The Ides Of March Shine On Lexus - BMW Becomes The Number One Selling US Luxury Brand

The Ides Of March Shine On Lexus -  BMW Becomes The Number One Selling US Luxury Brand
I guess it just had to happen sooner or later.

Lexus has been taking a beating in the US market posting several consecutive sales declines of over 30% in a row. 

Those Lexus advocates who clung to reliability and sales as the mainstay of their favorite marque might need to rethink their stance though. The month of March is starting to take its toll of the luxury brand, and may be signaling tougher time for the highly regarded brand.

First JD Power indicated that Lexus slipped to 3rd on the latest Vehicle Dependability Survey scores, in itself a blow but not a big one. However with the March sales results in, it appears that Lexus is no longer the number one selling brand in the US either.

Yes, hard to believe but true:

Lexus year to date sales  are a mere 42,069 units down 35.9%
BMW  year to date sales are now 42,731 units down 26.8%

Are we witnessing a change of epic proportions?  Has Lexus lost its Grip on the US Market?

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AMiodynskiAMiodynski - 4/1/2009 4:50:55 PM
0 Boost
The year just started, and with all the new product's Lexus has coming out this year, I'm sure it will all turn around for them.
And to be clear, Lexus has the IS-C coming out in the next 30 days or so, the HS250H all new Hybrid, the 2010 RX450H, a new 2010 GX460 at the end of the year, and minor changes to the ES,GS, and LS.

Should be a very exciting time for Lexus !!


Agent00JAgent00J - 4/1/2009 5:08:14 PM
+9 Boost
Yawn...

-00J


LexSucksLexSucks - 4/1/2009 5:13:46 PM
+8 Boost
"Exciting and Lexus”? Only if you are talking about the IS-F and the IS-350. The rest of the line-up is lame.

Lexus builds some of the lamest vehicles on the Planet. I guess their sales numbers are finally starting to show that fact. Premium Priced vehicles shouldn't be Lame. The Lexuses are Lame.



ghosthunterghosthunter - 4/1/2009 5:15:38 PM
+3 Boost
so...
it is a big news when BMW out sold Lexus by 300 cars (or less than 1% difference), and it is nothing when Lexus out sold BMW for decades. hmm, i mean, if BMW is truely superior, shouldn't it always out sold Lexus?
just saying.


theoptimisticpessimisttheoptimisticpessimist - 4/1/2009 5:44:38 PM
+7 Boost
ghosthunter-

BMW has always out sold Lexus (about 3 to 1), just not in the U.S.


MrBratwurstMrBratwurst - 4/1/2009 8:01:06 PM
+1 Boost
LOL, CAN YOU ALSO SEE THE AUTOSPIES LOGO BEING SWAPPED FOR BMWSPIES??

I took a screenshot, check it! IT IS NOT FAKE, I PROMISE.

http://img366.imageshack.us/img366/162/bmwspies.png

Either:
- someone hacked AutoSpies!
- this is some sort of April Fool's day joke
- this is just the truth!


AE86AE86 - 4/2/2009 12:20:35 AM
+5 Boost
@ghosthunter
Decades?


kablaamkablaam - 4/2/2009 6:28:35 AM
+2 Boost
Ghost:

The main point of the article, and why autospies thought it was newsworthy, is that BMW is outselling Lexus after all of these years of Lexus outselling BMW.

The change in tide is the big news.

Relax.


enthusiastx11enthusiastx11 - 4/2/2009 7:05:23 PM
+1 Boost
oh well, so lexus is losing it's position in the ONE market on the planet where it had a volume lead over BMW. tsk tsk.


enthusiastx11enthusiastx11 - 4/2/2009 7:08:03 PM
+4 Boost
ghosthunter: decades? lexus is just hitting the 20 year mark this year. and they've only been the volume leader since 2000.


B7FANB7FAN - 4/2/2009 7:39:31 AM
+4 Boost
WAY TO GO BMW AND LEXUS KEEP UP THE GOOD WORK.


enthusiastx11enthusiastx11 - 4/2/2009 7:10:22 PM
+3 Boost
they are also asking as much as 40% less for their cars compared to mercedes... so they should be doing MASSIVELY more volume.


thetruth01thetruth01 - 4/1/2009 5:14:13 PM
0 Boost
BMW Spies strikes again!!!!!


