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Is Lexus creating a competition to its own RX?

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Old May 21, 2014 | 03:26 PM
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Originally Posted by RX330inFL
Agreed. And with the nearly 3700 lb. Avalon and ES hybrids getting 40/39 MPG numbers there is hope the NX hybrid will approach those values with no more than a 10% aerodynamics penalty for being a SUV. If Lexus pulls it off these will move off the lots in droves. Only time will tell.
Won't be anywhere close to 40/39
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Old May 21, 2014 | 03:34 PM
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Originally Posted by ngerstman
I saw the new nx at the auto show. I thought that it looked nice enough but was disappointed in the horse power. Just not competitive with luxury vehicles in this class whether it be the Acura rdx, the Audi q5, the Mercedes or the BMW. The right amount of power is one of those things that make a vehicle fun to drive. It would keep me from buying one. Lexus has a habit of always coming up short in that area. Very disappointed!!! Regards. Ned.
Comparing 4 cylinder to 4 cylinder the NX is on par/higher than most. The RDX is not competition as it has all the technology of a 2004 RX 330 with none of the luxury. The SUVs with 6 cylinders above do outpower the 4 cylinder NX.

I feel Lexus will go with a 3 CUV fight instead of just one with the RX. Now the thing people might ask themselves is why would they do that since the RX sells so well currently. The key word is currently and with more and more competition biting all around the RX and at the RX, Lexus needs to have an action plan. There is too much support to keep the RX a 5 seater, a 7 seater just changes styling completely.

My assumption is while RX sales will decline some, the overall SUV picture will increase. Lets say as an example they average around 7k RX's a month and with the 3 SUV attack the RX goes down to 5k a month but the NX and TX add another 5k. Well they gained 3k units. I assume Toyota is brilliant enough to not let the additional units mean less margins and overall profit.

Or maybe the RX goes 7 seater and its just 2 SUVs.
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Old May 21, 2014 | 03:50 PM
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With the NX, rather than loosing sales to the Q5, X3, RDX, GLK etc. In the segment they'll capture sales that might have gone elsewhere.
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Old May 21, 2014 | 03:55 PM
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Lexus I believe expects to sell 2400 units a month of the NX. To me that is is car that can sell 4500 units a month. The small CUV market has exploded. I think the NX will not just add units to Lexus but also directly impact direct and indirect competitors head on.

Same with a 7 seat potential RX/TX. The MDX and JX don't have a true Lexus to compete with (GX is a true off-roader more RR). A Lexus car based 7 seater completely changes this market. This includes the X5, Enclave etc.

If Lexus manages the NX and 7 seater like they did the RX, we are talking 2 killers in each segment and I don't see them getting it wrong.
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Old May 21, 2014 | 04:20 PM
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Originally Posted by lamar411
I have a feeling that the mahority of people who are buying in this segment really dont care about horsepower. As long as it moves when they push the pedal, it will sell.
Even if that's the case, they aren't going to put out a product intended for more passengers that has less hp than their 5-passenger CUV. I wonder if they'll bump the RX up to 7-passengers, and make the NX 5-passengers.
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Old May 21, 2014 | 04:30 PM
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Is Lexus creating a competition to its own RX?
In terms of losing overall RX sales sure it's possible, but the addition of the NX and a 7 seat ?X Lexus CUV gives prospective Lexus buyers more choice and they stick with Lexus rather than go to someone else. Lexus wins.

Why are people so enarmored with the RX losing sales? Who cares if it does or doesn't, it is a great vehicle nonetheless. Unlike other makes who are plugging holes or creating niches just because, Lexus builds cars with purpose. Lexus realized they need a SUV that is smaller than the RX. Natural progression has led it to be 7" longer than the original RX300. The NX picks up where the RX left off, and now it no longer has to straddle. Lexus also knows that the GX is a niche a there is room for a 7-Seat CUV wether or not it is a RX or TX doesn't matter. Lexus realizes need for change and that's what we're getting
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Old May 21, 2014 | 05:11 PM
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Originally Posted by tex2670
I wonder if they'll bump the RX up to 7-passengers, and make the NX 5-passengers.
as the OP clearly says, RX wont be 7 passengers, it will be new SUV called TX.

I dont see how that leads to 10 other members saying how its cool that RX might be 7 seater :-)

With Lexus officials claiming they got larger 7 seater in development and that they dont care if it takes from RX sales, I think it is pretty clear that TX will be separate vehicle and not an variant of RX.

So you will have:
NX - "small sporty SUV" (X3/GLK/Q5)
RX - "luxury midsize SUV" (X5/ML)
TX - "large SUV"

I still think GX is going to go away, because while LX sells well and outsells LS worldwide, GX does not. With addition of TX, and more upscale RX, not sure whats the thought process on GX.

Unless they are planning to rework it significantly to push it in gulf countries where LX and LC sell great... Lexus and overall car sales there are expanding, so it does make sense.

Last edited by spwolf; May 21, 2014 at 05:18 PM.
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Old May 21, 2014 | 05:17 PM
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Originally Posted by LexFather
Lexus I believe expects to sell 2400 units a month of the NX. To me that is is car that can sell 4500 units a month. The small CUV market has exploded. I think the NX will not just add units to Lexus but also directly impact direct and indirect competitors head on.

