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Is Lexus Broken? - Agent 00J Lays Out A Market Winning Strategy To Put Lexus On Top of the Luxury Market

Agent00J submitted on 08/23/2008 Official AutoSpies Timestamp: 9:47 AM
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Is Lexus Broken? - Agent 00J Lays Out A Market Winning Strategy To Put Lexus On Top of the Luxury Market

Saving Lexus -

In 1996 I took a job with a company in California that promised great things in exchange for hard work. Not one to turn down a challenge, I resigned from my job and moved from New Jersey to California to start a new life. At the ripe old age of 21, my goals, dreams and desires were quite large, and the promise of a decent salary along with commission had me making plans on how to spend this new found wealth. During the first week at this new job, the managing partner called me into his office and instructed me to make a list of goals that I would have to review with him in several days.

I was new in town and hadn’t met a lot of people yet, so after work I spent a lot of time looking at cars at the numerous dealers in Southern California. I prepared the list of goals, and top on that list was what kind of car I wanted to be driving. Several days passed and I was again summoned into the managing partners office and he inquired as to my goals.

After I went over the sales goals I proudly told him that I intended to purchase a Lexus SC400 once I had gotten my commissions rolling. I took a brochure out of my stack of paperwork showing him the car I intended to purchase once I had started meeting my goals, and he took one look at me and laughed. He went on to say that I would never make enough money to be able to afford that car.

I lasted less than four months at that company before going with a startup that would eventually allow me to afford no only the Lexus SC400, but a lot of other cool cars as well.

There has been a lot of news lately that hasn’t been kind to Lexus. A survey posted by Agent 009 has Lexus in the lead as I write this story as the company our readers suspect will lose the most customers during the economic downturn we have been experiencing for the last 12 months. BMW has caught up to Lexus in both quality and will most likely surpass Lexus this year in sales as well, and while it is easy for us to play armchair quarterback, the fact is that Lexus seems to have faltered in the market place.

While Lexus won’t go out of business, I do feel that several strategic moves could really catapult it back to the top of the luxury car echelon, and even give BMW a run for their money.

The biggest single factor in play at Lexus is that their cars just don’t have the “got to have it” appeal anymore. Cold, calculated and sterile seems to be status quo with the current model lineup, and while they may be great well built cars, there is no passion. That passion and appeal are the very things that made a much younger me lust for the SC400 coupe, but those things are currently missing from the model lineup.

So how do you fix Lexus?

A good question perhaps, but first you have to acknowledge that Lexus needs to be fixed. There are certainly some hardcore Lexus fans on this site that might argue that Lexus doesn’t need to be fixed, but for the time being, grant me the leeway and assume that Lexus is indeed broken.

Lexus has always had a front wheel drive entry level car and a rear wheel drive flagship sedan in the fleet, so lets start there. The LS has become a benchmark vehicle that others aspire to be in terms of quality, but it is boring. This car is not bought for the way it performs, but rather the way it is put together.

Lexus first and foremost needs to get back that “got to have it” quotient that is missing from the lineup. The IS-F is the only car that comes close to having that quality, however when driven back to back with the competitors it does still come across as conservative.

So why not start with a bottom up redesign of Lexus. Lets start with the IS. I think the IS is a great looking car, I think the rims on the IS are some of the best looking rims currently on a production car. Lexus needs to infuse some soul and passion into the IS, and then steal a page from the BMW playbook and introduce both a coupe and a convertible version of the IS.

To make the IS a true competitor to the BMW 3-Series a manual transmission is a must across the board. The percentages really don’t matter as to how many cars roll with the manual, it is the perception the manual transmission option creates that Lexus needs to capture. Drivers of sporty cars like the option of the clutch pedal, and Lexus needs to get this into the lineup immediately. In addition, continued enhancement of the IS-F along with the addition of a manual transmission would round out the lineup for the IS.

