Edmunds dealer partner, Bayway Leasing, is now offering transparent lease deals via these forums. Click here to see the latest vehicles!

High End Luxury Cars

1291292294296297463

Comments

  • oacoac Member Posts: 1,594
    Sometimes though you guys make it seem like the S (and Mercedes itself) is going to all of a sudden stop selling because of the new LS, that is nonsense.

    Me thinks so... Nahhhhh !!! just pulling your legs... Lighten up, will ya !

    Not discounting the business end, just saying that it isn't relevant to us talking about cars.

    OK... I hear you...

    You'll be unhappy to know that the GS is already down in sales just a year after introduction. That Infiniti M that you claimed wouldn't matter in the sales race due buyers not wanting a sportier car in that segment has managed to outsell your GS last month. I seem to remember a lot of hype this time last year about how the GS was going to do so much and yet its already hitting the skids. Go figure.

    I have said it many times I am no GS fan, so this does not really apply to me... I test drove the new GS300 and M35 when they both came out, and if you recall my test drive write-up on the sedan comparison board, it showered lots of praise on the M35. I loved the car and so were my kids who begged me to buy the car right there... (they came along for the ride)... Yes, the M is a better car than the GS.... currently.

    However, to its credit, the new GS came hobbled - 245HP GS300 (too low) and 300HP GS430 (carry-over motor) - knowing there was a GS350 and GS460 due within 18 months of the March 2005 release, may have something to do with its declining sales after only 12 months in the market. If I know I can get a 315HP GS350 in a matter of 6 months from now, why would I buy a 245HP GS300 ? And if I can get a 380HP GS460, should I pony up the $$$ for a GS430 ? Think the market does not know about the new GS twins coming real soon ? Even Lexus expects it to be so... Especially with an IS350 with 306HP (actual 325HP on old SAE standards) selling cheaper than a GS300... The mid-cycle refresh for the GS couldn't come any sooner...
  • merc1merc1 Member Posts: 6,081
    Oh please Ljflx, there was nothing to "handle" there. The many posts about how MB is cheapening the brand with their leasing practices precede you here. That must have been the hint or implication I had in mind when reading that.

    Forgive me, but I didn't expect you to give helpful information about Mercedes-Benz products. If that is what you were truly doing with that info on the CLS lease that would be a first.

    M
  • merc1merc1 Member Posts: 6,081
    However, to its credit, the new GS came hobbled - 245HP GS300 (too low) and 300HP GS430 (carry-over motor) - knowing there was a GS350 and GS460 due within 18 months of the March 2005 release, may have something to do with its declining sales after only 12 months in the market. If I know I can get a 315HP GS350 in a matter of 6 months from now, why would I buy a 245HP GS300 ? And if I can get a 380HP GS460, should I pony up the $$$ for a GS430 ? Think the market does not know about the new GS twins coming real soon ?

    I love how you try to spin and excuse the GS for its 2nd year (same model year) falling sales. Now how many people do you think know about the GS350 and GS460 outside of the small group of people that visit internet chat/mesg forums? The average Lexus buyer doesn't know about the GS350/460 and dealers certainly aren't telling anyone about them with GS300/430s sitting on the lot. Secondly Lexus the all-knowing, with its richie-rich parent, cannot make a mistake company should have done better with the GS from the start. Goes back to what I've said all along when we have to hear about Toyota and all their money. All the money in the world doesn't mean anything if the execution is off. What sense did the weak GS300 make in the first place? I'm willing to bet that once the new engines are in place sales will spike for a few months and then start to slip again and then what? The car is years away from a total re-design. Hp along isn't going to "fix" the GS. A car that has to get a mid-cycle refresh for its 2nd model year is in trouble. I seriously doubt the 07' GS will be a facelift or "refesh" as you put it, more likely just an engine swap.

    M
  • merc1merc1 Member Posts: 6,081
    I think the point oac and lj are making is the S won't be so hot next year, so have your fun now, and pull that gross,

    Yep that is their point, the difference is that I don't think any of the Germancarfans go on and on about how Mercedes' sales are going impact everyone else so much. The house of Lexus is built on sales and more sales speeches from the faithful. Then when it doesn't hold up you get the spins. Lexus had better be glad themselves this year because without the new IS250/350 twins they'd actually be looking at a decent decline overall YTD.

    M
  • merc1merc1 Member Posts: 6,081
    I guess the business reason for this is, don't have your CEO publically make untrue and ridiculous claims about a new vehicle.
    You can fool some of the people.....


    No we all got what he was saying wrong! That never happened, now. ;)

    M
  • oacoac Member Posts: 1,594
    A car that has to get a mid-cycle refresh for its 2nd model year is in trouble. I seriously doubt the 07' GS will be a facelift or "refesh" as you put it, more likely just an engine swap.

    Yeah... I mean an engine swap... And the GS is NOT in any trouble as you imply. This is like you accuse us about the LS v S-class... The M outselling the GS is only in recent sales, so why would you use a few months trendline to pass judgement ? Not quite a trend as you make it. Could it be you really despise the GS that much ?

    BTW, the execution of the GS was biased to Lexus' strength - luxury. However, the performance side is there, just *hidden* behind all that VDIM junk... If I were Lexus, I'd put a kill switch for VDIM, stiffen the suspension a lot more, upsize the wheels to std 18" (w/19" option), and add in a 6-MT to the GS350 AWD trim... I bet that'd put the GS in a position to compete with Howard's 545i a lot better, eh ?

