Lexus used to sit on top of the US luxury car market, from 2001-2010 they reigned supreme. Now it seems they have slipped back, as BMW and Mercedes-Benz have been picking up their sales numbers.
The German automakers have found a way to bring the buyers in, utilizing a lower price point in the sub $30k range. According to an interesting article by Wards Auto, Lexus just doesn't want to head down this road. Jeff Bracken, Lexus US group VP preferred to leave that segment to their Toyota and Scion brands. It almost sounds like Lexus is bashing the Germans for building lower priced luxury cars into their line-ups. In the US, two German models start in the sub $30k range. Mercedes has their CLA at $29,900 and Audi has their new A3 sedan also coming in at $29,900. Both just on the edge of $30k. BMW is also playing on the edge of the $30k mark. They are offering their X1 compact utility vehicle for $30,900, and their newest model, the 2 Series Coupe for just over $32k. Near this price range, Lexus only offers their CT 200h 5-door hybrid, and it starts at just over $32k.
With the popularity of these lower priced models, I'm sure there will be more on the way, making it harder and harder for Lexus to regain the footing they had in the past. Bracken stated in the article, "If Mercedes and BMW continue (to offer lower-priced luxury vehicles) it will make it that much more challenging for us to regain luxury leadership."
Do you think Lexus has it right, leaving the lower priced cars for their non-luxury brands, even though it's costing them sales? I'm a big fan of getting a luxury car for under $30k. However, with some of the reviews of the CLA, is it worth putting your name on a 'cheaper' product?
Read what we thought of BMW's new M235i here!
Read the full article at Wards Auto