The GS is a good car at a great price. Lexus could capitalize on this model range by doing a few simple items. The first thing I would suggest is defining whom the GS is truly going after in terms of sales. Is it the BMW 5-Series or E-Class Mercedes-Benz? If the 5-Series is the answer, I would again suggest a manual transmission across the board. Most people purchase automatic transmissions, however the inclusion of the manual again creates a perception in the customers mind as to the sporting intent of the car. BMW includes the manual on the 5-Series for this very reason, and even though the numbers are small the value of the perception created through the offering is invaluable.

Lexus needs to follow through and create the GS-F as well giving them a car that can compete with the BMW M5. On this one Lexus could have the upper hand as the current M5 with the standard SMG has a “love it” or “hate it” reaction with people. I recently drove a SMG M6, and was surprised at the “clumsiness” of the transmission. Lexus could easily move to the head of the class with the GS-F and have a car capable of competing with not only the M5, but the MB E63 and Audi S6 as well.

For the time being I would leave the LS alone however I would suggest the next ES and RX be rear wheel drive. Keeping the ES but making it RWD is a great strategy move and one that will continue to pay big dividends for Lexus. This car could compete with the MB C-Class and continue to be a huge asset to Lexus. By making the RX RWD as well, it allows it compete with the ML and BMW X3 while taking away the stigma of it being a Camry on steroids.

Finally I would propose two things that I think would go a long way towards fixing Lexus, and recreating it as world class tier one manufacturer versus a USA only car company. First off scrap the LF-A. You don’t need it, and quite frankly I am not convinced people are willing to buy it right now. Bring back the SC400 coupe. Make it convertible as well, but offer it initially as a coupe. Offer a manual transmission, and create a –F version of it as well. The original SC400 was a great car, but it was lost in translation when it became the bloated Tylenol shaped blob known as the SC430.

Secondly, and I think most importantly is this, Lexus needs to take the Toyota out of Lexus. Currently you can sit in a LS460, and then go down the road to a Toyota dealership and sit in a Camry or Corolla and start looking at the switches and textures and you will see the same things. Part of Lexus’ success has been built on Toyota buyers moving up, however there are a lot of Toyota buyers who move up to something different. I really believe that if you have driven a Toyota for a number of years, moving up into a premium car brand you would expect to see something different. That is not the case with Lexus. The vast majority of switch gear and surfaces are the same as in lesser Toyotas, and I don’t care how well it is put together the bottom line is the perception of a higher quality just isn’t there.

That is a tremendous compliment to Toyota, however it is not to Lexus. For Lexus to set itself apart from Toyota, it needs to keep the quality but change the pieces. Don’t use the same window switches as Toyota, or the same turn signal stalks, or the same font on the instrument panel. Do something different. Create an experience that is different from Toyota thereby making it a truly special experience to drive a Lexus. This single item more than anything else will help to kill the perception that Lexus is nothing more than just a dressed up Toyota. Make Lexus special. Make Lexus world class.

I just checked back to the survey to see how Lexus was fairing and they are still in the lead in the survey Agent 009 posted, there seems to be a consensus that Lexus needs help. I just laid out my game plan, what would be yours?

I think back to my younger years as that 21-year-old kid that lusted after a Lexus. Recreate that in people’s minds, and you will have a run away hit on your hands.

Lexus, are you listening?

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xj13 - 8/23/2008 10:03:45 AM

+6 Boost

ZZZZZZZZZZZZZ

reply to this comment

QuantumMatrix - 8/23/2008 10:12:39 AM

+17 Boost

Lexus' demographics are aimed at the older crowd 65+ and unless they make a shift to appeal to a younger demographic with exciting new designs they will become the Buick of Asia and will alway be safe and well built but BORING.

reply to this comment

EnnNorak - 8/23/2008 10:24:06 AM

-14 Boost

Quantum, I suppose you have the same perception about the fabulous value-priced Buick Lucerne. I don't look at cars as being for any specific age group. I look for comfort, reliability, durability and above-average performance. Reasonable fuel economy is a bonus. There is a lot of marketing hype out there in auto industry advertising that pretends their vehicles have the qualities I am looking for but most of them don't even know how to make a proper comfortable seat.

