Lexus enjoys European sales boom
#1
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Lexus enjoys European sales boom
http://www.bbc.co.uk/news/business-17219546
Nice article, clearly shows that the CT is a huge hit there too and that Lexus hopefully is seeing that they can produce a car for Europe that will be loved here and everywhere. I hope they continue to improve in Europe by offering smaller cars and engines along with the other improvements (higher quality, sportier, more tech etc).
Nice article, clearly shows that the CT is a huge hit there too and that Lexus hopefully is seeing that they can produce a car for Europe that will be loved here and everywhere. I hope they continue to improve in Europe by offering smaller cars and engines along with the other improvements (higher quality, sportier, more tech etc).
There are times when changing one's appearance offers the best route to fame and fortune.
Japanese luxury carmaker Lexus certainly hopes it will do wonders for its sales, which are expected to surge this year.
Last year, sales in Europe rose 40% to just over 43,000 cars, says Andy Pleiffenberger, vice president of Lexus Europe.
And this year they should rise above 50,000, even as the broader luxury market stays pretty flat in western Europe.
Much of the current success is driven by new, smaller models and by new engines that have made its larger models more fuel-efficient.
But the carmaker's new look, which incorporates a distinct new grille shaped like a spindle, is also driving sales.
"Our competitors - Mercedes, BMW and Audi - are all instantly recognisable on the road," Lexus chief Kiyotaka Ise said during the launch of the carmaker's new face in January. "That's what we're going for."
Not good enough
The fresh start is certainly welcome for Lexus Europe. Though strong at the moment, it has taken the carmaker some four years to bounce back from a slump in sales.
Two things happened, Mr Pleiffenberger recalls. In 2008, the economic crisis, which hit all carmakers to varying degrees, coincided with stricter emissions legislation that encouraged downsizing.
The consequences were as sudden as they were painful for Lexus, with many customers simply rejecting its products because they were not good enough.
"Some of our products became a bit marginalised," Mr Pleiffenberger acknowledges.
"Even with the RX400h [petrol-electric hybrid sports utility vehicle], carbon dioxide figures were a bit high at the time," he says, pointing to how fleet buyers, or so-called "user-choosers", have to stick to cars that meet strict emissions and fuel consumption criteria.
'Big game changer'
The model that should help fix the problem is unveiled at the Geneva motor show this week.
The CT 200h made up almost half of all Lexus Europe's sales last year
With the new RX 450h SUV, Lexus has managed to push CO2 emissions below 150g/km, thus getting it back on the company car buyers' lists.
"But the big game changer for us was the introduction of the CT 200h," Mr Pleiffenberger says.
Lexus Europe sold almost 17,000 of the hatchback last year - not far short of half its total - attracting droves of new customers to the marque.
Many of them were previous Toyota customers who wanted to trade up to a premium brand, Mr Pleiffenberger says, pointing out that too many of them are still buying cars from German rivals such as Audi, BMW and Mercedes.
Big in America
The target shows Toyota's desire to bounce back to growth in 2012”
Paul Newton
IHS Global Insight
The challenges facing Lexus in Europe contrast with the marque's strong position in the US market.
Last month, Lexus topped the latest JD Power Vehicle Dependability Study, ahead of Porsche and Cadillac.
And the brand is planning to launch nine new models in the US during this year and next, hoping to regain its position as the best-selling luxury car company there.
(Last year, Lexus was distracted by the 11 March earthquake and tsunami in Japan and the September floods in Thailand. The natural disasters caused severe parts shortages that hit Lexus' production capacity, so the US sales crown was lost to BMW for the first time in more than a decade.)
Global growth
Lexus' ambitions extend well beyond the US market, however.
The carmaker is gunning for global sales of 510,000 vehicles this year, up from 404,000 last year.
For parent company Toyota, the ambitions also extend well beyond the Lexus brand.
