Randen Montalvo
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I think its because in its segment the comparison is going to be the Model Y which is the the gold standard so to speak generally and also offerings from Korea. The name of the game in the electric compact SUV market is range vs cost let's call it what it is. BMW tried low range EVs and failed with a multi-million dollar urban campaign. The US doesn't take well to low range EVs so although I personally like the RZs build quality and overall appeal; I can understand that as soon as you walk into that review the range is far too conservative in my opinion. It's to be expected that it's going to be a huge target for a Model Y alternative or other EVs in that segment at a near 70k price point. It's a tall ask for a Model Y prospective buyer to consider a Lexus RZ at that price point. I know you're close to them but they should've known that ambiance and quality can only go so far when it comes to a technology thats mainly judged on its range, charge times vs cost vs how it compares to a Tesla.
I used to preach this to brands when they tried to woo us with ambiance in internal meetings during product launches
You cannot enter the arena of a dominant market leader unless your core competencies are comparable/unique or class-leading.
I'm a fan of the RZ love that concept also but at nearly 70k its range my non-reviewer just a fan opinion is it should've been 50k tops as its value prop is too obviously questionable to the lamen prospective model Y buyer. But that's just my half brotha self looking at a new SUV for the wife. The RZ is priced too high in my view for the range it offers. The folks in that category segment are not interested in a better drivers car in SUV terms so to speak. The mom etc thats going buy that SUV wants the range of a Model Y and the quality of an RX at the cost of a Model Y thats the equation. I think they should undercut the Model Y price point initially to create a buzz hitting all the must haves bullets below in this segment. I just dont think Lexus can scale that aggressively at this juncture and it's a revisited narrative that holds them back from what I think could've been a breakthrough offering.
If I was in that work study here would be my asks before allowing the RZ to launch. You know I often think Lexus is too conservative sometimes with understanding the US demo in many respects but here's my take hear me out....
- Does it drive like a RX? ( I think they nailed this )
- Does it have range at the same levels or beating a Model Y or its Korean rivals? Questionable
- Is its charge times the same as its rivals? 10h at 220V is a HUGE detractor - Questionable ( this right here alone I wouldve said do not release this product lets improve this ) P.S Yes I know the goal was holding charge state for the longevity of the car but again does that translate to a customer in this demo. I would contend no.
- Is its price point lending itself to a Model Y alternative in terms of aggressive leases and finance options? Questionable
- What can we do since the Tax credit doesnt apply to the RZ to bring value to the RZ for a comparative shopper? Questionable
- Does Lexus marketing on the RZ translate charging network ease of use and the dealer experience echo this in terms of use case since it's a new product? Questionable
- Does this car since it does challenge the RX value prop provide a compelling offer to prospective RX shopper? Questionable
- Does the price point tiers immediately spark interest in terms of ROI to the prospective consumer? Is our value prop obvious if we where to line up our car with our competitors? Questionable
Do I think the reviewers are harsh or have something with Lexus not at all but I do think if you fuel a narrative that is not inline with the consumer's ask the feedback is always going to return results that are not favorable to the amount of effort you put in. My .2cents on the RZ situation with reviewers as a huge fan of the Lexus brand.
Lexus must and I repeat MUST surpass this value prop with all due respect. ( RZ quality is already better does a Model Y buyer care paying more at this level for less drivable usage is a question I fear is not being understood by Lexus to have this do successful volumes in the EV market). Whether Lexus likes it or not people are comparing the RZ to Tesla and Korean offerings and this is were it may not be as compelling as we want it to be price-wise vs usability. This is the debate folks in my view with all future Lexus offerings.
Lexus USA products have to be more aggressive in my view spec-wise and really push the envelope as Lexus is actively playing ball in category segments where it's not the market leader but charging market leader pricing. We have the brand loyalists already but we want white-space clients in the end right. If we use the RZ as an example how many customers can it take from Tesla buying a Model Y over our product is my question and right now.....this offering is not lending itself to a no-brainer alternative it comes with serious limitations and concessions. Lexus has the tech they have the design and the road map...just need to happen quicker faster and be more lock step with the ask from a spec perspective because at the end of the day not even the LC 500 are flying off lots. Ambiance is a very fad-driven KPI and very hard to translate unless you adopt first hand experience and eventually it will bite you in the behind as a long-term strategy. You cant promote for instance "the feeling driving this car is breathless" but the spec sheet says 0-60 in 40mins. To go beyond that you need to make it blatantly obvious first on a spec sheet that X car answers the need that the customer is wanting, asking for or never knew they needed. The RZ isnt doing that in this iteration and the offering of the car isnt easy to understand and it's reflected I think in the reviews.
FYI, I want Lexus to win. Sorry for the long post. 🤣
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