America - 8/23/2008 2:07:23 PM

-1 Boost

I think they just need to do more "Special Editions". The Pebble Beach is a great start. A special edition really lends an air of history to a brand that doesn't have any. The Pontiac GTO had nothing to do with Italian exotics, but by using the GTO name it gets instant credibility. The Nautica Mercury Villager is a another great example of making a distinctly unsporty minivan extremely sporty and desirable. The examples of success are nearly endless: Harley Davidson Pickups, Eddie Bauer SUVs, etc. To get the attention of a younger generation of buyers I have the perfect answer: Hello Kitty Special Editions of the ES and GS! What do you guys think?!

Agent00J - 8/23/2008 5:45:36 PMView My AgentSpace

+6 Boost

That is pretty funny, the ES350 Hello Kitty Special Edition. They could do it up in the pink leather we saw in the Lamborghini a week or two ago.

You are right in saying that by tacking the name Nautica on the Mercury minivan, it really increased the excitement quotient.

-00J

BMW4me4ever - 8/23/2008 10:12:59 AMView My AgentSpace

+10 Boost

I thought that was a good article. I agree that lexus is in trouble. It is like they have rested on what has got them to the top. The same mistake that Mercedes made in the mid to late 90's, when BMW passed them in the market for the #1 German premium brand in sales.

reply to this comment

AudiNewEngland - 8/23/2008 10:20:34 AM

-5 Boost

"...when BMW passed them in the market for the #1 German premium brand in sales"

Well enjoy it now, because it won't be lasting too much longer.

BMW4me4ever - 8/23/2008 4:16:45 PMView My AgentSpace

-3 Boost

what wont last too much longer? Audi doesnt have a shot. Mostly due to the lack of sales in the US.

QuantumMatrix - 8/23/2008 10:23:27 AM

+10 Boost

And the article hits the nail on the head..

Lexus models are nothing more than dressed up toyota's.

Examples: ES=Camry, RX=Highlander, LS=Avalon

reply to this comment

EnnNorak - 8/23/2008 10:30:28 AM

-1 Boost

Audi is way ahead of Lexus in mechanical engineering and useful technology. I looked at Lexus several times and always found some deal-breaking quirk that annoyed me. I have been totally happy since I adopted the VW group as supplier of vehicles for my family. My previous vehicle was a leased Audi A6 Quatro and I recently bought a new nicely loaded Passat 2.0T which has several improvements over the 2004 A6 I turned in.

91z4me - 8/23/2008 11:05:18 AM

+9 Boost

While I am not a huge Lexus fan, I can at least give credit when it is due. And to be for sure the LS is NOT an Avalon.

truthpursuit - 8/23/2008 11:44:05 AM

-3 Boost

Q Martix=moron

thadehilton - 8/23/2008 12:23:03 PM

+7 Boost

That OK Homer, sit back cool off and take another dip of your copenhagen..

I didn't mean to get your blood pressure up.

Even though I'm right

TurboSpyder - 8/23/2008 10:41:36 AMView My AgentSpace

-2 Boost

I bet considerable racing success would help their image and help them sell more cars but I can't really see that happening.

reply to this comment

350zdon17 - 8/23/2008 11:00:07 AM

+6 Boost

I highly dout that also...if the Lexus LF-A won every race I am still not buying a girly IS, boring ES, bottom in its segment ES, old school SC or king boring LS

350zdon17 - 8/23/2008 11:02:40 AM

+7 Boost

I ment bottom in segment GS*** =)

QuantumMatrix - 8/23/2008 10:56:18 AM

+15 Boost

Most BMW's are built to customer specifications and pre-ordered, whereas Lexus models are built as is and shipped to dealers. This increases Lexus' dealer inventory and contributes to the customer's feelings of blending with the masses.

BMW has one of the best build to order systems in the automotive industry.

Log on to the Lexus website and it asks for your zipcode to scan the surrounding dealerships for a car that somewhat resembles what you may want to buy.

Log on to the BMW website and you can build your own BMW go to the dealership, they pull up you configured model, place it in their build lineup and 2-3 months later your car arrives built to your specifications.

Sure you could order a Lexus, but it is nowhere near as easy to get the individual options you want on your car. Lexus tends to lump options in packages in order to reduce expenses.