    Will Lexus ever put an MT in a GS ? Maybe/maybe not... Guess we'll see in 6 months or so when the GS350 gets here.
  • sysweisyswei Member Posts: 1,804
    I love how you try to spin and excuse the GS for its 2nd year (same model year) falling sales

    You're so desparate to find fault with Lexus that if one of their models shows down yty numbers in the second year, you make it out to be a failure. Tell us, why don't you, how often is it that an MB model is growing yty when it reaches the 13th month or so after a redesign? Are you going to claim that it happens all the time?

    It is perfectly normal for a new model from almost any company to achieve its best sales numbers in the first 12 months after a redesign, for year 2 to show a decline, and for the worst sales numbers to be in the 12 months before the next redesign. Infiniti is the exception, not the rule.

    Are you going to call your beloved S-Class a failure if it is showing down yty numbers in months 13 and 14? That seems to be what you are saying for the GS.
  • ljflxljflx Member Posts: 4,690
    So OAC - in Merc's world Lexus buyers are dummies who don't know anything about the model line changes that are coming and just walk blindly into a dealership and write a check. These of course are the same people that according to him take surveys galore and read all about relability but when it comes to understanding what they are buying (for big bucks) they couldn't care less about researching model changes due. When it comes to sales in Merc's world Lexus model line replenishment cycles like we see with the IS and now the ES (which will bolster sales shortly) and the LS which will have huge demand late in the year don't count even though he's used them often for MB when it's in replenishment mode.
  • blckislandguyblckislandguy Member Posts: 1,150
    Re: Cheapening their brand etc.

    I just saw a new promo for used MB cars. MBUSA is offerring 2.9% loans on most models but not the S Class. This could be interpreted as the S Class doesn't need re-sale support. (Another less likely interpretation is that the S Class Program Manager blew his budget last fall on the S Class discounts to clear the way for the new model.)
  • oacoac Member Posts: 1,594
    Yeah... you are so right... Not to pile on Merc1, but sometimes Merc1 sees the gnat in other people's eyes, but fail to see the big rock in his own eyes... :P But, we love Merc1 all the same. And we'll love him even more when he buys either the CLS or the S320 CDI due here next year..
  • hpowdershpowders Member Posts: 4,330
    Of course, you are right in everything you posted about Mercedes, as usual.
    If MB execs. lose 5 seconds of sleep over the new LS, it will be a lot.
    MB is making a HUGE comeback right now. I cannot believe how quickly their sales of the E-Class have improved and the new S-Class is getting absolute raves!!
    I would think it's the Lexus execs. who are going to be very frustrated.

    You have to laugh at that dumb commercial Lexus used to run where the German car exec. (MB?, BMW?) looks like he will be shot behind closed doors for not keeping up with Lexus' incredible "advancements."
    That was one of the funniest commercials I have ever seen, totally pathetic and an outright lie! They almost topped it though with the hapless GS going down an ice-covered Lombard Street!
    Give me a break!! They must think we are all idiots.

    Lexus thought they would finally overtake MB, and it looks like they will be slipping down the mountain, just before they thought they were finally reaching the top.
    Those guys are legends in their own minds.

    I'm still driving the new LS in the Fall. Want to see if the driving dynamics have improved.
    I don't hate Lexus but come on folks, get real!!
  • merc1merc1 Member Posts: 6,081
    And the GS is NOT in any trouble as you imply. This is like you accuse us about the LS v S-class... The M outselling the GS is only in recent sales, so why would you use a few months trendline to pass judgement ? Not quite a trend as you make it. Could it be you really despise the GS that much ?

    Well doesn't a downturn in sales for a car in its second model year mean trouble? If this were a brand new Mercedes model it would be called some sort of crisis.

    BTW, the execution of the GS was biased to Lexus' strength - luxury. However, the performance side is there, just *hidden* behind all that VDIM junk... If I were Lexus, I'd put a kill switch for VDIM, stiffen the suspension a lot more, upsize the wheels to std 18" (w/19" option), and add in a 6-MT to the GS350 AWD trim... I bet that'd put the GS in a position to compete with Howard's 545i a lot better, eh ?

    Uh....if the performance is there and you can't get to it then the execution is off! There is no amount of spin possible to get around that, besides VDIM has nothing to do with the suspenion and other things that the GS needs to fully compete with a 5-Series in the sport competition. A 6-speed manual in a GS? Keep wishing.

    M
  • merc1merc1 Member Posts: 6,081
    You're so desparate to find fault with Lexus that if one of their models shows down yty numbers in the second year, you make it out to be a failure.

    I love it, this is exactly what Lexus fans love to do. Look at a MB's sales and cry crisis. It happens every year (usually in the first few months of the new year) when Mercedes' sales are the ones in question. Just returning the favor. When MB had that many negative numbers in their sales reports it was a huge crisis and a desperate situation. Now we have a new catch phrase for what Lexus is going through, "replenish mode" to explain it all. I remember saying the same thing at some point, but no it was dismissed then as excuse and MB was in a 'crisis' then.

    BTW, didn't call the GS an outright failure, only that the it hasn't lived to all the sales hype that was so preached this time last year. The car has been a failure as a true BMW competitor like Lexus promised it would be, but certainly not a failure in general.

    Tell us, why don't you, how often is it that an MB model is growing yty when it reaches the 13th month or so after a redesign? Are you going to claim that it happens all the time?

    Tell us why is that when sales of a Lexus don't put everyone else on the trailer as predicted an example of a Mercedes-Benz needs to be found in order to prove a point that no one here ever made about Mercedes' sales?

    To actually answer your question of course it doesn't happen all the type, but the E-Class did just that in its 13th or so month down the line. In fact its best year was 2004, and having been introduced at the end of 2002 for the 2003 model year it easily passes the 12-13 month timeframe you're talking about with better sales happen in its 13th-18th months!

