The ES is the Japanese version of a CLA/Entry into the luxury sphere but way better value. With that being said, if you look at the amount of incentives (both publicized and factory to dealer) that they still have fit in the trunk to move each unit is astronomical, even though the hard product is for all intents and purposes has lot of LS inspiration.
In theory, the sales volume decreases, Lexus plans to only build the ES in japan for the next generation, on a smaller volume line.
i dont mean to sound like a broken record, but Lexus has put out some fantastic efforts in the sedan space, IS500, current generation ES, last gen GS, and to an extent the more sporty current LS, but the market has not been receptive to the extent it had hoped. It seems the only time Lexus sedans move the needle in recent memory is when they have leased really well or went against the grain in terms of powertrain packages offering essentially forbidden fruit in an era where small FI induction and hybrids are becoming the new normal.
Knowing Lexus and alot of tech day features I understand if anyone can they honestly can make a winning product but I believe Lexus has been bitten way too many times by the general public and their passion for performance products not translating into sales.
Sales of Lexus sedans haven't been successful because Lexus stopped investing in everything but the ES, and consumers vote with their wallets.
- Lexus was late to high performance cars.
- Lexus was late to turbocharging.
- Lexus was late to performance hybrids.
- Lexus is late to PHEVs.
- Lexus is late to EVs.
- Lexus is always behind on technology.
- Lexus has done a poor job of managing most of their vehicle lifecycles over the last ten years to keep them updated in increasingly competitive segments allowing them to be leapfrogged by the competition, sometimes many times over.
Most of us remember a time when Toyota and Lexus invested heavily in IS, GS, SC, and LS to make them truly better than their German rivals, but Lexus gave up on that in the mid-to-late 2010s.
- IS has been starved for updates, technology and new engines for a decade. IS 500 happened because it's a parts bin car they could create without much extra investment.
- RC is in the same position as the IS.
- GS was slowly neglected over two generations to favor the Toyota-based ES.
- LS has now also been put out to pasture with the 460 having a 10 year model cycle, and the 500 going so many years without substantial updates.
While Lexus' lineup has always been a mix of platform engineered FWD/BOF Toyota products and their own premium models, it's clear the company gave up on the latter in favor of the former. I've said this a lot but it's obvious Lexus has stopped trying to compete with BMW and Mercedes point-for-point like they used to, and now wants to make cars that are "nice enough" that buyers are willing to pay for them over a Toyota. That's really it, and they've realized they can make more money this way.
I've accepted the "Toyota plus" mentality happening at Lexus, but what I'm less sure of is as Toyota and mainstream cars get nicer, and BMW/MB/Audi move increasingly upmarket... where does that leave Lexus? We've all seen Acura, Infiniti, Buick, Cadillac, Lincoln and others slip into no mans land when they use the "mainstream brand+" strategy. Will Lexus too, or are they already there?