Lexus March 2018 Sales Report

One broader trend worth watching is General Motors' decision, announced today, to publish U.S. sales on a quarterly instead of monthly basis. Thus, after their March 2018 report, we won't see reports until June, September and December.

At present, only GM and Tesla follow this pattern, but other carmakers (Including Ford) are said to be considering it as well. Will Toyota follow suit?

Lexus car sales are going to struggle for so long lexus don't change the spindle grill into something loveable and the styling. Conservative styling on this new platform would look fantfantas sometsome only a good stance will do the job

Axel

Lexus car sales are going to struggle for so long lexus don't change the spindle grill into something loveable and the styling. Conservative styling on this new platform would look fantfantas sometsome only a good stance will do the job

I basically agree, but that still doesn't explain why the Lexus SUVs, with generally the same spindle grilles, are selling. And the spindle grille on the new RX, a perennial hot-seller, is arguably the largest and most garish one of all....more so than on any of the Lexus sedans.

As expected, Lexus LS is doing really well in sales, with 1000 sold, basically their monthly allotment.

GS number is wrong.. I think it should be +1.3% ?

Gecko

GS number is wrong.. I think it should be +1.3% ?

Percentages are based on Daily Selling Rate -- March 2018 had 28 selling days, March 2017 had 27.

mmcartalk

I basically agree, but that still doesn't explain why the Lexus SUVs, with generally the same spindle grilles, are selling. And the spindle grille on the new RX, a perennial hot-seller, is arguably the largest and most garish one of all....more so than on any of the Lexus sedans.

Lexus cars look kinda fuzzy looking like melting metal then they abondon what they good at the box design. About spindle grill I'd say keep it but cut it in half, now the Toyota front grills have matured and look better then lexus grills the SUVs are much clear. Spindle grill have failed to mature into something we love

Axel

Lexus car sales are going to struggle for so long lexus don't change the spindle grill into something loveable and the styling. Conservative styling on this new platform would look fantfantas sometsome only a good stance will do the job

I don't think the grill is the main problem. A buyer going into the Lexus showroom is wanting a Crossover or SUV is; or the fact that the Germans are also as competitive.

Axel

Lexus cars look kinda fuzzy looking like melting metal then they abondon what they good at the box design. About spindle grill I'd say keep it but cut it in half, now the Toyota front grills have matured and look better then lexus grills the SUVs are much clear. Spindle grill have failed to mature into something we love

Toyota's hottest vehicle right now is new Camry, not only best seller but also with low inventory. And it has huge grille.

I was checking Lexus and Toyota inventory levels and it is interesting:
- RX L is almost nonexistent, seems to be selling out, not enough inventory. RX is also doing well on inventory, they need more.
- Still not enough NX's.
- LS is selling out, low inventory numbers.
- RC and GS have well managed inventories. Not a big surplus. I can understand RC with winter and facelift coming, but GS? Obviously they decided this is sales target.

On Toyota side, we have Camry with low inventory levels as well as Tacoma thats hot, despite new factory output coming online. I wonder what would be possible sales for Tacoma if they had enough inventory.... more than 350k per year? 250k is given this year. C-HR is also limited in inventory, they seem to have about 5k per month.

The Camry is on FIRE, and the Accord is on a downward spiral.

Axel

Lexus car sales are going to struggle for so long lexus don't change the spindle grill into something loveable and the styling.

Lexus car sales are going to struggle as long as people want SUVs and CUVs over standard sedans.

I really wish people would stop and really think about a market as a whole before imposing their personal preferences over said entire market.

zeusus

Lexus car sales are going to struggle as long as people want SUVs and CUVs over standard sedans.

I really wish people would stop and really think about a market as a whole before imposing their personal preferences over said entire market. Changing or tweaking the spindle isn't going to surge sales.

I'm 100% agree with the statement above. Both @Axel and @mmcartalk opinions are solely based on their personal "feelings" and they may NOT even own a "current" Lexus. We have 5 current Lexus with the "darth vader" grill and love them. The problem is they are all SUVs. I have 10 siblings on both sides of my family (blood and in-laws) and we currently have 19 vehicles of which we have 1 car (IS250), 2 trucks (Tundra, F150) and the rest are SUVs.