BMW's system allows one of a kind configurations.

Lexus uses the same marketing and production techniques as their parent Toyota and until Lexus breaks this cycle it will always be looked upon as a "dressed up Toyota".

reply to this comment

mscottc1 - 8/23/2008 11:13:22 AM

+9 Boost

You just hit the nail on the head. Everyone is proud of how unique and individual their BMWs are, even if it's one that was sitting on the showroom floor. There are very few options on Lexus, and for that matter pretty much every Japanese Luxury brand- look at Acura. They make their cars basically two ways: with tech package and without. Or Infiniti: they do a little better job with offering unique interior and exterior colors but still are very few packages or option configurations.

A big part of the intense pride of ownership in a BMW (or an Audi or Benz for that matter) is how yours isn't the same as your neighbors'.

Excellent article, I agree there are many ways to "fix" Lexus.

adamsaf723 - 8/23/2008 11:13:23 AM

+3 Boost

You address a lot of good points, but there is a few flaws in your logic.

For one, making the ES and RX rear-wheel drive would require you to make the Camry rear-wheel drive. Although, this would be very smart for Toyota, it won't happen.

IS convertible comes out in May-ish. Confirmed. Followed by the dedicated Lexus hybrid later in the year.

This is what Lexus needs to do:

1. GS-F. Built up the F-Series. Not so much because they need it, but because it gives the brand more attention.

2. Get rid of the Pebble Grain dashboards. Wrapped Leather all around. People spending $73,000+ on a car want it to look that way on the interior.

3. Build up a better "Special Order" system. The RX is going be a trial with that. Because it is built in Canada, you will now be able to special order one and get it in 1-2 months. So I've been told for the 2010 model. Although there are not very many people who want an IS250 Manual, you need to make them more accessable without having to wait 4-6 months to get one.

4. Extend the RX to have a 3rd-row seating. Add the JX concept back into the mix.

5. Go through with the LF-A. Have a toned down V8 version with the 4.6L and make it more Touring to replace the SC. If not, make the SC more like the SL Mercedes.

6. Add more HP to all the cars. 204HP in the IS250 is pitiful. The Audi may not have that much, but it is a second quicker 0-60. Something doesn't equate.

7. Bring back the inline-6.

8. Drop the LS/GS Hybrid. You don't need it.

There are other things that need to happen, but that would help. Lexus has the potential and the resources to explode.

2009 will be a good year because of the new RX and dedicated hybrid vehicle, but they need a plan for once the hype fizzles down.

reply to this comment

91z4me - 8/23/2008 11:15:54 AM

+8 Boost

I think the author is onto something saying that Lexus needs to build some mojo but moving the ES RWD would be a HUGE mistake. The ES allows many buyers to step into a Lexus w/out having to move to RWD (which is a big negative to many buyers).

The RX may need to stick FWD for the time being because I don't think Lexus has the proper RWD platform to make it a viable X3 competitor. Perhaps something along the lines of the RDX would be a better starting point.

A Coupe/convertible version of the GS would make a nice S5/6series competitor.

I do think the IS needs something but I don't have enough of a grasp on the brand to say what.

reply to this comment

StickShiftCamry - 8/23/2008 8:19:59 PM

+3 Boost

Toyota knows RWD - thats y kids out there r able to put 700+ WHP on GS, Mark II's, Supras, Cressidas

Maverick2020 - 8/23/2008 11:40:32 AM

+5 Boost

Let Lexus be Lexus.

The ideas laid out here are interesting but what Lexus needs to do is go back to its roots. It's trying to be BMW or Mercedes when it needs to be Lexus.

Yes, the luxury market has shifted since 1989, but success is always realized by concentrating on a few small variables. For Lexus, that should be bullet-proof quality, class-leading luxury and top-notch dealer service.

The problem with Agent OOJ's prescriptions is that they would be perfect for BMW or Audi or Mercedes. But not for Lexus.

The idea that it is "broken" may have more to do with where Lexus is in its products life cycle and the piss-poor economy than there is anything inherently wrong with the brand.

