Why won't Lexus bring these models to the UK

[Fatts]

These are serious machines at affordable costs.

 

[C Mclean]

Probably demand versus cost in making them qualify for U.K. roads and other legal stuff.

[NemesisUK]

12 minutes ago, C Mclean said:

Probably demand versus cost in making them qualify for U.K. roads and other legal stuff.

Exactly, if Lexus thought there might be profit in it, they would do it. Just as any other company would...

[Zotto]

Here in Italy Lexus sells only Hybrid models, probably to have an ecologic image but also because of taxes on cars with high thermal power, that destroyed internal market for over 250HP vehicles.

[Malc1]

............  funny that, on my Grand Tour of Italy  last year, about a month and 6k miles, just driving the length and breadth, around the coast and up into the mountains, I was stopped about 15 times by the police  ....  just to have a look at this very strange car, which they had probably never seen before, my elderly ls400 

Malc1

[Linas.P]

10 hours ago, Fatts said:

These are serious machines at affordable costs.

I have made several attempts to understand why that is the case and I would agree with others that it is mainly profit versus costs of introducing the models in certain market. Furthermore, I would speculate that such models would not be competitive in the market and would compete Lexus other models instead of competitors. Therefore, Lexus decided to minimise the number of options which is obviously cheaper to maintain in long term and therefore more profitable.

At the same time I hat they are doing that and really feeling left-out by the brand.. especially in case of RC350.

[Fatts]

2 hours ago, NemesisUK said:

Exactly, if Lexus thought there might be profit in it, they would do it. Just as any other company would...

But am surprised BMW still sell their high powered versions here in the U.K and on the continent, am sure there is a sizeable market for powerful petrol combustion cars yet, not consumer care about these so called eco cars (hybrids). Even diesels are now starting to get a bad press from the ozone brigades.

[Linas.P]

I guess because BMW/MB makes their cars in EU they can flood the range with 20 engine options as it costs nothing for them to legalise certain model, whereas for Lexus it would cost a lot of money to formally introduce these cars e.g. get permission from DVLA  (or equivalent EU institution) that they meet the standards.

Furthermore, it is fact that even BMW and MB sells most of their low end 320d's and C220d's rather than something like 430i's. But BMW sells say 2000 430i'S in UK (and further 10000 in nearby EU countries) it makes sense to keep spare parts and equipment to maintain them, for Lexus it would be huge cost to maintain say RC350 which would sell maybe 10 cars in UK, whilst the rest of 10000 cars will be in Middle east or US. Furthermore, even if BMW not going to sell say many 430i, they can always move  spare parts tariff free, whilst Lexus would need to cover huge administrative costs (not to mention transportation) moving stock between US, ME and EU.

I am not trying to defend them and actually hate them for not introducing reasonable range in UK, especially understanding that it is most likely to increase their profits, but just trying to understand the reasons behind this decision. 

[Fatts]

Excellent analysis Linas 

Thank You.

 

[marrat]

Introducing such cars in countries which they know won't sell well, would be a bad business decision. Going through all that trouble for the 10 people (just an example) that potentially might one day maybe buy it, would be stupid. Companies like BMW and MB still ride their brand names, even though most of the fame is from their golden days, so it makes more sense for them to release a wide range. I'm very certain that even if companies like MB released the worst car in history, still a lot of people would buy it.

[doog442]

I think the IS350 would be a revelation if they could get it into a decent VED bracket to compete with the likes of BMW...anyone have any idea on how the emissions would pan out. If you are looking at ISF rates...forget it and I guess that's probably the issue here.

Less than 100 IS200t's on UK roads(also in that clip)..As an owner I've either bought a future classic or a lemon...needless to say its a rare beast.

 

Can anyone explain why Lexus chose to release a car that sells less than 100 a year in the UK?

 

[Fatts]

Doog442 - I don't believe you've bought a lemon at all rather you've bought a motor that suited your taste and driving preference The problem i believe is that of public perception and some age groups who are generally reluctant to try something new. Imagine the number of owners of series 2 & 3 IS 250; which are cars with serious potent engines, all of those owners would happily buy a IS 350 that can crack 0 - 60 in 6s.

if a poll is conducted today majority of the IS 300 h drivers will be over 40  whilst most under 40's would consider hybrids too sedate and opt instead for faster BMW's or Audis. I believe current Lexus cars does not accurately cater for the age 30 -40 bracket. 

