Brillance or Blasphemy?: Are Lexus Plans To Conquer Globe In Luxury Sales Realistic?

Lexus is growing because of the great products they make. People in North America know this. People in China and Russia, both huge markets realize this too. Eventually, Western Europeans will appreciate a Lexus vehicle the same way
North Americans do. The outlook is very bright for Lexus globally.

Why do you call diesels cheap? They usually cost more than their petrol counterparts.

Open up the hood on a diesel engine and compare that engine to a gasoline one, then you'll see why they're cheap. Especially the French cars, YUCK!!

there are many reasons why diesels arent the way to go. cheap is just his way of expressing that. they are loud, they emit more than they should from the pipes (currently), and not every gas station (at least in america) carries diesel. we have already started to phase that gas out.

A 170hp Golf TDI is more expensive then a 200hp Golf GTI.

"they are loud, they emit more than they should from the pipes (currently), and not every gas station (at least in america) carries diesel."

I like how you put the parenthetic references in there as an attempt to save yourself from thwart. Well, it didn't work!

They are not loud, especially not inside. Drive a Mercedes-Benz E350 sedan, then an E320 Bluetec and you'll see what I mean.

This also brings us to the Bluetec: cleanliness. The E320 is cleaner than any gas vehicle and still gets 34mpg on the highway, with 0-60mph in 6.4 sec. That sounds pretty good to me. Bluetec particulate filters will make their way to any company that licenses it, including Audi, VW and BMW.

Soon, almost every American station will carry diesel. The E320 Bluetec (or the rest of the Benz diesels) hasn't been very heavily advertised, but the appeal is catching on. Hybrid appeal is waning, according to some sources. The lithium ion battery can't come soon enough, Toyota.

Let me get this straight. Mr. Nicad, who claims to be an "expert" says that Lexus is doing poorly in Europe because of the IS220d? What a stupid comment. The IS220d is responsible for even creating interest in the damn brand. If Lexus sold only the IS250 and perhaps the IS350 in Europe, rest assured that not many would be sold. What's up with all the idiots on this site these days...

"It's not that easy to export the Lexus concept," Michael Ganal, BMW's sales chief, said in an interview earlier this year. "Lexus is made for the United States."

Best quote in the article simply cause its fact. But given enough time and Toyota's money, Lexus could reach global sales, provided that Toyota doesnt have any more slip ups and recalls. Lexus can reach it, just not anytime soon.

That poses a dilemma for top executives at Toyota's Aichi headquarters in Japan and at its U.S. sales operations in California: Should Lexus be adapted to each region or do they strive to refine one global identity for the brand?

Yuki Funo, a member of Toyota's board and the automaker's top manager in North America, said he believes Lexus should have one global identity"

The problem GM had, was no single identity, it had many. Good thing one board member recognized it.

"But many of its upscale models are sold under the Toyota brand. For instance, the RX is known in Japan as the Toyota Harrier."

And Toyota wonders why initial sales werent so good. Well I wouldnt want to pay extra for the L badge, when the Toyota counterpart does the same thing. It only looks nicer. Beyond Japan, is where its different.

not with the current product line.

lexus designs cars for american tastes (big, soft, quiet). not surprisingly, the brand does poorly everywhere else including japan and europe (where it launched in 1990).

lexus will continue to do well in the US particularly as the baby boomers get older.

Of course its the product line, the european brands offer far more choice therefore are bound to sell better, if Lexus offers more choice then their sales will improve.

You think Europeans just don't buy Lexus because of the badge? How about the fact that Lexus never wins any comparison tests and doesn't offer the best overall product in any of the sectors it competes in over here.

brand reputations are built over many years based on product performance, innovation, technology, design and sometimes intangibles like service. that's what makes a 'badge,' as you call it, valuable.

for example, lexus was able to charge more than a toyota when it launched because it provided a remarkable sales and service experience when every other brand had horrible dealers. slowly, the brand reputation grew and the company is now able to charge far more for lexus than it does for toyota counterparts on the same chassis and powertrain.

and have a great day nicad!
too bad you're so bitter.

nicad, you seem to hold the convoluted thought in your head that Lexus is clearly superior to European brands, and that European customers only buy BMWs and Audis for what's on the hood. Well, that is completely incorrect. The European luxury manufacturers offer so much more in Europe and Asia than Lexus, in every respect. You'll just have to accept that.

The appeal of Lexus in Europe is non-existent for the most part. Nobody in Europe wants overpowered and overweight luxury barges like Lexus - they want to select what goes into their car and they want efficient engines. No Lexus engine can be considered "efficient" in Europe because they're all extremely poor on gas, except for the IS220d and that car gets terrible mileage compared to its German rivals. The European consumers also don't fall for this hybrid hype, unlike us Americans who listen to Toyota or Lexus without doing research.

bill:

you nailed. and the numbers back you up. lexus sold merely 21 or 22 thousand cars on the entire continent (population: over 750million) in the first six months of 2007.

Fact is tht BMW an Mercedes mke beter cars wit soul an pestge

Benz:
Learn to write! Even my grandmother writes better!

Nice guys. No flame wars. just decent conversation. I'm proud of you guys.

Enough of that. Lexus had more than enough time to establish themselves globally. Its very simple. Europeans know a Toyota when they see one. Americans aren't that intuitive.

arent we the hipocrite.

how can you say enough time. 2 years in japan, about the same time in russia and china. lexus is doing progressively better in those places too.

hate to point this out, but seeing as how western europe is the only place on this earth that doesnt appreciate lexus cars...there must be something wrong with your thinking, not the americans.

lexuskindaguy:

the US is the only place that 'appreciates' lexus. and that's because lexus was designed specifically for the american market. lexus does poorly relative to other luxury brands in every country except the US.

i think that was a greatly written article that pretty much sums up what people on this site argue for.

the article was pretty positive from my point of view. it states that yes, lexus is not reaching its goals in some parts of the world, but nevertheless, their sales volumes are increasing. everything just takes time. infact, looking at those sales figures in japan shows that lexus is actually pretty high up there.

how can you say lexus was made for americans...when you guys say that lexus cars are big, soft, and quiet. for one, lexus cars are smaller than their competitive comparisons. second, if this was the forumla, why cant americans build these cars for americans...you would think americans would know how to build the cars that you claim we like so much.

It was made for the american market at that time. Mainstream overly large Cadillacs, Lincolns, and Mercedes just flooded the streets. Lexus has built itself to be better than its rivals in everyway possible while not being an American automaker. Why can't an american company do the same? Well they have, sort of. Only recently its improving.

"Lexus has built itself to be better than its rivals in everyway possible while not being an American automaker"

That's true, if by its rivals you mean Lincoln and Buick.

Lincoln, Cadillac, Buick, Mercedes, BMW, Audi, etc. Who ever was in America and is a luxury automaker, was Lexus' aim.

"it states that yes, lexus is not reaching its goals in some parts of the world, but nevertheless, their sales volumes are increasing."

However, so are Audi, BMW, and Mercedes-Benz. Things like this don't just "happen." It takes a lot- and chances are, it won't just happen. There's too much opposition from the Germans, who are certainly not sitting ducks.

Just to throw it in there, Lexus was definitely made for the American market. As a matter of Fact the name Lexus is an acronym of sorts. It stands for Luxury Export to the United States.

Not sure if they are on track...lexus' consistent sellers are their cheapo cars...ES and RX...and lately the RX is looking like a weak seller.

This type of sales distribution is not the hallmark of a company that projects a strong luxury car brand image.

its looking weaker because its in the last year of production. who wants to buy a model that will change next year?

^^ if those models are looking weaker at all, dont know where you get your info

ES and RX are their best sellers thats my point.

These are cheap entry level luxury cars.

and lately the RX has not been selling so well..view last month sales figures versus previous months...

If the ES and RX are "cheap entry level vehicles" then what do we say about BMW 3 series and Mercedes c-class vehicles which account for the majority of their sales,
not to mention 1-series, a-class, b-class. Talk about "cheap" luxury, get one of those babies and compare them to what you get with a Lexus. No contest.

david, another trollish comment. Hmm. I wonder why you would buy an A or B-Class, 1 Series or A3? THEY COST LESS. They're for people who can't afford larger, "better" luxury vehicles but don't settle for a Toyota or Volkswagen. You continue to deride this strategy as being "cheap," but these cars are just as thoroughly engineered as their more expensive counterparts. My A3 is the most fun I've ever had in a small car.

To put it simply, if Lexus wants to have even the slimmest chance of success in Europe, they NEED to have a smaller car. The IS may be uncomfortably cramped, but it's too expensive to be an A3/1 competitor. How about a line of FWD small hatches, called:

• TS150

• TS150d

• TS220d

• TS250

• TS300-F Edition (hot hatch)

Hmm. I should contact them about this.

As usual Mr. David989 has no clue. I think Mr. Carwimmer430 said it pretty nicely in another thread, and so did Mr. S4. These "cheap luxury" cars are well engineered and significantly more expensive than similar cars in their size class.

And you know what? There's nothing prestigeous in my opinion about a "luxury company" like Lexus that started out as rebadged Toyota's, that were sold at dumping prices to gain market share (because Toyota could afford too) and that has never really brought anything ground-breaking to the business. Look at the history of BMW, Audi and especially Mercedes. They destroy Lexus a million times over.