Lexus appeals to a certain demographic/psychographic--hey my first luxury car was a Lexus, too, but I quickly shifted to Mercedes and Porsche.

Trying to make Lexus into a BMW or Mercedes is a sure recipe for failure. Let Lexus be Lexus.

reply to this comment

theoptimisticpessimist - 8/23/2008 12:40:01 PM

+1 Boost

Absolutely, focus on pure luxury, there are plenty of automakers building luxury/sport cars out there but very few pure luxury cars. Go back to you base.

truthpursuit - 8/23/2008 11:42:03 AM

-14 Boost

If you were in charge lexus would be out of business in 5 years.You are an IDIOT.

reply to this comment

truthpursuit - 8/23/2008 11:46:32 AM

-13 Boost

That's to the person writing this article.

Agent00J - 8/23/2008 5:46:48 PMView My AgentSpace

-1 Boost

I sure hope my investors don't read your comments, I wouldn't want them to yank my funding for my 2 companies.

-00J

mscottc1 - 8/23/2008 2:17:51 PM

+7 Boost

MichaelTaylor, is that you? or Staar? Oh, that's right- it's all the same. I forgot.

reply to this comment

BMW_DRVR - 8/26/2008 7:08:07 PM

+1 Boost

I don't even read there comments i just deboost them.

reply to this comment

BMW_DRVR - 8/27/2008 10:16:08 AM

+1 Boost

sorry "their" comments

reply to this comment

EL34 - 8/23/2008 12:24:04 PM

+4 Boost

Is Lexus Broken?

Of course they are!!!

reply to this comment

Dodgeyaussie - 8/23/2008 12:29:45 PM

-5 Boost

Actually the RX is based on the Toyota Sienna Platform. The Infiniti FX35 is actually the first vehicle of it's type based on a car platform.

reply to this comment

DrFill2009 - 8/23/2008 1:34:00 PM

-2 Boost

Welcome to the Ramblings File!
Hard to call the #1 lux marque "broken"
Very hard!
A Stretch.
But I'll play along.
The ES needs AWD available (in the pipeline, probably next gen)
The IS Needs a stronger base engine and a manual top drivetrain.
The LF-A needs to get here like RIGHT NOW! A sub-$150k price would do very nicely.
The GS they never really committed to making it a sports sedan. Lexus needs to make a commitment here.
They RX will become more powerful and aggressive next year.
The SC will be removed, but a LIGHTER coupe/conv. replacement, with new L-Finesse style, would be good for 10-15k a year.
The GX needs the HPX Concept to succeed it.
The LX is fine.
Rome ins't burning.
New products are on the way
The LF-A would definitely shake things up, and is quite beautiful in person!
Lexus will be fine.
DrFill

reply to this comment

enthusiastx11 - 8/23/2008 2:12:01 PM

-1 Boost

correction: number one NEAR-LUXURY marque. RX, ES and IS are well over 75% of sales. i'd hardly consider $35,000 cars "luxury."

david999 - 8/25/2008 9:56:23 AM

+3 Boost

What about the 3 series you dope. They are the majority of BMW sales, and there are plenty available at under $35.000.

truthpursuit - 8/23/2008 1:59:30 PM

-1 Boost

Already a stand alone hybrid coming next summer.Perfect timing,good for about 30 to 50k units a year.

reply to this comment

dwatson - 8/23/2008 4:06:24 PMView My AgentSpace

+4 Boost

Here's the problem with Lexus in my opinion.

I totally agree that Lexus lacks the "gotta have it" factor that the competitors have.

But although the LS is a spectacular car, The rest of the lineup just seems....fake to me.

Think of it this way-

If it were high school all over again, BMW, MB, (even) Audi, and a few notable others would be the cool outgoing kids that partied yet still made good grades and, although having some rough times, always managed to be in that "cool" group.

Lexus just seems like a poser to a certain degree. A good example is the ES.

The ES (and other Lexuses/Lexi whatever) is like the fat girl in school who lacked social skills but was very intelligent and focused and worked hard enough to make a good salary. This afforded her the ability to get her a new wardrobe, new teeth, and a new hairdo.