Same with a 7 seat potential RX/TX. The MDX and JX don't have a true Lexus to compete with (GX is a true off-roader more RR). A Lexus car based 7 seater completely changes this market. This includes the X5, Enclave etc.

If Lexus manages the NX and 7 seater like they did the RX, we are talking 2 killers in each segment and I don't see them getting it wrong.
Yes, I also dont understand the 2400 unit goal, unless the pricing is outrageous... it will easily be the double of that.

As to TX and RX, while RX sales might go down 10% or stagnate, overall sales of both vehicles will likely go up 30-40%.

This is similar to many other models, for instance in Japan, we had introduction of Prius Alpha. People thought it would bring Prius sales down - and it did, by some 10%... however, it doubled overall sales because it attracted customers who would not have purchased Prius.
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Old May 21, 2014 | 05:20 PM
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Originally Posted by spwolf
as the OP clearly says, RX wont be 7 passengers, it will be new SUV called TX.

I dont see how that leads to 10 other members saying how its cool that RX might be 7 seater :-)

With Lexus officials claiming they got larger 7 seater in development and that they dont care if it takes from RX sales, I think it is pretty clear that TX will be separate vehicle and not an variant of RX.

So you will have:
NX - "small sporty SUV" (X3/GLK/Q5)
RX - "luxury midsize SUV" (X5/ML)
TX - "large SUV"

I still think GX is going to go away, because while LX sells well and outsells LS worldwide, GX does not. With addition of TX, and more upscale RX, not sure whats the thought process on GX.

Unless they are planning to rework it significantly to push it in gulf countries where LX and LC sell great... Lexus and overall car sales there and expanding, so it does make sense.
I've heard that the GX would stay because it's a decent niche as long as the Prado/4Runner are around. The Spindle treatment regained some love for the GX (though it could quickly go away too, LS is a prime example of that). I think they could sell side by side, Toyota does it with the Highlander and 4Runner as similar sized, not to say they won't pull the plug though. Honestly I wish the GX other than a more powerful V8 option would get a diesel option to combat X5 diesel. Guess we'll know more in a few years once the '16 RX is launched what sort of price, size etc.. the TX will be which can shed light on the GX.
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Old May 21, 2014 | 06:13 PM
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Originally Posted by Hoovey2411
I've heard that the GX would stay because it's a decent niche as long as the Prado/4Runner are around. The Spindle treatment regained some love for the GX (though it could quickly go away too, LS is a prime example of that). I think they could sell side by side, Toyota does it with the Highlander and 4Runner as similar sized, not to say they won't pull the plug though. Honestly I wish the GX other than a more powerful V8 option would get a diesel option to combat X5 diesel. Guess we'll know more in a few years once the '16 RX is launched what sort of price, size etc.. the TX will be which can shed light on the GX.
thing is, GX sells "well", only in USA... so if Lexus is making RX nicer, as well as making 7 seater TX, they will have to work really hard on GX to make it sell what it sells right now. It likely means that they would have 3 SUVs around 50k mark, which kind of does not make much sense.

Now, GX that sells well in gulf states, where sales are up by 30% YoY, that does makes sense, and if thats the point of GX, USA might get it just because it is there.

Same like TX would be likely mostly US model, something like ES right now. I dont see TX selling in Japan or Europe.
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Old May 21, 2014 | 06:23 PM
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Originally Posted by spwolf
thing is, GX sells "well", only in USA... so if Lexus is making RX nicer, as well as making 7 seater TX, they will have to work really hard on GX to make it sell what it sells right now. It likely means that they would have 3 SUVs around 50k mark, which kind of does not make much sense.

Now, GX that sells well in gulf states, where sales are up by 30% YoY, that does makes sense, and if thats the point of GX, USA might get it just because it is there.

Same like TX would be likely mostly US model, something like ES right now. I dont see TX selling in Japan or Europe.
pretty sure the ES sells in China and has rear controls lol

There may be overlap but then Toyota is no stranger to that, having the Rav4, FJ Cruiser (defunct), Venza, Highlander, 4Runner, Sequoia and Land Cruiser
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Old May 21, 2014 | 06:43 PM
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one thing about benchmark vehicles, is very hard to steal sales from them,(3 series, S-class & RX etc)
but the TX (aka highlander stretch) is going to kill the GX off for sure
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Old May 21, 2014 | 06:55 PM
  #28  
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Originally Posted by Hoovey2411
pretty sure the ES sells in China and has rear controls lol

There may be overlap but then Toyota is no stranger to that, having the Rav4, FJ Cruiser (defunct), Venza, Highlander, 4Runner, Sequoia and Land Cruiser
TX will likely sell in China as well :-).
They like them big over there, remember how 3/5, A4/A6 have stretched versions there.

Rav4, FJ, Venza, Highlander, 4Runner all make a lot more sense than RX, TX, GX.

But again, if they make a case for it in Gulf states, then GX might live on in the USA as well... right now, it does not sell well in the Gulf though.
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Old May 29, 2014 | 09:25 AM
  #29  
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Default Smart move

Originally Posted by markrivers
I Actually like what BMW did with the X5.
If you want 3rd row seat, it's optional.

If im not mistaken, Nissan pathfinder is doing the same thing.
You can choose 5 or 7.
Yes I agree that this is a smart move by BMW.
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Old May 29, 2014 | 09:49 AM
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I agree with RickC that bigger isn't necessarily better.
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