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LF-A will debut in Tokyo...Details Oct 21st...

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Old Oct 1, 2009 | 11:47 AM
  #241  
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If anything, Lexus might want to under produce the LF-A on purpose. The LF-A was never design to make a profit, it is design to gain market share of Lexus' other models. The more exclusive the car is, the more of a Halo effect it has.
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Old Oct 1, 2009 | 11:53 AM
  #242  
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Originally Posted by The G Man
That is one thing we all can agree on, it will be a very exclusive group of owners. Does anybody know how many LF-A Lexus will make a year? Their biggest mistake would be to over produce this car.
It sounds like you just started to follow the LF-A news a few days ago, since the almost-confirmed rumor of a limited production run of 500 units for the LF-A has been around for a while now. It certainly looks like Lexus is going to "under-produce" the LF-A to maintain its exclusivity (and to justify its rumored $500k price tag) if all rumors are true.

Last edited by Mister Two; Oct 1, 2009 at 12:14 PM.
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Old Oct 1, 2009 | 12:09 PM
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Originally Posted by encore888
The original LS 400 cost over $1 billion (in the 1980's) to develop, which is several billion today...it was $500 million for the 1UZ-FE engine....I wonder how much for the LF-A, its V10, etc...?
I haven't seen or heard exact figures, but surely the cost of the LF A project to date is way over $1 Billion. It's likely to be in the range of several billion dollars once the car goes on sale and development is completed. What I do know however is that the LF A project budget has skyrocketed WAY past original budget expectations and projections. With this project of course, that is not an issue since Toyota has no specific time or money limits on the project. Coincidentally, the original LS project never had any time or money limits on it either.
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Old Oct 1, 2009 | 12:16 PM
  #244  
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Athough both the LS and the LF-A projects are expensive, there were a lot more at stake with the LS project. The LS was going to propel Lexus to the top of the Japanese luxury market or sink Toyota deeply into the red. The LF-A project, fail or secceed will noy make or break Toyota.
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Old Oct 1, 2009 | 12:21 PM
  #245  
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Originally Posted by The G Man
Athough both the LS and the LF-A projects are expensive, there were a lot more at stake with the LS project. The LS was going to propel Lexus to the top of the Japanese luxury market or sink Toyota deeply into the red. The LF-A project, fail or secceed will noy make or break Toyota.
The LF A *might* make or break Toyota in terms of having a more sporty image/reputation, and in terms of Lexus being more prestigious.
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Old Oct 1, 2009 | 12:29 PM
  #246  
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Originally Posted by The G Man
If anything, Lexus might want to under produce the LF-A on purpose. The LF-A was never design to make a profit, it is design to gain market share of Lexus' other models. The more exclusive the car is, the more of a Halo effect it has.
In this economy, no one is even remotely trying to under-produce. That is pure speculation and beyond unfounded. AS MisterTwo stated the number 500 for a production run has been stated for a long time and that is not unusual number for an exotic.

If the LF-A sold 2000 cars its still "Exclusive".
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Old Oct 1, 2009 | 12:33 PM
  #247  
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Even if it produced 10,000 cars worldwide it would still be quite exclusive. However, I think we're overexpecting here. Perhaps Lexus will produce these in limited quantity for the first few years and then make it a special-order type deal like the GT-R and the V10 R8. I honestly don't see the point in spending billions of dollars in development only to produce 500 units. Even if they sell these 500,000 at the dealership, they'll only make $250 million and that's not pure profit.

For someone who is in the field of business such as myself this is nowhere near financially viable, even if it is only to bring up the brand image.
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Old Oct 1, 2009 | 12:44 PM
  #248  
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Originally Posted by FisforFast
Even if they sell these 500,000 at the dealership, they'll only make $250 million and that's not pure profit.
500,000 x $500,000 = $250,000,000,000 That's $250 billions, not millions.

If they do sell only 500 units though, that'll be $250 millions in sales at obvious loss indeed.

Last edited by Mister Two; Oct 1, 2009 at 12:47 PM.
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Old Oct 1, 2009 | 12:52 PM
  #249  
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I think its a great sign though that even if (and it will) it sells at a loss, it was still produced. Toyota hasn't done that in a loooooooooooong time. This is about passion and trying to produce the best sports car. Hell the NSX lost 800 million or so for Honda and that car is a LEGEND.

Hopefully the "halo" will shine down on other vehicles that can be profitable.

Who knows, maybe its a 20th anniversary present for Lexus.

Maybe it will be the new Corolla GTS
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Old Oct 1, 2009 | 02:57 PM
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Originally Posted by 1SICKLEX
I think its a great sign though that even if (and it will) it sells at a loss, it was still produced. Toyota hasn't done that in a loooooooooooong time. This is about passion and trying to produce the best sports car. Hell the NSX lost 800 million or so for Honda and that car is a LEGEND.

Hopefully the "halo" will shine down on other vehicles that can be profitable.

