New model updates expected to turn around flagging sales for Lexus

Posted Mon Aug 11 2008 9:16 AM by Kenneth Hall

Sales of Toyota’s large SUVs and pickups may have tanked in the U.S. but the carmaker’s luxury division, Lexus, is doing even worse, with July sales levels diving 25% from levels just one year ago. Part of the problem is that Lexus’ sales are heavily skewed towards its luxury SUV models such as the RX and LX lines at a time when the market is moving away from those vehicles. Another key problem is that Lexus’ sedan lineup is starting to show its age against many of its rivals.

To invigorate its aging lineup, Lexus is planning several significant updates in the coming years including the addition of an all-new model. The first new model will be the redesigned RX range, which is expected to launch early next year as a 2010 model. The new RX will be slightly bigger than the current model and will include a third-row seating option for the first time. There will be several new hybrid versions too, as Toyota has already filed trademarks on the RX 430h, RX 440h and RX 450h titles, reports Automotive News.

In 2010 Lexus is expected to launch its new LF-A supercar and will follow it soon after with a flagship roadster variant. Both cars will feature a high-revving V10 engine with more than 500hp (373kW) and a price tag in excess of $160,000.

After the LF-A, Lexus will debut its first dedicated hybrid model. Based loosely on the next-generation Toyota Prius, the new model will arrive in late 2010 and feature a four-cylinder petrol engine mated to the latest iteration of Toyota’s Hybrid Synergy Drive system. Around this time, Lexus is also expected to launch convertible and coupe versions of the IS.

The next-generation ES sedan will be updated along with the new Toyota Camry and is not due to appear until 2011. That same year will also see the introduction of the next-generation GS range. A high-performance version of the current GS, meanwhile, has reportedly been put on hold as officials wait to see if the economy improves.

Unlikely to see a replacement is the current SC430 convertible and GX crossover. Both cars have seen sales slump and there are currently no plans for replacement models. Finally, Lexus is expected to introduce a new crossover model based on the Toyota Rav4 platform for Japanese and European markets, but there are currently no plans to bring this model to the North America. This could change, however, if fuel prices remain where they are or go even higher.

Reader Comments

Mon Aug 11 2008 9:54 AM
Dane says

or maybe people are just starting to get it.... These cars aren't that great.........
Mon Aug 11 2008 10:25 AM
www.mywheelsonwalls.com says

Dane- Not to step on your toes but Lexus does make a great product. They do how ever make a rebadged product from a lesser brand. In the current financial times I think you'll find that those that fell for the wolf in sheeps clothing were not the super rich hence unlike the European brands whose customers it would seem are wealthier, are able to ride out the current storm, and want to buy a luxury product based on its history as well as its image/perception of being a luxury product.

The people getting it here are infact the Lexus marketing dept. and just maybe they now realise that a luxury item needs to stand alone and a little bit of history also helps. Althogh as the article states the new Lexus hybrid is based on the new Prius so it would appear they are not to good at learning either.

What is interesting to watch is that even the almighty Toyota makes a mistake once in a while, how refreshing!

P.S. Go buy a Jaguar! Lemans winner (history), award winning service, great design, and performance.... although you could you say all of this about the Germans too, except BMW (no Le mans win).
Mon Aug 11 2008 3:57 PM
Brentis says

I tend to agree. The new GS is lame. I owned the previous GS400 and it has some personality, but the new GS is like a gadget filled camry and it has no road feel. Went with a BMW 545i.
Mon Aug 11 2008 5:28 PM
--Graham-- says

more model updates....... they are just realizing this now, how long did it take them to update the sc convertible, ohh right they havent.
Mon Aug 11 2008 10:22 PM
Guber says

Mywheelsonwall, I bought a 2002 Jaguar XType NEW, the engine replaced at 56K with extended waranty! Had a new 94 BMW 325is, with constant electrical problems, unsolved still to that day I sold it. Tho not as a headache as the Jaguar's multiple issues. My Fords were more reliable than either one. I currently have a Lexus Is 350 (2 years) and love it, not a single problem to date.

History don't mean a thing (atleast to me), look at GM, Ford, Mopar.
Tue Aug 12 2008 1:41 PM
Mike says

I personally went car shopping recently, and was very interested in the IS350. I love how reliable Toyota/Lexus cars are and I love the styling on the IS.

Then, I discovered you can only get a stick if you buy an IS250. Even the high-performance IS-F is only offered with an automatic transmission. I purchased a 3 Series BMW with a 6 speed instead. It's a shame, only offering an automatic. How do they expect to compete with German car manufacturers if they don't offer proper transmissions?
Tue Aug 12 2008 4:26 PM
Lee says

A sweet choice would be an IS350 coupe with a manual transmission - that is a car that would definitely get my attention. I've had a BMW 3 series coupe and an M3, but would like the reliability of a Lexus with the performance of a BMW.
The SC is a nice car, but has pretty much been neglected. Sounds like it is going to get the axe.
We looked at the new GS as my wife drives a 99 GS 300 that has been a great car. Unfortunately we didn't really like the new GS - felt too cramped - so we leased a new LS 460.
Tue Sep 30 2008 6:17 PM
b59 says

lexus is fantastic but lacks excitment. its a smooth drive but i prefer something sporty like a bmw. Driving the Lexus GS for me is far too quiet and one can hardly hear the engine unless under full acceleration.
and well to state a point to www.mywheelsonwalls.com that BMW beat out Toyota and won Le mans in 1999. anyway the feel that it is rebadged Toyota does certainly cause people to buy cars else where. Lexus will have to do much to recover. Especially now that Jaguar is rebounding with fabulous and reliable new cars such as the xf and xk. Yet one can never forget that The Germans are still strong despite trying times.

As Volkswagen have now forged to take on Toyota and with cars such as the Phaeton which is an amazing piece of engineering with its huge reserves of Technology. Its yet another challenge. Lexus' will have to do quite a bit with the LF-A to take on the Nissan GTR, Ferrari F430 Scuderia, Lamborghini LP560-4, Porsche GT2, and not to forget the Chevrolet Corvette ZR-1.

Only time will tell if they succeed.

MotorAuthority