With all four of its sedans scheduled for redesign by the end of 2006, Lexus stands a strong chance of extending its five-year streak as the best-selling luxury brand in the United States.

Lexus Division General Manager Denny Clements says Lexus can grow from 287,927 units sold in 2004 to 350,000 units by the end of the decade, an annual growth rate of 3.3 percent.

The growth will be from customer demand, not from the factory pushing units on the market, Clement says.

"Lexus is going to be the pre-eminent luxury-car brand in the world," Clements says. "We're not about volume any more. We're out of our adolescence. It's about who we're going to be as a brand."

Lexus could crank up production to ensure its place on the luxury throne, but it will not, as it would cost the brand its prestige status, he says.

"We could jack our inventory up to 40 days supply for a great last quarter," Clements says. "But then a year later we're putting $3,000 on a car to move it." Lexus spent less than $300 per unit on loan and lease incentives last year, despite an aging product line, he says.

"It's more important to keep our grosses," Clements says. "If I see our grosses drop, I'll increase advertising, increase promotions and cut production. We can't be like Toyota and just have a sale."

Jim Hall, analyst with AutoPacific in Southfield, Mich., says the expanded luxury market means that hitting 350,000 units is achievable. That would put it close to Cadillac's peak year of 350,813 units in 1978. That year, the U.S. industry sold 14.9 million units.

"Lexus hitting 350,000 may be attainable without tarnishing the brand by chasing the bottom feeders like the Audi A3," Hall says.

He adds: "It depends on the number of competitors Lexus is facing, especially since more are coming."

Lexus' 208 dealers have prepared for the increased customer count, pouring $1.5 billion into store upgrades in the past three years. Some dealers have quadrupled the number of their service bays.

Because Lexus has a 67 percent service retention rate, Clements estimates 900 more stalls and 800 more technicians still are needed. That's despite Lexus adding between four and seven new stores a year, mostly satellite locations.

http://www.autoweek.com/news.cms?newsId=101663

Funny how the whole Lexus brand sells less in one year than Toyota sells just in Camrys, and yet I'd wager a guess that the people selling Lexuses (Lexii?) are making a whole lot more commission than the people selling Toyotas.

 

The whole "All Lexus sedans to be redesigned by end of 2006" line is hyped up marketing crap. Just like Toyota's marketing that 6 out of 7 of its cars gets 30mpg or better. You can apply that redesign line to a few other premium brands.

These lines hold true:
All Acura sedans and SUV to be redesigned by end of 2006.
All BMW sedans to be redesigned by end of 2006.

 

hm. wow! "our adolescense." if they're at their adolescence now, what the **** are they going to look like when they hit their middle age?

i think it's really funny (and sad) that they don't want to "tarnish the brand" by chasing the likes of the Audi A3, when they produce cars like the current ES. it's a perfectly fine automobile, and i suppose doesn't attack the same "class" of cars as an A3, but it's another friggin seafaring buick. until they stop making cars like the ES, and incidentally, blatant ripoffs like the LS430, i remain a fervently anti-lexus

hopefully this is a sign of better things to come. toyota has made some great cars. but with present-day toyota, i'm not keeping my fingers crossed.

 

Okay great. The fact remains that the ES, IS, GS and LS will all be redone in the next couple of years.

 

Whoopadee doo. And in 5 years, they will say the same hyped up marketing again. Fact is they've been working mostly on a 5 year model cycle, just like most other Japanese models. :joshers:

 

Hmm, who doesn't redesign their sedans in a few years anyway. It sounds like it's ground breaking when Lexus does it.

Almost every domestic companies had new cars in the last few years, maybe Lexus should do something like that, since they are, hmm, hehe, getting out of their adolescenes and what nots. Wonder how their "married and mature" cars will look like.

Prestige? Around here the only people who likes Lexus are mid-age Asian men who can't really tell the difference between a V6 and I4 (and always say "V4").

 

Don't forget the customers who gets thrown off and confused when you tell them the IS300 and GS300 don't have V6 engines. :reechy:




BTW, I do like the first 2 gen GS models. h:

 

i dont see how this is any different than ford advertising the 10 new models or something like that..i forget the commercials...

All i do see here are stereotypical comments...

 

When I look at Lexus all I see is a Buick Park Avenue with a refined engine and Camry body cladding.

 

me too