And once again, the big T (via PRNewswire) proves to not be invulnerable to the weak sales environment. Toyota division sales were down an even 36 percent, but Lexus swooned slightly more, shedding 40 percent of its sales compared to last March. Scion models dropped between 50 and 60 percent, while Corolla proved more resilient than Honda’s Civic, dropping only 7 percent. Similarly, RAV4 and Lexus RX were off only 4.5 percent and 17 percent respectively, compared to 40-75 percent drops for nearly every other Toyota truck and SUV. Sequoia was also a surprising “could be worse” example, with sales staying over 2k monthly sales, falling only 20 percent compared to last March. Still, with sales like this it comes as no surprise that Toyota is dropping its second-half dividend.
I have a 2006 Base RAV4, it was quite good so far (it’s not quite the same as in the picture: I have black side mirrors). Cupholders could be better, I suppose. It does between 25.5 and 27 mpg in real life conditions, as measured at the pump (I don’t have an MPG computer, so I just divide by hand).
I thought it was TTAC policy to use unadjusted numbers?
Wouldn’t it be 39% overall drop for Toyota (Toyota – 38.5% and Lexus 42.9%)
Not surprising, seeing Scion drop. What happened to the short product cycle, and not repeating models? I thought when the first generation model was done, it was done, and something new would be introduced. The tC is getting a little long in the tooth, the xD is like a bloated xA, and the xB is like a bloated, uh, xB, with softer curves.
As for Lexus, I think people are starting to feel the boredom of their product, not to mention the fact that they are not head and shoulders above everyone else like they used to be. It’s not just the economy, Lexus’ sales slide started well before this crap started.
Now would be the time to re-target Scion as what was originally to be and should have remained: Daihatsu West.
There’s a real opportunity for small, safe, reliable and cheap cars that could bring buyers into the Toyota stores, and keep them there when they come back. I’m sure the margins would be razor thin, but at least it’d be something.
I blame poor Lexus sales on its major sales car, the RX, being 5-6 years old, with the new (ugly) one coming. Also, the new products don’t have nice interiors as they used to compared to competition, GS and GX especially. :/
The wood in the Lexuses are great, though.
Also, this is really bad, since Corollas had 1.5k rebates, as did Camrys. Oh well.
I think combined Toyo/Scion sales fell 39% to 132,802. Down from 217,730 March 08.
superbadd75 :
April 1st, 2009 at 2:26 pm
As for Lexus, I think people are starting to feel the boredom of their product, not to mention the fact that they are not head and shoulders above everyone else like they used to be. It’s not just the economy, Lexus’ sales slide started well before this crap started.
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Please provide hard data to prove your points. Did BMW or Cadillac decline significantly less than Lexus?
Of course everyone’s sales are off compared to a year ago… Why shouldn’t we compare March 2009 sales to February 2009 sales? Adjust for the number of sales days in the month if need be.
romanjetfighter :
“I blame poor Lexus sales on its major sales car, the RX, being 5-6 years old, with the new (ugly) one coming.”
The numbers say no. RX sales were down only 20% for the month, whereas the rest of Lexus absolutely tanked, dropping 53% (that’s using unadjusted numbers, not Toyota’s misleading “selling days” crapola.) If anything, the RX, representing more than 40% of Lexus sales, is all that’s preventing the brand from dropping into a freefall.
What’s interesting is while that the Toyota brand’s sales slide is right in line with the market, Lexus is falling way way behind the competition. MB and BMW both lost only about 25% for the month. For the year to date, Lexus has dropped from a healthy first place in 2008 (66K) over BMW(58K) and Mercedes (58K), to a struggle to stay out of third: BMW(43K), Lexus(42K), MB(40K).
And that’s with BMW spotting the competition the 7 series and Z4 for the quarter, selling close to none of either in the first two months of the year as inventory disappeared in advance of the new models’ arrival.
With the RX still selling well and Venza clipping the bottom end of the market, query whether the new RX will put Lexus back into the game with the Germans.
Please provide hard data to prove your points. Did BMW or Cadillac decline significantly less than Lexus?
Well, since I have limited internet access here, I can’t find all the stats I’d like to, but I can see that in November ’08 Lexus dropped about 41%, December about 38%, and I’m thinking earlier in the year, like in the summer of 2008, they were already looking at something like a 10% decline. I’ll have to get home to find more info. Toyota, including Lexus, isn’t invincible.
Could the Lexus problem be the type of buyer they attract? Think about it? Those who are the biggest brand snobs or those looking for the ultimate in driving, electronics, and power buy German. Lexus has ALWAYS been the luxury car for people who got rich by spending wisely. A status car for people who aren’t all about status. A luxury ride for people who don’t like to drive.
Now that the economy is tanking, these same folks, if still buying, could very easily be looking “value” again, and instead of getting a Lexus are now buying a Toyota or a Honda or a Ford. Who knows. Though you’d think there would be some kind of a Lexus drop and Toyota uptick if this were the case. Maybe these buyers just aren’t spending any money period, since they’re more prudent than their German buying counterparts? Being they probably already own a Lexus that still has 280,000 miles of relatively trouble-free life left in it doesn’t really help.
Could this be Toyota/Lexus quality/reliability coming back to bite them in the butt? haha. Back to planned obsolesce!
@superbadd75:
I agree with you about Scion’s products. The Scion I bought my 05 xB from is not the Scion of today. They need to return to the original themes of cool, cheap, and lightweight. Now they’re just me-too, semi-cheap, and heavy.
Those Sequoias that were mentioned are all ’08 models. Toyota didn’t even offer the ’09 model in the States. I looked at two over the weekend with mfg dates of 11/07. Both were sitting on dealer lots with dead batteries.
All of the biggest automotive builders are having losses. Toyota still has a great rep for quality and durability. Lexus is a brand that has developed a loyal following and won over many German car buyers.
Scion seems to be the brand that Toyota is lost. The TC needs more power, less weight, and to get the prices closer to 16,000 and under. Near where I live I find it funny to see how many 50 and over are driving Scions. Scion brand awareness seems lower than Kia.
I would say Toyota needs to bring up the excitement some. They dropped the MR2, Celica, and Supra, from their product line. That leaves the Prius Touring and the Camry SE as their sport models. I know people get Toyota vehicles mainly for low cost of ownership and they last, but a touch more excitement could win over many more buyers. The Venza is an interesting attempt to provide some sort excitement to their line, but it is not what I would call real excitement. Interesting, yes, nice to drive, yes, but not exciting.
Lexus would have done themselves a favor if they had spent the R&D money from the “self parking” system on getting more horsepower and better MPG. If they could deliver a fast sedan that drives like a G35 and gets 40 combined MPG, they would generate a ton of sales.
Toyota sales maybe slowing, but at least they are a long ways from being as bad off as many of their competitors. When the economy picks back up, Toyota will likely lead the way. The one unknown is if a Chinese maker could do to the Japanese what the Japanese did to American builders.