    Are you going to call your beloved S-Class a failure if it is showing down yty numbers in months 13 and 14? That seems to be what you are saying for the GS.

    Of course not, but then again I'm not predicting the second coming of the automobile in every sentence about the new S-Class either.

    Let us not talk about desperate because the things I'm reading here from Lexusfans reek of it. Mention sales downturn and the GS in the same sentence and you get a revolving door of spins about how Lexus buyers are so astute as to not buy a GS now because of a pending model change, yet the GS300 has increased its sales YTD! Makes sense to me that only GS430 buyers are the smart ones that know about the pending GS460 while the GS300 buyers don't know about the GS350.

    What a revelation!

    M
  • merc1merc1 Member Posts: 6,081
    Now who is taking things out of context? I said that the average Lexus buyer doesn't know about the GS350/460, not all Lexus buyers.

    Your theory about Lexus GS buyers knowing about a new model and holding off doesn't hold water because why all of sudden would these buyers realize this now as opposed to a few months ago. If they're so smart wouldn't they have realized that from the moment the LS460 was shown that a GS460 was right around the corner? Ditto for the IS350 and upcoming GS350? The truth of the matter is that the GS has always been a weak seller once the initial hype is over. What will be the excuse when the GS350 and GS460 start to slip while the E-Class and 5-Series remain more constant over their production run?

    If Lexus buyers were so tuned into coming model year changes why would any of them buy a GS300 at this point? We here in the internet community know about these type of things, but the average person doesn't and you know this. If they did the GS300 wouldn't be up YTD. Unless you're saying that GS430 buyers are the only smart ones because it is the GS430 that is pulling the GS line down YTD, not the GS300. The real kicker is that the GS300 is the model that stands to be the most transformed by its new engine, not the GS430 because it isn't eactly slow relative to its V8 competition compared to the GS300 and its 6-cylinder competition (at least on paper with "only" 245hp). Point is that the GS300 buyers are the ones that should be holding off buying one. Guess they really don't know much about the GS350.

    M
  • oacoac Member Posts: 1,594
    Trouble is, you are just trying to rouse people unnecessarily. That act used to belong to someone else here I won't name (Pat is watching). Stick to talking HELM and not GS and everything will be OK.

    BTW, every car manufacturer has their *dogs* and their *stars*. In the HELM space, Lexus strategy was to dominate in certain factoids (reliability, quality, customer service, price) and these will translate to sales for the LS. Mission Accomplished... Within 15 yrs, the LS made it to the top of the heap in total sales = most loved HELM mainstream sedan.

    Like I said, Lexus' will not overtake MB in 20 years, but have put enough dent in the 3-star mystique. The response from MB has been more models, more power, and a return to its past history of quality and reliability. Both the Germans and the Japanese worries about each other, for to ignore your competition is committing corporate suicide. All of these should translate to better products for us. The new LS series is already better styled, and laden with gadgets. Ditto the new S550... And now a new battle begins, and we'll see how it shapes out. We are witnessing history in the making, folks...
  • tagmantagman Member Posts: 8,441
    But no matter how crappy, snotty, poorly MB assembles there cars, and I'm not saying they are, people will continue to buy them in droves. Some of the same people who're buying the W221 in it's first year are some of the ones who got pinched on the inception of the W220 with all of it's quality problems.

    Now, after reading this and the rest of this latest post, I generally agree with your perspective.

    I have always indicated that Mercedes "fans" and buyers are very forgiving at times. This forgiveness applies to Eurocar fans in general. We've had to be. Reliability hasn't always been what it should.

    The Mercedes were historically die hard vehicles until recently when all sorts of issues literally plagued the vehicles across the board.

    Look what Jaguar went through, until recently. Same with Audi. Remember the little Audi "Fox" model. That horrible car battered Audi's reputation. But look at Audi today.

    It's been ups and downs with the Eurocars, but many of us have kept coming back for more because there is truly something special about them. This is not to say that all have come back for more. There are limits, and many buyers have given up and gone Japanese. This is true.

    But, I think it is fair to say that there are those of us that truly admire and love the Eurocars for their "nature" and while reliability does matter, it is is simply not everything. Besides, I'm willing to bet that the reliability of this new S-Class will be better than previous generations. Certainly Jaguar has undergone what is nothing short of a a miracle in reliability improvements, and I expect Audi is on the upswing. But regardless, the true Eurocar fans will generally stay loyal, and that is my main point here. Our forgiveness is due to our true admiration for the special qualities of the vehicles.

    TagMan
  • merc1merc1 Member Posts: 6,081
    If you think that was bad you should see the IS250/350 brochure. You would think the IS is a German car. The whole thing was shot in Germany and it talks about Germany constantly.

    What I never got about their commercials was the relevance of having British and Italian engineers appear to be in awe or worried about the RX330 when hardly anyting from England and certainly nothing from Italy competes with the RX. It reeks of a wannabe mentality.

    M
  • merc1merc1 Member Posts: 6,081
    Trouble is, you are just trying to rouse people unnecessarily. That act used to belong to someone else here I won't name (Pat is watching). Stick to talking HELM and not GS and everything will be OK.

    Nah, not trying to rouse anyone "unnecessarily", just exposing some of the fallacies and hype often given here when it comes to Lexus.

    Within 15 yrs, the LS made it to the top of the heap in total sales = most loved HELM mainstream sedan.

    Most loved and best seller due in part to being much cheaper than its main competition, don't forget the price part. You mentioned price as one of the things Lexus set out to "dominate" as in being a value relative to the competition so it isn't right to leave it out when praising the LS' sales performance.

    M
  • hpowdershpowders Member Posts: 4,330
    "You are trying to rouse people "unnecessarily." "

    Looks like I passed the mantle onto you.

