We've seen all the hype. The question is how is the new Lexus IS selling?

The most interesting fight in the car business to us these days is the battle between the new Lexus IS-series and the BMW 3-series, etc.

The reason we are so interested is because there is SO much on the line here.

If Lexus can overturn the momentum that the 3-series has built all these years, the import car business may be forever changed.

You've seen all the ads, comparos, press releases and forum/blog comments covering this holy war.

But the Spies want to know 'Where's the beef?'

Is the new IS meting sales expectations and giving BMW fits like we predicted it would?

Even though the car has only been in dealers for about eight weeks, we can tell you that the new IS could potentially end up being the homerun of the century.

Dealers are reporting to us that they are FLYING off the shelves!

And, in our random sampling of BMW dealer salespeople and sales managers, the Spies are hearing that in almost EVERY 3-series deal they're negotiating, the customer is weighing the decision against the IS.

The bad news for BMW is that the new IS250/350 are starting to make real headway in the USA, against their most important product line.

So much so that BMW artificially amplified their lease residuals for November to fend off the attacks.

We'll keep you posted because Lexus may be winning today's battle, but we'll see in the end who will win the war.

Either way, this thing sure is exciting!

S550Range - 11/17/2005 10:13:48 PM

+1 Boost

Audi has roots dating back to 1910 (6 years older than BMW) and only recently merged with VW(1964). Lexus may have imitated styling from the start, but they are the number one selling luxury nameplate in the US 5 years running and they are starting to have more distinct designs. Lexus cars should eat the BMW's and Merc's lunch. Lexus is higher quality build, contains technology that doesn't break like the German made cars, and costs thousands less! BMW has to give away free service for 4 years because of all the problems! Who else has to give away a crazy warranty to lure customers? Hyundai!!! (10 year warranty!) Have you ever seen Toyota/Lexus give over $500 rebate or incentive? NO! They don't have to. Just think, they have the best quality reputation and Toyota started making Lexus cars in 1989!

S550Range - 11/17/2005 10:24:28 PM

+1 Boost

This is my point exactly! German made cars have faulty electronics!

Steve - 11/18/2005 12:01:28 AM

+1 Boost

Congratulations, Lexus, for making a home run! Now that Lexus is going head-to-head against the iconic BMW 3-series, and by some measures, able to out-class it, it looks like we have a real "fight" on our hands.

Although it is yet too early to ascertain if the Lexus IS truly outperforms the 3 in most respects or not, we do know is that the IS handles extremely well, is more powerful than its BMW counterpart, and has much, much better defect numbers, both initially and on-going, than the car it tries to "imitate." And that's worth standing up and taking notice.

Truth be known, the Lesus IS is not a BMW 3 series. But it is a viable alternative, especially for those folks who are disheartened by BMW's styling language, gadgets, and "quality issues."

Steve - 11/18/2005 12:01:28 AM

+1 Boost

S550Range - 11/18/2005 8:43:41 AM

+1 Boost

Beemer4u - 11/18/2005 12:47:35 PM

+1 Boost

Congrats to Lexus. Their recent success with the IS will only make BMW better.

What's this about a war between BMW and Lexus? I'm on the front lines and I haven't even heard a shot fired. I can't fill my 3 Series orders fast enough and have yet to speak to a prospect that is cross-shopping Lexus.

Supply of 3 Series, 330i in particular, will be tight through the winter due to unexpectedly high demand in the ASIAN market!!! BMW is syphoning off US production to accommodate. If I lose a client to Lexus, it will be due to availability, not drivability.

skingsland - 11/18/2005 2:06:33 PM

+1 Boost

Well I for one have waited 2 years to buy a BMW 330. And now instead I'm about to special order an IS 350 because 1) Lexus makes a more reliable car (fact based on statistics), 2) the IS 350 has more HP and better accel., and 3) it offers paddle-shifters ala SMG. All I wanted was a 330 with good performance and an optional SMG trans -- don't wanna shift if I'm stuck in traffic, do wanna shift on some twisty roads. But I can't get that now that they've removed the SMG option from everything but the M3!

Do I think the look of ANY Lexus is "sexy"? No. But honestly, the new 3er isn't doing anything for me either. I've argued with a (wiser) friend of mine for a couple years now why I should get a BMW -- not for the marque I said, but for the "German Engineering" that's included in every aspect of the car, and makes driving one so fun. There's a reason why the 3 series has always been voted #1 entry sports sedan by just about every car mag for the last 10 years, I said!

Well, the Japanese are catching up... maybe not as good looking *yet*, but more reliable, now more performant, and the handling is close -- just a matter of time, I'd say. Let's face it: German Engineering is not the unparalelled standard of quality it once used to be. I don't care *WHERE* BMW, Lexus, Benz, etc. got their start -- I care where they are NOW.

With a slightly nicer interior, better electronics, and over a second faster in the 0-60, I'm going with the Lexus. And I think a LOT of informed people like myself about to drop $45K are going to do the same...

Thundercloud - 11/18/2005 4:22:14 PM

+1 Boost

For the record. Lexus is the number 1 selling luxury brand in the United States for the last 5 consecutive years in a row. Soon to be for the 6th straight year in a row.

skingsland - 11/21/2005 11:38:09 AM

+1 Boost

So all the 330 has over the 350 is better handling and a stick shift? (not addressing aesthetics of course since that's subjective.) And yet the 330 costs a little more...

I think it's hard to argue that the 350 is better than the M3, but it does fit perfectly between 250 and 330 (soon to be 400) HP.