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Lexus GX and LX future may be in doubt

With the debut of an all-new RX, Lexus is in a position for continued strong sales in the luxury SUV arena. The fourth-generation RX has grown, making room for the new NX model beneath it. But further up the ladder, things could change for the GX and LX. In an interview with Autoblog at the 2015 New York Auto Show, Lexus executive vice president Mark Templin gave some hints at the future of his brand's SUV lineup. "With NX and RX, we have a really good one-two punch in the crossover segments, and we think we can cover most of the markets with that," he said. As for the larger, three-row GX and LX models, which are built on a traditional ladder-frame chassis, things aren't so clear. Templin noted the the success of both models all over the world – the LX is the best-selling Lexus in Saudi Arabia. The same is true for sales here, he said: "We do very well with those products in the United States – GX has been a great product for us in the US for the last couple of years since its initial introduction. But the future of those vehicles longer term is in doubt because of regulations that are being driven by governments all over the world." Don't start stockpiling LX 570s in anticipation of shortages just yet. Templin didn't give any specifics; he just notes that tightening fuel economy and emissions regulations could affect product planning. In our analysis, if and when GX rides off into the sunset, