Posted on Friday 12 October 2007
There’s no doubt Lexus is flogging its rivals in America’s competitive luxury market but there remains serious concerns within Lexus that this success could be a single-generation phenomena and that the next-generation of buyers are more likely to look elsewhere for a luxury vehicle. Market researchers predict the average age of luxury buyers will drop dramatically over the next decade, and this could hurt Lexus whose customers are traditionally much older than those of its rivals.
The news comes from former Lexus General Manager Jim Farley, who spoke with Automotive News prior to leaving his job last week to head to Ford. According to Farley, Lexus needs to “look very critically at the 30 to 40 year old customer.” As an example of how severe the situation is Farley explains that the Lexus ES 350’s average customer is aged 61, and their number-one occupation is “retired.” In fact, Farley revealed that 40% of Lexus buyers are over 60.
A study conducted by Power Information Network found that Lexus owners are older on average than all its rivals except Jaguar, Lincoln and Cadillac.
To overcome this Lexus is likely to introduce a small entry-level hatch model along the lines of the BMW 1-series, however the U.S. may miss out on this car. Instead, there are plans to introduce more performance models like the IS-F to help boost Lexus’ image among the young and performance crowds.