There is just too much to say, that I'd be better off just not saying much. But I cannot (sorry to TL;DR).
Everyone in the industry must remember that things happen in cycles. It will catch up with us. if we abandon certain product lines in favor of others. Ford will learn too. Eventually the conversation will start shifting to making the ES the only Lexus traditional sedan produced, if things continue as they are.
Some previous Lexus LS owners are even proving to be a pest for TMC in terms of sales and their fickle criticisms of the 500/500h and turning up their noses, which explains the sales drop too.
Why is the IS struggling not only in sales, but in terms of internal reception? While its German competition weather the utilities storm? And the Asian competition fight their hardest?
So many factors:
I still strongly believe the IS line was not fully developed enough from the beginning (in order to establish heritage), in which previous administrations were to be blame. Maybe it should've come earlier than it did in Lexus history.
In order to sell these (lowly) entry Benzes and newer upper level products, MB coasts of off the prestigious lineage of (WARNING MANY PHOTOS):
- Gullwing 300 SL.
- The der Grosser (600 Pullman)
- W126 S-Class of 1980 to 1992 (includes armoured models)
- R107 & R129 Roadster
- C124 Coupe
- W140 600SEL 6.0L V12 of 1991
- Everlasting Pullman & Guard Models
1955 300 SL Gullwing (W198)
1965 600 Pullman (V100)
R107 450 SL V8 DE-spec (1971); 1986+ 560 SL V8 JP-spec
W116 450 SEL 6.9 V8 (1975, 1977 USA)
W126 Sedan 500 SEL V8 1980; 560SEL V8 1985 - 1992 (blue 1986MY shown)
1982MY C126 380SEC V8 & 500SEC V8 Coupe; 1986-91 560 SEC V8 (Blue car)
1987-93 C124 300 CE I6 Coupe; 1992-93 A124 refresh 300 CE Convertible USA; Facelift 1993-96 C124 E 320 Coupe/ 1993-97 E 200 Cabriolet
1989 & 1992 R129 500 SL V8; 600 SL V12 (1992); SL 600 V12 (2001)
1991 - 1993 W140 600 SEL 6.0 Litre V12 sedan
Mercedes-Benz Limousines and Guard armored vehicles (1930s, 1960s, 2017)
I posted many photos to emphasize how the world views Mercedes-Benz products with such adoration. You need to have many iconic products like that in your lineup over a time period or try at it, with excellent qualities such as Lexus adheres to.
Lexus has never done such (previously), in producing any vehicles of lofty acclaim, outside of the LFA. The only other past attempt to go to toe to toe with competition was the poorly marketed LS600hL. The LC is the only one currently.
2007 - 2009 Lexus UVF46 LS 600hL - Lexus Flagship
2011 - 2012 Lexus P280 LFA - Lexus Halo
Z100 LC 500 coupe (2017)
The past MB 190 compact and C-Classes have never exemplified "prestige". That came from larger models or roadsters as explained above. The '76 to '85 midsized, W123 "E-Class was never a high prestige vehicle. It was an expensive, yet comfortable, extremely durable and reliable piece of machinery used as a taxi in Europe.
W123 280 E 2.8L I6 Sedan; W123 Taxi
It grew into a cutting edge, expensive vehicle the next generation of W124 in 1985, yet still remained a sturdy vehicle and was the go to choice for reliable luxury, pre-Lexus.
1985-89 W124 300 E I6 Sedan; 1990MY W124 Refresh Range; MY1992-93 400 E V8 Sedan; 1993-95 E 500 Sedan
The only status symbols that made Mercedes-Benz iconic and worthy of lasting prestige were again, its SL grand tourers, the S-Class in the form of 70s 450SEL 6.9 and '80s 500SEL/500SEC and 560SEL/SEC, and the grand 600 Pullman factory made climousine. Not the small 190s/C-Classes, not the sensible midgrade W123/W124 E-Classes. The real prestige vehicles, with "S" in them. Although the W124 lineup helped maintain this image of prestige, by the early 1990s in being uber expensive itself.
At Lexus that "S" is
L instead. Lexus knows why in 1995, they launched the Land Cruiser rebadge as
LX450 and not anything else like "EX450, GX450, SX450". They were already well into developing a V8 LX worthy of genuine flagship status against the 1995 Range Rover (P38A) (and like in the case of the ES 250), voted to go with a stop gap before that could be fully realized in 1998.
