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Great point. Your whole post makes a lotta sense to me now. Indeed, I think I agree with you 100% in everything you said. Wow !!! That is a first, hopefully of many more to come, lol !
Lexus truly needs to liven things up. Hope someone up there at Torrance, California, is listening.
http://www.autoweek.com/cat_content.mv?port_code=autoweek&cat- - _code=carnews&loc_code=index&content_code=01697582
MB purportedly is unconcerned, saying many of its products are nearing end of cycle. Funny, they never needed that excuse in the past, when they were always the top guy! It's time for them to make real adjustments, not excuses!
By the way I respect and greatly admire the incredible depth of MB vehicles available. Having so many variants of cars is no easy task and is the mark of a great company. It is also a reason why MB prices are higher than everyone else as the less syndicated products you have the higher your unit cost overall is to manufacture. So that cost gets averaged in to all cars produced and the person shopping your basic MB pays more for both the product diversity and the brand image. But when the residuals start to fall from historical levels those higher new prices will not be supportable long-term.
1. BMW
2. Lexus
3. Acura
4. Mercedes
5. Audi
6. Infiniti
7. Volvo
Not listed, because they finished below average, are Cadillac, Jaguar, Land Rover, Lincoln and Saab.
Segment awards were as follows:
Compact car - MINI Cooper
Midsize car - Honda Accord
Sports car - Nissan 350Z
Near luxury car - Lexus ES 330
Luxury car - Mercedes CLK
Minivan - Honda Odyssey
CUV - Honda Pilot
Compact SUV - Honda CR-V
Midsize SUV - Toyota 4Runner
Fullsize SUV - Toyota Sequoia
Compact truck - Toyota Tacoma
Fullsize truck - Toyota Tundra
There is currently a '91 with 36,000 miles on ebay.
Bidding ended on '96 in white diamond with just 35,000 miles Sunday. The car was stunning. Elderly owned and garaged. Winning bid was $19,100.
I bought a '95 LS 400 on Sunday that had 127K miles for $9700. jade green and tan interior.
Doctor owned and well maintained.
From a CORPORATE standpoint, since, as ljflx pointed out, they (Toyota) are the most profitable company, it appears that the current strategy works just fine, and that maybe MB should be emulating Toyota/Lexus rather than the other way around.
From a pure PRESTIGE standpoint, Lexus should offer more models and variants, of course; but imho it is not clear from the evidence that this would benefit corporate profitability even in the very long term.
From a PERSONAL standpoint, it just depends on what one wants. Personally, I don't see myself in a SL65-equivalent, but would consider a Lexus wagon, if such existed, to potentially replace the LX my wife drives.
1. AWD availability on most or all models. But don't force it the way Audi did - that was a big mistake in my opinion.
2. build the HPX ASAP
3. Allow for tuned versions of the LS,GS,SC and IS. Get the new GS out soon as the old model is far too dated. They need a volume seller between the ES and LS.
4. bring out the Hybrids with the added power and improved mileage
5. allow a better mixing of option components. Currently the packages are too syndicated.
6. Put a greater distance between Lexus and Toyota and clean-up the duality of the LX and TLC
7. I also like what MB does in offering a slew of additional colors at an extra $1k but I'm getting petty now.
The most important thing they need to do though is maintain the great build quality and reliability of the cars they have today. The quality of the Lexus name is so high. I had a guy trying to sell me a high-end and very costly copier last year and he swore the machine would run like a Lexus. So after telling him I had 3 Lexus vehicles I then explained to him my expectations.
PS - I bought the machine for the office. It's very good but it's no Lexus.
Lexus already is charting a new course starting 2005. The LF-S and LF-X concept vehicles are winners, imo. The new GS cannot come any sooner, and it better be good. I hope the rumor that it diverges from the LF-S isn't true. AWD is certainly needed on the GS and LS as options (we west-coasters don't have that much need for AWD).
For 2005 GS, I'd like to see a REAL BMW killer: 6-speed tranny, 18" wheels, L-tuned suspension (Euro or whatever Lexus chooses to call it), V8 hybrid engine delivering 350+bhp, ML, 4th-gen Nav, bluetooth, XM, and some of the stuff on the '04 LS430. Improved handling and performance, 0-60 in the low 5s, AWD, solid build quality, new design ---> translates to a winner !
