Lexus LFA: A lost decade and a sales dud
05-31-11, 08:21 AM
#46
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I am sure there are many people in Japan rooting for Lexus USA not able to sell its allocation, so that they might get a chance at buying this car.
This has always been a price/value issue. To call it anything else is just fodder. The LFA is an amazing car if you VALUE the components that are amazing. If you don't you're not going to be willing to pay the price, no matter how it's promoted. It's been written about over and over again that most think the car is priced about $100k over its value, however all that said, there are still buyers buying it and they obviously think it's a worthy value. If they sell out at $375k, then great, they proved the market exists. It may not be on the ramp they would have preferred, but that's a case of connecting the right buyers with the car. I can go down a long list of cars that were not hot sellers that had impressive numbers, but were still not considered the right value for the market.
It's a cool car, but for reasons that the market may not care about. I love radar cruise, but Lexus told me that customers often don't see the value and therefore fewer cars come with it.
It's a cool car, but for reasons that the market may not care about. I love radar cruise, but Lexus told me that customers often don't see the value and therefore fewer cars come with it.
05-31-11, 08:52 AM
#49
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That happens a lot I'm sure. I think the problem is that so often these large car companies make the mistake of applying their mass market experience on the high end thinking they work the same when the market forces are entirely different. It's only then that they realize that how they thought things would work and how they are working are two different things.
05-31-11, 09:48 AM
#51
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So after the buyer pulled out, they pulled another name from the ballot and it came out to be some guy in Vancouver so that LFA was re-allocated to that guy in Vancouver increasing the Vancouver bound from 5 to 6.
05-31-11, 10:44 AM
#52
Proof of failure of sales?
On January 7, 2011 the Lexus LFA was being showcased Good Day L.A. where Mike Caudill (NADA Guidelines spokesperson) claimed there were only 20 left out of 170 sales units in the U.S. Around that time, several reps claimed numbers hovering around 20 as well. This was almost five months ago.
http://www.myfoxla.com/dpp/good_day_...-gdla-20110107
What we also know is that Lexus will not budge to move sales from U.S. to other parts of the world where there is higher demand.
So at what percentage of units sold before production ends, is it considered a failure?
On January 7, 2011 the Lexus LFA was being showcased Good Day L.A. where Mike Caudill (NADA Guidelines spokesperson) claimed there were only 20 left out of 170 sales units in the U.S. Around that time, several reps claimed numbers hovering around 20 as well. This was almost five months ago.
http://www.myfoxla.com/dpp/good_day_...-gdla-20110107
What we also know is that Lexus will not budge to move sales from U.S. to other parts of the world where there is higher demand.
So at what percentage of units sold before production ends, is it considered a failure?
05-31-11, 10:52 AM
#53
Not to make excuses...and I know the affluent are not affected by the economic downturn we've been facing, but people this day and age are more concerned about getting the best bang for the buck. Sure the LFA is not the best priced super car money can buy at this very moment, but I do know for a fact its a car that will never be understood by the average person...simply because they're just looking at what its worth on paper. Unless they experience the car first hand...which only a handful of us here on CL have done...the whole world will really never know the true value of an LFA.
05-31-11, 11:02 AM
#54
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A common error manufacturers of all products make is when they build something that consumers don't value. The trick is always to create something that is of greater value than consumers expect to pay. While the LFA is a terrific car because of design and features, it may or may not be what consumers want at that price. It doesn't make it good or bad, it just makes it a mismatch. It's still too soon to draw any conclusions. So far Lexus seems to be very close to remaining on production schedule. Time will tell.
05-31-11, 02:09 PM
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If nothing else, the LFA has gotten Lexus a lot of press. Removing the LFA from the equation, Lexus would barely have received any magazine articles/reviews (let alone all the cover stories) in these past few years.
I do wish the LFA was cheaper, but at the same time, I realize tha Lexus ain't making buckets of cash on each one the sell either.
My biggest concern with the LFA was the possible opportunity cost implications its development created. I wonder if things like a 3rd generation SC, a non-converible IS coupe, or even the next GS would be on the road now if the time/resources weren't spent on LFA work.
In the future, I do think Lexus would benefit from keeping the development cycle out of the public's view. Looking back, it did seem like talk of the LFA seemed to go on for quite some time before the final production vehicle was ready. It prematurely opened the door to criticism, and had the effect of making the new car seem older than it actually was upon release.
In my opinion though, the LFA's performance is completely acceptable and the finished product was in no way a waste of Lexus' time. Articles like this one come off as attention-seeking and desperate.
I do wish the LFA was cheaper, but at the same time, I realize tha Lexus ain't making buckets of cash on each one the sell either.
