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Lexus parts prices cut in China amidst antitrust fears

It's been a topsy-turvy summer for foreign businesses in China ever since that country's National Development and Reform Commission and State Administration for Industry & Commerce launched a horde of investigations into anti-monopoly practices. When the law outlining monopolistic behavior was passed in 2008 foreign companies appreciated it, expecting it to illuminate some of the more opaque corners of Chinese government enforcement. That hasn't exactly been the case, and now as more than 1,000 auto-sector firms get investigated and pay huge fines to settle the nebulous charge of having prices that are too high, that hoped-for clarity is all but gone.
A recent news report said Audi, Chrysler and Daimler "would be punished for unspecified violations" concerning the prices of spare parts. Earlier this month Toyota said that Lexus China was being looked at, and before there's been any public notification of punishment Lexus has decided to lower the price of its replacement parts. From next month, customers will save an average of 26 percent on roughly 15,000 parts. It's unknown whether the move will appease authorities enough to end the investigation, which outside analysts have said targets foreign firms in China over domestic industry.

2013 Lexus LS460 F-Sport AWD

Gary Approved
There's a guy that goes to my gym who can't get enough of the Lexus LS - let's call him Gary. Gary's the guy - you've probably got one at your gym, or coffee shop, or some other public but quasi-social location - who talks to everyone he meets. Sit next to him on the rowing machine or run by him on the track, and he's almost certainly going to bend your ear for a minute or 20. Gary is in his mid-60s, a business owner, and the super-proud owner of a 2013 Lexus LS.
Not being a shy man, Gary will be the first one to tell you that he didn't do much comparative shopping (he "drove by" the BMW dealership, and looked at a 7 Series "on the computer"). Being a satisfied former owner of multiple Lexus RXs, there was probably only a tiny statistical chance that Gary wouldn't end up in an LS when it came time for him to treat himself to the tricked out luxury car that he'd wanted for a long time. Still, when I found myself chatting with Gary about his new LS, right after I had spent a wintry week in the 2013 LS460 F-Sport AWD, I figured that he'd have some light to shed on the car.

Did BMW really win the luxury car sales race?

As anyone who follows our monthly By The Numbers series already knows, the luxury car sales race in the United States was close all of last year as BMW, Lexus and Mercedes-Benz seesawed up and down for sales supremacy. At the end of the year, it was BMW on top of the standings with 346,023 total sales. Or was it? According to data released by Polk, comparing the actual number of vehicles registered between the three top luxury players in the US paints a slightly different picture. Polk's data suggests that only 335,259 BMWs were registered in 2015, compared to 340,392 Lexus models. Why the disparity? It's all a matter of timing. Actual end consumers buy new cars, in almost all cases, from a franchised dealer. BMW delivered 346,023 vehicles in 2015, but only 335,259 of them were registered by their new owners. Presumably, those 11,000 BMWs did (or will) end up registered in the driveways of consumers, but they hadn't before January 1, 2016. Lexus General Manager Jeff Bracken wrote in an email to Automotive News, "Luxury sales leadership as measured by vehicle registrations is important to Lexus as it represents actual consumers engaging directly with our dealers." Of course, it goes without saying that we'll be paying keen attention to the 2016 luxury car sales race as it unfolds. If it's anything like it was in 2015, it'll come down to the wire, and even then may not be entirely clear. Related Video: News Source: Automotive News - sub. req.Image Credit: Andrew Harrer/Bloomberg via Getty BMW Lexus Mercedes-Benz Car Buying Car Dealers Luxury luxury cars