More on Lexus USA’s Future Strategy
In an interview with BusinessWeek, Toyota’s new North American chief Yoshimi Inaba shared his view that Lexus needs to be “redefined and rethought for the future”:
When it comes to Lexus, the issue is pretty clear: The luxury brand is far too dependent on just two of its nine models. The ES330/350 sedan and RX350 line account for two-thirds of sales. The GS sedan lineup—rear-wheel-drive sedans meant to take on German brands—haven’t caught on, selling just 3,500 cars this year.
Inaba sees two problems he needs to tackle: First, he says, Toyota has been making too many decisions about new models and designs in Japan. “We are becoming more regionally focused now and pushing decisions down to the places where the vehicles will be sold,” he said. To that end, several “global” job titles have been eliminated. Second, he believes Toyota’s vehicle designs must be jazzed up. “It’s been a fair criticism that our designs do not have enough excitement,” he said.
The fact that Toyota is moving away from a Japan-centric perspective is sure to bring some real change into the Lexus lineup. In fact, we may have already seen the first result with the announcement of a small Lexus hatchback, which is certainly directed straight at the European market.
It’s no small coincidence that the GS is used as the primary example of an underperformer, where the vehicle’s central issue is outlined by consultant Jim Hall:
The GS, notes consultant Hall, has been a very good sedan, but it takes on neither the BMW
3 Series5 Series nor the Mercedes E Class in size, performance, or price. “It’s in the middle and that can be a tough place to be,” Hall says. “That car needs to take on one or the other in sales volume for Lexus to grow.”
One of the biggest knocks against the GS is the driving experience, and a push towards 5-Series performance would be a serious step in the right direction.
[Source: BusinessWeek]
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blah blah blah… Lexus has said this before… many, many times already.
I want real results. Physical proof!
They can do the talking but not necessarily the walking.
Like what Automobile Magazine said, the IS Convertible has benefited from its delay, but when Lexus was late to the game before, it was either too late, too little, or both.
Jim Press didn’t mention certain cool features on the LS 460 L when it debuted in Detroit. Were they behind schedule, lacking government approval, or just not worth mentioning at all? The Lane Keeping Assist… was Lexus planning to make a big deal out of it in the next model to debut? I believe Infiniti and some other companies stole the spotlight on that one as a result.
Finally, does the Adaptive Cruise Control on the LS really cut off at low speeds because from what I’ve read, only the LS hybrid comes to a complete stop without engaging the pre-collision system. The Adaptive Cruise Control system in the new Bimmer 7 is perfecto, and the LS certainly deserves one - even the LX (just without much trouble for the powertrain and the brakes).
A smart and reliable Adaptive Cruise Control and Lane Keeping Assist would be wonderful for a drive on the crowded Pacific Coast Highway, through rush hour of LA, badly scheduled journey to Vegas, and a tiring drive home from Disney. You guys won’t believe the usefulness of those gadgets.
(Btw, I’ve once confused the accelerate in the regular cruise control of my car with Adaptive Cruise Control in another
)
” want real results. Physical proof!”
* I think your proof is this small hatchback type car to take on the 1 Series and A3, and is being built more for Europe than anything.
“Like what Automobile Magazine said, the IS Convertible has benefited from its delay, but when Lexus was late to the game before, it was either too late, too little, or both”
* I think the IS-C is a sign of things to come, like the article a few days ago comparing the IS 3-Series G-Convert and Volvo, Lexus held its ground being powerful, luxurious, and affordable. This just seems like a sign of things to come from Lexus.
“even the LX (just without much trouble for the powertrain and the brakes).”
