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In Japan, a Lexus just doesn't have that cachet
Toyota's home-field disadvantage

Toyota's Lexus brand has been the best-selling luxury car in the U.S. for six years, but that doesn't impress buyers on the automaker's home turf in Japan. Sales have been slow since Lexus made its debut in Japan in 2005. Japanese buyers think Mercedes and BMW sedans have "greater panache," said analyst Christopher Richter of CLSA Asia Pacific. "In Japan," he said, "people want something that says, ‘Hey, I spent stupid money on a car.'" (Los Angeles Times, free registration required)

http://finance.yahoo.com/columnist/article/business/12804 Read Article



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thecarthecar - 11/15/2006 9:36:21 AM
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Japanese are smarter :
Japanese buyers think Mercedes and BMW sedans have "greater panache,"

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WillisWillis - 11/15/2006 10:32:42 AM
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This has nothing to do with intelligence. FACT is, the German luxury brands are more prestigeous, developed and associated with luxury than Lexus is at the moment, especially in their home market of Japan. They're too young and new for them to already have prestige, especially when compared to old brands like BMW or Mercedes-Benz.

Someone with money will therefore want to spend it on something that is more prestigeous: and the high prices in this case only serves to add to that feeling of prestige to the buyer.


Designer1Designer1 - 11/16/2006 1:42:08 PM
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You read it, "spend stupid money on a car". Only stupid people that have nothing to say but "prestigeous". I don't get it, what does prestige do to me if the car sucks in reliability. Have you asked the new owners of the new S550 about their multiple visits to their dealers? The old MB/BMW in the late 80s and early 90s were really good cars the more advanced they get the worse they're becoming. So let anyone who's stupid enough to pay stupid money on themm.


BMW530iBMW530i - 11/15/2006 9:38:55 AM
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I predict a 178 comment flame war.

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thecarthecar - 11/15/2006 9:48:24 AM
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I will put no comment on this article , Flame Yahoo and LA Times =)

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WillisWillis - 11/15/2006 11:35:01 AM
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Is this the standard Lexus fanboy excuse, Wilco?

Buying a luxury car is "stupid" from a financial point of view, even a Lexus. If we were all "smart", we'd be driving Geo Metros. Cheap, efficient and reliable.

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WillisWillis - 11/15/2006 12:19:10 PM
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Show me where I bashed Lexus, Will. I said buying a luxury is stupid from a financial point of view.

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2JZSoarer2JZSoarer - 11/15/2006 10:56:06 PM
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Last I remember the LS460 won a comparison against 7-series,S-class,and Audi whatever the hell it was,for the most technology and I think that a true luxury brand should be innovative like Lexus:World's first actual low beam LED headlights(not drivinglights),world's first 8 speed automatic transmission,world's first key card,Self parking(prius had it first), and the list goes on.

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2JZSoarer2JZSoarer - 11/15/2006 11:14:47 PM
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My mistake the LED headlights are only on the LS600h,
but non the less a Lexus!!!

Here's the definition Prestige:Widely recognized prominence, distinction, or importance...

Well Lexus does fall in the category of prestige,because Lexus does have a distinction:Quality like no other brand,excellent design,ultra luxury,and very innovative!!!

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RupertRupert - 11/16/2006 4:37:50 PMView My AgentSpace
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worlds first key card?
i give you renaults.

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mitchatlexusofmarinmitchatlexusofmarin - 11/15/2006 12:46:51 PM
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This is much akin to Cadillac/Lincoln being considered run of the mill in their home market. Of course the "import" will ALWAYS have more panache- no exceptions. Unless you think a better performing Corvette has more prestige than a 911 here.

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1970toyotamarc1970toyotamarc - 11/15/2006 4:03:30 PM
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12,000 LS460s in the first month. If you look at yearly sales, Lexus is not far behind BMW for #2. So if you add 12,000 to the existing sales of the year, that puts Lexus ahead of BMW, and #2 behind MB. Not bad for a brand that is a little over a year old, and has only 3 exclusive models (LS, GS and IS) In the next couple years, the whole brand will be marketed, and sales will grow exponentially.

This LA Times article was a complete non-story, must have been a slow news day.

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Agent63Agent63 - 11/16/2006 6:04:50 AMView My AgentSpace
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2JZSoarer - 11/15/2006 11:14:47 PM
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My mistake the LED headlights are only on the LS600h,
but non the less a Lexus!!!

Here's the definition Prestige:Widely recognized prominence, distinction, or importance...

Well Lexus does fall in the category of prestige,because Lexus does have a distinction:Quality like no other brand,excellent design,ultra luxury,and very innovative!!!
-----------------------

Lexus has good quality, the IS/GS are nicely designed but i don't think the brand is "ultra luxury". Ultra luxury you're talking about Bentley, Maybach, Rolls Royce type cars. It does have premium luxury like it's counterparts.