WorldofLuxuryWorldofLuxury - 4/2/2009 1:18:14 AM
+3 Boost
You've never negotiated?! It's virtually an American car buying tradition!
Those salesmen must have been laughing the hell out of themselves!


dwatsondwatson - 4/3/2009 4:12:52 AM
+1 Boost
That's funny because I just got a great discount on an M3 last week. It's in my garage now :) .


AnthonyAnthony - 4/1/2009 5:15:54 PM
+2 Boost
Yes. BMW has a full 9 more models in their portfolio than Lexus and yet only managed to squeak past Lexus by around 300 units year-to-date? BMW should have been sailing past Lexus a while ago. I am sorry but it is not as big a deal as it would seem, especially considering that A) this is the worst time to be in the business of selling cars, and B) reliability isn't even a factor here, seeing as Lexus (and now Buick and Jaguar to add insult to injury) are still way ahead of BMW in terms of reliability.


cdokecdoke - 4/1/2009 5:29:46 PM
+7 Boost
"The Ides Of March Shine On Lexus"

Uh...er...huh? Now 009, I am pretty sure that running around somewhere in your brain is the fact that the Ides of March means the 15th of March.


Agent009Agent009 - 4/1/2009 6:55:36 PM
+3 Boost
Cdoke- OMG! I haven't seen you in quite sometime! You are one of the few that can keep me in check.

Actually the Ides Of March are also synonymous with the downfall of Julius Caesar. For those of you who care to crack a history book, he wasn't a salad but a Roman leader of great power who fell from grace after he had lost touch with reality.

Interestingly enough, his own followers betrayed him and stabbed him to death. Feel free to read into that whatever you may. I think it is more fun to let others connect the dots.
;)


cdokecdoke - 4/2/2009 11:56:25 AM
+3 Boost
Et Tu 009?

I understand what you are trying to say; that the ides is a a sort of curse upon the month because of its association with the stabbing of Julius Ceasar in the forum- and its use as a warning in Shakespeare's play. Be that as it may, "ides" literally means something to the effect of "half-of" or "the middle" in latin. I am not so sure it works as well as some of the others.


theoptimisticpessimisttheoptimisticpessimist - 4/1/2009 5:46:29 PM
+9 Boost
42,371 in just BMW, no Minis. May want to take a minute to do so research.


dwatsondwatson - 4/2/2009 7:30:36 PM
+3 Boost
lol. he is so defensive.


XYZZXYZZ - 4/3/2009 2:59:23 AM
0 Boost
"...buying with incentives...less financial risk."

because bmw took A BATH when the lease returns were worth LESS than the residuals they gave lessors credit for! unreliable bmws drop in value more than bulletproof toyotas AND lexuses.



M53RM53R - 4/1/2009 6:14:44 PM
+4 Boost
The new BMW 7 series outsold the Lexus LS too. Keep in mind that the LS is MUCH cheaper. But also don't forget that the new 7 is new ;)


topneurotopneuro - 4/1/2009 8:42:55 PM
+1 Boost
Price has nothing to do with it.
Average 65% of BMW are leased not sold, 85% of BMW 7 series are leased.
http://images.businessweek.com/ss/08/08/0826_most_leased_cars/index.htm



JRobUSCJRobUSC - 4/1/2009 10:08:05 PM
+7 Boost
there are no lease specials on the new 7-Series, so leased or bought, a payment is a payment. A new 7-Series is as much as an S-class monthly, which it also outsold. Both are more than the LS.


enthusiastx11enthusiastx11 - 4/2/2009 7:15:32 PM
+2 Boost
topeuro: um, yes, price has everything to do with it. lease payments are based on the sticker price of the car and the residual. by the way, a majority of all brands of luxury cars are leased. interestingly, BMW is pushing people away from leases and toward buying with incentives...less financial risk.


XYZZXYZZ - 4/3/2009 3:02:57 AM
+1 Boost
"...buying with incentives...less financial risk."

because bmw took A BATH when the lease returns were worth LESS than the residuals they gave lessors credit for! unreliable bmws drop in value more than bulletproof toyotas AND lexuses.





