Lexus to be Profitable in Europe by 2015

Automotive News reports that Lexus sales in Europe are expected to push into profitable territory by 2015:

“Lexus can be profitable in two to three years even though production will remain in Japan,” said Didier Leroy, the CEO of Toyota Motor Europe, on the sidelines of the Paris auto show.

Leroy did not talk specifics about how much Lexus loses in Europe. A Lexus spokesman told Automotive News Europe that the brand’s profits in Europe hinge on its hybrid lineup, which accounts for 85 percent of its sales in western Europe and 60 percent of its sales in Russia.

Leroy expects Lexus sales in Europe, including Russia, to be 46,000 units this year compared with 44,000 in 2011.

Much of the progress Lexus has made in Europe can be attributed to the CT 200h, which has sold 12,800 units so far this year, and is already the lineup’s best selling model in just its second year of sales.

But while this dive into the compact segment has made a significant impact on the bottom line, it’s the introduction of the new 2.5L four-cylinder hybrid engine (presumably in both the GS and the next-generation IS) that is going to drive growth over the next two years.

(A lack of engine options has always been an issue in Europe, but add the new four-cylinder hybrid with the turbo-charged four-cylinder engine in 2014, and Lexus will finally be able to offer low-displacement fuel-efficient powertrain options — could be the start of something big in Europe.)

[Source: Automotive News]

EuropeSales Reports
  • L
  • October 17, 2012
I think this is a bit optimistic. Sure, the CT200h has helped Lexus sales big time but Lexus needs to do much more to become a serious player in the competitive European market. Convertibles, coupes, wagons, crossovers sub-CT200h premium cars, more trim and engine options and more dealerships are needed.
    • J
    • October 18, 2012
    I agree.  A 2.0 liter turbo engine won't ever get low CO2 figures and it would only sell well in Europe if it can compete with diesel.  Quod non.  Therefore, as diesel engines are no longer an option for Lexus, petrol hybrid is the only solution in mid term.  But it should be offered in more variants and in more body types.  This is not likely to happen, so Lexus will remain a small exclusive player.  Which is not a bad thing, as long as volume grows to a realistic level to install long term profitability for stand alone dealerships (and grow slightly the number of dealers)