Lexus Claims It Can't Make A Sub $30K Model - Is That Because It Would Just Be Another Toyota?

Lexus Claims It Can't Make A Sub $30K Model - Is That Because It Would Just Be Another Toyota?
A senior Lexus executive said that a car priced below $30,000 would not be worthy of the brand, in an indirect dig at German rivals who have been moving downmarket.

“We could go down and build a car under $30,000, but it would be decontented, and you’d be cutting corners. It wouldn’t be a Lexus,” Mark Templin, Lexus International’s executive vice president, told Automotive News.

“To be honest with you, you can’t build a Lexus with the quality, the durability, the reliability, the craftsmanship, the content that we put in a Lexus and sell it profitably under $30,000. You just can’t do it,” he said.


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HughJassHughJass - 7/31/2014 12:59:36 PM
+3 Boost
Probably but Audi and MB both have models priced below Toyotas in the US market.


Car4LifeCar4Life - 7/31/2014 1:54:44 PM
0 Boost
LOL, add BMW, Infiniti, Acura, Lincoln, Cadillac, and Lexus to that list,

A Toyota Avalon Limited cost nearly 40k, and dont even think about looking at their SUV's north of the Rav4

When you dominate the high end market like Mercedes does with their S Class, SL, upcoming S Coupe, GL, SLS, and AMG models, that leaves you wiggle room at the low end.

When your high end models are suffering like Audi's A8 and up & down Q7 or Lexus's LS and the discontinued SC coupe and LFA...you have a lot less wiggle and their is a greater risk of diluting your brand


Mason3RobertMason3Robert - 7/31/2014 2:41:57 PM
+3 Boost
Damn, I didnt know the LFA was suffering in the sales department....LMFAO!


cidflekkencidflekken - 7/31/2014 2:52:05 PM
-2 Boost
The key word here is "profitability". Clearly the Germans are comfortable making their "lower-end" products while enjoying profitability because they are true, global brands. At the sub-$30k level, it's about volume and the Germans can get more volume globally. Lexus cannot comfortably say the same since they are not as global a brand.


RobertPaulsonRobertPaulson - 7/31/2014 3:20:55 PM
+4 Boost
Toyota doesn't need their premium brand to go below $30K. The Toyota brand can carry that water.

The true luxury stand-alone brands (BMW and M-B) have to, to be profitable and to get volume. However, if you look at actual transaction prices, the M-B CLA is in the high 30's.


DumbpeopleDumbpeople - 8/1/2014 12:50:08 AM
+3 Boost
Stand alone are you serious BMW has been using Toyota Tech for a while now and now planning to build a car with each other. Merc shares parts and designs with mini and rolls. Wake up. All auto makers sayer various things even outside their own companies.


Dr550Dr550 - 7/31/2014 4:21:27 PM
-1 Boost
What a crock. Lexus tried going "downmarket" with the HS and failed. The CT is based on a Prius. Lexus are made off Toyota's platforms and engines. The RX/ES/GX/LX etc. are based on Toyota's. Not hating but a lower price Lexus blurs the line with Toyota. The new NX is based off of the Toyota RAV4. Just calling a spade a spade. Mr. Templin, please explain the HS. It failed miserably.


MattDarringerMattDarringer - 7/31/2014 5:02:45 PM
-3 Boost
If Toyota had any brains, they would install Scion between Toyota and Lexus as a near-premium brand. If I could wave my magic wand and give Scion new and improved models they would be:

tM / small, mid-engined sports car below the FRS
FRS / as is but add a convertible and shooting brake not to mention GOBS of power
tS / a rear wheel drive sedan based on the FRS chassis
xC / a sub-RAV4 crossover




enthusiastx11enthusiastx11 - 7/31/2014 6:05:38 PM
-4 Boost
they're all just a toyota. no original chassis or engines.

ES=camry
IS=corolla
RX=harrier
LX=land cruiser
etc.
etc



DumbpeopleDumbpeople - 8/1/2014 12:46:19 AM
+2 Boost
You are just a goose, I guess you drive a Ford.