So, as long as gas is under $3/gal, trucks and SUVs will be sold in droves.

GoHuskers

I'm 100% agree with the statement above. Both @Axel and @mmcartalk options are solely based o their personal "feelings" and they may NOT even own a "current" Lexus. We have 5 current Lexus with the "darth vader" grill and love them. The problem is they are all SUVs. I have 10 siblings on both sides of my family (blood and in-laws) and we currently have 19 vehicles of which we have 1 car (IS250), 2 trucks (Tundra, F150) and the rest are SUVs.

So, as long as gas is under $3/gal, trucks and SUVs will be sold in droves.

Lexus has plenty of SUVs too, and more are coming... so just like everyone else, they have to produce more SUVs, less cars and try to lose as little money on cars as possible.

zeusus

Lexus car sales are going to struggle as long as people want SUVs and CUVs over standard sedans.

I really wish people would stop and really think about a market as a whole before imposing their personal preferences over said entire market. Changing or tweaking the spindle isn't going to surge sales.

I was at the Angels game today where Lexus sponsors the club level and has ads everywhere. The New LS F Sport is present and had many admirers. The car has great proportions, designed well, highly desirable and has presence. Its something you'd be proud of a valet pulling up for you, for sure.

Cool, you saw Shohei's first home run :thumbsup:

spwolf

Lexus has plenty of SUVs too, and more are coming... so just like everyone else, they have to produce more SUVs, less cars and try to lose as little money on cars as possible.

Yeah, I'd really like to see the production LF-1 sooner rather than later for that reason.

Tragic Bronson

I don't think the grill is the main problem. A buyer going into the Lexus showroom is wanting a Crossover or SUV is; or the fact that the Germans are also as competitive.

zeusus

I really wish people would stop and really think about a market as a whole before imposing their personal preferences over said entire market. Changing or tweaking the spindle isn't going to surge sales.

Agree. Lower sales have nearly nothing to do with the spindle grille. It's because SUVs have taken over, and Lexus doesn't have enough inventory or product.

Worldwide, Lexus has had record breaking sales with the Spindle Grill.

Tragic Bronson

Cool, you saw Shohei's first home run :thumbsup:

He was quite popular with the crowd, the fans have high expectations from him and he delivered. I believe it was a home run and bases were loaded, giving the Angels 6 points in the 2nd inning.


With that being said, the anti-spindle sentiment is getting weaker and weaker. At this point it all just sounds like grandpa not understanding that odd screen all the kiddos are fiddling around with all day. Get with the times, people! I'm even seeing more and more women in F-sport now.

Hard to say it is the spindle grill that is deterring people from buying the sedans. If you compare the RX to the market it kicks ass, compare the ES to the market and it just doesn't live up. Refresh on the ES and maybe an AWD drive version will discontinue the GS. It just doesn't sell in this market.

I can agree with @zeusus that the anti-spindle grill rioters are getting weaker. Lexus thinks 5 years down the line and they nailed this grill... it will be the future. Just start looking at the other brands jaws dropping, I mean grills...

GoHuskers

Both @Axel and @mmcartalk opinions are solely based on their personal "feelings" and they may NOT even own a "current" Lexus.

I don't own a Lexus today, but have in the past. I did not post an opinion, but merely pointed out (and actually came to Lexus's defense while doing it) that the spindle-grilles DO sell with the Lexus SUVs, even if sedan sales are down.

spwolf

Lexus has plenty of SUVs too, and more are coming... so just like everyone else, they have to produce more SUVs, less cars and try to lose as little money on cars as possible.

I don't think so. I believe markets like Canada (looking at their sales) still want to purchase cars with sporting credentials. Look, even the IS is selling more than the ES, and the GS/LS are doing pretty okay considering the situations they're both in right now.

F1 Silver Arrows

I don't think so. I believe markets like Canada (looking at their sales) still want to purchase cars with sporting credentials. Look, even the IS is selling more than the ES, and the GS/LS are doing pretty okay considering the situations they're both in right now.

sure, but they still need more SUVs and less cars :), i mean in volume of production. They still cant produce enough NX, RX-L is in short supply and UX will certainly be in short supply worldwide.

