Beating The Germans At Their Own Game? F Sport Packages Fuels The Fire In Lexus Sales Comeback

Beating The Germans At Their Own Game? F Sport Packages Fuels The Fire In Lexus Sales Comeback
Reliability and quality alone just didn’t cut it anymore in the premium sector; losing the top spot in 2011, after 11 years, was a wake-up call for Lexus.

The main culprit was the staid, bland styling that projected an image buyers were shying away from. The competition was fierce and it was winning.

This year, Lexus has sold 247,445 vehicles through September and is breathing down Mercedes-Benz’s and BMW’s neck, which are ahead by a mere 2,445 and 2,511 units respectively. The crown is, once again, in sight.

Taking on the Germans on their own game is the secret behind the brand’s resurgence. If the customers want performance-oriented cars, then that’s what they'll get
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cidflekkencidflekken - 10/26/2015 4:16:53 PM
-1 Boost
If Lexus was even close to the Germans' sales of their mid-to-upper tier products, then I'd take them seriously, but they are not. When sales are so dominated by the entry-level, they don't belong in the same breath as BMW or Mercedes, just yet. And when those numbers are heavily weighted by a FWD-based-cushy riding car (ES and RX), then it's even harder to take them seriously. Call me when Lexus finally has truly competitive powertrains (both in performance and economy) and when the IS overtakes the C/3, the GS overtakes the E/5, and the LS overtakes the S.


TheSteveTheSteve - 10/26/2015 4:24:01 PM
-1 Boost
Article: "...The main culprit was the staid, bland styling that projected an image buyers were shying away from. The competition was fierce and it was winning..."

Not so. Before Lexus, luxury or premium cars were relatively expensive. Lexus created a car that was arguably similar to a Mercedes, but was a lot less expensive. Their legendary reliability (few defects) scored points too. Lexus made a huge impact at the time. In fact, they captured a lot of former MB customers!

But Mercedes and BMW didn't stand still. They, too, upped their game by creating still "better" cars, as well as going down-market. When the price difference between an MB and a Lexus narrowed from a chasm to a gap, Lexus's "almost a Mercedes for a LOT less money" angle became much less relevant. Lexus's big plus at that point was their legendary reliability.

But MB and BMW didn't stand still. They upped their game by reducing defects numbers. At this point, Lexus was similar to MB, for somewhat less money, and with a little better defect numbers. The differences were no longer "night and day", except when it came to status, and that's where Mercedes shined, and where they've cashed in on their brand cachet.

Today, Lexus is still a very strong and profitable brand. They are no longer a direct competition to Mercedes. They have their own identity, and they attract a clientele who wants Japan's Best, rather than feeling they're compromising by getting a Japanese MB knock-off, but at least it's a lot less expensive. In fact, Lexus's often criticized and polarizing styling is said to be appreciated by Lexus fans. They actually like it! This is telling us that MB consumers and Lexus consumers are not typically interchangeable. Ditto with Lexus and BMW.

So on the plus side, Lexus is attracting a unique clientele who have unique characteristics. On the down side, the question is whether there's enough of them to keep Lexus sales numbers and profitability up, because Lexus is unlikely to steal customers from the ranks of MB and BMW.


Dr550Dr550 - 10/26/2015 6:04:27 PM
-2 Boost
Lexus is "strong and profitable" because it pulls parts from Toyota. According to MotorWeek, the Lexus NX uses a Toyota RAV4 platform and Camry 4 cylinder hybrid engine; the RX platform and engine comes from its "Camry cousin." Lexus are a lot less expensive because of this fact.





GMCadillacGMCadillac - 10/26/2015 6:32:26 PM
-9 Boost
We can't expect much from the country that is only good at being lazy and making junk and call them "luxury cars".

The Europeans and the Americans always come up with something new, but the Japanese can't think of such a thing (Due to their failed education system), so they just have to keep making junk using 20 year old technology, thus, their cars are "reliable".


GMCadillacGMCadillac - 10/26/2015 6:34:26 PM
-8 Boost
I mean, if the people all around the world knew more about the Japanese radiation, would they actually even buy anything from Japan?

Especially their overpriced brand "Lexus"?

--

"Former US Gov’t Official: “The elephant in the room is Fukushima radiation” when it comes to Pacific Ocean animal die-offs… Gov’t has totally failed to inform public about full extent of fallout… Media’s silence is deafening"

http://enenews.com/former-govt-official-elephant-room-fukushima-radiation-when-comes-pacific-ocean-die-offs-govt-totally-failed-inform-public-about-full-extent-fallout-mentions-coverage-enenews


knowitall1985knowitall1985 - 10/26/2015 6:58:28 PM
0 Boost
In the next 5 years Lexus will dominate.....


GMCadillacGMCadillac - 10/26/2015 7:16:11 PM
-5 Boost
This is exactly what Lexus fanboys have been saying in the last 10 years.

And the dream still not coming LOL


USNA1999USNA1999 - 10/26/2015 8:56:15 PM
-1 Boost
The problem is that LEXUS will never be a major player worldwide, until then no one will take them seriously outside the USA.
They need to stop selling their models as Toyotas in other countries too. Wait, they need to stop selling them as LEXUS here in the USA.


MDarringerMDarringer - 10/26/2015 10:52:12 PM
-4 Boost
Lexus has sales but not credibility


momentofsurrendermomentofsurrender - 10/26/2015 11:14:38 PM
+4 Boost
We have had a couple of Lexi and they are really good overall vehicles. Reliable, great dealership experience, reasonably priced (including servicing) and perform well. Not everyone needs a "hardcore" driving experience, especially if the vehicle spends a lot of time at the dealer. Having said that they do seem behind in the powertrain department and enthusiasts will likely look elsewhere.


GMCadillacGMCadillac - 10/27/2015 1:11:44 AM
-4 Boost
You can enjoy the same performance from other carmakers, like Hyundai and Mazda. Meaning, practically nothing really justifies Lexus' price.


F1_DriverF1_Driver - 10/27/2015 12:29:39 AM
-1 Boost
I'm not old enough to drive a Lexus. :( Cars for old people. :P


TomMTomM - 10/27/2015 9:32:24 PM
+1 Boost
Lexus has largely taken the place that Buick once had - the cars for the older people. However - today they have decided to adorn those cars with an unusual and horrendous cow catcher grill. Again - as I have pointed out in the past - there is a difference between Premium Vehicles and Luxury Vehicles. Lexus sales are largely the ES and RX - both Camry/Avalon based units. They do no sell the others in high volume. Their one Luxury car - the LS - doesn't compete.

What has happened in the Premium category is that the companies have been producing offerings in the lower price ranges - and people want the cachet of owning a premium brand - at Ford/Chevy prices. But these cheap cars simply cheapen the brands- and are nothing more than an attempt to bring new - younger people into their cars - hoping that they will buy into the brand for life.


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