Yeah, she may look decent but you know that underneath, she's still that same old girl she was in highschool.

reply to this comment

Kaner - 8/24/2008 12:30:01 AMView My AgentSpace

+3 Boost

did you just compare an ES to a fat high school chick?? can i have some of what your smoking??

dwatson - 8/28/2008 3:48:47 AMView My AgentSpace

+1 Boost

not with that attitude. :)

QuantumMatrix - 8/23/2008 4:30:48 PM

+7 Boost

God Bless You MT.. I know you can't help it. We need to create a "Special" forum just for you.

reply to this comment

theoptimisticpessimist - 8/23/2008 4:33:18 PM

+8 Boost

Step away from the Koolaid.

reply to this comment

Agent00J - 8/23/2008 5:49:15 PMView My AgentSpace

+4 Boost

MT - Did you miss the comment earlier about making a Hello Kitty ES350? As the head Lexus guy on here, your feedback to that special edition would be valued.

-00J

reply to this comment

steve27t - 8/23/2008 7:02:27 PM

+3 Boost

The pebble beach SC430. Lipstick on a pig !!!

reply to this comment

dwatson - 8/23/2008 7:18:36 PMView My AgentSpace

+3 Boost

special leather will save lexus?????

no no no

I don't think they're going out of business soon but don't be stupid.

reply to this comment

Agent63 - 8/23/2008 11:46:03 PMView My AgentSpace

+1 Boost

Toyota lost 99% profit recently. I'm sure somewhere down the line it'll affect Lexus as well.

reply to this comment

Janizary - 8/28/2008 7:04:11 PMView My AgentSpace

+1 Boost

MT, you make me embarrased to be a Lexus owner.

reply to this comment

DrFill2009 - 8/23/2008 4:59:42 PM

+2 Boost

Somebody said something about Lexus prices and sales.
RX sells for well over $40k, closer to $45k.
BMW sells over 100k 3-series!
Those aren't $50k cars either.
So what was the point?
That's where the volume is.
Lexus has a good mix.
Just a little more sex appeal.
Like the LF-A
DrFill

reply to this comment

huu76 - 8/23/2008 5:01:11 PM

-12 Boost

Lexus isn't broken.

Recession means slower sales which means lower revenue and net profit.

The easy way out is to go to town with incentives and destroy your image. Look at how any yuppy can lease a BMW now.

Case in point, a 2009 Camry SE V6 with leather (no other option) is only $500 less than a BMW 323i, and you have to pay 5.9% financing on the Toyota.

Once the economy gets rolling again, Lexus will be right back on top making money on higher priced cars and higher financing rates. What's going to happen to BMW once their "patrons" get accustomed to 0.9%?

reply to this comment

QuantumMatrix - 8/23/2008 5:14:26 PM

+5 Boost

huu,

You really are as dumb as I thought you were, BMW doesn't make a 323i, at least not in the States.

Your lease theory is so flawed, I don't even know where to begin.

Toyota and Lexus slash thousands off of the sticker just to move their overstocked sales lots and showroom floors.

Have you not watched TV and seen the "Lexus Summer Sales Event"? and in a few months it will be the "Lexus Winter Sales Event"...

mscottc1 - 8/23/2008 6:20:09 PM

+7 Boost

Huu/MT/Staar/etc-- of course you think you're one of the most intelligent posters on this board. You're all the same person!

-1
-1
-1
-1
-1
-1
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.
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steve27t - 8/23/2008 7:05:48 PM

+4 Boost

Camry or BMW 3 Series ?

If you ask that question on the AARP website you might get some takers for Camry but on a motoring website?

Pleasssssseeeee...... STOP.

America - 8/23/2008 10:23:13 PM

+4 Boost

What about the 3 Series vs. the ES350 Hello Kiity Special Edition? Not so easy to answer now, is it?

Agent63 - 8/23/2008 11:46:29 PMView My AgentSpace

+4 Boost

MT,

One of the dumbest posters on this site. -1 for you.

sector - 8/24/2008 9:14:36 PM

-4 Boost

Camry or BMW 3 Series ?