* something that large and tank like would scare me driving itself haha
But seriously I think this guy knows what he’s talking about and has the right idea. Getting rid of “global” titles is very smart, you simply can’t make a car that works for every market, that’s why there are multiple Mercedes that are only available in certain markets. I think the GS is the one area where Lexus can define itself for future US vehicles. Right now the RX and ES are fine, they shouldn’t be changed for a while, they both serve a purpose and do so very well. But while the GS is a great car and fun to drive, it could be more fun and become real competition to the E-Class and 5-Series. Lexus was smart, instead of offering the GS with a smaller engine to fill the ES category (Like mercedes does with the E class and BMW with the 5) Lexus split it into two categories. This gives lexus the ability to offer a truly new GS and make it something to really look at. The new E-Class in my opinion is one of the nicest cars in its class, it looks amazing, sounds amazing, and drives great. Lexus can turn the GS into the next large volume car if they make it right, taking a look at the 5 series for performance is great, but you don’t want to lose the Lexus quality and perfection (or affordability). Lexus has already delivered this with the IS-F, maybe Lexus can translate this into the new GS (maybe even a GS-F). This will be a very interesting new model for LExus to grow with.
If they head in the right direction with the GS it will also be interesting to see what direction they go in with the SC, it could become an SL competitor or a 6 Series competitor. I personally think it would be more suited as a 6 Series competitor, both coupe and convertible.
The Dynamic Radar Cruise Control in the LS460 & 600h doesn’t bring the car to a complete stop like similar systems in the 7-series & S-class. So it can’t “self-drive” in stop-go traffic conditions. In radar mode it maintains a set distance to the car in front by accelerating & decelerating only. Some amount of braking is done by the Pre Collision System but the driver has to bring the car to a stop. Lexus will surely upgrade the system by adding the stop-go function later.
It’s obvious why the GS doesn’t sell in large numbers compared to the Germans, not enough variants. The 5-series & E-class have several engine options & body styles to choose from :-
- sedan, coupe, convertible, wagon etc & let’s not forget the X5 & 5-series GT.
- performance variants like the M5 & E63 AMG.
From what they’ve said, it looks like the GS is going to get similar variants. Hopefully :-
- GS coupe
- GS convertible ( soft top )
- GS-F
- GS crossover
The current GS is an excellent design statement & the best looking Lexus since the original SC400 IMO ( I drive an ‘06 GS300 ). So they should retain the design signature of the current car, especially the twin headlights & make it larger & more spacious as I find the rear seat a bit cramped. Also the GS has the smallest exterior dimensions of all its rivals. Even the ES is longer & has the same width.
i don´t know if it was “smart” not continue the GS300!?!? this car has enough power for his “class”.
Wow… Lexus really messed that one up.
I believe the RX’s version is more like the Bimmer’s?
The nest generation GS sedan, coupe/convertible, F, and Sportback: do you guys think Lexus should reveal them all at once?
but the GS35 has more!
I kind of agree, i don’t know if a wagon GS would be so hot, maybe they could leave that one out for a while. Now Lexus could do a little bit like Mercedes and split the coupe and convertible version into the new SC (like Mercedes did with the E class and CLK). It could be based off roughly the same platform and look but also give the SC something to do. That’s just one option.
The other option would be to make the GS take on the 5 and 6 series (kind of like Mercedes is doing with the E class). This would make the line up a little more simple. A GS coupe/convertible would be very interesting.
I think a GS-F is a given, it’s the other performance car Lexus has and would truly benefit from an -F variant. But the questions would be, is the GS sporty enough already to turn it into an M5 competitor? I personally feel the GS is sporty enough to take on the 5 Series, the GS350 has amazing power, i can’t even imagine a GS-F! And an SUV based off the GS (I think they were calling it the JX) would be really interesting, kind of an X5/X6 competitor.
I would reveal them all at once, they may not all be available at the same time. At some auto show reveal the coupe, convertible, and F. The F would be available the soonest, with the coupe following about 2 months later, and a convertible coming about 2 months after the coupe.
