Why Is Lexus Afraid To Turn The Heat Up On BMW?
Agent009 submitted on 5/3/2007 Official Bell & Ross Timestamp: 3:57:40 PM
136 user comments | Category: Misc News | Source: www.autospies.com
Lexus, the solid and conscious value leader for the luxury car owner, never has ebbed too far from the center of mainstream luxury vehicles.
Nor have they needed to.
Technological marvels until recently, have not been their forte, perhaps an unwarranted risk in their perspective.
Lexus cautiously (or wisely) takes tried and trued technologies and then infuses them it in their models over time in a proven and possibly more reliable manner. This formula has proven to be very successful for the leading maker. Not only by providing technologically competent vehicles a tad bit later, but to also solidifies their reputation as a reliability leader. After all who really uses all of those new half baked whiz bang gadgets?
BMW on the other hand (insert most any German brand here) believe in bringing cutting edge technology to the masses in shortest possible time frame. A techno geeks dream, so to speak. If you just have to have it, then BMW is for you. From their F1 inspired V10 masterpiece, to maybe the better left in F1 territory SMG transmission venture. Technology is the strong suit here, possibly foregoing the reliability factor, and maybe providing technology better termed as the “Bleeding Edge” rather than "Leading Edge". While gear heads may relish in the intricacies, the realists abhor the potential for repairs cost down the road. After all complexity equals danger as far as reliability goes.
Well as 001 and 009 have pondered over the last few weeks BMW has really upped the ante in the market, and given the buyer a real advantage, the best of both worlds. With BMW’s 4 year almost all inclusive warranty all of these complexities are now covered fully, and the out of pocket expense factor that many technophobes fear, is effectively nullified. The program is so complete that even every day service items that many makers do not normally cover are included.
According to Yahoo autos the BMW 525i expenses for maintenance and repairs over the course of the first 4 years will amount to zero out of pocket expenses for the owner.
On the other hand a comparable GS350 owner will incur an estimated $2,972 in maintenance fees, and $274 in repairs, for a total of $3,246 out of pocket expenses. Not bad really for 4 years, but compared to $0 it pales a bit.
The scenario pans out across the Lexus lineup with the magic number being around $3000 in associated costs for each vehicle examined.
So now the $64,000 question: Lexus has established itself at the top of the reliability charts why can’t they offer a warranty that is comparable? After all, if your car never breaks due to legendary reliability, then this should be a no brainer, right? The answer may be that $3,000 per car is a hefty chunk of change for Lexus to absorb on each and every model out that goes out the door. And this would obviously impact the bottom line.
However with the Yen at an all time low, and Detroit complaining the Japanese automakers are currently pocketing massive profits in a market slanted in their favor. The profit levels are at an all time high so that really isn’t an excuse.
Should Lexus continue to line their pockets with cash, maintain the current status quo, or should they step forward and put the nail in the coffin for the rest of the luxury market, and make an offer that no on else can match?
True reliability, and a promise to stand behind their workmanship better than the competition. You tell us.