Lexus is much like Audi. The prestige factor is not there. Why? well i'll leave that to the rest of you to judge on since it is subjective. IMO since Lexus/Audi doesn't have the long history behind them they rely on marketing. Lexus and Audi have not been marketed as well as BMW or Mercedes have over the years. You always hear about Celebrities buying a BMW or more popular Mercedes Benz. Lexus/Audi is more conservative/modest luxury and that's fine. Sometimes understated luxury is a good thing.

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TUFFTUFF - 11/16/2006 9:31:52 AM
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Lexus Dude wrote:
Also Lexus has prestige, more than Mercedes, BMW or Jaguar and certainly more than Audi, which are rebadged VW's with leather and AWD. The Germans know how to rip-off people, they're brilliant at it.

More than a Merc...? Where is that?

Nobody says that Lexus is producing bad cars. But still, they are not the innovators. They just use the german concept to beat the germans...
Most times the trends are set by the Germans and the Japanese reproduce it a la Japan.

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ryaajusryaajus - 11/16/2006 9:56:02 AM
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mitchatlexusofmarin wrote
This is much akin to Cadillac/Lincoln being considered run of the mill in their home market. Of course the "import" will ALWAYS have more panache- no exceptions. Unless you think a better performing Corvette has more prestige than a 911 here.



I lived in Germany for 6 years and the funny thing was they thought of American cars were prestigious..they loved Cadillacs..they were much more expensive there so most couldn't afford them..it was a ton of Opels there which are GM made..they mostly drove VW's, Audis, BMWs (3 series and wagons)....Most of the Mercs were taxi's and other service vehicles..though there were some..but considering that most were expensive, Germans financed cars for up to 30 years..I was in Frankfurt...which is a city and most people there and most of Germany use public transportation instead of driving cars becuase most can't afford cars.


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99gs40099gs400 - 11/16/2006 10:30:33 AM
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Japanese has small BALLS , has nothing to do with prestigeous BS crap. Buying a MB or BMW just to make them feel like Godzilla. Reliability is their last concern people !!!!

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audiotaudiot - 11/16/2006 11:20:23 AM
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The Japanese see Lexus for what it is. Just like in America we see David Hasslehoff for what he is.

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RupertRupert - 11/16/2006 4:40:02 PMView My AgentSpace
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yeah why does germany love the hoff?
the world goes wrong quite often, in the UK chrysler are prestigious, almost lexus prestigious.
the voyager has long been the most desirable mpv.


audirevolutionaudirevolution - 11/16/2006 1:34:36 PM
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Lexus has no prestige in Japan. They KNOW it is just a toyota.


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answeranswer - 11/16/2006 2:25:44 PMView My AgentSpace
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American sports cars are highly desirable in Europe.

The world is weird, go figure.

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huu76huu76 - 11/16/2006 7:33:47 PM
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This guy should do some more research.

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drhasslefreedrhasslefree - 11/16/2006 7:34:42 PM
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The japanese are right. Lexus is just another rebadged Toyota.

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huu76huu76 - 11/16/2006 7:34:54 PM
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Just a Toyota is still better than anything Germany has. Like I said, Lexus' toughest competition is Toyota, not Germany.

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Sauceboy01Sauceboy01 - 11/16/2006 8:24:55 PM
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I agree with the Japanese on this one as well, and this comment by Willis "This has nothing to do with intelligence. FACT is, the German luxury brands are more prestigeous, developed and associated with luxury than Lexus is at the moment"

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chewychewy - 11/16/2006 10:14:17 PMView My AgentSpace
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For those that don't know,the Lexus ES 350 is just a rebadged Camry (not a bad rebadge but still people should know this and not be fooled by fancy ads)

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huu76huu76 - 11/17/2006 1:14:03 AM
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In Canada, Lexus/Toyota dealerships have traditionally been paired together, get over it, smart people will choose a mere Toyota over a BMW/Audi or MB. The sales numbers show they should just hide out in Europe and wait for Lexus to come finish the job.

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dealerdealer - 11/17/2006 4:20:15 PM
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ok non-informed people - here it its

In Japan, most of the Lexus line was already available as the top-line Toyotas!!!

Of course Lexus has no 'panache'

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austintysonaustintyson - 11/19/2006 9:33:42 AM
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What do you expect. All that the people of Japan see is Toyota is taking its higher end models and slaping a Lexus badge on them. I wonder how the sales of Lexus compares to the same cars Toyota sold as Toyotas two years ago.. now if they are the same then is Lexus a flop?????

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huu76huu76 - 11/20/2006 1:00:42 PM
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I have a correction to make. Richmond Hill just built a new Lexus dealership and it's independent of the Toyota one. I guess since Lexus has their own cars now that aren't based off Toyotas, they're separating the dealerships.

btw, the LS460 seemed to have lots of cachet in Japan.

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