40 Votes

If You Were In Charge Of Lexus, How Would You Save Them From An Aging Demographic?

Agent009 submitted on 8/31/2009 Official Bell & Ross Timestamp: 12:40:18 PM

72 user comments | Category: Misc News | Source: | SOURCE: freep.com

Lexus could be headed for trouble.

Revered by an aging owner base but lacking exciting vehicles to draw new buyers, Toyota's luxury marque is beginning to look like another prestige brand that followed its original customers to death's door: Buick.

"Lexus is Buick in training," said Rebecca Lindland of IHS Global Insight. "Lexus made its name with baby boomers. They're aging, and the average age of Lexus owners is increasing with them.

"Lexus hasn't been able to supplement the baby boomers' loyalty with younger buyers. They've tried with vehicles like the IS sport sedan, but they haven't been able to penetrate younger buyers."

The median age of a Lexus owner is 56, according to data from consultant AutoPacific. That's more than a decade younger than Buick, but years older than the median BMW, Infiniti or Audi buyer.

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If You Were In Charge Of Lexus, How Would You Save Them From An Aging Demographic?

About the Author

"If everything seems under control, you're just not going fast enough."
— Agent009 (View Profile)

User Comments

No, old people have money. If anything I would make the designs more conservative and boring. Who else is going to focus on just old people?
— Joe_Limon (View Profile)

Posted on 8/31/2009 12:56:54 PM | reply to this comment | Votes: 6

GET CHRIS BANGLE HE WORKED WONDERS FOR BMW.....AND BEFORE ALL OF YOU HATERS START YOUR TRASH TALKING TELL ME HOW MANY 7 SERIES (2002-2008) and 6 SERIES(2004-2009)do you see on the road today and then talk.
— B7FAN (View Profile)

Posted on 8/31/2009 1:54:21 PM | | Votes: 5

no haters here, your on the money.
— 1UAW (View Profile)

Posted on 8/31/2009 5:01:50 PM | | Votes: 0

Looks like 009 mess up big time on this one. If Lexus didn't plan to go after the ben gay crowd, but end up stuck in that demographic, then what good will any of us here do? Whatever direction we take Lexus, it'll end up in some other segment.

Short of turning Lexus into a Ferrari fighter and go after the aging rappers and crackhead rockstars. Smart older folks with disposable income who want the worlds most refine, most serene vehicle lineup ever built will flock to Lexus without Lexus even wasting a single dollar to woo them. Lexus has already carved themselves an unmatchable niche, they DON'T need to change. Once Obama fix this failed GOP sponsored economy, Lexus will again be raking in the cash.

If I was running Lexus, I'd dump a ton of money and donate a bunch of Pruis towards the democrate party as they have the youngest most open minded demographic and I'd laugh when all those unhip old timer mentalitied GOPs wheep and wonder how they're ever going to find someone cool, hip and charismatic to lead them.
— Badgewhore (View Profile)

Posted on 9/1/2009 4:40:37 AM | | Votes: -2

Look, Mercedes pulling in a large demographic because they have great design and safety. Focus on designs and stop chasing the Ben Gay crowd. Lexus has done this to themselves, they can break out.
— inspirion7 (View Profile)

Posted on 8/31/2009 1:21:27 PM | reply to this comment | Votes: 3

Why would you focus on the age of the buyers? As long as they continue to be the #1 selling Luxury brand in the USA, I'd say they keep doing what they do now. Focusing on older people with lots of disposable income.
— Invisible (View Profile)

Posted on 8/31/2009 1:22:45 PM | reply to this comment | Votes: 2

I'm not sure if they intentionally focused on that demographic, however that is what they ended up with. Similar to the Scion being marketed to a younger buyer, and the actual buyer demographic is much much older. Sometimes what you plan on doesn't happen.
— Agent009 (View Profile)

Posted on 8/31/2009 1:28:21 PM | | Votes: -4

Everyone who says that Scion's demo skews older should be required to provide the stats to back up that completely anecdotal charge.