    I guess "unnecessarily" is defined as any news a Lexus fanatic doesn't want to hear.

    Who knows? I may become one myself after driving the new LS.

    Can you imagine the effect on LS sales if MB decided the prices of the S-Class were inflated and brought them down to match the price structure of the new LS vehicles?
  • oacoac Member Posts: 1,594
    I guess "unnecessarily" is defined as any news a Lexus fanatic doesn't want to hear.

    Fighting words from our resident agent provocateur... But we need to get the focus back on the cars, pls.

    Can you imagine the effect on LS sales if MB decided the prices of the S-Class were inflated and brought them down to match the price structure of the new LS vehicles?

    What would be the key selling point for owning an MB ? - that it is priced as a Lexus ??? Huh ! Lexus would DARE MB to try it... Make that double-dare MB to do it... Lexus would laugh all the way to the bank; MB's already sagging profit line will sag even further, and the S would lose its luster and prestige. Lexus would win that battle in a heartbeat, PLUS, Lexus produces their cars far cheaper than MB could ever do in this lifetime. Not gonna happen.. rather, Lexus' pricing would creep oh so slowly but surely to match MB... And that is the pattern you should expect to see. It is Lexus that needs to catch MB's brand name, not the other way around, for now....
  • tagmantagman Member Posts: 8,441
    I had only seen just a few S550's up until this past week. Maybe it's the beautiful weather or something, but suddenly they are showing up all over the place. The S is absolutely stunning in black (when waxed), and the profile view of the silver car is quite distinctive. I'm FINALLY warming back up on the trunk a little more . . . didn't think I would. The new S is truly a beautiful car.

    TagMan
  • andy82471andy82471 Member Posts: 120
    Yup I agree with your post. The hollow prestige factor is what is keeping the Euro cars like RR, Bentleys, MBs, Audis, and Bmws in business. If they lower their price to match Lexus they lose that prestige and hence will lose even more sales.
  • sysweisyswei Member Posts: 1,804
    TOKYO (Reuters) - Toyota Motor Corp. said on Monday it has no plans to build a factory in Europe to produce its high-end Lexus models, denying an Automotive News Europe report that the budget for a German or French plant had been approved.
  • stevekilburnstevekilburn Member Posts: 359
    Hi Guys,

    I am very very busy for the next few weeks and so wont be able to play with you guys and show you fireworks. But dont loose your smiles as I will be back soon. ;)

    Ljflx, watch out, your doom is imminent! :P
  • esfesf Member Posts: 1,020
    I don't think it's necessarily Lexus alone that will be trouncing Mercedes-Benz in coming years... there are three main companies that have really upped their ante, and one is supposedly going to be as high of a seller as BMW and Mercedes-Benz by 2010:

    Audi- strongest MB/BMW competitor, because it has luxury and German engineering

    Infiniti- very sporty; closer to BMW than Mercedes-Benz

    Lexus- the complement to Infiniti, Lexus is to Mercedes-Benz as Infiniti and Audi are to BMW. Their cars are about plush rides and (recently) high speeds, not necessarily award-winning handling.

    However, Mercedes-Benz and BMW won't be standing still, people! The new S-Class proves how hard M-B is trying, I just don't think they're trying hard enough in the crucial-for-U.S. SUV market. The new GL is a pathetic attempt to dethrone the LX470 and Range Rover, for it has no road presence and no mystical "identity" like the Range Rover. The ML is okay, but it's no X5 on the road, and the interior isn't even close to Lexus's GX and Audi's new Q7, even VW"s Toureg. The only thing it has going for it is a relatively low price.

    However, in the sedan market, all these manufacturers are stalwarts. Mercedes and Lexus are the powerhouses in the huge luxo-sedan market, with their new 380hp V8s. BMW isn't far behind with a 360hp V8, which is most likely going to gain more power in the next 7 Series. Audi isn't far behind, because they're going to adapt the Q7's 350hp FSI V8, which is supposed to be a significantly better performer than the current 4.2, in the 2007 A6 and A8 models. Infiniti's engine used to be the strongest, but is now mid-pack with its 340hp 4.5L. Jaguar isn't worth mentioning... 300hp just isn't enough any more...

    As you can see, everyone's moving in a fast-paced market- and I believe that the three aforementioned manufacturers, especially Audi and Lexus, will be playing a huge role in the future. Just to let you know: the Audi A6 is officially the world's best selling premium sedan- that's a big surprise to me, but I'm sure most of the sales are coming from the hugely influential Chinese and German markets, each where Audi is the best-selling luxury brand.
  • hpowdershpowders Member Posts: 4,330
    Hey come back soon and bring your refreshing business models with you.
    I hope you enjoyed your well-earned mini-sabbatical.
  • hpowdershpowders Member Posts: 4,330
    Pretty strong fighting words supporting a brand with such limited appeal.
    Talk to me after Lexus has become a successful international brand.
    Right now, they are pretty minor league when compared to the universal appeal of the MB and BMW brands in terms of prestige. One day they may get there. Perhaps my great-great-grandchildren will be able to hold a seance and reveal the news to me at that time.
  • sysweisyswei Member Posts: 1,804
    Glad the harsh words from people here didn't drive you away permanently. I disagree with some of your views but the forum is better off with more people not fewer.
  • blkhemiblkhemi Member Posts: 1,717
    I have to for once agree with your entire post. MB stands to gain some fierce American(market) competition. Lexus is on a upswing with it's halo LS. Audi will be on a warpath over the next 5 years with highly anticipated release of the discount-Lambo R8 coupe, with it's 3 different powertrains. Then they'll attack the compact segment by giving the upcoming A4 a more RWD-biased drive, altho it will remain AWD, which will be standard now.