JRobUSCJRobUSC - 4/1/2009 6:22:30 PM
+6 Boost
not too bad considering BMW spent the entire year with no Z4's, no 7's, and almost no X3's to sell (all models being replaced). Anyone else notice the 7-Series jumped to #1 in sales for the class this month?


skinnyskinny - 4/2/2009 4:55:13 PM
-2 Boost
BMW still has way more models and variations of those models than Lexus therefore their model line-up should reach many more customers. And they simply don't. How many variations of the 3-series are there? Let's see: 325i, 330i, coupe versions of each, wagons, diesel versions now, M3, 5-series? 530i, 550i, wagons, M5, 6-series coupes, X3 with 2 engines, X6, X5 3.0i, 4.4i, 750i, etc. 1-series variants. Overall BMW has many more models and variations and have had for years. The truth is they should have been KILLING Lexus in sales for years!!! And they simply haven't. On Top of that BMW is the king of subsidizing leases which should have helped even more. Almost every year in and out a 7-series lease deal could be had which made a 7-series cheaper to lease than the cheaper Lexus LS.




JRobUSCJRobUSC - 4/2/2009 9:51:59 PM
+5 Boost
skinny, funny you mention that, because BMW does "kill Lexus in sales". They beat them roughly 3-1 globally, and it's not just because BMW has more models. Audi and Mercedes also kill Lexus in sales by a more than 2-1 margin. Stop being so ethnocentric -- the world is a big place, and the U.S. is the only place that has bought into the Lexus marketing machine hook, line, and sinker.

As for the leasing, BMW did become overly reliant on that, you are correct. In a way, however, the economic meltdown is going to help them, because it's going to allow them to immediately move away from leasing, just like everyone else. Every manufacturer is basically being forced to hit the "reset" button right now. Leasing had become for BMW what rebates were for the American companies. What would have taken a long time to wean customers off of is now basically happening instantaneously. Leases suck. But they suck for all the other brands too, so BMW is not at a disadvantage by not pushing them anymore.

And that's a good thing, because what you're going to see now are people who can no longer afford the lease payments on luxury marques moving downmarket. That will clear the ownership portfolios of clients who never should have been in those cars in the first place, which will then push the higher end brands back into an aspirational category that they got away from there for a bit. I'm ok with that. I don't mind BMW, Audi, Mercedes, etc. not being attainable for everyone. When not everyone can afford them, people aspire to own them more. Less sales, more profit per sale seems to work pretty well for Porsche. It will work fine for them too. It could even work for Lexus one day, they just need to come up with a couple of vehicles that people outside the U.S. actually want to own first.


dwatsondwatson - 4/2/2009 7:28:30 PM
+3 Boost
pedophiles drive windowless vans. you know that.


BM3WBM3W - 4/1/2009 7:25:06 PM
0 Boost
It had to happen eventually. Nice job BMW!


528i528i - 4/1/2009 7:30:00 PM
-7 Boost
BMW and MINI vs lexus...not fair at all.


0to600to60 - 4/1/2009 8:59:57 PM
-2 Boost
April Fools!


david999david999 - 4/1/2009 9:22:12 PM
-1 Boost

Lets wait untill the end of December.


lexworldlexworld - 4/1/2009 9:42:47 PM
-1 Boost
To tell the truth the reality is the economy is still pretty unstable and BMW is a very good car. They deserve it they've been very consistant besides being the ultimate driving machine. Hey there's a few BMWs I would purchase but, not over my favorite brand Lexus. Sorry guys it's Lexus for life. I don't care what the other brands are doing or accomplish there's nothing like owning a Toyota or Lexus...Period


AudiphileAudiphile - 4/1/2009 9:44:10 PM
+2 Boost
Considering the awful state of the automobile industry in this country and around the world, I wouldn't read too much into sales figures for just one month.
I was wondering if the Hyundai Genesis is making inroads into the sales of Lexus, Infiniti, and Acura. Anybody know? I don't have access to sales figures.


toyfantoyfan - 4/1/2009 9:50:04 PM
-4 Boost
Better sales have NEVER equaled superior vehicles. That would be an appeal to majority. Which, if you didn't know, is falacious reasoning.
And looks are subjective. Which means that a better LOOKING vehicle does not equal a superior vehicle.
Some how, it seems those two things escape many. Don't feel bad if you're one of them. Just remember next time you try to say that BMW's are better because they look better, or that they are now a superior vehicle because they've outsold Lexus.


JRobUSCJRobUSC - 4/1/2009 10:18:10 PM
+3 Boost
"Reminds me of the X6 disaster"

Ahh, Huey, I knew that was you when I read the first sentence. Just out of curisoity, would that be the X6 that YTD has outsold the A8/TT/R8 combined? The same X6 that has outsold the Lexus SC 3-1 and the awesome, brand spanking new Lexus LX almost 2-1? That X6?