Huu is talking about a 323i which only has 170hp. The Camry V6 has 100 more horsepower which does 0-60 in 6.1 seconds, it'll blow the doors off the 3series.

Agent009 - 8/25/2008 8:41:24 AMView My AgentSpace

0 Boost

MT- Is correct, he has only one account.

StickShiftCamry - 8/23/2008 5:23:58 PM

-3 Boost

ES will be doing AWD w/400h Hybrid powertrain.

reply to this comment

steve27t - 8/23/2008 7:12:04 PM

0 Boost

Agent 00J good article, I enjoyed your perspective, I remember the arrival of the SC400, my business colleague got one and it was a refreshing design, unfortunately since then Lexus has done nothing to compare in the style department.

I think the manual transmission thing is DOA. Now they need dual clutch transmissions like the VW/Audi DSG, that is the future in sporting transmissions.

reply to this comment

Kaner - 8/24/2008 12:33:58 AMView My AgentSpace

0 Boost

^^^agreed

darzav - 8/23/2008 8:01:09 PM

+3 Boost

That was an interesting article to read and i totaly agree with Agent00J. I dont think it would be hard for Lexus to come back in term of sales. A few minor changes and it should be competitive.

Enough to overtake BMW? I doubt it. BMW is on a role with its production and quality. New BMW vehicles are causing havoc down at the Lexus dealerships. Younger more exclusive people prefer the BMW or Mercedes range while the older prefers the Lexus range. I guess its just their design language.

Maybe when Lexus studied people for their vehicles. They studied the oldies who could afford the car and ignored the upcoming.

In terms of quality, i was actually shocked with Lexus when my parents purchased their LS600h My dad was excited when it came and i actually felt the same since previously ive herd good things about Lexus. The first week it was pleasant to drive although we turned no heads. One weekend we needed the car to visit someone in the family and the command system wouldnt work. Back to the middle age maps. When we got there we intended to go out for dinner. No luck. The car wouldnt start. We got towed for 4 hours back home.

After that we were so disgusted with Lexus we immediately sold it. Now my dad enjoys a S500 and we havent had it sent back to the dealer since we've had it. Can never count the heads we turn now.

Yes you were comparing it with BMW. I drive a BMW X5 4.8i. Best 4wd ive ever driven in my life. Have had no problems what so ever with it.

Lexus just needs to get things straight and have more desirable cars and a more exciting drive.

reply to this comment

StickShiftCamry - 8/23/2008 8:15:18 PM

+1 Boost

LOL - command system (liar). ur 4.8 is slower than a 600h. I always drive bmw's i know.

StickShiftCamry - 8/23/2008 8:16:50 PM

0 Boost

Nice - went back to a 2005 S "500" lol. (liar)

StickShiftCamry - 8/23/2008 8:20:20 PM

0 Boost

Toyota knows RWD - thats y kids out there r able to put 700+ WHP on GS, Mark II's, Supras, Cressidas...

reply to this comment

StickShiftCamry - 8/23/2008 8:23:06 PM

+2 Boost

...Chasers, LS's - Celsiors...

TagMan - 8/23/2008 8:34:20 PM

+5 Boost

AutoSpies Readers,
I only post here on extremely rare occassion. But, in response to 00J's well-written and well-intended article, I must chime in. History shows us that Lexus had the quality/reliability card mostly to itself. And while Lexus is still top-notch in that regard, others have crept close enough to make quality/reliability not solely unique to Lexus any more. This encroachment on former Lexus territory is now fairly permanent. In addition, Lexus was historically perceived as a tremendous and obvious "value" when compared to its chief rivals. Considering the latest prices of Lexus vehicles, that "value" card is now also diluted and compromised. So, how does one "fix" Lexus, when both of Lexus' former best cards have lost their unique dominance in the marketplace? Well, the only true remaining way is to compete head-to-head, and provide vehicles that are not just terrific with regards to reliability and "value", but that are also terrific in regards to style and driving dynamics. Lexus vehicles can no longer be boring, but must be exciting to look at and exciting to drive, as well as offer class-leading in-vehicle technology, all while maintaining their long-standing reputation for quality/reliability. THAT is the direction to take Lexus, if it is to have a successful future. :)
Regards to all,
TagMan

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cdoke - 8/23/2008 9:43:49 PMView My AgentSpace

+3 Boost

You should post more often.

bmwman1963 - 8/23/2008 11:48:26 PMView My AgentSpace

+4 Boost

All about Eve strikes again..

