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Is the new Lexus LS460 a threat?

This is a discussion on Is the new Lexus LS460 a threat? within the S-Class forums, part of the Mercedes-Benz category; I believe the New LS460 will get a lot of sells in the U.S. mostly because it's cheaper and many ...

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Old 01-09-2006, 12:57 PM   #26
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Re: Is the new Lexus LS460 a threat?

I believe the New LS460 will get a lot of sells in the U.S. mostly because it's cheaper and many Americans have much respect for Lexus. Now as far as world wide sales I doubt it would hurt the new S-class in the least.

I do wonder about that Hybrid version of the LS460 though.
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Old 01-09-2006, 01:26 PM   #27
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Re: Is the new Lexus LS460 a threat?

IMO new LS will continue to sell very well in US. I dont think it will steal more of S-class or 7er sales. It's already a cheaper car - so who wanted to buy cheaper he already did it. It will attract even more of Lexus customer base and that of Cadillac & Lincoln.

In 2005 Lexus sold 26,043 units of LS, while 18,165 of 7ers and 16,036 of S-class were sold in the same time.

Globally LS won't be a significant player - not in this generation. It will steal some of the sales of the Germans in Europe and Asia, but not significantly.
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Old 01-09-2006, 01:39 PM   #28
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Re: Is the new Lexus LS460 a threat?

I love smaller Lexus's, IMO, this is not a threat to Germans, it looks too massive...Although it surely will sell good in USA...
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Old 01-10-2006, 04:38 PM   #29
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Re: Is the new Lexus LS460 a threat?

Looks like they may be really aiming at BMW more than Mercedes this time..

Price IMO has always been the real reason why it is so popular in the States, but this may change if they are to price this new model above 70 grand..

Quote:
Sportier LS Puts BMW in Lexus's Cross Hairs

By GINA CHON Staff Reporter of THE WALL STREET JOURNAL January 9, 2006; Page B1

DETROIT -- When Lexus -- long the sedate, dutiful child of the luxury-auto family -- unveiled a bold, sleek redesign of its flagship car here yesterday, there was no mistaking that the brand is heading someplace new, namely straight at BMW's top-of-the-line 7-series.

Ever since the first Lexus LS was introduced in 1989, also at the Detroit auto show, it has been solid, super-quiet and ultrareliable, but it would never be confused with the BMW. The new Lexus LS 460, with a sportier design and increased horsepower, demonstrates the Japanese brand's shift of competitive focus away from DaimlerChrysler AG's Mercedes-Benz and toward BMW AG's "ultimate driving machine" image.

Bob Carter, Lexus's general manager, avoids specifically mentioning BMW, but he says the new LS, coupled with a pair of less expensive models introduced last year, are an effort to go after younger buyers and compete more seriously in the performance category, long BMW's preserve.

"Our performance was always competitive but not viewed by the public as class-leading," Mr. Carter says. "So that's a segment we wanted to get into."

The new Lexus LS 460 has the world's first eight-speed transmission and a 4.6-liter, V8 engine with 360 horsepower, compared with the old LS, which has a six-speed transmission and a 4.3-liter, V8 engine with 278 horsepower. The BMW 750i has a 4.8 liter, V8 engine with 360 horsepower and six-speed transmission.

The new LS also will be more expensive than Toyota Motor Corp.'s past Lexus vehicles, surpassing the $70,000 mark, as the company makes a bid to up the ante on luxury and the sticker price that goes along with it. The current LS has a starting price of $57,220. The company will hit the $100,000 price tag for the first time with a longer, hybrid version of the LS. That vehicle will compete head on with Mercedes's S600, which is only available in the long wheelbase, and BMW's 760Li, neither of which are hybrids.

Like other car makers, such as General Motors Corp.'s Cadillac, Lexus sees growth in the high end of the luxury market in vehicles priced more than $70,000 and into the $100,000 range.


In its relatively short, 17-year history, Lexus has been extremely successful, leading the luxury segment for the past six years. The new LS is part of Lexus's move that began last year to create more excitement about its vehicles. The first Lexus models to take on the new, sportier attitude were the IS and GS sedans launched in 2005. The IS competes with the BMW 3-series, while the GS goes against the 5-series. One GS slogan: "The GS is so fast you'll spend less time in your car." Mr. Carter says the new vehicles have brought in buyers in their 30s. Lexus is also considering producing the LF-A, a concept vehicle unveiled last year. The vehicle has more than 500 horsepower and could go as fast as 200 miles per hour. "We have people coming in who have never been in a Lexus dealership before," Mr. Carter says.