As for the incentives, Toyota has thousands in dealer cash here in the U.S. on every model, including the brand new RX. EVERY MODEL. BMW is running special financing. So spew all the BS rhetoric you want, shout till you're blue in the face if it makes you feel better. It's half a dozen of one, six of the other. Everyone is running incentives right now in one way or another. And BMW is outselling Lexus despite spending the first three months of the year with no X3, Z4, or 7-Series.

Here's your sign.


Bmw8terBmw8ter - 4/2/2009 12:46:35 AM
-1 Boost
JRobUSC......you forgot to mention, the same X6 that outsold the Maybach 57, and the Mercedes Cl, and a whole slew of other cars that have nothing in common with the X6.

I'll bet you John Deere sold more tractors than the X6 in March.


skinnyskinny - 4/2/2009 4:46:09 PM
-1 Boost
According to Edmunds website, Lexus has currently NO incentives on any products. Where do you get your false info from that the 2010 RX has incentives?


JRobUSCJRobUSC - 4/2/2009 5:41:07 PM
+2 Boost
skinny, according to Edmunds neither does BMW, or Mercedes, or half of the manufacturers out there. That doesn't mean they don't exist -- it's the start of a new month, they're still gathering the info and haven't posted it for every manufacturer yet. BMW has low APR's on everything. Mercedes is flat giving away the previous generation E-class with the new one coming out. The incentives exist. My statement for Lexus was likewise based on the March programs, where Edmunds showed Lexus had dealer cash on every model.


enthusiastx11enthusiastx11 - 4/7/2009 12:04:06 AM
+1 Boost
profit per car huu...that's what matters: 1. porsche 2. bmw


EL34EL34 - 4/1/2009 10:25:18 PM
+4 Boost
I test drove the new 2009 BMW 750iL today at Irvine BMW and I know why BMW is beatin' the crap out of Lexus.

;->


BarackBushBarackBush - 4/1/2009 11:11:16 PM
+1 Boost
Go to the BMW website, then the Benz one then the Lexus one. Lexus has hardly any incentives. As soon as you get on the BMW/Benz site, its low financing, free payments and lease deals.

So who REALLY is selling? Seems people prefer to buy, own and keep a Lexus and people who really can't afford the payments buy a BMW or Benz.

BMW also have tons of models..its amazing Lexus continues to stay in the top 3.


BarackBushBarackBush - 4/1/2009 11:11:44 PM
+1 Boost
Oh and the writer of this article should be gagged and put in a cave.


Agent009Agent009 - 4/2/2009 8:16:33 AM
+1 Boost
They tried, but I kept escaping....


dlindlin - 4/1/2009 11:45:37 PM
+3 Boost
What a stupid post from a stupid agent..... Wasting everyone's time.


JRobUSCJRobUSC - 4/3/2009 11:34:18 AM
+4 Boost
Huu, listen, you keep saying the same thing about BMW versus Lexus, over and over and over and... you get the point. It's getting old, and you're just making yourself look foolish to anyone who actually knows the figures. Go compare the payments on a Lexus to any comparable BMW. The BMW will cost more. Period. End of story. Even with every manufacturer giving away new cars (and that includes Lexus, BMW, Mercedes, Audi, and everyone else), a comparable BMW costs more than a Lexus. Every.. single... time... So that's not a valid excuse. And you really should try finding one that works, because it's just not as fun arguing with you when you're totally and indefensibly wrong every time.


Gump22Gump22 - 4/2/2009 1:10:48 AM
+1 Boost
Hey I love them both. Can't we just all admit that they are both great cars. If everyone had the same taste in vehicles there wouldn't be a need for both BMW,Lexus, Mercedes, or Audi, which I'm a fan of. My dad had an Audi 5000 (no problems) and I loved that car. It was the only luxury car my family has ever owned. I remember dropping the clutch into 2nd gear and the tires screeched, that's all I needed (at 16) to become a fan.

I must give BMW a hand in their marketing plan, Get the young buyer. Once someone purchases something and they really feel like they made a good investment, the likelihood of them becoming a repeat buyer increases greatly. Lexus needs to come down off their high horse and get with the program before they start falling behind in real numbers.

Well that's my 2 cents, I don't think I'll ever be able to afford either one anyway, :-)


Agent63Agent63 - 4/2/2009 4:32:08 AM
-5 Boost
It's such a big news because Lexus is America's Japanese brand. Reality is every firm has been hit hard with the global recession. I think Lexus needs to focus on affordability instead of trying to reach a global status of a Mercedes-Benz marquee. They need to go back to their roots and remind folks of what their brand is all about.