Range Rover (P38A)
1996 Lexus LX 450 (J80)
UZJ100 Lexus LX470 TMC Internal CATIA Design File; 1995 (Coming in 1998)
From 1995-on, the Land Cruiser was already one of the most luxurious SUVs at that point against RR. The previous refresh from FJ80 to FZJ80 (new 4.5 I6) in 1992 ('93MY) already started marking that shift and leaving its 50 & 62-Series lineage behind. A Lexus adaptation didn't need much more, with the Toyota already coveted by many 90s celebrities, up there in lofty atmosphere with RR.
Nobody could top it at that point in time, other than Range Rover (above) or the Europa imported/federalized, 1993-2001 $100k+ Gelandewagen (G 320). Even Jeremy Clarkson gladly owned an LC Amazon.
1995 G 320 (W463)
In terms of so called heritage and prestige, where is Duesenberg or Packard now? They were once very prestigious, but are no longer here. Anytime in history, that could've happened to Mercedes-Benz, from resting on laurels or becoming outdated. But they didn't waiver, like I see Lexus do at times and hesitate in some areas.
Sure they robbed American Chrysler of its rainy day fund and it helped finance their own recovery (from post 1995 quality foibles), but they could've easily misused all that capital and crashed and burned with further mismanagement, sending all the proceeds to shareholders and padding execs with bonuses.
The tour de force that was the 2013/14 W222 S-Class, was developed during the recession, yet came out ever so spectacularly. Nothing was spared, other than reusing the W221 platform. It paid off.
BMW thought about their strict 10% profit margin, modular platform costs, and stifled the creativity on the G11 7, despite having advance knowledge on what MB had designed during early G11 development.
Lexus needed a truly imposing, leader at the top, perched next to the upcoming LF-LC production realization and LX 570. What they did was develop a fine driving sedan, but stifled it in some areas, that turned off a large portion of the buying base. When you don't have a range topper that calls out to the public the way the LC comes much closer to doing, you are not doing it right. I really don't care what anyone else thinks in terms of dismissing or explaining away the statement I made.
No one is going to be interested in the IS if it doesn't offer something the competition has nor does it better than them in a standout fashion. I can give them reliability, but a hellion of customers clearly don't care about that and vote with their wallets as a result.
The mistake made, was giving the Audi A4 (B5-to-B9) any breathing room once IS hit the ground in 1999-2000. That 3rd wheel of a car should have been stomped out and keeping Lexus a serious contender at all costs. They struggled with the 80/90, yet you gave them room to succeed post-1995?
Heck, why wasn't there an IS by 1993 versus 6-7 years later? The ES 300 was the entry level plan from 1986, but did they think the 190E and E30 3-Series would give way to front wheel drive cars? Or was it just cheaper to do so? Yes, the ES 300 was the V30 Camry widened and modified for the Lexus brand as XV10, which ironically in 1988 became the US 1992 Camry as well. (The ES 250 was 11th hour, as a stopgap as seen above)
V20 Luxury Design Freeze 1:1 Mockup: 1987 (Due in 1989, as ES 300 is developed from 1986-91), 1990 ES 250
Yes, one can forgive Lexus for thinking, FWD was the future like the big American 3 did in the 1980s, but at the same time how can I excuse that?
FWD American Luxury in 1984-87
They came out with the LS didn't they? They didn't even go BOF for the LS 400 like the Town Car and Brougham, they went monocoque, front engine, rear-wheel-drive like the best in W126 S-Class and E23 7-Series, and RR Silver Spirit and Jaguar XJ to a lesser degree.
American Luxury in 1984
European Luxury in 1984-87
So why didn't they take a close look at MB 190/BMW 325i and decide, with too many Lexus models arriving through 1992, they'll get to delivering such a product by 1993-94 as a 1994 or 1995 model? Was it even that bad, that they were overwhelmed? By the time the ES 300 launched in 1991, the final design touches should've been put on a compact, RWD sedan for 1994/95 model year intro and in early planning since late 1989 (after LS proved well in Sept/Oct).
Was it too much to introduce two new nameplates for/during 1993 or was it considered redundant in the offices of TMC in 1989-1991, to have a entry RWD Lexus alongside ES 300 and upcoming GS 300?
Other than the belated+DOA 1993.5 GS 300, warmed over '95 LS 400, and 11th hour rebadge LX 450, the January 1992-August 1996 period was a 4.5 year drought of fully new Lexus product. Even the 1997 ES 300, was a heavy revision of the original "real ES" (ES 250 was a stopgap pretender), so make that 5.5 years.
That was the time to introduce a first gen IS sedan and variants, against the aging E36 3-S (launched January 1991). Not right after them introducing one of their best executed products ever, the 1998 E46 3-Series. Toyota benchmarked an aging model, when its replacement was in parallel dev. and almost out.