Whatever happend to Baby Jane aka "Staar", HondaJapan?

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0to60 - 8/23/2008 10:36:33 PM

+2 Boost

What Lexus needs to do to keep the #1 int he US title.

ES - nothing, it doesnt have very many competitors in the Luxury segment. Advertise its fuel efficiency. Leave the rest the same. Redesign it immediately in 2010 and make it more appealing Offer a hybrid version

IS - Time for a redesign. Still a decent car, but it feels more luxury than sporty. Lexus should stick to just Luxury and leave the performance game to BMW/Infiniti. Not everyone wants performance and I think that would include most of America, hence the camry and accord being #1 sellers. Offer a hybrid version

RX - Release the redesign yesterday! Time for something new, and fast to keep the vehicle #1. Advertise the Hybrid version due to the poor suv market and sell its decent fuel economy (I think both versions get decent economy) No need to make these vehicles rear wheel drive as most buyers dont know or care for the difference. Your not marketed to enthusiest, but to the (ABOVE - meaning more people fit this category) average joe.

GS - Ugly, blah, bland and boring. Redesign is needed. The former model was much better and this design caused it to really fall off. Offer the hybrid version.

LS - redesign within a reasonable amount of time to compete with the competitors once their release their redesigns.

SC -REDESIGN LIKE YEARS AGO!!!! This car can and will sell if it was appealing. Its currently dated and stale!

Release a Lexis version of the prius NOW, and make it appealing unlike the ugly prius as a luxury car should be.

Basically they just need to redsign their cars within a 4 year max time frame. This will return them to the #1 spot in the US. Point blank!

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g2ok - 8/23/2008 11:41:01 PM

+6 Boost

As a Lexus customer I really don't like the IS or the direction the IS-F is going. Those seem like kiddie cars.

My beef with Lexus is that they are cheapening the cars out too much and that ugly black dash in the new ES put me off. Also, the new RX engine makes too much noise.

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rumnyc - 8/23/2008 11:56:39 PM

+4 Boost

For anyone who thinks lexus quality is years ahead of the germans, follow the following steps:

1) go to a bmw dealership--look at a few cars. make sure u sit inside.

2) go immediately to a lexus dealership. look and sit inside equivalent models.

I bought a car about 9 months ago. me and my friend were both looking to buy cars (compact sports sedan). and i got the 335i and he got the IS250.

Guess who has been having buyers remorse every since. hint: its not me.

the cars have no soul and although are very good looking, just don't look modern.

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Kaner - 8/24/2008 12:39:30 AMView My AgentSpace

+3 Boost

k.... 335 is the PERFORMANCE model of the 3 series lineup (not to be confused with the M lineup) a fair comparison is the is350, not 250. your 335 probably gets 15-20 avg mpg, vs the is250's 25-30

enthusiastx11 - 8/24/2008 1:15:37 PM

0 Boost

ok, kaner. compare the 328 to the IS250. same result.

DrFill2009 - 8/24/2008 12:03:33 AM

+3 Boost

One more thing.
Lexus NOT selling so many cars is really a blessing in disguise.
Selling almost 400k a year can hurt the brands image, as it makes it seem less exclusive.
Plenty of people here can't wait for Lexus to stumble.
A little competition would be good for Lexus.
It's about time.
Lexus selling 350k instead of 360k is not the worst thing in the world.
Heavy is the head of he who wears the crown.
The New Hybrid will spike sales late next year anyway.
With the new RX as well, worrying about Lexus sales seems like an excercise in futility.
Lexus sells so many vehicles, I think they should RAISE prices $2k per line to SLOW sales, and raise the profit/price image of the brand.
DrFill

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