Here's one to counteract it.
http://goodcarbadcar.blogspot.com/2007/10/youth-maturity-different-cars.html

Then there's this...
http://blogs.cars.com/kickingtires/2008/01/down-economy-mo.html
— thetruth01 (View Profile)

Posted on 8/31/2009 4:47:02 PM | | Votes: 5

I wonder how SCION's age demographic gets skewed. My brother-in-law just bought a new SCION for his teenage as a highschool graduation present. An 18year old driving the car, but a 46 year old bought it.
— Invisible (View Profile)

Posted on 8/31/2009 5:05:08 PM | | Votes: 4

poor kid
— Joe_Limon (View Profile)

Posted on 8/31/2009 5:08:51 PM | | Votes: 5

I don't get the reference to Buick? Buick became an antiquated brand selling antiquated pushrod motors with similar outputs to engines of half the size, Buick still sells 4 speed autos for God's sake......Buick's main customer also became rental car companies. Buick hasn't been a luxury car builder for many many decades. Just Chevies with different chrome applique.
— Invisible (View Profile)

Posted on 8/31/2009 1:25:44 PM | reply to this comment | Votes: 1

What is there not to get? Both brands, Lexus and Buick builds cars for old people. Got it?
— LexSucks (View Profile)

Posted on 8/31/2009 1:30:32 PM | | Votes: 2

NO, still don't get the comparison. Old people buy Corvettes! But I would not compare Corvettes to the Lexus brand.
— Invisible (View Profile)

Posted on 8/31/2009 2:13:13 PM | | Votes: 2

You still dont get it. Even though old people buy vettes that doesn't mean that the vette's main demographic are old folks. Lexus and Buick's main demographic are indeed old folks. cant say that about the vette.
— LexSucks (View Profile)

Posted on 8/31/2009 3:40:23 PM | | Votes: -5

You can say that about the "vette" actually, seeing as over %50 of people who purchase Corvettes are 40+. The Corvette is for old people, whether they intended it to be or not.

Just using your own logic.
— Anthony (View Profile)

Posted on 9/1/2009 3:48:38 PM | | Votes: 1

There's a big difference between 40yo and 56yo. And i'm willing to bet the farm that the average age of a vette buyer isn't 56 years old like the Lexuses. No matter how you slice it, The Lexus vehicles cater to a much older Audience than vette buyers. Not that there's anything wrong with that.
— LexSucks (View Profile)

Posted on 9/1/2009 5:21:39 PM | | Votes: 1

Lexus should stick to what they do best, Building soft non-dynamic cars for folks age 56 or above. They would have to completely re-invent themselves in order for young people to pay attention to them. The only young folks that are attracted to lexus are the few out-of-touch fanboys that you see posting complete garbage on the internet. The other %99.999 percent of young people view lexus as car for old folks. A japanese buick if you will.
— LexSucks (View Profile)

Posted on 8/31/2009 1:26:05 PM | reply to this comment | Votes: 2

It's true, lexus trying to be sporty is akin to swapping in stiff springs and slapping on a $200 ground effects kit. The people who buy lexus's won't buy such a car, and enthusiasts will see it as pre-fried rice.
— Joe_Limon (View Profile)

Posted on 8/31/2009 1:48:55 PM | | Votes: 3

"If You Were In Charge Of Lexus, How Would You Save Them From An Aging Demographic?"

I would focus on added more pin stripes, gold badges, and stacked fake exhausts. I would also rebadge the rest of the toyota fleet from the yaris and corolla to the sewing maching and forklift. It isn't dilution since there really isn't a core brand to start with. The whole company is a successfull exercise in marketing and perception manipulation.

— America (View Profile)

Posted on 9/3/2009 8:53:26 PM | | Votes: 3

By ditching every product in the entire lineup and starting over from scratch.
— 204E60 (View Profile)

Posted on 8/31/2009 1:33:13 PM | reply to this comment | Votes: 4

First they need to suseed from Toyota.
— rigid (View Profile)

Posted on 8/31/2009 1:53:27 PM | reply to this comment | Votes: -6

First, you need to learn how to spell. SECEDE.
— 204E60 (View Profile)

Posted on 8/31/2009 1:55:08 PM | | Votes: 4

Keep the ES and LS soft and smooth, and make the IS and GS more sporty... Don't mess with a working formula
— adamsaf723 (View Profile)

Posted on 8/31/2009 1:54:44 PM | reply to this comment | Votes: 8

I would stop styling them for old people. The new IS line is going the right direction to lower buyer age though.