The CT for example cannot compete with a Golf Gti or Seat Cupra / Skid vRs to name a few and the IS version available in the U.K can't compete with a 3 series 330i or. 335i or 335d for that matter.  

It means if you love the IS and you  are a person who requires their car to have pace your only option is the ludicrously expensive ISF

[doog442]

Great posts Fatts...I've recently sold my BMW 135i...0-60 in 5 seconds - I would never have bought it if Lexus were able to compete but I'm back in the Lexus fold. There is a market out there for performance vehicles at a price range lower than the ISF but it just makes me laugh when people say the IS350 isn't commercially viable when they are selling the IS200t...which isn't selling at all. Most cars are at dealerships waiting to be off loaded...

 

 

[ColinBarber]

51 minutes ago, doog442 said:

Can anyone explain why Lexus chose to release a car that sells less than 100 a year in the UK?

 

The 200t engine is shared across multiple vehicle ranges so that must go some way to making it worthwhile. It is a strange one though, they would probably sell more IS350s than IS200t if it was available.

The LS hasn't sold more than 100 in a year since 2009, that must be difficult to justify its ongoing existence.

[steveledzep]

The biggest stumbling block in my opinion is that in this country (UK), we require the steering wheel on the right of the vehicle.  There is huge cost involved in converting from LHD and that is for a minority audience.  With just a few exceptions, vehicles are required mostly in LHD around the world.

FWIW, I'd jump at the prospect of owning an IS350 .

[ColinBarber]

11 minutes ago, steveledzep said:

The biggest stumbling block in my opinion is that in this country (UK), we require the steering wheel on the right of the vehicle.  There is huge cost involved in converting from LHD and that is for a minority audience.  With just a few exceptions, vehicles are required mostly in LHD around the world.

FWIW, I'd jump at the prospect of owning an IS350 .

It would be a good reason if it were true, however the IS350 and is sold in Japan and Australia.

[steveledzep]

2 minutes ago, ColinBarber said:

It would be a good reason if it were true, however the IS350 and is sold in Japan and Australia.

Good point Colin.....didn't think that one through fully 

[mpls]

The AWD option would be fantastic if it were an option here..

[Linas.P]

4 hours ago, doog442 said:

Can anyone explain why Lexus chose to release a car that sells less than 100 a year in the UK?

Because it at least sells 100 and with other vehicles sharing the same engine it makes maybe 500 (IS, RC, NX), whereas they might sell 10 of RC350s. Obviously all speculations, but I believe it is more sophisticated than that.

Lexus is underdog brand in UK (not like US where they almost equal to MB and BMW) and they would sell 1000 cars a year, no matter how many option they have... even if they sell only say NX300h and IS300h.. they would probably still sell 900. So for Lexus is a matter of predicting the models which sell most and only introduce those. 

Introduction of RC200t over RC350 is weird one, because I believe the later would sell better... and I would speculate that is exactly the problem. They don't want to sell RC350 better than RC-F, that would be just too good "bargain of the century", don't forget upcoming LC500h and LC500... RC makes awful amount of sense when considering LC... so again another bargain of the century "LC on the budget". If considering it as IS-coupe it still makes sense, so you have IS200t/300h more sensible options and say RC300h/350 - kind of more fun for coupe. Other side of argument - I guess with stupid laws we have, RC350 would be quite expensive to tax and insure, so even being much better in any sense it won't sell.

So put in simple words and considering what I have said before, Lexus will sell 1000 cars regardless of the range, so they want to make sure they sell the expensive ones. Though again we need to consider macro picture, RC350 would be the only car having that engine, rather than sharing options with the range, so not only it would compete it's own siblings, but as well be less profitable.

Obviously there is alternative way, if Lexus would introduce all the models (including HS, GX) in UK and start massive marketing campaign, maybe if they set-up plant in Sunderland to produce these cars in UK (and EU) and if they start considering this market seriously, they might become major player and therefore can not only offer the proper range, but make profit from it as well. Thought, with Brex**** glooming this sounds unrealistic alternative....

As it stands today I feel not taken seriously by the company and rather disappointed, Lexus range now is like "you go big or you go home" and no sensible alternatives.

2 hours ago, mpls said:

The AWD option would be fantastic if it were an option here..