I have faith that the *new* freer Lexus will deliver on its goal. Mercedes and BMW certainly ain't standing pat tho'. It's gonna get more interesting, and we the consumers are going to be the REAL winners in a couple of years from now.
syswei,
You're right Lexus shouldn't try to do the model layout like the Germans do, but at the very least they need one tuner product based on the next GS. AWD would definitely be a welcome addition to the GS and LS lines, as would another engine option for the LS and SC models. That would go a long way towards acceptance in the higher-end segments.
bluestar1,
One thing...the next GS is going to need far more than 350hp if it wants to be a BMW killer, that is if you're talking about going after the next M5 (500hp). Now if you're talking about a 545i Sport competitor then such a GS would be just the right car.
M
This open differential stuff is for the birds.
And traction control does not give equal performance.
It should be LSD and have traction control.
Toyota Prius 5
Toyota Sienna 7
Mini Cooper 10
Honda CR-V 11
Honda Pilot 11
Lexus ES 330 11
Lexus RX 330 11
Mercedes-Benz SL-Class 11
Lexus SC Coupe 13
Scion xB 13
source: Wall Street Journal and Power Information Network LLC, an affiliate of J.D. Power & Associates
...augurs well for the RX400H next year.
Hey it's time for them to move to level 2. I liked the MB extra choice colors - some were very interesting. But I agree it's not really a needed thing. But look at the LX470 - 6 color options is ridiculous for something that pricey. So in that case I'd be willing to pay the extra for a color choice that is not standard.
Merc1 - I agree with you on a new Crossover segment emerging. Call it the minivan/suv as opposed to the RX's car/suv. The reason the HPX never looked like the Infiniti to me is because, in person it is more like an elevated minivan. Yet it is clearly not a minivan. I think in retrospect Infiniti's FX and Chrysler's Pacifica just missed hitting it. Though the Chrysler is real close in vehicle genre it also is different than the HPX. Lexus and MB will nail it - imo.
I do get a kick out of physicians who in the Sunday classifieds list the car as "Dr. owned". What an arrogant, self serving crock. I would much rather see listed "CPA owned, always garaged, one dealer serviced, Mobil 1 only, with maintenance record spread sheets available for your inspection".
That and constantly looking at the ID of the poster, I couldn't believe I was reading one your posts.
The FX and Pacifica. The Pacifica is a fine vehicle hampered by two things. It needs more power, either a re-worked V6 or better yet a V8 option. Next it produced a lot of sticker shock for Chrysler customers. It would have been a runaway hit without those two problems. The Infiniti FX is way too sporty in ride and smallish in demensions to compete with the upcoming R-Class and the HPX. These two vehicles will establish this class, all thats left is to see who gets there first.
M
Finally, look no farther than Ford with it's GT program or the Viper. Chrysler gives away more Town & Country's in a year than it sells Viper's, but what gets the publicity!
Looking forward to that Lexus "supercar" and the inevitable Car & Driver "comparison" that selects the "flavor of the month"!
The price they pay is the rush into production The need to be first with the greatest and latest.
The Japanese are not great inventors but they are terrific at taking existing technology and making it MUCH better.
The consumer has a choice buy german and get the latest and greatest at a higher price or buy Japanese and get the tech. a year or so later and get it in a form that will be very dependable and in some case better and get it at a lower price.
Why a lower price...The Germans have done the initial R&D, the expensive part, They need to recoupe that cost...Secondly.. being first with something new and great allows for a higher price.
Third...The Germans know there will be additional warrenty expenses on new technology that they will need to pay for.
By the way - you've got to be careful with that halo effect. Buying an internet company was supposed to have a halo effect on your stock price a few years back. Auto mfrs. better build those halo cars spectacularly.
In my humble opinion (and actual ownership experiences), the European automakers place the premium on the driving experience while the Japanese builders place their premium on the ownership experience. One is not better than the other, it's just what is important to the individual. I'm willing to put up with a few foibles in my BMW in order to savor the high level of performance and driving enjoyment this car provides. My father would never leave the Lexus family (after years of owning BMW, Mercedes, Audi and Jaguar) as for him it's all about the ease of ownership. Neither he nor I is "right".
I'm only critical of the European manufacturers (and others critical of the Japanese) for one reason. If the Europeans could ever combine their current superiority in the driving experience with the Japanese's ability to get the details perfect, I'd have nothing left to complain about! Similarly, if Lexus (or Infiniti) ever produce an LS 430 that rewards the driver like a 7 series or S class, I'd likely switch marques immediately.
