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Lexus brand in Japan somewhat of a dud

Unlike here, the Lexus brand doesn't carry much weight in Japan when it comes to premium car shoppers.

"The reality is that, ironically for Toyota, Japan is proving to be a difficult market," said Christopher Richter, an auto industry analyst at CLSA Asia Pacific in Tokyo. "Their difficulty here is that there is greater panache in owning a Mercedes or a BMW. In the U.S., the Lexus is a sensible reward for personal success...
"But in Japan, people want something that says, 'Hey, I spent stupid money on a car.'"

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10 Comments

ateixeira says:

12:42 PM, 11/16/06

The problem is the Lexus models we've had here for ages were already plain Jane Toyotas there. The SC400 was a Soarer, for instance.
 
So to them, they're just being charged more money for the same cars, only with a few more gadgets on them. That doesn't seem like luxury to them.

06james says:

01:00 PM, 11/16/06

If Americans knew the origins of Lexus models like the Japanese did, I can't help but thinking they wouldn't sell here either. Lexus succeeds because it's a great brand, but I've never felt that was all that great of a thing.

estreka says:

01:25 PM, 11/16/06

I don't know the specifics, but I imagine since Lexii (sp?) are produced here in the states, the shipping costs bite into the bottom line. Why buy a Toyota import when you can buy German?

firstwagon says:

01:36 PM, 11/16/06

Lexus succeeds because they offer all the Luxury of the Europeans with one standard feature they never had... reliablity!!
 
As much as a BMW, Jag or MB will impress the neighbours, I have never heard someone brag that they are trouble free.

hondacura4 says:

04:00 PM, 11/16/06

Estreka, to my knowledge all Lexus vehicles are built in Japan then shipped here not the other way around.
 
Patrick

billt9 says:

05:35 PM, 11/16/06

The RX350 is made in Canada.
 
Buying a Lexus in Japan is like buying a t-shirt from your haggard street vendor.
 
Here in the US, affluent people like seeing tags that say "Made in Italy", or "Made in Germany", and the name of the product has to be difficult to pronounce, and have accent marks.
Names like Porsche, Bayerische Motoren Werke, Koenigsegg, wasabi, sashimi, and Toyota have weight. Unpronouncible. It's so unpronouncible we just say "BMW", and that's cool enough.
 
As long as it doesn't say "Made in USA". That's for those dirty, unsophisticated poor people dear. Don't get my pants soiled.

carlisimo says:

07:54 PM, 11/16/06

But the important question is...
 
Were the Lexuses that were badged as Toyotas in Japan (as was the case until now) selling better than the Lexuses are selling now that they're badged as Lexuses? Have they actually LOST sales after the rebadging? Or did they really think selling the new generation of the same cars under a different brand name would make a difference?
 
They also have stiff competition from Toyota's traditional luxury cars like the Crown and all its variants. I've heard it's kinda like Cadillacs used to be, but I guess that's what they want in that market segment there. And they can't sell on dealership experience - I've heard all dealerships in Japan treat their customers like luxury dealerships here in the US treat theirs.

06james says:

11:15 AM, 11/17/06

"Lexus succeeds because they offer all the Luxury of the Europeans..."
 
An example of Lexus ignorance. As in, if you don't know the difference between Lexus and the German cars, you think there is no difference.
 
Lots of Lexuses have been sold to people like him.

firstwagon says:

12:04 PM, 11/17/06

I am well aware of the difference between a Lexus and a German car in feel and image.
 
The image means nothing to me (owning a car to impress people with how much money you have is really rather sad) and the feel only carries so much weight if your mega dollar car is less reliable then a 10 year Hyundai.

incady says:

01:54 PM, 11/17/06

firstwagon - my 2002 330 has been trouble free. I've only changed the oil.

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