Here is an extremely rough photoshop version of a GS coupe
lol
Maybe extend the rear doors and roofline for the sportback
...and remove that rear door and lower the roofline for the coupe
haha wow i didn’t even notice the rear door line, here’s another
More variants of the GS sound good, particularly a GS coupe. But some other points…
1. A regular IS coupe probably should come first, to do battle with the 3-series/G37 coupes and at the entry-level price point…they may propel the IS series sales, already good, to ES level.
2. More variants does not necessarily mean better sales. The ES 350 is just one model and it outsold the GS 300/350/430/450h/460 combined. While having multiple choices is good (IS 250/350/F), it takes the overall packaging of the basic model to win. The ES, IS, RX, LS do that in spades; the GX and LX are good for their niches. The GS has compelling aspects to it, but it lets the ES take the ‘ultra luxury’ package route and then is more severe in style and manner. The packaging says Sport Sedan, but the Luxury aspect needs to be looked at (more room in the cheaper ES), along with the true Performance qualities.
3. Capturing buzz. Lexus has all these refreshes planned this year, plus the reveal of the LF-A/CT 300h etc. They can have another ‘big bang’ with a GS 350/460/F/etc reveal, but they could also spread out those individual models to sustain interest and keep people talking about Lexus. It’s rather boring to have a year of no new Lexus product.
1) I almost feel like the IS coupe will not be coming until the next generation. Lexus doesn’t seem to be saying or doing anything about an IS coupe, and unless it comes out in a couple months it will be very late in the model’s life. Now one way around this is not to update the IS for about 3 more years which would allow for an IS coupe to be out long enough to sell in decent numbers.
2) I think you’re probably right, making the GS with more variants doesn’t mean much if it isn’t any more sporty. Being sporty is what will make the GS take on the 5 series, but giving it variants will let it take on the E-Class. Lexus can’t do both of these in the current generation but can for the next generation. This generation has only been out for about 3 years (2006 GS300 model) so the most i see happening in this generation is an -F model which will set the tone for the next generation.
Man… less than a decade ago, that would not have been so easy and fast… not to mention possible. Photoshopping really has changed the world.
Interesting discussion about Lexus. I like the brand very much, but as an european and Mercedes driver there are other points why I and probably many other potential buyers did not buy Lexus at the end:
0) The L-Finesse Design of IS, GS and LS are great, but…
1) They don’t focus and do NOT listen enough on the European market
2) They have to bring at least Stationwagon models of the IS and GS, this is 70% chosen model in luxery brands, 30% is 4-door saloon in europe.
3) They have to bring 4-cylinder petrol Engines for IS and GS—> Petrol is about 5$USD per Gallon in Europe, I really do not understand this. About 50-60% chose the Petrol engines with around 140 - 200hp here, 6-& 8- cylinders are great for image.
4) Moreover they need to bring DIESEL engines—> 50 - 70% in Europe (depending on country) drives Diesel!! and Lexus do NOT want to bring this.
Some smaller points:
The road holding is something where BMW and Merc are very good at, the IS is good against BMW, but not comfortable anymore, GS is better, but misses precision when driving on highways.
5) The quality impression and materials used in Lexus are good, especially the IS, but GS looks not nice.
6) they must after 20 years abandon the 20cent digital clock, which remember me of a ‘84 corolla, this looks so cheap! you really can’t do this is a today’s car.
7) The seats do not have the right shape and don’t give the support that the big german 3 brands gives.
I made a very detailed document about future european Lexus portfolio how I see it, I will sent to the webmaster of this site
0) Totally agree, and minor updates to the design philosophy will continue.
I think this is where lexus will start to concentrate, they have luxury nailed but they need to work a little on the driving experience for cars like the IS and GS.
1) I think that is a big part of their new global strategy, getting rid of “global” titles in favor of different regions.
2) I had no idea station wagons were so popular in the EU, here in the US i see very few E-Class and 5-Series station wagons, i could see them being offered in Europe and not in the US.
3) I don’t think there is any point to a 4 cylinder GS as it would defeat the purpose of a sporty car. Now a 4 cylinder ES AND IS would be very possible.
