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How Lexus, Infiniti plan to win back luxury buyers from Germans, Tesla

DETROIT — Japanese luxury auto brands Lexus and Infiniti have used the Detroit Auto Show to test new ways to regain momentum against Germany's prestige automakers and Tesla. The Japanese are fighting to gain ground in the U.S. luxury market as Audi and Mercedes-Benz have expanded sales and Tesla has provided a fresh alternative to established brands. Last year, Lexus suffered a 7.6 percent slide in U.S. sales. Acura's 2017 sales fell 3.9 percent from 2016. Infiniti pushed up sales by 11.3 percent — but by selling almost twice as many sport utility vehicles as cars. However, Infiniti's total 2017 sales of 153,415 vehicles put it behind the leading Germany luxury car brands, as well as Acura, Lexus and Cadillac. The Lexus LF-1 Limitless concept SUV model, with its futuristic looks and "Chauffeur mode" semi-autonomous hands-off driving capabilities, signals that Toyota's luxury brand may start to focus more on SUVs than traditional large sedans. The LF-1 also previews a futuristic navigation technology that anticipates where the driver is going based on driving habits and history, and provides hotel recommendations or other concierge services. View 13 Photos "We don't want to be the 'race car' brand; we don't want to be the 'quiet ride' brand. We want to be the brand which is emotionally connected with the customer," said Cooper Ericksen, vice president of U.S. marketing for Lexus. Lexus, Infiniti and Acura launched in the U.S. market in the late 1980s and took advantage of quality problems at Audi and a lack of innovation at the then-leading luxury brands, Cadillac and Lincoln. Now, the structure of the U.S. luxury market has changed. Four brands — Mercedes, BMW, Audi and Lexus — dominate. Tesla delivered 103,000 vehicles in 2017, its best year ever, though that total is still a small fraction of the overall luxury market. Tesla, meanwhile, is trying to overcome "production hell" and increase output of its more affordable compact Model 3 sedan. The highly anticipated car is just starting to reach customers — but with 400,000 preorders, 2018 could be a breakthrough year for Tesla. View 19 Photos In Detroit, Infiniti showed the Q Inspiration Concept sedan powered by a unique, high-efficiency variable-compression gasoline engine. While the prototype is not electric, its exterior might appeal to customers of the Tesla Model S.

Lexus to offer no-haggle policy at dealers

The automotive world hasn't seen no-haggle pricing in the US since Saturn collapsed in 2009, but Lexus is about to bring it back. The idea originated in company discussions with dealers two years ago, with dealers saying that a segment of potential buyers didn't enjoy negotiating a price. In order to find out how firm pricing will alter the landscape, 12 Lexus dealers will begin the pilot project at the beginning of 2016. That means new and used cars, parts, and service will come with fixed prices, according to the Detroit Free Press. Jeff Bracken, general manager of the Lexus brand, held up a Phoenix Toyota dealer as a success story, noting that the dealer's no-haggle strategy has worked for 12 years. Outside consultants will train employees at the selected outlets, and its effectiveness will be examined nearly every week. Prices can be changed, "but the expectation is that they remain unchanged for months at a time," and any incentives can still be deducted from that set price. The key to getting usable results - whether the program sticks around or not - is that those 12 dealers have to accept that some customers are going to walk out the door if they can't get the deal they want. Bracken said he expects sales and market share to decline some once the project begins, but only for a few months. After customers get accustomed to it, Bracken said he expects the initiative to be a success and expand to other company dealerships in 2017, even if not all Lexus dealers sign on. Related Video: News Source: Detroit Free PressImage Credit: Mike Windle/Getty Images for Pandora Media, Inc. Lexus Car Buying Car Dealers Used Car Buying Luxury

Lexus puts the 2.0T into the Euro-market RC Coupe

The Lexus IS got the brand's 2.0-liter turbocharged four-cylinder to become the IS 200t. So it is with the Lexus RC in Europe, which gets the engine swap in Europe and as the RC 200t becomes the entry level model in the range. It goes on sale over there at the end of this year, and is predicted to make its way here eventually. The engine is rated the same in this application as in the IS: 241 horsepower and 258 pound-feet of torque, working through an eight-speed transmission for a 0-62 mile-per-hour time of 7.5 seconds. It can be picked out by its smaller wheels and the lack of aggressive bodywork. Lexus will offer an F-Sport package that restores some muscularity. Better still is the available Torsen limited-slip differential and the adaptive variable suspension for improved handling. We don't have the entry-level coupes here like the Euro-market BMW 420i, which would be a good competitor for the RC 200t. In our market base competitors like the BMW 428i, Audi A5, and Cadillac ATS, all fitted with 2.0-liter engines, are faster, and will most likely be lighter and might be less expensive than the RC 200t. That looks like it will make the Lexus offering best for buyers who already want to get into the line but at a friendlier price. The press release below has more info. Related Video: RC JOINING THE LEXUS 2.0L TURBO PETROL LINE-UP - 2.0 litre, 4-cylinder, twin-scroll turbo unit developing 180 kW/245 DIN hp and 350 Nm of torque - 0-100 km/h in 7.5 seconds and 230 km/h maximum speed - 8-Speed Sport Direct Shift (SPDS) transmission with G-force linked gear shifting Brussels, Belgium Lexus: 31 Jul 2015 - The new Lexus RC 200t is the fourth Lexus model to feature the refined driving performance of the company's 2.0 litre turbocharged petrol engine. Mated to an 8-speed Sport Direct Shift (SPDS) transmission, the turbo unit adopts numerous sophisticated engine technologies to offer drivers an engaging combination of smoothness, turbo-lag-free throttle responsiveness and fuel-efficiency. The superior driving dynamics of the new RC 200t may be further enhanced through the availability of an F SPORT version, which is equipped with a Torsen Limited Slip Differential. Together with the already announced RC 300h, the new RC 200t go on sale throughout Europe at the end of the year.