But in the end one has to face facts that the older buyer is where the money is at.
— SteedPub (View Profile)

Posted on 8/31/2009 2:12:34 PM | reply to this comment | Votes: 4

It's a little difficult to gage at what will be a successful formula versus who will actually reep the success. I wouldn't change much outside of more agressive styling. The current styling isnt't that bad, if I may say so, but needs to be slightly solidified....more direct. ll in all you cannot overlook their stance at #1 in America....they build good products....
— Mason3Robert (View Profile)

Posted on 8/31/2009 2:43:15 PM | reply to this comment | Votes: 0

I'd put whoever designed the GS in charge of my design team. I'm joking,but seriously if they can design cars as classy and elegant as the GS,than Lexus would be so ahead of the competition in terms of design. On a side note I think thanks to Autospies I now hate Lexus. Dozens and dozens of Lexus articles for no reason. If there is news to report on Lexus by all means I want to see it. But things like this make no sense. I think this is the third or fourth "if you were in charge of Lexus" article. Come on guys,seriously you must get paid for this. For a while everything was BMW,now its been Lexus for the longest.I rather have a slow day with no news than see pointless articles on things like "IF you could change the sound of Lexus' horns,what would you change it to?"
— rxh8me9000 (View Profile)

Posted on 8/31/2009 3:13:49 PM | reply to this comment | Votes: 3

Mercedes-Benz and Jaguar have higher buyer median ages than Lexus. Perhaps 009 should ask how to save them first.
— FanboyOfTheTruth (View Profile)

Posted on 8/31/2009 4:04:10 PM | reply to this comment | Votes: 6

I don't think he has a deep rooted hatred and agenda against those brands.
— Invisible (View Profile)

Posted on 8/31/2009 5:02:55 PM | | Votes: 4

good point but they dont need saving.
— 1UAW (View Profile)

Posted on 8/31/2009 5:06:03 PM | | Votes: -5

Both Mercedes-Benz and Jaguar are losing money at moment. Your point?
http://www.easycarblog.com/2009/04/mercedes-benz-announce-a-e1426-million-loss-for-q1-of-2009.html/
http://www.guardian.co.uk/business/2009/aug/31/jaguar-post-62m-loss
— FanboyOfTheTruth (View Profile)

Posted on 8/31/2009 5:12:48 PM | | Votes: 6

at the moment*
— FanboyOfTheTruth (View Profile)

Posted on 8/31/2009 5:13:12 PM | | Votes: 2

at the moment just about anyone in and connectect to the auto industry is losing money but BMW and MB wont be out of business in the near future.
— 1UAW (View Profile)

Posted on 8/31/2009 10:43:29 PM | | Votes: -5

So won't Toyota/Lexus. Your point?
— FanboyOfTheTruth (View Profile)

Posted on 9/1/2009 2:48:18 AM | | Votes: 5

I don't know, I feel like with a few small changes lexus could have a great spread going. The IS is a great youth car and I see them all the time with teenage drivers. The LS is a great executive car, that is much more easily attainable to up and coming young business men etc than an S-class or 7. The ES is really the only old fart car, I always see grandmas driving that car. The RX is a soccer mom car. I know plenty of young people who swear by lexus, even 20 year olds. One of which has a lexus for every member of the family.
If they want more youthful buyers, build a small suv that's sportier than the RX. Also, redesign the GS to a younger demographic. That would give a little more option to young buyers while still preserving the middle age bracket with the LS, RX, GX, and LX. Drop the ES, the next GS can be enough to cover that segment.
— LUXCAR32 (View Profile)