3rd world countries including majority of African countries know Mercedes but not all know Lexus (toyota only). So with that being said they need to focus on their brand image. If it's the level of prestige they want to build on it may bite them in the ass because they would be getting sidetracked.

Congrats to BMW for a great month
Oh well, life sucks for a month...big deal, life moves on for Lexus


Ricks2DogsRicks2Dogs - 4/2/2009 10:37:03 AM
-1 Boost
Unfortunately, BMW has become desperate. I'm afraid the modest bump in their sales will be short lived. With an array of expensive, odd vehicles in the works, BMW has pulled their pants down and Mr. Toyoda will spank them silly soon enough.


inspirion7inspirion7 - 4/3/2009 2:07:46 PM
+1 Boost
That's funny. Hey I'm staying out of this crap tossing monkey show.


AgentOrangeAgentOrange - 4/2/2009 11:13:57 AM
+3 Boost
Tough times always make people come to their senses...


VISOVISO - 4/2/2009 12:18:24 PM
+3 Boost
Seriously, these posts are useless. Who cares who is number one unless you are an actual stakeholder/shareholder and make your money from this or need job security. Enjoy what you drive! Have passion for it and appreciate others.


enthusiastx11enthusiastx11 - 4/2/2009 7:03:04 PM
-1 Boost
and don't forget that BMW sells at a significant premium to comparable lexus models. if lexus tried to charge BMW prices their sales would collapse.


Ricks2DogsRicks2Dogs - 4/2/2009 8:45:50 PM
+3 Boost
Autocries...Bye Bye Autospies. I mean all we do here is whine like kiddies. It's not fun anymore.


DieselRulesDieselRules - 4/3/2009 2:41:36 AM
+1 Boost
Huu -- RE: "...the financing rates that Toyota/Lexus charge equate to 25% on top of the listed price. BMW would love to be able to sell a car for that much but they can't because they can't command that sort of premium."

You mean, they can't because their buyers aren't that STUPID!

The problem at Lexus, is that with this economy, soccer mom's who bought RX's are going back to Dodge mini-vans. Their goes their market!


XYZZXYZZ - 4/5/2009 5:56:00 PM
+1 Boost
"soccer mom's who bought RX's are going back to Dodge mini-vans."


LMAO!

actually, considering how RELIABLE and DURABLE all toyotas and lexi are, what is happening is that current owners are just hanging on to 'em longer. UNLIKE those who lease bimmers, or buy but TRADE every 3 years or before the warranty expires, toyota/lexus owners have NO WORRIES about keeping their cars as long as 10 -15 years, knowing they will STILL be reliable and TROUBLE FREE.

toyota/lexus reliability is the worst enemy of toyota/lexus DEALERS who expect a constant turnover as vehicles WEAR OUT.


XYZZXYZZ - 4/5/2009 6:00:22 PM
+1 Boost

JDP ought to do a survey on the average age of same make trade-ins at the different brands' stores.

i'd put even money that toyotas and lexi are kept FAR LONGER than any of their competitors, before the owners ever NEED (or want) a newer model.




enthusiastx11enthusiastx11 - 4/7/2009 12:03:14 AM
+1 Boost
laughing. still laughing. BMW makes is second only to porsche in PROFIT per vehicle. lexus...oh right, they won't even disclose those number because....they suck.


DieselRulesDieselRules - 4/3/2009 2:35:29 AM
-1 Boost
Congrats to BMW. Its a tough market.
But its tougher if you're the "Budget Luxury brand".
Looks like the folks with real money prefer real German!


JordanskiJordanski - 4/4/2009 1:56:18 PM
0 Boost
STFU. I'm sure ninety percent of the BMWs sold were 3-Series signed for 48 month leases.


JordanskiJordanski - 4/4/2009 1:54:31 PM
+1 Boost
I'd love to find out how many of those are leases. Lexus will reel in some more customers once the new RX400h, HS250, and IS C are released. I'm really shocked at how well the new RX is selling.


enthusiastx11enthusiastx11 - 4/7/2009 12:00:41 AM
-1 Boost
no, they just give away their cars right from the start....LS starts at $63,800, S-class starts at $89,300 (40% more than the LS) and 7-series starts at $80,300 (26% more than the LS). and this doesn't even account for the far more expensive options on the german cars.

oh...and the 7-series is wildly outselling the LS despite being much more expensive.

explain please huu...


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