    Then with the release of the cool Q7, comes a X3-fightin' Q5. But the real whopper will be the new for '09 A8. We're said to get both standard and L wheelbases to compete with Lexus(as in current cars). And the V-8 engine will remain 4.2L, BUT, will get a rocketship of a boost to the tune of over "450hp" standard, with the W-12 going to 550-hp, and a S8 with reportedly over "600hp"(surely a direct hit to AMG and the much-rumored M7 of the next-gen 7-Series) in a V-10 that is to grow to 5.4L from the next-gen Gallardo. But we do know that there will be a V-10 TDI that'll be 50-state compliant by then also, with possibly a hybrid-diesel in cahoots with partner Porsche in exchange for freebies on DSG.

    Yes Audi(specifically A8) is a premiere brand in it's homeland and abroad. It's accepted globally, except in the USA. But Audi is long tired of not having enough presence in the HELM market of America. Sure it sells like crazy elsewhere(some markets the top seller, including Germany and now Jordan of all places), but there is no other country(besides Dubai of course) that has a cachet of customers that are willing to buy cars at extraordinary prices. We also don't have the "duties" or outrageous "rich taxes" tacked on to the bottom line of our cars. Sales and luxury taxes are quite enough.

    Audi will reportedly spend over 1 billion dollars in US advertising and marketing to ensure that slow selling-good cars like the A8 won't sit idle this go'round. We'll see.
  • blckislandguyblckislandguy Member Posts: 1,150
    Nice post, blkhemi.

    Speaking of excessive taxes, I've been spending about a weekend a month in Montreal for the last year and I've noticed a remarkable absence of HELMs. The Bentley dealer doesn't even have a new Bentley of any series in stock. As I recall from Sunday's paper, there is only one BMW dealer for all of Montreal. Not only are HELMs scarce but so are E Class, 5 Series, LR etc. Only the Korean and second tier (e.g., Mazda) Japanese makes do well.

    I couldn't explain why so few HELMs in this very stylish city. Stagnant economy? A Quebecois inborn lack of pretension? Then I asked what things cost. A mere Volvo S40 is more than 40K! (Incidentally, the CDN and US dollars are now about equal). I can't imagine what a S550 would cost. I guess someone's got to pay for the 55 weeks of paid maternity leave and other social programs that effectively choke busineses. (Can you imagine starting a company in Montreal thinking that you were going to live the good life but the minute your receptionist had a baby she was out for a year on paid leave? When you wanted to fire Claude out in the shop for non performance, the government would step in and make it impossible?)
  • hpowdershpowders Member Posts: 4,330
    Welcome back to posting on the HELM forum.

    Just remember when I test drive the new LS this Fall, you absolutely cannot come with me to help me negotiate with the salesperson.
    Your bargaining skills will get me on Medicaid.
  • blkhemiblkhemi Member Posts: 1,717
    Very interesting post. I knew Canada's(Quebec's specifically) government was markedly different from ours. But not this much so. I guess someone has to pay for all of the low cost prescriptions and free healthcare.

    I've got a bright idea: So the Americans are selling the splendid S550 for $86k USD. With the current dollar/CDN virtually equal in exchange as of now, let's make our S550 a nice round $100k, and then charge our "fun" penalties on top of that. And this way we can look superior to the Americans with their "lowly" Bush-esque Medicaid Program that was recently introduced.

    Isn't Canada lovely? :P ;):D :shades:
  • oacoac Member Posts: 1,594
    Pretty strong fighting words supporting a brand with such limited appeal. Talk to me after Lexus has become a successful international brand. Right now, they are pretty minor league when compared to the universal appeal of the MB and BMW brands in terms of prestige. One day they may get there. Perhaps my great-great-grandchildren will be able to hold a seance and reveal the news to me at that time.

    Well... well.... why the hostility in the tone of your post ? Anyway, I am surprised how much you diss Lexus yet want to go test drive it ! Tell me something, did you buy your 545 bcos BMW is an "international brand" or bcos it appealed to you and was a great deal at the right time? BTW, how long has Lexus been around ? And how long has BMW, MB and Audi been selling their cars ?

    With such hostility towards Lexus, I wonder what your motive is in wanting to test drive the LS460 !!! Hmmmm ...... Could it be... Nahhhh !!!!
  • ljflxljflx Member Posts: 4,690
    "Ljflx, watch out, your doom is imminent!"

    Are you in the Soprano's or something? Be careful - I have the same heritage as them.

    Designman - what do you think of the show this year? At times I was thinking about searching for "Captain Video and his space rangers" while I watched it. BTW - supposedly Mike and the Maddog get discussed on next week's show.
  • hpowdershpowders Member Posts: 4,330
    No hostility toward Lexus intended. Just stating the facts. They still have a long way to go to be considered one of the top guns internationally.

    Can't get that Lexus commercial out of my mind where the glum-faced German executive has to answer to his superiors and probably get fired because his BMW or MB HELM's don't have vibrating rear seats or whatever, like the LS. ("They're vaiting for you!") If I were an actor and I had to force myself to laugh on cue, thinking of this commercial would do it every time.

    Looking forward to driving the LS 460 to see if driving dynamics have improved.

    I got the 545 because of the way it drives (about 70%) and the reward/status of having a $60k BMW (about 30%). If BMW ever diminishes the driving experience, I would say so. Up to now I have enjoyed 3 of their vehicles but they surely don't pay me to say so.
    I'd drop them in a minute if I felt that I should and never look back.
  • merc1merc1 Member Posts: 6,081
    Looks like I passed the mantle onto you.

    No I think they were talking about Steve.