Instead, they didn't even look into PLANNING a 3-Series competitor until 1993, which got off ground in 1994 and bore the IS in early 1999. That car was not simply designed as an Altezza (like a lot of ignorants casually espouse), it was always a Lexus since 1993-94 planning. Just very Europe focused and more downmarket, later internally seeing the USA as a viable IS market in 1997, but not until the ES could be discontinued or elevated like it was in 2001 (13 months after IS 300). Since that elevation, GS sales have suffered.
The GS has always lacked the needed consistency it deserved to survive.
I am going to be honest and say that as a young child in the 90s, I never really cared for the original GS. The internal S140 styling proposals from 1988 and 1989 were more cohesive, than what Giugaro even drew up. It's not an ugly car, but it always felt awkward to me, a botched product in reality. I didn't feel that from the ES, SC, and LS.
The second generation model introduced in 1997, was a nice improvement (some say derivative from W210 E), but they dropped the ball in keeping it relevant in the face of competition post 2001. No halo model and little varied choice, meant that buyers were easily more drawn to what Germany and Jaguar had to offer eventually, especially at the top end. To become established, you need to make your mark.
As someone that is an automotive historian and extremely objective about various automobiles, I am definitely sick of what I consider to be unwarranted adoration of the BMW and Mercedes-Benz badge in ALL ASPECTS (at ALL COSTS) versus the actual product, by an ignorant and unsuspecting public.
I can respect and understand people's appreciation of the now outgoing W222 S-Class, which builds upon the previous W221 of the core 2000s and early 10s. It was the perfection it needed to be. Will it last as long as the 70s W116 and 80s/90s W126 of the past on the used market? Hardly likely, too many complexities.
But I cannot understand the worship of unremarkable C180s, C250s, C300s with crap halogens and MB Tex seats. Nor that of CLA250s and GLA250s. Even though MBTex can be nice quality and good for vegans, but the point should be gotten. The brand power of 130 years is so strong, but in reality most people don't care anything MB beyond the 40-50+ years in general. Some don't even care about anything pre-1995! Only a few history buffs do and car snobs. Ask the average person on the street about a 1950-something MB sedan or the Adenauer, will they give a f**k. Hell no!
It's about their staying power and being a trendsetter through the ages! The W140 was considered overwrought and possibly the ugliest S-Class (at the rear), but it dominated Asia and post-USSR Europe. Americans bought less S-Classes, but the sheer attention to detail have ensured its place into the automotive zeitgeist of that era with the original LS 400. The W220 of post 1998, was pretty and modern, but that's all it had. No longer relevant.
Anyway, Toyota has failed to capitalize on building a better 3 Series or fully credible alternative, by not being consistent with optimum choice. They are too overwhelmed with providing resources to various JDM models and global Toyota brand products, therefore the pressure isn't there to stay on top, when they can get their money elsewhere in higher volume. How did they build their business model in this respect for Lexus? Sell plenty of FWD cars, while uplevel products fall short in the eyes of the public?
If Lexus was a FWD only brand (like Volvo), that managed to succeed selling uniquely and exceptionally well executed
ultra luxurious vehicles on their upper tier, I would have no criticisms. But as we know, the market just doesn't accept that, again evidenced by Volvo and Lincoln. They don't see FWD products as ultra luxury worth of immense prestige and nearly 6 figure pricing, especially no thanks to loudmouth automotive media who would shout from the rooftops that little truth. I make this point, when I see others express annoyance to those of us calling out the brand on similar copouts.
The idea we should only be proud they are tops in virtually near-luxury segments with the NX, RX, UX, and ES, but struggle and don't give a damn about LX (
way too old), GX (
too old too?), LS (
needed more than it got), GS (
dumped,
withering on vine), and IS (
going to halfbake it again?) to keep them running consistently. It is not easy being a CEO, but it is so telling when executive influence carries struggling products through life support (LC, RC) and the others are left to suffer.
At Ford, Lincoln was virtually going to die until new CEO Mark Fields gave it a serious cash infusion in 2014, before his departure. He tried to fix the weak 2nd gen 2016 MKS late in development into the Continental...marginal at best. Next on his agenda, was order modular CD6 architecture that would carry both RWD and FWD, w/AWD available, plus new Aviator for 2019. Ensure that the adequate funding and direction was provided for the aluminum Navigator.
A new RWD flagship was ordered for MY 2021 to succeed the Town Car, as well as a new Zephyr (MKZ) midsize, and expensive MKC (Corsair) redesign. Jim Hackett cancelled the sedans in 2017 and made CD6 to be RWD, SUV only. The ROI has thinned. Wall Street hated that so much money was being poured into Lincoln and not EVs/self-driving tech and global entry level products, Fields was pushed out. Look at Lincoln's new products and you can see Mark Fields' legacy. Some Ford family members before the best products to have the family name over Lincoln. I digress...