The problem with Lexus sedans now can't be all on the SUV trend or the spindle grill, the main reason is that ES/IS/GS are now too old and all competitors have been changed after these Lexus cars so they are doing better than Lexus in sedans . Look at the LS its doing really well in its 1st full month of sales despite being "Sedan" and having the "Spindle Grill" it finished right behind the S-Class that have sold 1660 unit approximately, despite that, the advanced driver assistant technologies still not available on the LS outside Japan, according to Asahi-San it will be available for the US market by the end of the year - after finishing the testing of those systems on the US streets -, so its still have a chance to beat the S-Class.

For GS/IS/ES all will sale very well with their new generations until the Germans introduce another new-generation .. etc .... That boring closed loop :neutral:

spwolf

sure, but they still need more SUVs and less cars :), i mean in volume of production. They still cant produce enough NX, RX-L is in short supply and UX will certainly be in short supply worldwide.

I see where you're coming from. I do think they should take this approach, but it would also be greatly helpful if they managed to analyze their markets a little more so predicaments like this don't have to occur.

Notice: In the following response I will be venting at Lexus (and to a greater extent Toyota) heavily. If you don't want to see my rage, you can scroll through it. However if you guys try look at it from an objective point of view, every single one of you guys will agree, guaranteed.

Madi

The problem with Lexus sedans now can't be all on the SUV trend or the spindle grill, the main reason is that ES/IS/GS are now too old and all competitors have been changed after these Lexus cars so they are doing better than Lexus in sedans . Look at the LS its doing really well in its 1st full month of sales despite being "Sedan" and having the "Spindle Grill" it finished right behind the S-Class that have sold 1660 unit approximately, despite that, the advanced driver assistant technologies still not available on the LS outside Japan, according to Asahi-San it will be available for the US market by the end of the year - after finishing the testing of those systems on the US streets -, so its still have a chance to beat the S-Class.

For GS/IS/ES all will sale very well with their new generations until the Germans introduce another new-generation .. etc .... That boring closed loop :neutral:

If this was a prize giving to anyone who makes sense, you would win it in NO time. Stop making sense, Toyota/Lexus doesn't like that. THIS IS WHAT I AM TRYING TO SAY, and this beautiful human has summed it up. Thank you @Madi! I agree with everything you say above.

FOR GODS SAKES TMC IS A MULTIBILLION DOLLAR COMPANY AND THEY YET HAVE TO WORRY ABOUT "BUSINESS CASES". THE ANSWER IS RIGHT IN FRONT OF YOUR FACE.

Please don't give us crap about things not making financial sense. You can can clearly blow so much money in a hour for forever and you guys won't even break a sweat. Don't tell us anything about things not being viable. It clearly is. Much weaker and poorer manufacturers than you are kicking butt like no other, and yet you guys are doing nothing. Imagine what some of these companies would do if they had your money. Stupid bean counters at TMC can't admit to something even the answer is right in their face. You need to build such models for greater success. I hate hearing excuses, because I just quoted a wise human being right above me. If mere mortals like us can come to such conclusions, can't you? You guys need to go back and follow a certain idea you guys had in the 90's. NO EXCUSES. There were no excuses at Toyota/Lexus back then, and don't give us any now, because you're shaming your history as a legendary company.

F1 Silver Arrows

FOR GODS SAKES TMC IS A MULTIBILLION DOLLAR COMPANY AND THEY YET HAVE TO WORRY ABOUT "BUSINESS CASES". THE ANSWER IS RIGHT IN FRONT OF YOUR FACE.

Please don't give us crap about things not making financial sense. You can can clearly blow so much money in a hour for forever and you guys won't even break a sweat. Don't tell us anything about things not being viable. It clearly is.

Unfortunately this statement cannot be farther from the truth. For a multi-billion dollar company, their prime concern is making "business cases".

People often criticize TMC for how conservative its business practices are, considering they are bigger than the rest of Japan's automotive industry (not counting Renault-Nissan as it's more complicated) combined and can buy out GM, Ford, BMW, Mazda, Subaru and have money to spare. But this wouldn't be possible if the bean counters are not doing their job.

