Lexus Says It Needs To Improve Their Sedans Or Risk Losing Market Share To The Germans

With crossovers on the rise, and more car-like than ever, Toyota’a global branding chief Tokuo Fukuichi knows that Lexus sedans need to offer more to customers or prepare to join the Tyrannosaurus rex in extinction. Lexus has shifted to become SUV-inclusive, but sedans still comprise a large portion of its lineup.

Lexus’ strategy is to improve the driving dynamics on its sedans to a level that crossovers cannot match, using the lower center of gravity to their advantage. It also wants to make its more traditional cars more appealing to a broader and less-stodgy consumer base. Assuming the plan works, Toyota’s premium brand won’t need to engage in any automotive genocide, eliminating sedans altogether. However, like any automaker, Lexus is still likely to transform its lineup to appease on-trend demands — which could include a station wagon. 

“Unless we can really offer a sedan experience you cannot have with an SUV or crossover, I think the sedan may not be able to survive if it does not evolve,” Fukuichi told Automotive News at the Shanghai auto show in April. “At a certain point of time, the traditional, square, three-box sedan will go away.”

MicrosoftUser - 5/1/2017 10:41:18 AM

+4 Boost

Well duh!!! First of all get rid of the really awful hideous front end grill and stop doing those strange, goofy anime cartoon inspired designs.

Dexter1 - 5/1/2017 3:59:47 PM

+2 Boost

AMEN to that!

222max - 5/1/2017 11:01:13 AM

+5 Boost

Hmm. Didn't read anything like "losing market share to the Germans" in the article. Sounds like their reasoning is that sedans are morphing into something else than the traditional sedan and that they are seeing where the trends are heading.

cidflekken - 5/1/2017 3:56:52 PM

+3 Boost

They need to improve their engine performance and mpg. The Germans all have 4-cylinder engines that either outperform or match the performance of the V-6 in the IS350, but definitely have better mpg. And the 6-cylinders of the Germans completely blow away the IS350 and GS350 but essentially match mpg. I would EASILY have gone with an IS350 F-Sport or GS350 F-Sport if the engines didn't feel and sound like Honda VTEC 4-bangers.

ilovecar2015 - 5/2/2017 10:14:35 AM

+2 Boost

cidflekken hit right on the head. Currently owning a GS350 F-Sport, previously 328i, then 535i, I feel my 328i has more acceleration than GS350 (though not as smooth)and superior MPG, 535i was way more power and MPG slightly better. I bought the GS F-Sport because it was lighter and sportier feel than 5-series, plus I'm good with the design and Cabernet interior.

TheSteve - 5/1/2017 6:53:01 PM

+1 Boost

I don't know if I agree with the perspective presented by this thread's title. I don't believe Lexus competes against Mercedes, BMW, or Audi. Lexus is sort of in a "league of its own," in a niche it has carved out for itself, arguably called "Asian Luxury Vehicle."

However, if Lexus wants to increase their sales, they certainly need to do something to attract more buyers. Areas where they DON'T have challenges include:
- Low defect numbers at purchase and during ownership
- Reasonable maintenance and operating costs
- Good customer service
- Solid reputation
- High level of fit and finish
- Quality materials and workmanship

Where I would advise Lexus to up their game is:
- More "attractive" styling (AKA less polarizing)
- Much improved handling in emergency maneuvers
- Less isolated driving feel, even if only as a user-selectable option

If they changed these things without sacrificing their current strengths, the arguably could go toe-to-toe, directly against the German brands, and make headway.

MDarringer - 5/1/2017 7:50:22 PM

+1 Boost

Sedans are losing ground at every brand not just Lexus. It's time to give up. Do a new ES. Do a coupesedan EV version of it to slot in above the ES. Then on to the LS. The GS is a sales failure and the IS isn't really that much of a spark either. Concede.

In the short term, crossovers and EVs are the way forward. In the long term, discovering what the next big trend will be and getting that to market is the ticket.

malba2367 - 5/1/2017 9:06:30 PM

+2 Boost

They still need a good sedan lineup, as the segment is pretty significant globally (lexus has global ambitions). They should continue the ES for the US market, as it does pretty well and I doubt the engineering costs are too high to modify an avalon. They need to get serious with the IS/GS/LS and they need to keep all 3 to avoid a huge hole in the lineup. They also need a larger crossover which is coming soon. Lexus/Toyota has the resources to have a full lineup that can compete with anyone. Like an above poster commented they need new engines, 2.0 I4, 3.0 V6, 4.0 V8 all turboed to be competitive with Germans and to avoid displacement taxation schemes in China and Europe.

MDarringer - 5/2/2017 8:55:14 AM

0 Boost

The ES + an ES-based EV coupsesedan to replace the GS and the LS is all they need.

MBguy - 5/1/2017 9:11:46 PM

+5 Boost

"Lexus Says It Needs To Improve Their Sedans Or Risk Losing Market Share To The Germans"

Nowhere in the article does Lexus say this. (Why was it completely fabricated?)

Yet another stupid headline on this site. It's getting to be a regular thing.

MarathonBob - 5/1/2017 9:20:40 PM

+2 Boost

Ditch the hideous grill. Do not trust your Japanese designers with front end design.