sep 1, 2006 | 09:41 PM
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Originally Posted by enigma888
^^^
6092 vs 5553 is very, very close. That's less than 400 vehicles difference.
And remember the 3-series has been around for decades, while the IS is in its second generation. In one year, to go to within striking distance is excellent. Not to mention the IS has been flying off the lots, and is one of the hottest selling vehicles on the market (in terms of dealership arrival-to-sold time). Also take into account discounts and special pricing...
Please read carefully. 2006 E90 ended production over a month ago. There isn't simply a lot of choice lef on the lot. Haven't you noticed that there are very few E90 sedan left on the lot. You will see low number at least through october as production for the 07 E90 ramp.

E90 is not sitting on the lot. In fact, E90 sales has increased by 16.7% year over year.

Do you think that with new engine and mid-life upgrade that the E90 will sell at such low level? With much weaker engine and higher retail price, the E90 easily outsold IS by 2 to 3k a month.

Think about it.

Despite what people says about Chris Bangle. His new design is actually doing very well on the market. The new 3 has dominate this market similar to the 5 series. The biggest loser is Mercedes not BMW. Both 5 series and 3 series has captured the market segment lead with ease, which was dominated by mercedes.

The IS has done well at expense of Mercedes and same applies to the 3 series. However, look at the car itself in terms of vehicle dynamic and customer profile. The IS competes much more directly with the C than it does with the 3. That's why even though Is has done well, the 3 sales never suffered and is in fact better than previous 3.

Throwing away summer month in which BMW shuts down for summer vacation. The 3 is doing very very well and totally different than the comment made by the original poster.

Last edited by chiawei; Sep 1, 2006 at 09:46 PM.
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Old Sep 1, 2006 | 09:46 PM
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^^^
Thank you for the information, I can see you know your way around BMW dealerships. However, I would just like to note that all the original poster says is that he is happy his IS is doing well in sales, which is a given. It is the Autospies quote that exaggerates the differences.

Furthermore, you cannot say Bangle is responsible for the 3 series success, indeed since the 3-series is the LEAST Bangle-ized of the BMW vehicles--because they wanted to play it safe to avoid offending the loyal 3 series base.

I have read that the IS is limited by production capacity, they're selling whatever they can put out. I agree that this whole discussion of '3 series killer' is largely academic, as there is room for both in the market. However, it's possible that 3 series sales could have been higher in the long term, had the IS not existed.
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Old Sep 1, 2006 | 09:46 PM
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I hate to say this but wait for next year number. With all new C class, new 3 coupe with bi turbo engine, and new G35 coming out, if IS can hold the 40K sale target number, then we have a winner.
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Old Sep 1, 2006 | 09:52 PM
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Originally Posted by STIG
I hate to say this but wait for next year number. With all new C class, new 3 coupe with bi turbo engine, and new G35 coming out, if IS can hold the 40K sale target number, then we have a winner.
This is a very valid comment. The new C with new focus by DCX on quality will be a big threat to the IS and 3. I think the impact will be more severe on the IS, since lexus/Mecedes customer does overlap and vehicle dynamic will probably be similar as well.

IS has done great, but keep in mind it replaced a unloved IS300 (which i actually think its a better car overall than the 2IS). The 2IS so far really has done nothing against the 3.
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Old Sep 2, 2006 | 12:46 AM
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We shall see. I think the 2IS is a smash, and is by leaps and bounds better than the IS 300. The public also seems to agree.

The 'destroy 3 series' stuff is largely PR and a straw man, I doubt anyone can really dethrone the 3 series except for BMW messing up itself. The TL, G35, etc. all had early goes at it and are successful, but largely on their own. The market is massive, and worthy competitors create their own customer base. But judging the IS simply based on how many 3 series sales goes down is not seeing the big picture.

I further believe the C-class will not bring down IS sales that much, unless Mercedes makes a major shift. I feel the C-class has historically worn the Mercedes badge very poorly. It is indeed the 'poor man's Mercedes' in more ways than the 3-series or IS are entry-level cars of their marques. The C-class may come out looking better, but it will be overshadowed by the rest of the Mercedes lineup in ways that the 3-series and IS are not.
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Old Sep 2, 2006 | 12:52 AM
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Originally Posted by enigma888
^^^
Thank you for the information, I can see you know your way around BMW dealerships. However, I would just like to note that all the original poster says is that he is happy his IS is doing well in sales, which is a given. It is the Autospies quote that exaggerates the differences.

Actually the OP suggested that BMW be afraid as well.

I'm glad the IS is doing well too, but BMW doesn't have anything to worry about as far as sales are concerned.
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Old Sep 2, 2006 | 12:58 AM
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^^^
Right I should have regarded the title as well. BMW is doing well enough, but so is Lexus. After all Lexus has been #1 and BMW a strong #2 in sales this month and this year.
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Old Sep 2, 2006 | 06:23 AM
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What I want to know is, where are those sales coming from? So say the IS had not been replaced, what would the extra 4,000 people have bought each month?

I know for a fact that many of the purchasers would never consider a BMW or MB because they are true believers in Toyota quality - so would the G35 have gotten those sales? And yet, I am sure that some of the sales would have gone to MB and BMW (I know of one of them) and even the G35 - but where would the rest of them have gone?

Freggin mystery -anyone else care to guess? CTS?
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Old Sep 2, 2006 | 11:56 AM
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Originally Posted by doug_999
What I want to know is, where are those sales coming from? So say the IS had not been replaced, what would the extra 4,000 people have bought each month?

I know for a fact that many of the purchasers would never consider a BMW or MB because they are true believers in Toyota quality - so would the G35 have gotten those sales? And yet, I am sure that some of the sales would have gone to MB and BMW (I know of one of them) and even the G35 - but where would the rest of them have gone?

Freggin mystery -anyone else care to guess? CTS?
I think if there is no IS, those four thousands or so sales would get divided into a few obvious choices, such as 3-series, C-class, G35, TSX, and even Lexus GS300. Because I know someone has cross-shopped between GS300 and IS350.
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