It's easy to bash how stupid bean counters can't see the obvious when you don't have to deal with these problems:
>>another magnitude 8.0 earthquake wiping out your plants, suppliers, and most importantly, employees, causing months of production and years of engineering vanishing overnight;
>>make sure the company does not need an $80 billion bail-out package to survive the next depression;
>>your country has a declining workforce, talents are increasingly hard to secure, and the younger generation aren't willing to devote their life to the company's cause like in the old days.

Now you see why TMC is an extremely conservative corporation. The bean counters are constantly living in fear since the Lost Decade, since the Recession of 2008, and since the Tohoku Earthquake. They want to make sure every decision has positive financial results, even if this means losing some opportunities.

On the other hand, being conservative and making half-assed efforts has resulted in more financial failures (3IS/4GS) than going all out and spare no effort (see MB). That will change with the introduction of TNGA, since the cost reduction benefit it brings gives them more maneuverability in project execution. When things are doing okay, they make better and exciting products, as shown by their recent efforts with Camry, Auris, and RAV4. When things go wrong, they can always revert back to making cheap appliances at reduced cost.

But even with TNGA, there are only so many projects they can do at once. There are priorities, and the biggest problem for Lexus is not having enough crossovers in their lienup, and not producing enough of their current crossovers, period. And so far they have made their priorities right.

F1 Silver Arrows

You guys need to go back and follow a certain idea you guys had in the 90's. NO EXCUSES. There were no excuses at Toyota/Lexus back then, and don't give us any now, because you're shaming your history as a legendary company.

Bubble-era Japan is probably the worst comparison you can make. Nobody cares about "business case" when a car is cheaper than a taxi ride, that's why Bubble-era Japan made the craziest cars ever. It's an anomaly that will never come back.

Returning to the March 2018 Lexus U.S.A. Sales Report, its ancillary Sales Conference Notes contain these noteworthy passages:

...our total new sales volume for the month was 27,032 and of that 18,530 were Lexus utility vehicles. So about 68 percent of our total vehicle volume were utility vehicles. Sales for the number one selling vehicle in the luxury industry, RX, totaled just over 9,800 of which more than 1,500 were our all-new RXL, our new RX with a third row...

And on the passenger car side of our business, 1,008 all-new fifth-generation LS were sold, and that volume is up nearly three times the volume year-over-year.

Then we do the first quarter 2018, Lexus volume totaled 64,211, that's up 4 percent versus the same quarter last year. Lexus utility volume totaled 45,085, a best-ever first quarter and up 11 percent for us for the quarter. NX gas and NX hybrid had a best-ever first quarter, totaling 14,327 sales and GX had its best first quarter in 12 years at just under 5,700 vehicles.

Based on recent industry data, the luxury industry is down about 2,000 vehicles, they're up about a half a percent. Already this year we've announced 12 of 17 new models, concepts, and special editions. And there's still more news to come this year. And regarding the outlook for the luxury market, we expect calendar year sales to remain generally flat at about 2.1 million with a slight increase in Lexus's retail share to about 15.6 percent versus 15.4 percent last year.

And the issue of monthly versus quarterly sales reporting was discussed in this exchange between Jack Hollis (Group Vice President and General Manager of the Toyota Division) and Reuters journalist Paul Lienert:

Paul Lienert:
Hi, this is Paul Lienert from Reuters. I have a quick question, please. General Motors announced today that it's no longer going to report monthly sales, but it's going to quarterly reporting. What is Toyota's and Lexus's plan?

Jack Hollis:
Paul, thanks for the question. This is Jack Hollis, and I appreciate it. General Motors made a decision, what they thought was best for them. We continue to want to still make the best decision the way we think is best for our company and for you all. So I guess I would reverse the question as to, how could you use it? Would you still like to have it monthly? Quarterly? We're going to have everything prepared every single month. We're happy to share it. Which is best for the industry, best for the jobs that you have to do? So, Paul, unless you think there's something that we should change, our plan is to stay the same and provide you information on the monthly basis. But, should we be looking at it in a different direction?

