Over the course of three decades, Lexus has accomplished remarkable feats in the U.S. marketplace. While the modern luxury landscape proves how challenging it is for a (non-Tesla) upstart such as Genesis to garner even an ounce of market share, Toyota’s premium brand generated relatively high volume levels from the get-go.
By 1991, only the third year on the market, Lexus had already overtaken all other import premium brands. By 1998, Lexus was able to top monthly luxury sales leaderboards. Then in 2000, Lexus became America’s top-selling premium marque. The Lexus LS, the brand’s flagship sedan, was an especially important piece of the puzzle in those early days. In fact, when Lexus first outsold Mercedes-Benz and BMW on an annual basis, the LS was one of just three Lexus nameplates. Nearly 43,000 copies of the LS were sold in 1990, for example, at a time when BMW’s 7 Series did just a quarter of that volume; and with Mercedes-Benz some 17,000 units abaft.
But as the LS gained license to move upmarket, as the Great Recession came and went, as the tastes of luxury car buyers became the tastes of luxury SUV buyers, the LS became something of a forgotten flagship. By the end of the fourth-generation LS’s tenure, Lexus was selling barely more than 300 LSs per month in America.
Yet with the launch of a new model in 2018, Lexus intended to dramatically increase the U.S. sales volume for its biggest and most costly sedan. And if at first it looked as though Lexus might just have forecasted accurately, a second glance reveals just how far off the mark even Lexus can be. (Read More…)
Recent Comments