The automotive giant is aiming for similarly strong growth rates for all its brands, which also include small car producer Daihatsu and truck maker Hino, in large part thanks to subsidies in its home market that make eco-friendly cars cheaper for Japanese consumers.
Overall, Toyota is aiming for sales to top 9.5 million vehicles this year. Last year, sales dipped 6% to just less than eight million vehicles, less than both General Motors and Volkswagen Group.
"The target shows Toyota's desire to bounce back to growth in 2012 after battling natural disasters, currency fluctuations and global uncertainty in 2011," observes Paul Newton, industry analyst with IHS Global Insight.
The mid-term goal, according to Toyota Europe's chief executive Didier Leroy, is to sell more than a million cars around the world.
Japanese luxury carmaker Lexus certainly hopes it will do wonders for its sales, which are expected to surge this year.
Last year, sales in Europe rose 40% to just over 43,000 cars, says Andy Pleiffenberger, vice president of Lexus Europe.
And this year they should rise above 50,000, even as the broader luxury market stays pretty flat in western Europe.
Much of the current success is driven by new, smaller models and by new engines that have made its larger models more fuel-efficient.
But the carmaker's new look, which incorporates a distinct new grille shaped like a spindle, is also driving sales.
"Our competitors - Mercedes, BMW and Audi - are all instantly recognisable on the road," Lexus chief Kiyotaka Ise said during the launch of the carmaker's new face in January. "That's what we're going for."
Not good enough
The fresh start is certainly welcome for Lexus Europe. Though strong at the moment, it has taken the carmaker some four years to bounce back from a slump in sales.
Two things happened, Mr Pleiffenberger recalls. In 2008, the economic crisis, which hit all carmakers to varying degrees, coincided with stricter emissions legislation that encouraged downsizing.
The consequences were as sudden as they were painful for Lexus, with many customers simply rejecting its products because they were not good enough.
"Some of our products became a bit marginalised," Mr Pleiffenberger acknowledges.
"Even with the RX400h [petrol-electric hybrid sports utility vehicle], carbon dioxide figures were a bit high at the time," he says, pointing to how fleet buyers, or so-called "user-choosers", have to stick to cars that meet strict emissions and fuel consumption criteria.
'Big game changer'
The model that should help fix the problem is unveiled at the Geneva motor show this week.
The CT 200h made up almost half of all Lexus Europe's sales last year
With the new RX 450h SUV, Lexus has managed to push CO2 emissions below 150g/km, thus getting it back on the company car buyers' lists.
"But the big game changer for us was the introduction of the CT 200h," Mr Pleiffenberger says.
Lexus Europe sold almost 17,000 of the hatchback last year - not far short of half its total - attracting droves of new customers to the marque.
Many of them were previous Toyota customers who wanted to trade up to a premium brand, Mr Pleiffenberger says, pointing out that too many of them are still buying cars from German rivals such as Audi, BMW and Mercedes.
Big in America
The target shows Toyota's desire to bounce back to growth in 2012”
Paul Newton
IHS Global Insight
The challenges facing Lexus in Europe contrast with the marque's strong position in the US market.
Last month, Lexus topped the latest JD Power Vehicle Dependability Study, ahead of Porsche and Cadillac.
And the brand is planning to launch nine new models in the US during this year and next, hoping to regain its position as the best-selling luxury car company there.
(Last year, Lexus was distracted by the 11 March earthquake and tsunami in Japan and the September floods in Thailand. The natural disasters caused severe parts shortages that hit Lexus' production capacity, so the US sales crown was lost to BMW for the first time in more than a decade.)
Global growth
Lexus' ambitions extend well beyond the US market, however.
The carmaker is gunning for global sales of 510,000 vehicles this year, up from 404,000 last year.
For parent company Toyota, the ambitions also extend well beyond the Lexus brand.
The automotive giant is aiming for similarly strong growth rates for all its brands, which also include small car producer Daihatsu and truck maker Hino, in large part thanks to subsidies in its home market that make eco-friendly cars cheaper for Japanese consumers.