Paul Lienert:
That would make me happy, thank you.

Jack Hollis:
Maybe media as you're on here, as you ask a question, if you feel like there's something different that we should be aware of, of why it would be better for you. But our really true goal here is to provide you with the information that allows you to do your jobs the best that you can do it. So, at this point I don't see any change planned on our side.

ssun30

On the other hand, being conservative and making half-assed efforts has resulted in more financial failures (3IS/4GS) than going all out and spare no effort (see the resurgence of MB). That will change with the introduction of TNGA, since the cost reduction benefit it brings gives them more maneuverability in project execution. When things are doing okay, they make better and exciting products, as shown by their recent efforts with Camry, Auris, and RAV4. When things go wrong, they can always revert back to making cheap appliances at reduced cost.

I really appreciate your well-worded and classy response. My issue is to what I quoted above, and the thing I have made in bold. I'll be honest, I haven't thought much in regards to the greater picture. However, my post to which I vented is with that. I tried to dance around that word without being fully out of line. And hey, while I agree with your statement, don't you genuinely think, after all that trying to save every penny, don't you think they cannot build serious cars anymore? For example, the Supra for a multitude of reasons was cancelled back in 98' (2000 for Japan), after selling less cars with sporting credentials, they moved on to building appliances. Whether it has been cars, trucks or SUV's, they saved money at a time where it was necessary. Now they are firing back with a new Supra, a new 86, and I wouldn't be surprised something else either in terms of pure sports cars. I will not delve into the new TNGA cars because we already know how much better they are than before.

It is so hard trying to wait for a great product, and yet you're let down? I have been so adamant on purchasing an amazing Lexus, yet I get so triggered again because it is so obvious where they are cost-cutting.

My patience is dwindling a little. Mostly because how Toyota and Lexus keep everything under wraps. The notion how their loyal/potential/future customers are left in the dark in regards to what is coming up in the pipeline in the future. Think of it like this, you have been waiting for a new product, a better product, a less "quoted what you said-effort" product than the previous generation, then you see an amazing reveal, in which you cannot wait to jump behind the wheel, but yet they manage to cut costs in areas that just shock you.

I will be honest, with the LS, LX and the LC (partially the UX), there is no evidence of cost-cutting whatsoever. There are certain expectations when you jump behind a Lexus and those three cars fully embody that philosophy. They simply just mess it up everything below their flagship models. For example, the IS has the most cramped room for a sedan, ever. How about the interiors of the RC/IS? While it blows everyone else out of the water in terms of quality, the dashboard and the controls look so much in the 90's. However since I am more inclined towards quality, I wouldn't mind purchasing one over their rivals because their cars are just that good. What about the RC? The joint 3 chassis platform? It made the RC a total mess, the only benefit to that is you use the RC as a genuine grand tourer and not like a sports car, also it is an excellent product in leaving the driver in isolation, which is a Lexus hallmark quality. Now I won't talk about their transmissions, because their 10-speed easily made me forgive them. But for example, the 8-speed automatic in the GS-F was extremely fast, but gearing was the issue. Why in the world does an almost 500 horsepower RWD V8 sports sedan have long long long gears? Fuel economy. You tell me if that is ridiculous or not.

Here's the thing, I am so freaking passionate about TMC because they're the only ones that are trying to stay true to themselves and still try to appeal new customers. It is these things that I mentioned above that can easily mess them up and shoo away future customers. They need to follow Mercedes-Benz's playbook because they are a hit right now, and there is no reason Lexus cannot be up with them too? Remember when all manufacturers were having a bloodbath to catch up to Lexus back in the past? That's where I want them to be. There is no way they cannot end up on the sharp end of the pyramid again. Once they do, I will be proud to say Lexus is back. The LS has amazing sales on its first month, for a flagship car, that is so many sales. The LC, yes it is more of a niche product than the LS, but it sold relatively well compared to other flagship coupes. The GX, which suddenly had a resurgence in sales for some reason. These cars are proof that Lexus is clearly doing something right. It won't be that hard for them to do that to their other models. Expensive, yes. But TNGA should alleviate most of that problem.