Report: Lexus may offer $3,000 rebate to beat Mercedes

[HighestOfHigh]

Though the first eight months of 2010, Lexus and Mercedes-Benz were in a dead heat in the race to be crowned the top-selling luxury brand in the States. But big-time September sales at Mercedes-Benz pulled the German marque ahead of Lexus by a substantial 3,000 units, really putting the heat on Toyota's luxury arm. Could Mercedes pull off the upset to unseat Lexus for the first time since 2000? Not if Lexus can help it.

USA Today reports that Lexus announced during dealer meetings this week that it will slap up to $3,000 in incentives on the hood of its vehicles in an effort to entice buyers to shell out for a new L-branded car, crossover or SUV. In some cases, Lexus will reportedly also resort to cut-rate financing rate in an effort to spur sales.

The move is a bit surprising given Lexus's penchant for asking for and receiving full retail for its products, though 2010 hasn't been the best year for the Japanese premium marque. Given the fact that Lexus has earned its success on the heels of a terrific reputation for quality, the recall of millions of Toyota and Lexus models for unintended acceleration issues has likely hurt sales and certainly dinged its reputation. Add in the fact that the high-volume ES350 and top-of-the-line LS are a bit long-in-the-tooth, and it adds up to a possibility that Lexus may lose its hard-earned sales crown.

- Report: Lexus may offer $3,000 rebate to beat Mercedes — Autoblog

 

[Gullwing]

We have sold less cars then Mercedes? Yes
Why is that? Because we sell crap that has no passion and doesn't stop when the driver wants them too.
Well then how can we beat them if we suck so bad? Major discounts!!!

 

[Centurion]

What a way to devalue your brand. Toyota are fullfilling their own "Industrial Asican manufacturer"-stereotype by selling discounted immitation luxury. A scheme of this kind is only a short-term solution to a long term problem. Sure it might tip over first-time luxury car buyers or entry-level customers but it won't thwart genuine luxury connoisseurs who know their brands.

 

[Sayyaaf]

No wonder they call it GermanCarforum . For the record, Porsche offers 10% rebate in germany for the Panamera turbo, big deal if Lexus did it

 

[Kowalski]

Pardon my ignorance, but while we're on the subject of Lexus and American market, can anyone tell me what's the point of the Lexus ES 350?

 

[Centurion]

No wonder they call it GermanCarforum . For the record, Porsche offers 10% rebate in germany for the Panamera turbo, big deal if Lexus did it

Porsche add new crazy expensive Panamera options every month so it only make sense for them to incentives the car.

 

[Sayyaaf]

^ yeah if the company is run by clowns, the same team who priced the car is now offering a rebate ?

 

[siko]

You couldn't pay me 3 grand to buy a Lexus over a Benz.



P.S. Wasn't it this crazy obsession about volume sales that got Toyota into trouble??!?! Great to see they are learning from mistakes.

 

[ateekt]

Pardon my ignorance, but while we're on the subject of Lexus and American market, can anyone tell me what's the point of the Lexus ES 350?

Imo, Es was introduced to compete with the luxury American Fwd sedans from Ford, Chrysler & Gm... And since day one, the 'Supreme-Camry' did her job just right!

 

[hoffmeister_fan]

Does this also apply to the LFA?

Well, you can look at this two ways 1) Lexus will do whatever it can to keep/get customers, and if that means getting a car for less, that's a win for the customers, or 2) this is a ploy desperation so they could beat M-B. My recent cynicism points to the latter. I agree this is a way to devalue the brand. Lexus, as of late, does offer some good, competitive cars, i.e. the LS's (save for the Hybrid), the IS-F, IS350, and the LX570.

And the ES350. Some will argue it's existence, but for those who are indifferent about handling Gs and 0-60, but want to get to A-B without any drama, this is an ideal car. Those who are in the market for an ES know what they are getting themeselves into. They just want the luxury trappings. It's functional and reliable, and that's all what the owners want. Also it brings in alot of money since the profit margins on that car is huge. From enthususiast's point of view it's horrid, and a waste of money, especially if I can get a simlarly equipped, larger Avalon.

But that's the crux to Lexus, it's got to be more than functional, you want to desire it. They need to stand for something. Also alot of their current offerings are getting long in the tooth, i.e. the GS series and the IS series. The GS and IS are in dire need of a revamp. I quite like them upon their release, but the competition has either always been better or it has gotten better. Some are too milquetoast, i.e. the IS convertible, that hybrid that I cant' remember what is called, the RX, the other SUV based on the 4Runner (oh yeah, the GX).

They need something like the first-gen SC. That car was and, IMO, still is beautiful. They need solid designs with better chassis dynamics. The GX could have worked if it wasn't too quirky-looking. They need better interior trims in order to differentiate it from the more "plebian" Toyota offerings. They need to offer better diesel alternatives, because Europe is wiser not jump on that when technology still needs improvement. Look at Infiniti, they have the advantage of having Renault as a partner, but ToyoMoCo's pocket's are still pretty deep despite their setbacks. I just don't get why they don't offer a decent diesel. Hell, couple a diesle with a hybrid! I thought the upcoming CT was a step in the right direction. Until they said there was not diesel and it's FWD. Other's like Audi and BMW can get a way with FWD, but Lexus not so much. And no diesel, might as well shoot yourself in the foot.

By my ramblings, they have alot work to do, but ther is potential. However, to offer $3800 just to beat MB, well, that's such a b!tch move, really. That's like throwing 20+ years of getting in the leagues with the big boys.