GS - Supply and Demand

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Mar 6, 2007 | 10:49 PM
  #1  
For many weeks now, my local Silicon Valley dealer has a lot filled with three dozen new ISs but not a single new GS. With 2 or 3 at any given time, there are even more new LSs avialable.

Since we are pretty close to where the cars come in from Japan, this leads to me to begin thinking that maybe we won't be seeing any more shipments of 2007 GSs. Maybe the 2008 GSs will come sooner than we think. The empty lot (GS-wise) must/might/could mean something.
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Mar 7, 2007 | 04:27 AM
  #2  
Yeah, you are not the first one to notice that. We have a similar situation here on East Coast as well. Makes you wonder? When you read Toyota/Lexus sales reports every month, you can see how consistently sales of GS350 declining. It makes you feel like Lexus is concentrating all of their resources on ES350 and RX350 production (their hot sellers) while cutting down on GS production?
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Mar 7, 2007 | 07:05 AM
  #3  
2008 wont be here until the fall for sure. hope you are right that they could be ramping up es350 production, cause we deperately need es product!!!
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Mar 7, 2007 | 09:20 AM
  #4  
I said this 2 months ago!
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Mar 7, 2007 | 12:49 PM
  #5  
@purebliss: Yes, you did! I'm just confirming that since nothing really changed in terms of increase of GS stock. The only change I've seen is decrease in residual value to make leasing more unattractive

@jj: this is just a common sense with ES ramp up. I guess, they are increasing sales/profit with quantity instead of quality? Hey, the more ES350 they are going to make and to sell, the smaller percent of buybacks and tranny replacement going to look I sure hope tranny problem has been resolved!!!
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Mar 7, 2007 | 03:14 PM
  #6  
The 1 thing about lexus is they refuse to have a lot of stock build up. So with the GS they knew the leases are going to only get worse so instead of having a lot of GS's on a dealers lot they decided to cut production almost 3 months ago. They would rather have less then to sell them below cost. It's kinda smart when you think of it. Besides now dealers are getting almost sticker for a GS where months ago they maybe would make 2 grand on the car. Since I am in the northeast we have 2 of the largest dealers in the country Ray catena and Prestige and both are going crazy that they have no cars for almost 2 months. The one dealer prestige which is a real bad dealership, it's more like a factory and they just rip people off and pist them off enough that we hear it. Their GM has even told my rep he is going to go above her to contact headquaters if he doesn't get any on his next allocation. Guess they will not get anything now. This how crazy it is becoming. No more LS's now GS's is the big thing lol. I tell you this if you have a GS in good shape trade it in and I bet you get a good price for it because the dealers will love to get one to sell as used. You can always sell it and then wait to 08 and get the new stuff. They will always buy your car even if your not buying a new one.
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