4) Diesel engines are something Lexus seems to want to stay away from. They tried with an IS diesel and have probably realized that it makes more sense to create hybrids with great fuel efficiency that can be attractive in other countries like the US as well. While diesel may be popular in Europe, it hasn’t really taken off here in the US, it’s commonly more expensive than regular gasoline and is not as widespread throughout gas stations.
5) I’m curious what you mean by “not nice”. I find the IS,GS,LS, and new RX and LX to have some of the highest quality while the ES uses cheap plastic to try and cut cost.
7) I somewhat agree. When you look at a BMW seat or MErcedes seat it just looks extremely plush and comfortable, so far the GS seems to be the most comfortable seats to me so far.
With the new E-Class, coming new M35, etc. I think it’s safe to say that the current GS will have no more variants left in this cycle. Also the IS-C is the only 2-door the second IS will get. An -F model will wait for the next gen GS, as will the coupe variant for the IS, next gen also.
Sporty performance is what helped the second gen GS be such a success. Now the bar has moved and the next GS needs to be up there, but not losing the luxury aspect which is Lexus’ forte (the IS-F seems to have done that, albeit though with a harder ride).
Actually the stop-go feature is not available in any new Lexus including the RX. Mabye Lexus believes the driver should still have the responsibility of bringing the car to a complete stop.
I think all variants of the GS should be launched within an year. The next gen GS sedan & coupe should be unveiled together at an auto show (eg: Detroit). Then the convertible should be revealed a couple months later (eg: NY or LA shows) Then the F version can be revealed towards the end of the year with the final crossover variant being revealed exactly one year after the sedan & coupe.
I always thought the current GS would look ideal with 2-doors. The inspiration for Merc’s CLS ?
Even if the next GS becomes sportier, qualities like luxury, smoothness & quietness should be retained as this is what defines the Lexus brand. Responding to the comment by Roland :-
- Don’t think the GS will ever have a 4-cylinder engine as it’s not suited to the image & prestige of the car. Though it makes sense in the IS.
- Lexus is unlikely to focus on diesel technology, instead they’ll improve their petrol-hybrid systems since that’s the future. Lexus needs to do things differently to the European carmakers who all focus on forgettable diesels. This will give Lexus a unique identity in the global auto market.
- Interior materials used by Lexus are excellent, only some minor bits in certain models like the ES are a bit off. Still better than Mercedes & Audi.
- Sorry, but I actually prefer the digital clock used by Lexus. Its easy to read while on the move & rear passengers can also see it easily. Only a few cars have analogue clocks like S-class, Maserati, Bentley, Rolls-Royce etc basically used for aesthetics.
- Agree bout the seats. Except for the LS other Lexus seats have to be adjusted properly till you find the ideal comfort. On the other hand Mercedes & BMW seats feel ‘right’ the moment you sit on them & they are large with a wide adjustment range.
- Ride quality & quietness is more important in a Lexus than handling or steering feel & that’s what sets Lexus apart from Acura & Infiniti who make cars to win comparison tests but the sales figures & awards tell otherwise.
so because the GS350 has more hp than the 300 “we” don´t need one? hey wait! the GS460 has more hp than the GS350 so let´s “kill” this one. You understand what i mean?
i hope you don´t mind one question..cuz the GS isn´t looking great Mercedes took the “face” of the GS for the new E-Class? sorry i don´t get your point…
small engines? no way! we talk about an luxury brand…the 3 germans (BMW, MB, Audi) are in the meantime some kind of “mass production sellers”.
i don’t think i know what you mean. If they have a 350 engine to replace a 300 at the same price, why keep the 300? If you want the power of a 300 engine then go to the ES. There is no reason for a cheaper GS it’s at the perfect price right now, introducing a GS300 would just be really confusing and complicate the GS lineup.