BabyBaby - 8/3/2014 12:38:38 AM
+1 Boost
I cannot believe you are still here spewing the same crap. Why is sharing a platform a bad thing?


DumbpeopleDumbpeople - 8/1/2014 12:45:49 AM
+5 Boost
I have to feel sorry for the ignorant one who constantly run down Lexus. What Lexus does is not different to say Audi who use VW parts, Lamborgini who use Audi and VW parts, Porsche who use Audi parts, BWM who use Toyota parts and I can go on. While a Lexus will still be running in 10 years the BMW or Merc will not.


Dr550Dr550 - 8/1/2014 3:00:29 AM
-5 Boost
The subject was Lexus. Why do Lexus fanboys always deflect questions by talking about Audi or "reliability."
The reason why Lexus cars and SUV's have a lower price is because they use Toyota parts. Toyota's are reliable because they use parts and engines that are tried and tested and value durability over performance. If it works for Lexus and their customers that is great. I bet not much has changed on the 2.5L V6 engine on the 2014 IS250 and the 1989 ES250.


benzforlifebenzforlife - 8/1/2014 1:11:58 AM
-3 Boost
was that an accident or meant it when you wrote that Lexus will be running in 10 years and Benz and BMW will not?
Let me help you here.
Benz is the first car in the world, even with small numbers that are at times 1-st and at times 2-nd highest priced car company.
BMW is another huge success in its own right
The only reason Lexus is successful, its because Detroit failed to keep Americans interested in their boring crappy cars, so Toyota stepped in with Lexus, another boring, ugly, unoriginal, copy-cat but blessed with decent quality products and they took Detroit's business, they wished in their wildest dreams but they couldn't take on Germans, after Lexus came out German cars became more popular, because now people have the ugly Lexus to look at and appreciate what real luxury car means. Authentic, not copied, not dorky and quirky looking stuff that is glorified from cheaper cars.

So, with all due respect, put the bong down and sober up, reality bites but its the truth, Lexus is the Cadillac and Lincoln Detroit failed to offer due to ignorance


benzforlifebenzforlife - 8/2/2014 1:50:40 AM
-1 Boost
Yes my friend. As a Benz fan, I have been cursing the dickhead that designed the past S, CL, GLK and R. All of them are ugly beyond possible explanations and that's not all, the fucktart that designed those cars so ugly was sent to retirement in a huge ceremony, they should've beheaded the bastard.
He is lucky that at least the S and CL kicked some ass in sales and 3 of my friends drive the past S and they are very happy with that model's high level quality, one has over 160000 miles the others are close to 100000 miles. that is was Benz is always about but not the retarded designs. they also fucked the front of the E and C in mid-cycle updates. The ML is still fucked but the GL is great. GL shows that if designers want they can put out a great design, they dio not need to go into the retarded camp


BabyBaby - 8/3/2014 12:24:56 AM
+1 Boost
Ok I officially believe you are on crack now! Benz motors being reliable? LOL


DumbpeopleDumbpeople - 8/2/2014 7:53:25 PM
+1 Boost
It is interesting how when some makes a supporting statement about Lexus suddenly they are classed as a fanboy. Yes i own a Lexus, but also have a Merc, porsche and a Kia. Cars are like people some will like some won't but i don't see why running down a make or brand for no real reason. I am sure my Lexus will cost me less in the long run but i love all cars and right now Lexus doses seem to be making cars that excite passion on all levels. So before bagging the grill remember the same comments were said about Audi some years ago, when bangle designed the 3, Porsche with SUV's- now most love them.


BabyBaby - 8/3/2014 12:50:22 AM
+2 Boost
That was well said, thank you! :-)


MorePowerMorePower - 8/4/2014 1:28:04 AM
+1 Boost
The important word in his statement was "decontented".

Lexus feels that its differentiating feature(s) is that it gives the customer the most value per dollar for the luxury buyer.


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