Who knows, maybe its a 20th anniversary present for Lexus.

Maybe it will be the new Corolla GTS
not sure, look at all the small volume lexus cars lately - from hybrids to HS250h... they obviously found an way to produce low volume cars at profit....
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Old Oct 1, 2009 | 03:29 PM
  #251  
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Originally Posted by spwolf
not sure, look at all the small volume lexus cars lately - from hybrids to HS250h... they obviously found an way to produce low volume cars at profit....
Indeed...and here's hoping...I can just smell the coupes, the niche models...

Please bring an SC to bridge the gap between IS-C and LF-A!
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Old Oct 1, 2009 | 05:51 PM
  #252  
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Originally Posted by 1SICKLEX
I think its a great sign though that even if (and it will) it sells at a loss, it was still produced. Toyota hasn't done that in a loooooooooooong time. This is about passion and trying to produce the best sports car. Hell the NSX lost 800 million or so for Honda and that car is a LEGEND.

Hopefully the "halo" will shine down on other vehicles that can be profitable.
Not a great sign at all if they do not have other more affordable Lexus coupes/convertibles added to their line-up.
No, just the IS-F and the GS-F won't do at all, sports sedans are NOT real sports cars. They need more sport coupes/verts period - new SC, with F model variation, a real IS/IS-F coupe and they should have a GS/GS-F coupe too, & preferably another smaller, dedicated sports model too. Otherwise all this "halo" effect the LF-A is supposed to have will mostly be wasted.

It is still very unclear to me whether they are going ahead and build the LF-A production car only because they have already spent too much time & money on the LF-A, & not that they are really interested in putting more effort to offer more sports/sporty models in their line-up.

Last edited by Gojirra99; Oct 1, 2009 at 05:56 PM.
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Old Oct 1, 2009 | 07:13 PM
  #253  
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Originally Posted by Gojirra99
It is still very unclear to me whether they are going ahead and build the LF-A production car only because they have already spent too much time & money on the LF-A, & not that they are really interested in putting more effort to offer more sports/sporty models in their line-up.
Yes indeed, it's a mystery. However, a lot of us have hopes for Akio Toyoda, without whom the LF-A would've been cancelled and gone a while back (like the NSX II). In the NY Times (profile) a while back, Akio 'frequently' calls Lexus USA's Mark Templin to discuss Lexus plans. And in June, Yoshimi Inaba, head of Toyota N America, (quoted) "there is not enough excitement in our vehicles" and was seeking "to figure out what is Lexus here in the U.S. ... and what is the next phase of Lexus..." It's a possible clue, although he said ""I'll be careful to choose my words," and that he was under the direct orders of Akio to examine their current product strategy.

Still, talk is cheap. Action speaks volumes. So far they haven't committed to anything specific, but I'm guessing the first step is the reveals at the Tokyo Motor Show...LF-A, "Toyobaru" coupe, LS 460 Sport model...Mark Templin didn't deny the possibility of an IS-F coupe, only said that they are "studying" it...but I'm guessing it will require some patience.
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Old Oct 1, 2009 | 07:17 PM
  #254  
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Originally Posted by Gojirra99
Not a great sign at all if they do not have other more affordable Lexus coupes/convertibles added to their line-up.
No, just the IS-F and the GS-F won't do at all, sports sedans are NOT real sports cars. They need more sport coupes/verts period - new SC, with F model variation, a real IS/IS-F coupe and they should have a GS/GS-F coupe too, & preferably another smaller, dedicated sports model too. Otherwise all this "halo" effect the LF-A is supposed to have will mostly be wasted.

It is still very unclear to me whether they are going ahead and build the LF-A production car only because they have already spent too much time & money on the LF-A, & not that they are really interested in putting more effort to offer more sports/sporty models in their line-up.
Good points and I would agree IF we didn't have a new CEO who seemingly is determined to give Toyota its ***** back.

My bet, I'm trying to be ready for the onslaught of products that I HOPE is coming...
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Old Oct 1, 2009 | 07:59 PM
  #255  
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Originally Posted by Gojirra99
Not a great sign at all if they do not have other more affordable Lexus coupes/convertibles added to their line-up.
No, just the IS-F and the GS-F won't do at all, sports sedans are NOT real sports cars. They need more sport coupes/verts period - new SC, with F model variation, a real IS/IS-F coupe and they should have a GS/GS-F coupe too, & preferably another smaller, dedicated sports model too. Otherwise all this "halo" effect the LF-A is supposed to have will mostly be wasted.

It is still very unclear to me whether they are going ahead and build the LF-A production car only because they have already spent too much time & money on the LF-A, & not that they are really interested in putting more effort to offer more sports/sporty models in their line-up.
Still not sold on a GS coupe, as I really don't see the point, but I agree, An IS/IS F coupe, New SC and maybe even a Z4/SLK type coupe are way overdue in the Lexus camp. An SC F will fill the gap nicely between an SC460 and the LF-A
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