Commenting on the luxury part: I completely agree, it’s kind of like the IS-F… sure it’s a little bit of a rougher ride but that’s to be expected with crazy power but it still retains a lot of luxury and precision that we have come to expect from Lexus.
1) I agree, you will not see a 4cylinder GS, and IS makes since, and possibly an ES (would be interesting)
2) There was an article somewhere about german automakers spending tons of money on diesel technology, and while it sounds good it really has only taken off in Europe and not very popular in the US. Hybrids is most likely where lexus will move towards, which i think is very smart
3) Yes the ES has some strange areas where they tried to cut costs which is a real shame, the only thing i prefer about BMW and merc about the interior are the nicer seats in certain models but the lexus interior is much more user friendly and organized
4) I agree, try reading an analog clock while driving, we have gotten so used to technology that it actually takes us longer to read analog than read just digital, and i prefer to keep my eyes on the road. And BTW most cars with analog clocks have a digital one somewhere, like the information section on the dashboard.
5) Agree, Lexus back seats seem to have that “immediate” comfort, they almost feel like a couch.
6) I think they will continue to concentrate on luxury, but some cars like the IS and GS are a step in the right direction for that type of car. They have retained luxury while becoming more about the driving experience, lexus should just take it a little further.
pretty ironic, don’t you think?
well, Lexus has been like that. maybe they just don’t want legal problems… maybe there is a high risk of malfunction, tainting Lexus’ rep
Surprised that you find Lexus rear seats very comfortable, tyler. I’ve tried the rears of the LS460/L, ES, GS, IS, LX470 & RX350 & I found all of them a bit lacking in the ‘slouching comfort’ factor (I’m 6’ tall) :-
- The LS had the best rear comfort of all sedans but legroom was only average in the standard wheelbase. I was sitting in a ‘knees up’ posture, only after reclining the seat did I find real comfort. I’m not saying its bad in anyway but Lexus needs to offer more under-thigh support for the rears. They should add a front height adjustment for the rear seat cushion like on the new 7-series which simply felt fantastic. The LS460L rear seat too had the same problem & I expected a bit more legroom in a long wheelbase car.
- The GS rears didn’t have the extra legroom a car of its size-class should have & the seat back angle felt too upright.
- The ES didn’t offer adequate under-thigh support but it was very spacious.
- IS was too cramped & I just wanted to get out of the car.
The best Lexus rear seats I’ve tried are the 2nd gen LS & GS both of which had immediate ‘slouching’ comfort with the right amount of space & a relaxing ambience with that gathered leather in the door side panels ( liked that very much ). Guess Lexus don’t make ‘em like they used to.
That could be it, safety first after all.
@tyler and lexusboy, I like to respond to your feedback.
- First, I also see Lexus as a luxury brand and I think they are on the right track, therefore I see this brand als best alternative for my Merc and I like the fact they special developed separate platforms with rear-wheel-drive or all-drive.
- Secondly, reason for my reaction is that: a) Lexus does NOT need an additional model below the IS to be succesful in Europe. b) They will fail AGAIN to succesful, if they don’t take the European “car culture” in consideration, and like to avoid that, because I do respect the Lexus brand.
- Diesel or Hybrid? Fact is that in Europe you need high fuel efficient engines. Lexus could easily take some engines they use in Toyota’s that they sell here in Europe. Hybrid make them surely unique, but in GS and LS they result in 500lbs more weight and less trunk. I wish Lexus would push more one of these technologies.
- IS has one of the best materials used in a car, what I mean with “not nice” (sorry for my bad english) is the dash materials used in the GS, as well as the ergonomics of the dash and switches.
- The digital clock is a personal thing. I agree it is very practical and easy to read, but you will not find such a solution in any european car, it make a cheap impression - or better keeps the link with Toyota, and we know, Lexus can do better.
- I think because european roads are in general a little bit more curvy and people have a more active driving behaviour, it is clear you needs that are holding you in your seat and support you comfortable at the same time, without being too soft when driving long distances.