I had IS250AWD and it was not great, neither it was as nice to drive as RWD, nor as economical, nor it had more grip on snow or mud. Obviously, it depends where you drive.. it makes sense on sand in middle east or on vast country side of US, not that much in urban UK.

[ganzoom]

According to howmanyleft BMW barley sold 500 340is this year so far. 

Whilst a few members might want a bigger displacement engine its not what the majority of the public want. A 350IS would sell in double digits here in the UK. 

However the 330e selling considerably better than the 340i. Plug in cars is the future of high performance motoring not larger displacement engines.

 

The EV I'm about to take delivery will crack 60 in 5.5seconds, yet cost me about 3p per mile in fuel, £0 VED, no regimented service requirements, why on earth would I want buy a V6/V8 car which offers the same performance but x5-10 more expensive to run?? 

Oh nd an AWD EV is actually more efficient than a single axel driven EV because you can set up different gearing for the two motors. 

Quicker, more efficient, less maintenance, this is what really got me interested in EVs. Just a shame Lexus has zero plans to introduce any plug-in models. 

[Linas.P]

Well you see that is a problem, I all the way for EV if it does 0-60 in 5.5s (my I guess Tesla S 60 ?) , not the Lexus RC/IS300h though... they do 8.6s disappointment ... as I have no other words to describe it... it is disappointing indeed. 

Additionally, there are some conservative people who still likes the sound of v6/v8 and don't really car that much about fuel economy or cost.. In the end fuel is like last on my list of expenses considering that car costs £40k and I would still pay more for insurance than the fuel.. 

[Richard1200]

I hope Lexus build this 

[Fatts]

Richard, that car in your post is already built and I believe will be in showrooms from Jan 2017

Edited December 9, 2016 by Fatts
Spelling error

[Richard1200]

1 hour ago, Fatts said:

Richard, that car in your post is allay built and I believe will be in showrooms from Jan

Looked at one on Wednesday. It's a CT size crossover or a small NX. Really nice, just needs a bit of Lexus magic dust on it change the badges and add moaning noisy rear brakes. Top of the range is a 1.8 Auto Hybrid.

[noby76]

one of the other aspect Lexus needs to improve on its their advertising. I mean i see cars like the Audi quattro S and RS lines being advertised on TV lately with the models making their way to a racing circuit. even the R8 which will be purchased by a handful gets advertised on TV doing doughnuts..Audi knows 95% of these buyers will never take these cars to a racing track but sells that idea to us. look at BMW 3 series adverts all over the place which includes some scenes of it doing a rolling start acceleration with camera shots focusing on it taking winding roads selling us the ultimate driving machine notion same applies to Mercedes i see C and A class adverts pretty much everyday on TV.

what I am trying to say is so long as you market anything right there will always be buyers. look at the Iphone i can name you some Chinese made phones which are faster, better camera better Battery life etc at a fraction of the cost but yet still people are happy queue/sleep rough over night and pay over £700 for a brand new 5.5 inch version 7. apple just has good marketing.

which bring me to question why Lexus does not or has limited their advertising capabilities on TV? 

take the launch of the GS450h which at that time was one of the if not the fastest hybrid car out there but yet still fuel efficient for its engine size and power output why did lexus not market it as such on TV show a few shots of how power is transformed form Battery to wheels a few shots of instant acceleration and stress of it being a fast and fuel efficient hybrid sport saloon.

take the IS-F again it had the worlds first 8 speed gear box in a high performance saloon again Lexus could have showed a cut away version of this gear box during advertising which can make an M3 automatic owner watching  feel like they are driving an inferior car with a few twisty shots.

The CT200h could also be sold with a 2 litre turbo engine with remap to around 250-300bhp along side the hybrid models which can then appeal to younger hot hatch buyers

i do recall reading the new LS600h and LS460 having something like 1000 newly developed parts and features so why couldn't they throw a few tv adverts of the LS and mention this?

all I am saying is you market anything well and make it attractive, you will always get some sales so not sure why Lexus does not adopt this and only leave it to what some board room execs decide. infact they can carry out surveys of their existing and potential car owners to find out which models or engines they would like to drive proir to releasing i know the hybrid models do sell well but they certainly are missing a market here as some mentioned the 30-40 year bracket who do not want to spend £50,000 -£70,000 on the IS-F, GS-F, RC-F.

Lexus needs to get their marketing and advertising up to speed.