If You Were Placed In Charge Of Lexus What Would You Do To Correct This Mess?

Batten down the hatches and prepare for rough seas, we are taking on water and our future looks grim!

While it sounds like a line from a B movie, it could also be words being echoed around Lexus office after the February sales figures for the industry were announced.

While competition may have slowed a bit, Lexus is continuing to fall behind.  After resorting to unprecedented incentives last month, parent company Toyota finally started showing signs of life with a 48.5% gain in February, but its beleaguered luxury arm could only muster a gain of 0.2%. That is only 27 more vehicles than last year!  Remember this is a year the industry is in recovery.

As you can imagine recalls might have weighed in as a factor, but way we see it, the kick in the groin for any Lexus fan is reliance on model refreshes rather than new vehicles.  In a nutshell almost every one of their competitors has a few new models up their sleeve for the next year and Lexus has nothing on the books match   No fresh recruits to do battle with new blood.

To give you an idea how far the 2010 top luxury car brand maker has fallen in just two months, I did a tally of the figures so far for the year. Here is the lay of the land for all of the competitors that will cross shop the premium market at the end of the month.

1.    32,321 BMW
2.    31,321 Mercedes-Benz
3.    29,076 Buick
4.    28,349 Cadillac
5.    26,674 Lexus
6.    18,757 Acura
7.    16,549 Infiniti
8.    15,565 Audi

How in the world do you drop from first to 5th in such a short time?  This time last year Lexus was leaving everyone in the dust and only to have the recall-a-thons begin to take their toll.  Amazing, but better yet just how are you going to make it through the storm or new models without anything of substance?

If you were in charge of Lexus what would you do to turn the tide and salvage the year?




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freshseth83 - 3/2/2011 7:26:17 PM

+3 Boost

Jesus?
him and oh-oh-whine shouldn't be in the same sentence. That's why I made two. Only Jesus deserves his own sentence with just his name. Lets all stop posting in his bait threads, then he'll be forced to come up with new content. Lexus is falling behind? The government had them recall so many cars how are they supposed to sell anything with the perception people get from the USGOV? Along with the fact that half the models are still in generations that are over 4 years old, you really think they'll be making sales records? Next year the new GS will be here, followed by a new IS. Then probably a new LS as well as new SUVs. Then and only then will you be able to judge how well they do against competition, sine those cars will be new. If they have sales that fall then, there's no excuse. But old models vs. new models from other car makes, yeah it's hard to blame the 'poor' sales.

Didn't this happen last year and then by years end they were still #1? I expect the same in 2011.

1BadMan - 3/2/2011 3:09:51 PM

-7 Boost

Really? Stop spending huge amounts money to convince people that "Lexus" is an actual brand and call them what they really are for starters. Then devise a tangible product plan, and stick to it. The ES350 is nice Camry, fix it or dies.

And the SC430 replacment was benchmarked on the previous generation E63 650i Coupe/E64 650i Cabriolet. They sold just one of those in the country last month which is really funny. Get it right or kill that eye sore. Or just nuke the whole thing.

focal - 3/2/2011 3:19:41 PM

+2 Boost

the newest cars in their line up are the HS and CT.

the HS is a fail IMHO and CT is a bit more promising.

the whole brand was built on the RX and the ES. Driving more than 3/4 of their sales

blackbr - 3/2/2011 3:23:08 PM

-10 Boost

I think there are too many Lexus models. How are dealers supposed to keep a reasonable stock of each one?

Oh, by the way, if I was Lexus CEO I would immediately ask the product designers to put some headroom in the cars. I don't know what it is about their sedans, but the only one I fit within is the LS, and then again, just barely (I'm 6'2").

enthusiastx11 - 3/2/2011 8:08:13 PM

-8 Boost

it's the opposite, there are TOO FEW. there's no variety. and luxury buyers will never pay a premium for a car that identical to 10 of their neighbors.

enthusiastx11 - 3/3/2011 12:36:45 PM

-7 Boost

ah, yes, the manly 'deboost.' such engaging commentary.