That may give reason for BMW, which has sold cars in the U.S. since 1975, to be more fearful of Lexus as a competitor. But BMW spokesman Robert Mitchell says the German car maker sees more competition from Nissan Motor Co.'s Infiniti and Volkswagen AG's Audi, which have long offered sporty, youthful cars. "Lexus has their work cut out for itself if it's going to try to convince BMW owners to look at something else," Mr. Mitchell says.

Mr. Mitchell adds that BMW isn't sitting still as competitors try to catch up. In 2005, while Lexus launched the IS, BMW introduced a new version of the 3-series. He says that Lexus is the overall sales leader in the luxury segment, but BMW still outsells Lexus when in car sales, minus sport-utility vehicles. BMW sold 197,833 cars in 2005, while Lexus sold 151,226.

On a global level, BMW Chairman Helmut Panke has said he doesn't see Lexus as a serious competitor yet, since the Japanese car maker is mainly a U.S. brand. Although Lexus is stepping up its global presence, most notably in Europe.

While Lexus is moving into the higher price range, BMW is looking downward with the 1 series, although company officials have declined to estimate when the smaller sedan will arrive in the U.S.
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Old 01-10-2006, 06:34 PM   #30
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Re: Is the new Lexus LS460 a threat?

Wow... I didn't know the price would jump by like 12k dollars. That's a bit much. I think a lot of people that just buy a base spec LS are going to be dissapointed.

I really don't think that using hybrid technology to make a car more of a sports car is really the right way to approach the technology. The Toyota Prius isn't a sports car it is an economical sedan. The entire car market needs to look more at that aspect of hybrid technology IMO. Another thing... What buyer of a 760iL or an S600 really give a hoot about gas mileage? Hybrids should stay out of cars like this and stay in the eco class of cars. If Lexus wants to compete with these cars... Build a V12. The Germans will kill the hybrid V8 anyway. Especially the S600. They won't be able to touch that car just because of the sheer brute force of that V12.
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Old 01-10-2006, 07:45 PM   #31
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Re: Is the new Lexus LS460 a threat?

Toyota is in an awkward posistion when it comes to the Lexus brand and Hybrid. Problem is, there's numerous benefits to hybrid, but none of them speak directly to the traditional luxury car buyer. The GS450h is being numerically positioned as the range topper of the GS sedan, but this doesn't really compute in hard numbers the same way a 530i would against a 545i.

Problem is, Hybrid has already been etched into the minds of consumers as "green." Toyota wants people to think "performance" and "smart luxury" with their "h" badged cars, but the message appears too muddled to penetrate the brains of fickle consumers.

I drove the RX400h and was impressed with the performance and the seamlessness of the Toyota synergy drive, or whatever it's called. At the same time all indications tell us that Luxury buyers are relatively bored with hybrid. Sure the cars are faster, but they're not blazing fast. And in most conditions the cars get good mpg, but not prodigious mpg.

In any case, I sense that this forthcoming LS will make some inroads for Lexus stateside, especially since the 6-digit psychological barrier is being broken. But overall, I think the status quo will be held. There's a set of American consumers who will always skew twoards Lexus on principle alone. By the same token, there's lots of us who would never consider an asian car if money isn't an object.

The feature set sounds impressive, but then again, new flagships always have a litany of new developments that eclipse the competition in one area or another. And while the styling is a marked improvement over the previous model, it's really not saying much since the LS is the definition of Japaneese bland. I'm not won over by the lines on the new LS, and come think, it makes me appreciate what the pre-facelift 7er achieved some 4 years ago.
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Old 01-10-2006, 09:09 PM   #32
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Re: Is the new Lexus LS460 a threat?

^^really good post!

It doesnt matter how hard Lexus tries, they will never achieve a reputation that BMW Audi and Mercedes have. And they have been trying hard (ie the commercial narrator in advertising). But they miss the mark for a couple of reasons. They think BMW and Mercedes' consumers are snobs and pretentious. Its easy to see because their advirtising is attempting to appeal to those types of people. They also build their cars for specifications. They dont build them for driving pleasure but for specs in a magazine.

Even so I think they make a solid product. They make awsome looking cars, the IS and the GS, yet the cars arent as seamlessy designed as the germans. Sure they may be more reliable but line them up one by one and you can see a difference in quality and beauty.

Lexus may think they're building better cars because of powerful engines and quicker 0-60 times but they forget that BMW and Audi dont build cars for 0-60 times and hp ratings. They say they one up BMW and Audi yet they never win the comparison tests even when their car is the newest.

So back to the LS. I think they were on the right track with the GS and the IS but frankly this car is ugly. So no. Not much of a threat here. Theyll sell to the people they always sell to, those who cant afford a Bimmer or Merc.
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