Lexus won't make a CLA competitor

6178 Views 6 Replies 7 Participants Last post by Rusty Shackleford, Dec 10, 2013

Zeus

Discussion Starter · Dec 9, 2013

Seeing the success of the CLA, many automakers are turning to low priced luxury vehicles to bring in younger customers and boosts sales. Lexus will not do such a thing though.

"We will not head down below $30,000," Lexus chief Jeff Bracken said. "We have Toyota and Scion to handle that price level for us."

The closest thing that Lexus has to a CLA competitor is its CT 200h, which starts from $32,050. This model is a hybrid hatchback though, which means that it really isn't a direct competitor to the CLA sedan.

Senior vice president of Toyota's US sales arm Bob Carter suggested that Benz and BMW may be making more entry level vehicles to help meet up coming CAFE fuel economy standards. The two brands rely on their relatively low volume MINI and smart brands to help raise corporate mileage levels. Lexus, due to Toyota and Scion, doesn't have to worry about this and can therefore focus on higher profit luxury vehicles, Carter explained.

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booker

· #4 · Dec 9, 2013 (Edited)

I saw the same piece. The most telling quote from the article from Bob Carter was this:

By not diluting its brand image, Lexus will stay focused," he said. "It lets Lexus hit on higher levels, in segments more traditionally associated with luxury."

exactly what I worry will happen to mercedes. How do you balance low end clientelle with the high end. Who takes precedent, your low volume high dollar S-classers, or high volume cheaper CLA's?

There is going to be a culture rift within the brand if they don't manage this meticulously. Please don't take this is as a knock on CLA owners, its not intended to be. The point being that when reaching downmarket you open the brand up to more pedestrian qualities,comparisons and experiences.

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