    Can you imagine the effect on LS sales if MB decided the prices of the S-Class were inflated and brought them down to match the price structure of the new LS vehicles?

    I would imagine they'd sell a lot more, but then some of the prestige factor would be lost to some. I see some here think prestige is the only reason why someone would buy a Benz or any other European car over a Lexus. What nonsense.

    M
  • drfillldrfilll Member Posts: 9
    It's like reading "The View" in transcript!

    A few points that should be noted:

    Motorweek LOVED the S550 in their test last week. But they fawn over pretty much every car they test!

    What was significant to me was it's 5.4 sec 0-60 time, 19MPG road test, and total indifference to their slalom test. They don't show the cars speed through the manuveur, but I've never seen any sedan move through one so flatly! It was like body roll had never been invented yet! VERY IMPRESSIVE!

    131 ft braking distance, not what I would call...uh...good.

    Have seen the 5-series/E-Class/GS/M35 mentioned against one another. Have to bring up a fairly obvious fact that has been overlooked.

    The 5-series and E-class have a nice advantage over the Japanese in this class. The advantage is the general lack of acceptance the C-Class and 7-series has received from America!

    Mercedes has been so desperate to enhance sales numbers, they've resorted to chopping a C230 up into a hatchback, and knocking the price under $30k to keep sales volume numbers respectable. This only underlines the ineffectiveness of the C-class sedan, especially vs. proven studs like the 3-series and Lexus ES.

    Since the C-Class is too small to fight the Lexus ES, and too stodgy to fight the 3-series, it wallows in mediocrity! So the E-Class benefits, due to it's proper mid-size platform, which gives it the interior room of a G35/Accord/Camry/TL/ES, cars that Americans buy due to being the right size, and a great value.

    So the E-Class sales are inflated due to a weak entry-level car.

    The 5-series gets the same help from above, as a 4600lb, 16ft long, iDrive-laden, Auto-only, "Driver's Machine" doesn't have a very wide demographic. People at that price and size want a GREAT luxury car, and the 7, nor any BMW really, will qualify.

    BMWs are GREAT driver's cars, with some luxury touches tossed in for show. They are not luxury cars. An ES350 looks like a Rolls Royce compared to ANY 5 series! Same with an LS and a 7-series. Even the 760!

    Lexus' problem is pretty much everything they build has a nice size audience, a wide demographic of people who want to buy their type of car. The GS hasn't missed the target, it just hasn't hit it, so it wallows, with the C-Class, in mediocrity.

    I wanted the GS to turn into the 5-series in last redesign, I've said that before. The GS should be a large IS350. The IS is gonna be quite a success story for Lexus (for a change), and the GS should play the bigger, more omnipotent brother, as the LS does for the ES. Lexus has not put that together......yet. I told them to listen, and now it's too late......

    Merc seems to be setting Lexus up for failure, as Lexus has increased sales every year of it's existence. To imply a slow down in Lexus' market share gain would represent failure would be misguided, at best.

    Now is the time for Lexus to raise prices, somewhat, and look to bolster their image as a prestigious marque. I don't want 400k Lexus sold per year! And I think Lexus can now stand toe-to-toe with any luxury car maker on their products merit. Period!

    In closing, get a MT in the GS and IS350. Make the GS edgier. Raise prices considerably when redesigning a model. Make the brand more prestigious, not just pristine.

    If the LS is as good as advertised, the S550 sales will fall from 3k a month to 1500 a month, which is about where they should be.

    Even Merc would admit 3k sales is a abhorration borne out of a favorable cycle in the market, no?

    Since a GS430 is still a 5.7 0-60 car, and it is less powerful than the upcoming GS350, much less the GS460, I see a sales spike in the offing.

    DrFill
  • merc1merc1 Member Posts: 6,081
    Interesting post...though some there are some inaccuracies.

    The 5-series and E-class have a nice advantage over the Japanese in this class. The advantage is the general lack of acceptance the C-Class and 7-series has received from America!

    What? I don't get this one at all Doc. The 7-Series has outsold the S-Class before so you're way off base there as far as its "acceptance". The C-Class is now old and doesn't have the variants to shore up the sales numbers like the 3-Series does. Mercedes doesn't count the CLK's sales in with the C-Class like BMW does all the 3-Series variants. Very easy to pick on the C-Class this late in its life I think, but that GS you mention is brand new!

    Mercedes has been so desperate to enhance sales numbers, they've resorted to chopping a C230 up into a hatchback, and knocking the price under $30k to keep sales volume numbers respectable. This only underlines the ineffectiveness of the C-class sedan, especially vs. proven studs like the 3-series and Lexus ES.

    First of all the hatchback has been gone for a while now and the C-Class is usually in the top 5 sellers in that class anyway, so I'm not sure what you're talking about here. Secondly no one from Europe is competing with the push boat ES model at what it does best - non driving bliss. I've seen a few of them around now and it and the Maxia are two Japanese cars that consistantly get uglier and uglier with each re-design. Someone has got to tell Lexus designers that a car doesn't have to be completely slab-sided to pass side impact regs. This new ES looks like something from pokeman. They can't be serious to say that it has the same L-finesse cues of the IS and new LS. The new Camry actually looks so much better.

    So the E-Class sales are inflated due to a weak entry-level car.

    Does this apply in the reverse when it comes the Lexus GS and ES? Since the GS seems to always fall off dramatically after 18 months or so. People who buy Lexus' aren't into performance anyway so when comparing the ES to the GS, the ES wins because the GS being RWD is lost on most of them. Oh and yes it most certainly missed the target if the 5-Series was the target, missed it by a country mile.

    If the LS is as good as advertised, the S550 sales will fall from 3k a month to 1500 a month, which is about where they should be.