...Another large issue is the failure at Lexus to convince the public of their upper level vehicles standing toe to toe and relevant in terms of being top notch against the LUXURY competition. They don't have this problem with the lower end to lower-middle half, so what gives? Are the European brands just automatically better? How? If even so, why let them be? Oh...because volume elsewhere pays the bills? Right...
There has to be a reason for this. Pre-1995, they didn't have this issue. MB was unwisely chasing Rolls Royce with the 1992 S-Class and its 30% higher than before prices, a cathedral on wheels statement too far out of reach of the average working professional. Today, the same RR/Bentley chasing has been happening with the W222 and it is TOP SELLER (price increase was kept inline for once). LS nor BMW can make a dent? I really don't want to hear excuses or having my points dismissed, as "enthusiast desires", inciting negative sentiment. This site was a very positive atmosphere, awaiting the best that had yet to come and hoping the newest mid-2010s entrants, would be satisfactory and consistently improved.
Understandably some of us are frustrated now, in being the very forces in the early 2010s, who essentially heralded and advertised the incoming Lexus models for the mid-late 2010s. The best Japanese brand! Well we were embarrassed by what Lexus didn't deliver on and made to look foolish outside of this site. At least the LC came to frution, although it is selling not as expected...cuz price (rolls eyes).
BMW barely had a 12 year headstart on Lexus in terms of flagship luxury sedans and products. Their 77-86 original offering called E23 wasn't entirely well received, until a young engineer Dr. Wolfgang Reitzle made it a tour de force the next generation (E32) and put in Germany's first 12 cylinder engine in 50 years, the 1988 750iL. MB delayed their new model program and went into overkill on extra details, for a car intended for 1989 now turned 1991-92 and bombed in some markets.
The 7-Series became a force, even when Lexus started to threaten its ascension in its largest export market with the 1990 LS 400. At the time, they were just finishing up styling the replacement 3rd generation model for 1994.
And indeed, Lexus' position started to even crater with a tame LS 400 redesign, released exactly 2 weeks after BMW's long awaited E38 740i in November 1994. To be exact, November 1, 1994 was the new 1995 7-Series for USA and November 15, 1994, was the 1995 LS launch.
Lexus themselves commented on the failure of 1995 LS and it being a cost-cutting measure against the Yen crisis and bubble econ. collapse. I am not making it up nor being overly critical in this respect. The chief engineer hated how his flights to California were now in coach and no longer business class from 1991 to 1994 years, which was not the case between 1983 and 1991 on F1 and early UCF20 planning in 1990.
As for BMW, although poorly received by snarky, fickle media upon reveal in May 1994, BMW's new flagship began to overshadow MB's cathedral on wheels and forced them to decontent their vehicles FOR CERTAIN, as it was no longer optional (they had too!). For better pricing parity with both Lexus and BMW, as well as Audi's new A8.
Plus finish designing and approve by June of 1995, the best BMW that Mercedes-Benz ever made, the 1999 W220 S-Class. It was a moderate facsimile of the E38 7-Series sedan (launched in Germany in June 1994), on the inside and out.
Feeling threatened by German resurgence, they got to work at Lexus. In 1997, Lexus rebounded with a quickly thought up in late 1995, beautiful facelift of its second generation and also a clever facsimile of a C140 coupe as the successor, later arriving in 2000. In spite of being so derivative on the exterior, it was a very well made evolution of the LS formula in terms of quality.
The 4th generation LS called XF40, was intended to be an aspirational move upmarket and although it succeeded initially, declined following 2 poorly-to-warmly received model enhancements in 2009 and 2012 (well done, which slowed the decline). The life cycle was stretched out likely to guarantee a massive return on investment, which loomed over development of its successor.
Make a product that didn't go toe to toe with the S-Class, by choosing a powerful TTV6 which surpasses competing 6s, but undercuts their V8s in pricing and positioning. The downgrading of flagship hybrid into a former shell of its self. This isn't what the core LS customer base nor F class segment wanted, thus the sales...
Yet they are people out there who excuse the personnel likely making these decisions under Akio Toyoda and championing them to him in the name of (cost/ROI). Claiming, that it makes sense to retain a powertrain that mostly dates back 15 years. I cannot blame Akio 100%, as he still answers to others and is not omnipotent.