Posted on 8/31/2009 4:08:52 PM | reply to this comment | Votes: 4

I dont completely agree with the fact that older age is where the money is - look at 3-series sales and G37 sales.. they are as expensive and more expensive that the competing cars from Lexus.. but they still sell more.. reason - they clearly define what their cars are .. what class they are in! as some one in the comments said make IS and GS - sporty look wise and performance wise and reserve ES and GS for the gray-haired!
They might wanna mimic BMW a bit on that(though not really with the number of models/options - which they would mess up if at all Lexus tries to do that) .. segregate the competing class, making them driver's cars - than backseat comfort cars..
— Bimmer3er (View Profile)

Posted on 8/31/2009 4:36:55 PM | reply to this comment | Votes: -1

"look at 3-series sales and G37 sales.. they are as expensive and more expensive that the competing cars from Lexus"

Wrong. The Lexus is more expensive than the vast majority of 3-series and g37s out there on the road.
Lexus does not have to do anything. If anybody has to worry about an aging demographic it is BMW. That is why they are gearing many of their newer models to the older crowd. Also, People that shop for Buicks are much more likely to cross shop with Caddy not Lexus.
— david999 (View Profile)

Posted on 8/31/2009 5:28:43 PM | | Votes: -3

That is going to change overnight for sure. The more Buick targets Lexus with their new products, the more Cadillac will fade.
— inspirion7 (View Profile)

Posted on 8/31/2009 10:22:47 PM | | Votes: -2

And the thought of people shopping Cadillac not Lexus that shop Buick is stupid. Do Avalon customers shop Lexus ES models? Do Land Cruiser customers shop LX? Think outside your bias and you will see reality.
— inspirion7 (View Profile)

Posted on 8/31/2009 10:25:21 PM | | Votes: -1

Dude.. are you kiddin me?

"Wrong. The Lexus is more expensive than the vast majority of 3-series and g37s out there on the road." - try configuring IS line and compare it with C-class, 3 series, G37

Compare GS with 5 series, E-class or M ..

Compare LS with 7 series, S-class

Compare RX with X3, Q5 ..

Lexus beats them price wise hands-down..

— Bimmer3er (View Profile)

Posted on 9/1/2009 7:31:27 AM | | Votes: 2

david999:

really? lexus is more expensive? when you build an IS350--which bases at $36,755--with every available option it's $42,725.

build a 335i sedan which bases at $40,300 and then option it up to...$60,045.

please help me understand how $60,045 is less than $42,755.
— enthusiastx11 (View Profile)

Posted on 9/2/2009 6:15:54 PM | | Votes: 1

dear david999:

try this exercise with every other model...5-series vs. GS, 7-series vs. LS, 3-series convertible vs. IS convertible. built each on lexus.com and bmwusa.com.

what are the results?
— enthusiastx11 (View Profile)

Posted on 9/2/2009 6:18:13 PM | | Votes: 1

Hire the Audi AG Board of Directors as consultants.
— VISO (View Profile)

Posted on 8/31/2009 6:39:45 PM | reply to this comment | Votes: -5

This is like having an article asking how to keep BMWs from being purchased by arrogant pricks.

A customer is a customer. Yeah, the majority of current Lexus owners might be older, but who cares? Twenty years from now they'll be gone, but twenty years from now you can't guess what Lexus (or the automotive industry) will be doing at the time.
— answer (View Profile)

Posted on 8/31/2009 7:28:58 PM | reply to this comment | Votes: 5

Oh, and this is a "problem" shared by Ferrari as well.

http://www.ferrariownersclub.co.uk/happenings/2004/january/ft_2/text.asp
— answer (View Profile)

Posted on 8/31/2009 7:32:30 PM | | Votes: 4

Firstly, make the LS range even more refined and distinctive in the model layout. Disregarding costs, it should share minimal parts with other Toyota vehicles. The cabin design should be less rigid and more organic in execution, with an integration of brushed metals and exotic woods as surfacing materials.

Is there really a need for a Camry-based ES at this point? Introduce a new, HIGH-QUALITY entry-level platform to give new customers a 'taste' of the Lexus automotive philosophy. This platform would support an ES replacement, a future entry-level crossover and possible entry-level coupe.

The GS platform will support a more nimble series of GS sedans and future GS crossover. A radically different performance coupe will round out the GS range.

Retain the HS sedan, but make its future generations substantially higher-end and higher quality, especially for their price points.