    Even Merc would admit 3k sales is a abhorration borne out of a favorable cycle in the market, no?


    I doubt if sales will half just like that, but no 3K+ a month at 87K to start isn't going to last forever.

    BMWs are GREAT driver's cars, with some luxury touches tossed in for show. They are not luxury cars.

    Whoa! If that is the case then sport should be stricken from anything dealing with Lexus' IS and GS with their lack of manual trannies and/or lack of involvement next to those non-luxury car BMWs. Those Lexuses certainly aren't "sport sedans"!

    M
  • hpowdershpowders Member Posts: 4,330
    "It (the GS) most certainly missed the target if the 5-series was the target."

    No "if" needed here. The Lexus CEO made quite the fool of himself touting the new GS as the "5 killer" just before its introduction.

    Looks like they got the commercial backwards-should have been the Lexus big-wig going to the board room to be liquidated! :)
  • tagmantagman Member Posts: 8,441
    Now is the time for Lexus to raise prices, somewhat, and look to bolster their image as a prestigious marque. I don't want 400k Lexus sold per year! And I think Lexus can now stand toe-to-toe with any luxury car maker on their products merit. Period!

    Sure. You don't want them to sell too many cars? Too successful, or too mainstream? Last I remembered, that is the business they are in . . . to sell as many cars as they can. Maybe they should start hand-assembly at the Lexus factory, and begin limited production. Pretty soon they could be rare like Italian cars, huh? That would definately increase the price tag.

    Here we go again . . . just like Steve Kilburn . . . some of you Lexus cheerleaders (and you know I still like you, Doc! Glad you are feeling better!) get so pumped up about your "team" that you start to lose all sight of reality. (Not all Lexus fans do this, just some of you.) Sure, a modest price increase could be timely, but let's not get carried away here.

    The objective of sellings LOTS of these cars is still in place . . . in fact the objective is to suck up even MORE sales, not less.

    The prestige factor is still more dominant with Eurocars, and you should get used to it. The LS600hL will likely garnish some prestige, and the next Lexus "super car" might as well, but for now, the LS has a darned good reputation and can be purchased by a large demographic group. That is a good thing, not a bad thing. It is what Lexus is about . . . luxury for the masses.

    The age-old situation about how wives love their husbands so much that they are compelled to change them applies here. Love the Lexus, Doc, but stop trying to make it something it isn't. :)

    TagMan
  • tagmantagman Member Posts: 8,441
    "Ljflx, watch out, your doom is imminent!"

    Are you in the Soprano's or something? Be careful - I have the same heritage as them.


    Yikes, you guys are starting to give credibility to the New Joisey East Coast stereotype. ;)
  • oacoac Member Posts: 1,594
    No "if" needed here. The Lexus CEO made quite the fool of himself touting the new GS as the "5 killer" just before its introduction.

    It is easy to take words verbatim and not put it into proper context... Denny Clements' comments have been analyzed to death already, but if you consider one of the strengths of BMW is in keeping their products fresh in 18 month cycles of engine upgrades. This is ONE of the key points Denny made about doing it the BMW way... Not verbatim create a 5- killer ! No one can simply kill off a car like the 5 with such a large following. BMW is a premier auto company and have been doing it for 50+ years, so how can Lexus remotely hope to kill off the venerable 5-series ? Not gonna happen....

    For what the GS is, it is satisfying for its owners... For what the 5-series is, it pretty much meets their owners needs... Everyone should be happy. BMW is selling lots, and Lexus is selling enough to make the GS line profitable. That's what counts in the final analysis - SALES... That's why these companies are in business...
  • hpowdershpowders Member Posts: 4,330
    Yes. We can agree on that. There is an LPS and HELM out there for every conceivable type of driver.
    We can all be happy and enjoy the wealth of choice out there and I'm sure, it will only get better from here.
    Looking forward to checking out the LS 460 this Fall.
  • hpowdershpowders Member Posts: 4,330
    I read that Seinfeld just picked up a rare $440k Porsche Carrera GT.
    I hate him.
  • moxiemoxie Member Posts: 33
    is $118,500 Canadian $ (without any options). With the Canadian $ currently costing 90 cents U.S, this equates to a base price of $106,757 American $.
    For reasons unknown to me, the whole pricing structure for MB products here in Canada is much higher than in U..S. :cry:
  • stevekilburnstevekilburn Member Posts: 359
    Ljflx

    You have made the most fatal blunder, one of epic proportions and once the ball is set rolling it is unstoppable. Everyone has jumped on this band-wagon of super-luxury resulting in great chaos in this otherwise sober thread.

    In the spirit of Love and compassion however, I must bring you back to the right way of looking at things as they are. Please allow me to proceed:

    You have seriously mis-represented what I meant. I never confused the HELM market with SUPER-HELM market. In fact all along I have been clearing your doubts about the true nature of HELM market and what drives it. Please pay attention: Although HELM is mass-market compared to SUPER-HELM it is still a niche pocket compared to true mass-market cars (READ Entry-luxury like 3-series, IS, C-class) or MID-LUXURY such as E-class, 5-series, A6, GS, Infiniti-M.
    Mass Market: 17 million
    Total market for Entry Lux: 1.2 million
    Total market for Mid-Lux: 400,000
    Total market for HELM: 100,000 (S,7,A8,LS,Maserati etc)
    SUPER-HELM: 10,000 (Maybach, RR, 612-Scaglietti etc)

    Just because you see many HELMs on road does not make them mass-market like camry.

    "MASS-MARKET IS A RELATIVE WORD"

    Ljflx, my fiend, it is you who have confused all these and lumped them together.

