It's seriously not that hard. Just look at what the S class is doing. It rides best in class yet does not sacrifice any handling capabilities (in fact it drives almost like BMW G12 as proven by Chinese slalom test). Best in class tech and seat comfort. Best in class safety features and NVH. Best in class I6 powertrain (almost there with B58) and MPG. You are not selling because you are trying to do a bit of everything but failed to accomplished the core basics. Get the fundamentals right, price it where you think it will sell and don't put blame on SUV craze.
But…it
is that hard. Making a product that rides well, has best in class powertrain, good mpg, etc. in one package isn’t an easy feat.
Everyone striving to become a luxury carmaker wants to have the prestige and recognition of Mercedes. Every luxury carmaker wants their product to be viewed as the new “S-class.”
Mercedes didn’t get there by accident. It’s not as simple as having a bucket list of “I’ll have the best mpg. The best inline-6 and best ride quality.” Mercedes is synonymous with being the gold standard for luxury because they had to invest in that kind of upkeep for decades. Having a wishlist of features versus actually marketing a product that would not financially destroy a company are two very different things, usually antagonistic to each other.
Consider for a quick second:
1. Sedan market has been shrinking and continues to shrink, to the point that established manufacturers have abandoned making sedans at all. Example:
FORD.
2. Take the remaining consumer market still willing to pay for a sedan, then subtract 90% of them. The remaining 10% are willing to pay $90,000+ for not just a sedan, but a luxury sedan. For the sake of conversation I realize that I’m being extremely generous with 10% of the market being able to afford a $90,000 purchase.
3. Now try adding all the features we think a competitive LS would be and sell enough that it isn’t likely to be financial suicide for the company. Keep the price low enough that your consumers wouldn’t just say “f it” and get an S-class instead.
I think the world’s largest auto manufacturer has the resources to do that. I think they have the technology and distribution line, logistical savviness to do that. But it probably makes very little financial sense for Toyota/Lexus when they consider the break even point for the investment it will require. Mercedes had the benefit of securing the brand image for the S-class when the sedan market was bigger.
It wasn’t that long ago when Lexus had the stigma of being a car for grandparents. Lexus probably figured it was smarter to shed this image and go for a livelier crowd and adopted a lot of sporty and polarizing designs. Unfortunately, that alienated a lot of prior LS owners while Mercedes was able to retain their market by keeping their more stately image. You know what? I think it worked for Lexus. I haven’t heard a lot of the grandparents haters lately.
I would not be able to tell you if that was the best choice for Lexus, but together with Toyota this is a company that has a track record for smart decisions which led them to become
the juggernaut they are today.
I sincerely hope that Lexus doesn’t abandon the LS because ditching the sedan market is such a financially attractive move. I’m optimistically cautious that they can deliver something that can wow people like they did with the GX. I suppose time will tell.