I am commenting to Kpaxx regarding his view of the RX and ES vehicles being "Cheap" in his eyes as compared to BMW and Mercedes entry level vehicles.
And S4, why don't you read the thread properly before trying to take me to task for my comments.

lexus has never wanted to dominate the sales charts, even their president said so, it has never been Their aim. unlike the competion they dont need a 1 series or a 1.6 engine in their line up, that is what toyota is for in the first place.

That is the whole point!! Most enthusiasts realize that with Lexus you get Toyota. There is no seperating the two.
Which is why I don't expect Lexus to take over the Luxury Auto world. Especially when they entered the market as a less expensive alternative and now their autos are very close in price to well known Luxury brands like Mercedes, etc.
So when luxury makes like BMW,Mercedes, etc who are not derivatives of less expensive brands decide to make premium cars in more entry level type categories (Mini is a good ex) I call that great Market positioning for their brands to reach more potential customers while not sacrificing their core values (new 128i/d/135i are superb examples)

They'll have to go through Audi and Mercedes-Benz first, both of which are threatening to topple BMW. I don't think it will come even close to happening any time in the next twenty years unless they really, really, really change their act in other countries.

And as usual, Bill is on another planet.

Agreed.

The LS is also one of Lexus best sellers. That is currently Lexus' most expensive offering and it wins in the sales race between the S and 7, doesn't it? Funny how kpaxx forgot to mention that fun fact.

It always amazes me how stubborn and snooty most ouf you people get when it comes to Lexus. Yes, they set out to conquer the largest luxury automobile market first, North America. Yes, the major reasons why Lexus isn't outselling its competition in Europe and other parts of the world is because they don't have door-buster-selling economy cars in their line-up, nor diesels, and their brand image is relatively nonexistant (considering they're in their 20s).

Now unlike the majority here, I have the opinion that they will eventually get a foothold in other markets as they continue to introduce more products. They began paying attention to other markets with the introduction of a diesel-powered IS, I don't think they'll stop there.

I agree. Lexus needed to start somewhere. The criticism is good though - to a point. It starts to get obnoxious when people expect them to be perfect off the bat. Newsflash, every company has weak points, there is no need for the constant arrogance and hate.

...

lexus sales are BOOMING in russia. is not russia part of europe? a part that apparently is not dominated by brand whores.

lexus is also showing fantastic growth in china.

and even in japan, despite its slow start, lexus not only gained the few thousand sales LOST by mb and bmw, but a few ADDITIONAL THOUSANDS on top of that.

europe IS NOT the whole world. so lexus IS on target. europe just happens to be the toughest new market for them to crack.

bill:

"And you know what? There's nothing prestigeous in my opinion about a "luxury company" like Lexus that started out as rebadged Toyota's, that were sold at dumping prices to gain market share (because Toyota could afford too) and that has never really brought anything ground-breaking to the business. Look at the history of BMW, Audi and especially Mercedes. They destroy Lexus a million times over."


LOL! just shows how biased, DISTORTED, and REMOVED FROM REALITY bill's "opinions" are!

the fact that lexus is a division of toyota detracts NOT AT ALL for the truly informed. toyota itself builds the v12 Century, which competes against the Rolls Royce in all respects except history. even the cheapest toyota is MORE RELIABLE than any german "luxury" car. (what good is luxury when the car is in the shop instead taking you to the country club?)

the Lexus brand simply BUILDS ON what was already one of the most respected brands on the planet. all the given attributes of toyota -state of the art engines, total reliability, no bizarre styling gaffes-- are just taken to a new, HIGHER level. it only remains for lexus to offer its version of the century v12 in a lexus body.

except for the diesel IS --offered JUST to pander to euro diesel mania-- there are NO FOUR cylinder, "cheap" Lexi. EVERY LEXUS is a v6 or v8 luxury car. outside of europe, it has as much or MORE prestige than its competitors.

combining lexus and toyota (justified per above), the cars SELL MORE globally than not only the german big 4, but all of the detroit big 3 too, save gm. and soon gm will be surpassed too.

yes, it's amusing to see the claims that worldwide, bmw and audi outsell lexus.

but combining lexus and toyota, it's no contest that the germans are left in the dust, saleswise.

...

note the new thread, "Lexus knocks out competing high end models in China."

lexus ALONE, to say nothing of lexus plus toyota, simply STOMPS the snotty german brands.
when you make a comparison of lexus + toyota, against combined audi + vw, and bmw and mb models across their WHOLE model and price ranges, the sales slaughter is even more dramatic!