    HELMS are generally the FLAGSHIP vehicles and being the FLAGSHIPS, they carry a serious and proud burden on their heads and shoulders. They are not to be trifled with, nor they should be sold for long periods of time at cut-rate prices, lest their true potential is left unexplored.

    LS is the flagship of Lexus and symbolizes the best of the brand, the absolute pinnacle. To offer it at cut-rate prices and especially in the 21st century when lexus has the number 1 market share and a product second to none is a phenomenal blunder.

    Wake-up Ljflx, wake-up to the 21st Century, look at the changes around you in this beautiful world. Their are so many luxury brands these days that cut-rate pricing is just not going to do it anymore. Remember, Luxury is all about being special and successful. If people need value let them buy Toyota Avalon. Let LS become "premium HELM"".

    Although I have only love and respect for your words I must also voice the rational arguments based on sound logic. Again, the ball is in your court, I am fairly confident this time you will not hesitate to agree with me and finally realize that we were on the same page, in agreement all along.
  • drfillldrfilll Member Posts: 9
    Regarding my issue with the 7-series, the 7 is a swell car, but the S-Class can consistently keep up with it (or pass it) in sales numbers, as the new iteration has, yet it costs significantly more. If you look over the last ten years, the 7 and S sales would be virtually the same throughout that time. The 7 should be outselling it rather easily, given it's price point, if you want to consider it as productive as the LS is for Lexus, or the S-Class is for Mercedes.

    The LS has always outsold it at least 2-to-1, and it should, since it costs significantly less. This is a sign of acceptance and appeal. the 7 doesn't have the same effect on the S-Class.

    I know you didn't bring up the $50k CLK as a C320 coupe! YOU can't wait to announce it as a SC430 competitor, and superior at that. The CLK and C-Class sedan share a platform, and that's about it.

    You know better than anybody that I've been picking on the C-Class for many a millenium! This is not news!

    The CTS, TL, 3-series, G35, and ES all DOUBLE C-Class sedan sales!

    (BTW, that takes the C-Class out of "The Top 5", Merc.)

    Picking on the looks of the ES smacks of desperation, Merc. You'd be doing a jig if the C-Class could sell anything like the ES, which has dominated the C-Class for, I don't know, 15 years?

    Is the C-Class winning any beauty contests? Am I missing something?

    The C-Class is like that little, nasty, leftover runt piece, at the end of the string of sausage. Only the truly desperate and depraved grab that piece.

    Regarding the ES vs GS, Lexus doesn't position the GS as a step up from the ES, as the interior room is about the same, and their missions are clearly different. As I've stated before, the LS is the Es' big brother, and the GS, is SUPPOSED TO BE the IS' big brother. That Lexus hasn't followed up on that promise is one of their few mistakes of late.

    WE AGREE, MERC! The GS (and IS350) don't qualify as true "sports sedans", at least not in my book, and apparently to the public as well. I'm pretty sure you've never heard me applaude their dynamics, except at times like when C&D called the last GS430 a virtual equal to the 540i in dynamics in 2000 in a comparison. Or when MT said the GS was BETTER in '98. The last GS was what the current M is now. The overachiever. But they left well enough alone, and that won't cut it anymore.

    Tagman

    If you want Lexus to sell 400-500k, I understand, but I don't think that helps the brand, and it only encourages the Merc's of the world to harp on Lexus for undercutting on price. If I were Lexus, I wouldn't show any fear of competing directly with Mercedes. They're ready.

    I'd have more of a problem competing with BMW in sportiness right now. They are not there. May never be there.

    Just because the S600 is $140k, that doesn't mean that is the right price. I think Lexus could sell out the LS600h at $120k just as well as they could at $95k , if they give it close to 500HP.

    DrFill
  • stevekilburnstevekilburn Member Posts: 359
    400-500K. Such high volumes will clearly dilute the Lexus brand equity so much so that it wont be a luxury brand anymore. It will be stretching the brand just too much.

    This will mean lexus outselling every asian brand except toyota, honda, nissan and hyundai.

    Instead lexus should focus on raising the prices of its offerings in line with germans.

    REVENUE = UNIT SALES X MSRP (OR TRANSACTION PRICE).

    So either increase the revenue by increasing the unit sales by flooding the market with low end ES and RX and diluting /damaging the brand or raise the prices, raise brand cachet while still increasing the revenue.

    I think sooner or later lexus has to realize that it cannot go on selling 120K RX and 75K ES350 flooding the market.

    I mean I see so many RX these days that it makes me sick to the point that its not even funny anymore.
  • ljflxljflx Member Posts: 4,690
    If that's my most fatal blunder I'll be safe forever. I'd say the fact that the LS is the symbol of the brand and has led Lexus to its sales ledership position here speaks volumes. Price moves are made over time in the manner that they've been doing it, not all at once, so we are not on the same page. Try peddling your strategy to Lexus, not me. I don't have anything to do with their strategic decisions. But I know a thing or two about business and the No.1 rule is not to stray FAR from what made you what you ARE. Hey that even rhymes, so I guess I am a poet afterall.
  • drfillldrfilll Member Posts: 9
    You're a smart guy, Steve! I don't care WHAT they say about you, man!

    Raggin' on the RX ain't cool, doh.

    Some Lexus models are too good for their own good.

    I think we've reached critical mass with the sales volume, and it's time to correct adjust the sales formula to fit the current market.

    When the Yankees sell 3 million tickets a year, at a fairly high price, what does Steinbrenner do the next year?

    LJ

    I feel you, but "We gotta expand!" (Scarface)! Not to an $80k LS starting price, but I'd start where the 7 is, or just under $70k, and show & prove!

    DrFill
Sign In or Register to comment.