Refine the L-finesse design language. Imagine sedans and crossovers conceptualized with the same passion as the LF-A!
— LuxuryFan (View Profile)

Posted on 8/31/2009 7:31:12 PM | reply to this comment | Votes: 2

Hyundai is entering 3rd tier, Lexus wants to be 2nd tier but its going to have to do something about its small car Product to make them be more competitive with M3s and A4s first. As Lexus like Audi and BMW is a performance oriented Lux Make. Lexus should have 2 IS-based platforms, not one. One compact, and another longer.

When are they going to make a car out of a Yaris Platform? They should call it the FS. They must do something about fuel econ, to attract people young enough to get erections without supplements.

— HyundaiSmoke (View Profile)

Posted on 8/31/2009 7:58:15 PM | reply to this comment | Votes: -4

What a load of BS.

Lexus' customers are a bit older because older people have money. Young people lease cheapies until they can afford a Lexus or real MB.
Time will change the kids when they get sick of being seen in another "me too" BMW or A-class delivery box.
If young people had money, the Germans wouldn't need to release bargain basement cars to compete against mainstream ones in an attempt to syphon off one or two badge conscious buyers with little self-esteem and even less money.
— huu76 (View Profile)

Posted on 8/31/2009 7:59:22 PM | reply to this comment | Votes: 3

you are incorrect.

mercedes, audi and bmw have the highest income buyers (in that order). lexus is a distant second to those three.

— enthusiastx11 (View Profile)

Posted on 8/31/2009 9:56:55 PM | | Votes: -2

"enthusiastx11" Do you really believe the crap that comes out of your mouth? You make blanket statements consistently against Lexus and they have no real basis. So let me get this straight, Bill Gates, the richest man alive which can skew your statistical BS off the chart alone, owns an LS. Hmmmm You really have no idea WTF you are saying do you. If you have any proof, indulge me.......
— Baby (View Profile)

Posted on 9/1/2009 12:14:10 AM | | Votes: 3

baby:

you're totally right. because bill gates--one man--bought the LS that makes lexus the brand with the richest demographic. totally logical.

oh...and the income/wealth data are accurate. two close friends of mine work in automotive: one at bmw in nj, the other at lexus in la. they both do tons of research and it's the same from both sources. mercedes and audi buyers top the list of income/wealth, followed closely by bmw and then lexus a distance behind.
— enthusiastx11 (View Profile)

Posted on 9/1/2009 4:18:02 PM | | Votes: 2

Personally I think Hyundai should capitalize as a 3rd tier entry level luxury brand for younger people. Oooops, Iam sorry its already happening.
— HyundaiSmoke (View Profile)

Posted on 8/31/2009 7:59:39 PM | reply to this comment | Votes: -3

How many young people are flocking to the Genesis sedan? I haven't seen the garish Genesis Coupe being accepted by the designer t-shirt crowd.
— LuxuryFan (View Profile)

Posted on 8/31/2009 8:49:17 PM | reply to this comment | Votes: 3

Iam talking about the Hyundai brand as a whole, Luxury.
— HyundaiSmoke (View Profile)

Posted on 8/31/2009 8:54:55 PM | | Votes: -4

There are many things they could do, if that was their goal...
- Add new innovative tech (night vision overlay on windshield, nav app integration, etc.)
- Fix their nav to work while the car is moving
- Make a sporty hybrid for under $40k
- etc.

At the end of the day, though, their goal is to appeal to people with money who will buy their cars, and they do that just fine.
— sigmabody (View Profile)

Posted on 8/31/2009 8:49:25 PM | reply to this comment | Votes: 2

Hyundai made an average of $56,425,000 off Azeras this year, Accents made an average of $527,306,000. Now Who says the small small cars dont bring in the big profits?
— HyundaiSmoke (View Profile)

Posted on 8/31/2009 9:00:42 PM | reply to this comment | Votes: -5

Thats from Hyundai North American sales from time period 1-01-09 to
7-30-09 for models Accent and Azera.
— HyundaiSmoke (View Profile)

Posted on 8/31/2009 9:02:32 PM | reply to this comment | Votes: -5

why you talking about rental cars in this thread
— Enforcement (View Profile)

Posted on 8/31/2009 10:28:15 PM | | Votes: 4

HyundaiSmoke, do any other brand exist in your world? Dude, please. There are about 128 brands and to think you focus on just Hyundai is beyond mind bending to me. In the color spectrum, you focus on one strand out of a million.
— inspirion7 (View Profile)

Posted on 8/31/2009 10:31:24 PM | | Votes: 5

Lexus will always be known as a slow as crap handling car.