_43LE - 3/2/2011 5:32:04 PM

+3 Boost

Is that what Jesus would say? The more we see you post here, the more we all realize how you're really not Christian at all.

_43LE - 3/3/2011 8:43:14 AM

+11 Boost

Well then, by your "logic", Europeans should not be living in North America...If you really believed that you would leave.

_43LE - 3/3/2011 9:34:40 PM

+7 Boost

If you really believed in your bible passages, then you would move back to Europe because the original people of the Americas were Asian. The original people of the Americas were not defeated in war, they were brutalized by a barbarians.

_43LE - 3/4/2011 9:48:30 AM

+5 Boost

Good riddance!

Interesting, in 2009 Canada finished 5th behind Shanghai, Korea, Finland, Hong Kong, and Singapore, well ahead of many other monoculture societies. Canada is well known for its diversity as it takes in the highest number of immigrants per capita (esp. from non-caucasian nations) . Please now post your article on that study you linked to a while ago. I want to see how predictable you are.

_43LE - 3/4/2011 3:20:08 PM

+2 Boost

LOL Turbo...can you say OVERCOMPENSATION?

"Raise your hand if you passed a course in real analysis or even heard of it."
-FYI I have a bachelor's degree in Science and also an MBA so I think I know a thing or two about analysis.

"Switzerland, with just 7.6 million people, has more Nobel Prize *science* winners than China, Japan and South Korea combined!"
-If the Nobel prize was around way back when the east was more powerful there would have certainly been more winners. You do know that as the balance of power shifts this will change. That's what you're afraid of.

"And 43, it's natural that we would not see things the same."
-Agreed, my reality is that I live, work, and play with people from all types of ethnic backgrounds an am fortunate to be able to do so. I feel that my life is more interesting and fulfilled to have experienced this.

"Renowned as a passionate Canadian, bestselling author Mel Hurtig has combed through world statistics to see how Canada really measures up — and the results are astonishing, and often shocking.
-I could also point out tons of studies that point to the opposite.

"Look at how California has been transformed in the last twenty years for a very good example. "
-Interesting, that does not apply to Canada. In fact, Canada remains a very well educated nation with very low crime rates. A great place to live. In fact Vancouver and Toronto are consistently ranked as very desireable places to live by many sources.

I rest my case, you are not a Christian at all. Just ask yourself, how would Jesus respond? Certainly not like you have.

_43LE - 3/4/2011 4:43:15 PM

+1 Boost

LOL, nope, not very Christian at all...

_43LE - 3/4/2011 4:56:33 PM

+2 Boost

Everyone here can see right through you.

800over - 3/2/2011 10:18:59 PM

+8 Boost

009: If You Were Placed In Charge Of Autospies What Would You Do To Correct This Mess?


wait a second....

speed123 - 3/2/2011 3:47:39 PM

-9 Boost

They should get new designers, kill the brand, come up with a new name and hope people will forget about Lexus 50 years from now.

Joe_Limon - 3/2/2011 4:55:55 PM

-5 Boost

Replace all that orange wood with a nice looking wood, upgrade the cheap plastic toggles littering the vehicles, and develop a separate (rwd) platform for lexus cars that isn't shared with a Toyota counterpart. Also, try stealing some of Hyundai's designers? :-/

LexSucks - 3/2/2011 5:38:36 PM

-5 Boost

If I were the Lexus CEO? I would hire SemperLexus, nonofyobus, sportbike80, Lexus, worldofluxury, and blackdynamite to create a Lexus Lovers fan Club. In order to join you must swear that you will never purchase any other vehicle other than a Toyota or Lexus.

lexusrox123 - 3/2/2011 9:07:54 PM

+3 Boost

Hey, you forgot me. :P

upwards - 3/3/2011 12:05:30 AM

-3 Boost

Don't you know that they all are the same person?