Overall, Toyota is aiming for sales to top 9.5 million vehicles this year. Last year, sales dipped 6% to just less than eight million vehicles, less than both General Motors and Volkswagen Group.
"The target shows Toyota's desire to bounce back to growth in 2012 after battling natural disasters, currency fluctuations and global uncertainty in 2011," observes Paul Newton, industry analyst with IHS Global Insight.
The mid-term goal, according to Toyota Europe's chief executive Didier Leroy, is to sell more than a million cars around the world.
#3
Lexus Champion
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It's not like they didn't know what was needed. The slow sales of their larger cars is completely understandable when all their major competitors were offering smaller diesel engine options and all Lexus had were gas guzzling petrol versions. Gee, wonder why the GS and LS aren't competing well with the E and S or the 5 and 7. The CT finally offered a fuel miserly option with the Lexus quality people know in a land where a gallon of gas can top $10.
#4
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That's great that Lexus is growing in Europe thanks to the CTh. Too bad the HS wasn't a hit there. Hopefully the ES 300h will help Lexus futher grow in Europe as well...
#5
Lexus Fanatic
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50k for a year is better than the past of course, but still peanuts. but good for lexus! and the point about the rx450h being good for company cars is huge.
#6
#7
Heck RX300h would sell great too.
Having ES300h, IS300h and RX300h would double Lexus sales in Europe to 100k.... for anything else, they need to expand their dealer network that is really small right now, a lot of smaller countries have only single dealer and obviously you cant sell many cars like that.
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#9
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#10
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Lexus is keenly aware and have stated they are not going to be a high volume luxury brand in Europe since Lexus won't offer the vast array of micro/entry level cars, diesels etc. Lexus is happy to be growing their way with hybrids and I think eventually wants around 100k or so a year in Europe and their piece of the pie. Americans are much more open minded to brands, there is no way Lexus will suddenly compete with BMW/Audi/Benz anyway for top sales.
Make a CT coupe!
Make a CT coupe!
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In Europe, most cars above 20k are purchased by companies for tax benefit reasons... and in many countries, level of tax is dependent by CO2 levels, which are directly tied to consumption.
Heck RX300h would sell great too.
Having ES300h, IS300h and RX300h would double Lexus sales in Europe to 100k.... for anything else, they need to expand their dealer network that is really small right now, a lot of smaller countries have only single dealer and obviously you cant sell many cars like that.
Heck RX300h would sell great too.
Having ES300h, IS300h and RX300h would double Lexus sales in Europe to 100k.... for anything else, they need to expand their dealer network that is really small right now, a lot of smaller countries have only single dealer and obviously you cant sell many cars like that.
ES would work great here, there's a big gap between the IS250 and the GS450h and fitting in an ES300h/ES250h would be just great. Besides, ES in terms of length (191.1 in), it's longer than the GS (190.7 in) but it's lower priced, so it would fit well for people who want an comfortable car, smooth, big and less sportier than the IS (mostly 40 years-old people)
At this moment Lexus' hybrid cars are just a way to show how "concerned" you are about the environment and being green, since most Lexus hybrid cars sold here are really pricey and they weren't built for fuel saving because you can do the maths, buying a 75k GS450h it's complete nonsense if you want to save fuel.
I wouldn't be so sure about that, we have just seen how did the HS perform in the US. To be honest, the HS wasn't really like a Lexus, the design and styling itself were way different from what the current Lexus' lineup offers, but the engine made sense. That was a fuel saving engine which might have worked here. I believe Lexus wanted to add that engine option to the IS instead of just bringing the HS.
Last edited by asoksevil; 03-09-12 at 12:14 AM.
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Best decision Lexus made in a long time when they introduced the CT. This car was destined to be a big seller in Europe. Lexus now needs to expand on that with other tailored-for-Europe models to become a big player in the European luxury market.
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