In a nutshell, I don't believe any of us are politicians or harkening back to the days after WWII, rather were a passionate bunch that really wants our brand of choice to be as good as it can be. Hopefully, the good folks at Daimler-Chrysler, BMW, Lexus and the others monitor forums like these.
I had just turned in my LX470 as my lease ended in October. I now have the two LS430's and I only need two vehicles again. But I can't be without an SUV in winter here or in general for a long period with my family needs. I also have to get that third row thus that ruled out the Range Rover. By the way the latter is indeed a great truck and I love the styling. So I cut a deal - at least via phone to swap out an LS430 5 months before the lease ends for an LX470. The math seems to work out to about $2k less than Edmunds TMV and I get out of five months of obligations. Plus the LX works out to be about the same lease payment as I was paying for the LS430. So from a pocket book stand point there is no change for me except I've met my needs much better and have a newer vehicle that stickers $9k above the 2001 LS. If I go through with it I'm taking the LX with everything but night vision and it will sticker at $70k. My wife still wants to test drive the GX though as she likes its size better so I may still have to see if I'm going to do this deal at the GX level, though I doubt it. That truck is a bit too narrow for me. If I do this deal I will likely take a black with the stone gray interior.
Honestly, I hope I'm disappointed as that will make it an easy choice to keep my 740. If it's a great car however, uh oh...
Please let us know what you think after your test drive.
So I went and checked Edmunds TMV's for 2001 and I found that the LS430 I bought was at $37,319 on a dealer trade-in or 61% (vs the 64%) of 2001 MSRP and at around 66% on a private party deal. The S-class however was a bigger problem as it retained 58% of its value on a trade-in whereas it was supposed to keep 67%. In fact it only held to 63% on a private party deal. MB must be hurting on this given the sales dollars were higher. How they are not concerned is beyond me. Regardless though both of these percentages - even just at trade-in are well above those being set today.
Per Edmunds - Lexus and MB dealers will sell you both cars at 71% and 67% of the 2001 MSRP though. So what is a car worth 3 years and 36k miles out? I don't think it will be in the 50-54% range but I'm not sure it will be as high as 2001's retained percentages either. Hybrid technology may hurt future values of today's cars but the biggest factor may be interest rate changes and their effect on lease residuals.
The other issue is that the dollar has weakened relative to both the Yen and Euro. This means that it takes more $ to buy a yen or a Euro than it did in 2000.
So by reducing residuals the captive Toyota and MB finance businesses increase the dollars they get over the course of the leases they issue now. They do this to hedge the price of dollars to purchase the yen/euros they need at the right interest rate to return the yen/euros they loaned out to lease or finance the car.
Given the U.S.'s Starfleet-sized trade deficits (which are financed with money borrowed from these same two sources) and our huge forecasted deficits the dollar is likey to stay weak unless we raise interest rates. That won't likely happen until after the next election because of its impact on the housing market and car sales.
As you suggest, I would guess that we'll continue to see these residuals until the interest rates go up.
Tasillo - only one LS430 at my dealership (a big volume guy) and it was the demo. All of the LS430's at this place are sold out through Nov. 30 so this car is hot. I hope you got your chance to drive one let alone a Euro.
For the Lexus guys on the board - The LS, GX, RX, SC and ES are selling so quickly that it is not easy to deal on them and in some cases even get them.. The LX is more negotiable but is also selling well. The GS and IS are slow.
Have dealt with a couple of Lexus dealers who have ridiculously high asking prices on their used LS400s.
Augusta lexus had a '97 with 90K miles and was asking $23,900, about choked when he told me.
It was in amazing condition for a '97.
On the other hand I have seen 90K mile '98-99s for sale at 18.9-20.9K.
I have pretty much given up on working with Lexus dealers because of their high asking prices.
BTW, I got a chance to finally see the Phaeton. I saw a rather large car sitting in the VW dealers showroom, so it could only be....
My Prediction: The Phaeton won't make it. VW's sales mentality won't cut it with a 88K (W12 model on the floor) car. The salesman that were present were telling everyone to schedule an appointment to see the car, and wouldn't even open it....even for the older (older than me) people there that looked able to buy such a car. The car itself looks ok, though it might be a little on plain side. The A8 definitely looks a lot better. Most people will either like or hate the stretch, upsized Passat look. VW's dealer body simply isn't ready for this car. If you get a chance check one out and let us know what you think.
M
If you had - say $40k - to plunk down on a car today what would you buy or lease?