LexSucks - 3/4/2011 12:34:11 AM

-2 Boost

I'd also give them each an LF-A for their sheer devotion. In the end I'll probably end up giving away just 2 LF-A's.

theoptimisticpessimist - 3/2/2011 6:11:25 PM

+8 Boost

I would do the same thing I wrote last month when you asked this insipid question.

Willis - 3/2/2011 6:21:36 PM

-6 Boost

I'd put a Lexus badge on a Toyota iQ and give 'em away for free! Lexus will once again be the sales leader! :-p

lexus_fan - 3/2/2011 6:42:59 PM

+8 Boost

It is clearly obvious that you haven't driven or owned a Lexus. My family has owned a Lexus since it came out in 1989 and we continue to this day. They are extremely quiet, very luxurious and easy to own. It's just plain obvious that you are quite ignorant to what Lexus is.

enthusiastx11 - 3/2/2011 8:06:58 PM

-2 Boost

it's not marketing, it's not quality, it's not dealer service. lexus gets all that right.

what they need is all new designs. cars that people under 55 actually want to drive. the line-up is ancient and the two latest cars (the HS and CT) are ugly sales bombs.

enthusiastx11 - 3/3/2011 12:38:59 PM

-6 Boost

black: we're in agreement that they need a new line-up. but i don't see how niche cars with tiny volume are going to have any impact (we're only talking about a couple thousand cars here). lexus needs a MAINSTREAM model that embodies good design and appeals to affluent, non-retired buyers.

enthusiastx11 - 3/3/2011 12:39:43 PM

-6 Boost

non: i'm sorry. did you say something?

sunil - 3/3/2011 10:22:57 AM

+7 Boost

We have a GX 470 from 2007 and love it for its comfortable ride. However, the new GX 460 really is nothing more than a refresh. The navigation systems/displays and tech inside the car is outdated and the sedans just do not have that oomph (for me) in their styling. Lexus is clearly facing some tough times ahead as I don't think they are well positioned with the younger segment. I wonder if the CT200h is a start towards that demographic. I will say that their service approach is phenomenal and hopefully that resonates with buyers over the longer term.

vader013 - 3/3/2011 9:44:12 PM

-2 Boost

My first post after years of lurking - A year ago I traded in my 2009 Lexus LS460. Bought it brand new late 2008. After a year of ownership, I hated the car. The Mark Levinson AMP blew the first week, the driver window squeaked when opening, power steering would go out after a U turn, rattles from the dash, and steering mount under the car broke. The dealership tried very hard to fix but at the end the quality for a $74,000 car was just horrible. This was my first Lexus purchase after mainly buying BMW's. I paid cash for this car and took a heavy loss when dumping the thing. Went back to BMW, so much happier. My wife also bought a Lexus GS she sold the thing as well and went back to Mercedes. The car had several recalls and made a loud squeeling noise when going in reverse. Will be awhile before we consider a Lexus again.

david999 - 3/3/2011 10:34:02 PM

+6 Boost

I always like to laugh at the badge whores who proclaim that Lexus is "done" after a couple of months of sales figures. Lets wait until Dec. 31 to see where things end-up.

_43LE - 3/4/2011 3:29:50 PM

+2 Boost

Interesting Turbo, why don't you give us all the facts? If you did, you'd realize that Asian-Americans born in the US outperform whites...but you're scared about that right?

_43LE - 3/4/2011 4:49:00 PM

+2 Boost

LOL, as you usually do. But, do you know what the rates are for American born Asians? This study does not show that. There is a high percentage of Asian students in US universities, non-us born. I'd like to see you dropped off in the middle of China and try to pass a Chinese literacy test.

garywarner - 3/4/2011 3:54:27 AM

-4 Boost

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thstone - 3/4/2011 12:50:13 PM

+5 Boost

When the economy gets tough, Lexus buyers simply choose Toyota, Nissan, Honda, or Subaru (which are essentially the same products for less money).