That's just the way it is.

:-'
— EL34 (View Profile)

Posted on 8/31/2009 10:29:05 PM | reply to this comment | Votes: -1

I can tell you first hand that Lexus is not slow. They may not be the best handlers but they are definitely not slow.
— Baby (View Profile)

Posted on 9/1/2009 12:22:52 AM | | Votes: 3

-el34, perhaps to the ignorant and uninformed.
— Enforcement (View Profile)

Posted on 9/1/2009 7:38:27 AM | | Votes: -1

128 Brands? Theres almost 128 Brands in China alone, much less the world buddy.

Inspiron, dont you focus on GM as well?
— HyundaiSmoke (View Profile)

Posted on 8/31/2009 10:51:21 PM | reply to this comment | Votes: -3

Lexii need fatter tires.
— delan (View Profile)

Posted on 9/1/2009 1:51:00 AM | reply to this comment | Votes: -3

I would make an amphibious 4x4.
— truckman (View Profile)

Posted on 9/1/2009 4:28:45 AM | reply to this comment | Votes: -2

I'm 34. Bought a Acura TL over a Lexus ES350, IS350, Audi A4 last year due to the ES350 being the most boring drive every. The IS350 because you couldn't even fit a 2 year old in the back seat, and the A4 being too damn stiff driving.

Lexus simply needs to add some *excitment* into their products. I don't know if they can do that like they used to with the Celica, Supra, original Lexus SC, etc. Nowadays they make not one fun to drive car! Hell, they don't even make a 2 door sports coupe outside of the Scion TC.
— skinny (View Profile)

Posted on 9/1/2009 9:38:02 AM | reply to this comment | Votes: 3

I WOULD KILL KILL KILLL...KILL THAT UNDERSTEAR!
— pennfootball (View Profile)

Posted on 9/1/2009 10:09:41 AM | reply to this comment | Votes: 1

The understeer is an important supplement to the torque steer. It's all part of the signature lexus driver-feedback experience. They can't upset their core customer base with an abrupt addition of driving dynamics and driver involvement.

— America (View Profile)

Posted on 9/3/2009 8:59:11 PM | | Votes: 2

Realistically if you combined the practicality of affordible symmetrical AWD of a subaru WRX with lexus IS350 styling in a car that's between the IS350 and GS350's size and the price of the (IS250AWD/joke of a crap engine) you will have one bad assed entry level car with the IS350 engine evolved into 3.7 litters and about 325-330HP. Add in an optional torque vectoring electromagnetic rear diff and make the Nav system standard to get more economies of scale all for 40 grand!
— pennfootball (View Profile)

Posted on 9/1/2009 10:20:51 AM | reply to this comment | Votes: 2

I would make all the cars available in yellow and lime green. Racing stripes should also come standard across the board. /sarcasm

— Anthony (View Profile)

Posted on 9/1/2009 3:53:25 PM | reply to this comment | Votes: 1

Subaru should just admit hthey ae an upmarket brand. Their prices say it, their designs say it. Just admit the truth guys!!! Toyota should just stat investing more money into marketing Subaru as an upmarket brand for young people.
— HyundaiSmoke (View Profile)

Posted on 9/1/2009 8:00:01 PM | reply to this comment | Votes: 1

that RX in the photo is sex on wheels!
— enthusiastx11 (View Profile)

Posted on 9/3/2009 11:23:40 AM | reply to this comment | Votes: 2

Slogging thru autospies was worth it just for the laugh! Thanks!
— America (View Profile)

Posted on 9/3/2009 8:55:03 PM | | Votes: 1

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If You Were In Charge Of Lexus, How Would You Save Them From An Aging Demographic?

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