Autoblog

Lexus boss Templin says brand to lose luxury sales crown over Japan quake

Chris Shunk — Tue, 26 Apr 2011 16:20:00 EST

Lexus has been the king of luxury car sales in the U.S. for over a decade, but Toyota's high-end brand will likely lose its crown in 2011, due at least in part to the March 11 earthquake in Japan.

Certainly, Lexus was already facing a great deal of pressure from rivals like BMW and Buick, but Automotive News reports that Toyota VP and Lexus Group Manager Mark Templin says dealers are down to a 30-day supply of most models, and that vehicle shortages will be felt as early as this week. The problem is that some key components from Japan come from plants that are still shut down as a result of the March 11 earthquake and tsunami. The Lexus CT 200h is reportedly close to sold out due to the issues.

Further complicating matters is the fact that Lexus ramped up the leasing business three years ago, and those customers will soon be bringing back their luxury rides in large numbers. That's good news for dealers looking for products to sell, but it's bad for customers who may not have the ability to purchase a new Lexus model.

The automaker is looking to ease this issue by offering six-month lease extensions. At the same time, Templin knows many customers will simply purchase their lease vehicle outright, and he's asking dealers not to gouge those customers. The fear is that a shortage of models will result in more demand than supply, which could then jack up the price of Lexus models to unreasonable levels.

Since the automaker appears to be out of the running for the 2011 luxury sales crown, it seems natural that Lexus will come back with a vengeance in 2012. But Templin says the automaker may never again grab the sales crown, since luxury car makers are aiming down-market to improve corporate fuel economy averages. Templin opines that it won't be long before a luxury car maker hits 500,000 sales in a year.

[Source: Automotive News - sub. req.]

Lexus boss Templin says brand to lose luxury sales crown over Japan quake originally appeared on Autoblog on Tue, 26 Apr 2011 16:20:00 EST. Please see our terms for use of feeds.

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Despite tough year, Toyota finishes 2010 with best-selling car, brand and luxury marque titles

Zach Bowman — Wed, 05 Jan 2011 11:31:00 EST

Filed under: Car Buying, Lexus, Scion, Toyota, Earnings/Financials

2010 Lexus GX460 - Click above for high-res image gallery

By most accounts, Toyota didn't have the rosiest of years in 2010. Hounded by safety recalls, lawsuits and government investigations, the automaker saw its once spotless reputation grow more sullied by the month. Still, it's important to note that none of these issues stopped the Japanese automaker from snagging some impressive U.S. sales titles, including the best-selling car (Camry), brand (Toyota) and luxury marque (Lexus) for 2010, not including fleet sales. All told, the entire company saw 1,763,595 sales through 2010 - a number that's more or less comparable to its 2009 figures. The Toyota brand itself walked away with 1,534,266 of those sales, while Lexus sent home 229,329 units and Scion managed to move a further 45,678 vehicles.

While the Toyota division's sales stayed flat for 2010 compared to 2009, Lexus sales jumped by 6.9 percent. The luxury brand's increase was driven largely by its light truck sales, which were up 13.3 percent compared to 2009. Interestingly enough, the Lexus GX saw sales increase by 165.6 percent over 2009 numbers, with 16,450 units sold. Hit the jump for the full press release. Thanks for the tip, Michael!

Gallery: 2010 Lexus GX460

[Source: Toyota]

Continue reading Despite tough year, Toyota finishes 2010 with best-selling car, brand and luxury marque titles

Despite tough year, Toyota finishes 2010 with best-selling car, brand and luxury marque titles originally appeared on Autoblog on Wed, 05 Jan 2011 11:31:00 EST. Please see our terms for use of feeds.

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REPORT: BMW threatening to oust Lexus as #1 luxury automaker in U.S.

Jeremy Korzeniewski — Tue, 30 Jun 2009 13:30:00 EST

Filed under: Car Buying, Trends, BMW, Lexus, Earnings/Financials

2010 BMW 5 Series Gran Turismo - Click above for high-res image gallery

Life is hard at the top, whether that precipice happens to be at the zenith of the overall sales chart or of a specific market niche, such as Lexus' position as the best-selling luxury automaker in the United States. Toyota's posh brand has held the top spot since the year 2000, with BMW perpetually trailing in second place. Could 2009 finally be the year that BMW breaks through to number one?

So far this year, Automotive News is reporting that BMW's 76,819 total sales in the States puts the German brand slightly ahead of Lexus, which has moved a total of 73,186 units thus far in '09. Both brands are down somewhat from 2008, though BMW's 30.5% decline is not quite as severe as Lexus' 37.2% fall. Neither automaker is interested in boasting of its successes in this market, though BMW will gladly accept the extra market share. Speaking to Automotive News, Jan Ehlen, a spokesman for BMW of North America, said:

This year's emphasis is on maintaining our market share and even growing our share a bit. If this results in remaining in the top spot of the premium market, that would be a nice bonus.

Gallery: 2010 BMW 5 Series Gran Turismo

[Source: Automotive News]

REPORT: BMW threatening to oust Lexus as #1 luxury automaker in U.S. originally appeared on Autoblog on Tue, 30 Jun 2009 13:30:00 EST. Please see our terms for use of feeds.

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As sales slump, Toyota cuts bonuses and vehicle production

Michael Harley — Tue, 02 Dec 2008 19:01:00 EST

Filed under: Japan, Plants/Manufacturing, Toyota, Earnings/Financials

Management bonuses will be slashed 10 percent at Toyota as a result of the global economic slowdown. About 5,000 managers will take cuts as the Japanese automaker reels from falling global sales that are hitting its local market hard. Toyota vehicle sales in Japan dropped 27 percent in November (excluding 660cc minivehicles) and Lexus sales dipped 24 percent -- mirroring the same sales issues that both brands are having in the United States. As a result, the Japanse Juggernaut will halt production for two days on one of the Tahara production lines manufacturing the Lexus LS, GS and IS models, which will prevent about 5,000 luxury cars from being built, and idle another factory in southern Japan for two days, as well. Toyota is also expected to announce lower sales and production estimates at its year-end press conference that happens at the end of this month. That news will follow the 1 trillion yen ($10.7 billion) yanked just last month from its annual operating profit forecast.

[Source: Automotive News, subs. req'd]

As sales slump, Toyota cuts bonuses and vehicle production originally appeared on Autoblog on Tue, 02 Dec 2008 19:01:00 EST. Please see our terms for use of feeds.

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