My biggest concern with the LFA was the possible opportunity cost implications its development created. I wonder if things like a 3rd generation SC, a non-converible IS coupe, or even the next GS would be on the road now if the time/resources weren't spent on LFA work.
In the future, I do think Lexus would benefit from keeping the development cycle out of the public's view. Looking back, it did seem like talk of the LFA seemed to go on for quite some time before the final production vehicle was ready. It prematurely opened the door to criticism, and had the effect of making the new car seem older than it actually was upon release.
In my opinion though, the LFA's performance is completely acceptable and the finished product was in no way a waste of Lexus' time. Articles like this one come off as attention-seeking and desperate.
05-31-11, 02:23 PM
#57
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I don't think there was much wrong with the article at all. In fact I thought it was about time someone asked hard questions of sales numbers, something we've not seen. Again, don't fret over it because it doesn't impact sales one way or the other. I think potential owners do their own homework on the car.
The LFA is a very cool car, but it just needs to circulate into the hands of those who write checks for cars in that amount. I am certain had the LFA been in town longer it would have resulted in two or more sales. People were that impressed, but all for different reasons than what you'd expect.
The bigger question is what Lexus will do with the culture once the cars are sold. It's not as simple as some would think. Unless Lexus does something to keep the car special, it will depreciate. Believe it or not 179 cars is a LOT of cars at $400k.
The LFA is a very cool car, but it just needs to circulate into the hands of those who write checks for cars in that amount. I am certain had the LFA been in town longer it would have resulted in two or more sales. People were that impressed, but all for different reasons than what you'd expect.
The bigger question is what Lexus will do with the culture once the cars are sold. It's not as simple as some would think. Unless Lexus does something to keep the car special, it will depreciate. Believe it or not 179 cars is a LOT of cars at $400k.
05-31-11, 02:37 PM
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I think this is a very important point. Some exotic guys just don't want to drive the same thing as everyone else. There are guys in our exotic community that won't buy a F458 because they already think there are too many in the area.
05-31-11, 07:46 PM
#59
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Lets be real here. People who can afford these types of cars are looking for something special and making a special marketing program for this car is kinda silly. It will not draw more prospects in the door as these prospects are very limited. To some prospects this car is still a toyota! This car is an exercise in engineering which in turn will draw interest and prospects for its volume money maker cars hopefully. Thats it really. What I find funny is lexus spent more money advertising and showing this car than Nissan did with the GTR. I have only seen a GTR in a nissan TV spot maybe 2 times and it was not even a spot about the GTR. It was a spot about all Nissans.
Is the LFA special enough? At its price point? Did lexus really do the right thing in its sales process by offering the 2 yr lease thing as most people who own these types of cars are in and out of them quickly? Will the LFA retain its value? or will it fall on its face in resale? Is the 170+units way to much for the US market? Is this car special enough to sway Ferrari, Lambo, Porsche, Aston, etc.. owners over to try this car? This market tough to crack even with a great product.
I dont know but I do feel the car is special with a lot of awesome technology. I honestly feel Lexus missed the price point here and should have offered this car in the 250,000 range with over 1000 world wide. It took over 10 years to get to this point and we will probably never see a pure drivers LFA after this one. Lexus is losing money on every car anyway so why not spread the car out as much as possible. You would hope lexus uses the chassis, technology and engine in other models to help offset development cost but we will see.
I think the journalist had some very good points even if he never sat in one or drove it. Some are true some not. Just because we are Lexus fans, nutswingers........ doesnt mean we should not be in touch with reality and the journalist gave a dose of it.............
Is the LFA special enough? At its price point? Did lexus really do the right thing in its sales process by offering the 2 yr lease thing as most people who own these types of cars are in and out of them quickly? Will the LFA retain its value? or will it fall on its face in resale? Is the 170+units way to much for the US market? Is this car special enough to sway Ferrari, Lambo, Porsche, Aston, etc.. owners over to try this car? This market tough to crack even with a great product.
I dont know but I do feel the car is special with a lot of awesome technology. I honestly feel Lexus missed the price point here and should have offered this car in the 250,000 range with over 1000 world wide. It took over 10 years to get to this point and we will probably never see a pure drivers LFA after this one. Lexus is losing money on every car anyway so why not spread the car out as much as possible. You would hope lexus uses the chassis, technology and engine in other models to help offset development cost but we will see.
I think the journalist had some very good points even if he never sat in one or drove it. Some are true some not. Just because we are Lexus fans, nutswingers........ doesnt mean we should not be in touch with reality and the journalist gave a dose of it.............
05-31-11, 09:12 PM
#60
Lexus Champion
I'd say there is plenty of interest, and they could sell more of the LFA if they wanted. I think the lease thing might have turned off some, but there's also that 'selection process' thing to think about as well.