For all the people quick to denounce the need for no new powerplants, cuz if ain't broke don't fix it (cough 4Runner forum), did you take that viewpoint when the 2GR-FSE was introduced in 2005 on the IS 350? Or was that just dandy, because
moar power or the fact it was an easy consolidation, in an agenda to abandon the 2JZ, versus be consistent and develop a worthy replacement of it?
No one had that viewpoint when Toyota switched the RX330 from RX300, then RX350. Heck, some export XU30s had the RX300 badging, which I noticed as a youth in June 2003 while visiting London and catching a brand new RHD RX in motion.
Lexus cannot continue to rely on Acura competitive front-wheel drive products. The RLX has a flagship is a joke and so is the Volvo S90 which hardly sells, not to even mention the vastly more advanced Audi A8, with its standard AWD which struggle too. Someone on here called longitudinal front wheel drive as an 80s relic and stupid reasoning for the ES, but thinking about that even more deeply, I can't say I can agree with them entirely. It exists as a better way to balance front/rear weight distribution compared to front heavy transverse applications.
Bentley's Continental Flying Spur and GT used that longitudinal FWD basis format for 15 years (with standard AWD to obscure it), as do virtually all of VAG's mid-upper crossovers and upmarket sedans, which only a few have recently adopted RWD MSB from Porsche's Panamera. The only Bentleys consistently RWD since 2003, have been the Arnage (my father owned 3), Azure, Brooklands, and current Mulsanne. And now the new Flying Spur and Continental GT, which borrowed from Porsche. Of those RWD vehicles, 3 of them date back to Rolls-Royce's 1965 Silver Shadow.
Everything else has or had FRONT WHEEL DRIVE ROOTS via modular MLB or preceding longit. FWD architectures. So does that mean Audi, Bentley, Lamborghini, Porsche, and Volkswagen sell 80s relics? Okay then...
Lexus needs to figure out, if they switch over to EVs immediately, that are executed to deliver more than the competition or get their exisitng product right, which are more likely to standout as remarkable. I can wager that many of those entry level buyers do not have lasting loyalty and go to other brands nowadays, if not simply buy used, since there is nothing at the top that holds them.
An aging LX doesn't do that. Even for being so age old, the G-Class was a 1990 model decorated with 2010s feature content, but because it was so iconic and kept relevant with latest tech, it stayed as the halo SUV model after being threatened twice by ML (1990s) and GL (2000s). Not flagship, but halo. Does the IS have a standout flagship in the IS 350? Not anymore. Halo IS-F? Nope. EV version? Not at all.
What is the ES to the global luxury segment? Is it a great S90, A6, and Acura RLX alternative? Is it as varied and dynamic as the 5-Series and E-Class lineup? Or is it just an easy effort, safe source of income for all tiers of personnel working for or in relation to Toyota Motor Company? And it is so sad, considering that it's a decent car, often shouldering the blame for Lexus struggles by those well aware of the industry.
They say that Lexus is profitable for TMC, but looking at a breakdown by model. It is more shameful to see that the more shared with Toyota brand products, the better the margin. If they cannot get out of that cycle, they better figure out the purpose of this brand. A brand that can hardly compete, when it doesn't even exist in all of the same markets as their alleged competition nor offers a varied product line, is shooting themselves in the foot.
In example, Audi, MB and BMW have a huge presence in Mexico, yet Lexus has yet to finalize joining. Who is responsible for all these gaffes? From product lineup, to marketing, sales, and establishing regional divisions. Staff needs rebooting.
How did they let themselves get to this place, when out the gate they had 30 years to get this right? The only high volume premium brand that has consistent and storied history, prestige before 1975, is Mercedes-Benz. Porsche is lower volume, highest quality German brand. Audi had some past models of recognition, but they were hardly a force until the 1990s and 2000s. BMW barely started coming together in the 1970s-80s and still struggle in the $200k+ atmosphere, which MB does not.
Yet BMW is able to get away with selling just about anything to ignorant badgewhores? All without consistent halo supercars? An M3 is not a supercar. What does it for BMW? Audi is able ride off of "being German", very much through the R8's fame and RS cars, yet Lexus couldn't do so with F and LFA? They cannot start echoing the same mistakes made by Infiniti and Jaguar, who now need some last hope via EVs which may or may not succeed come 2022. It is all about top-down effect.
For Lexus' best efforts too, I am also frustrated with the stupidly fickle public. What are the public truly willing to pay for the Lexus badge? That is a major point of contention for me as I type this, from the chatter I hear away from this website. The LS400 1989 prices and SC400 prices of 1991, are used as reasoning by biased sources in 2019. That they should be 40-50% off? LC 500 should be $75k or lower? IS300 at $30k? Who can survive like that?
I have said way more than enough and I rest my case.
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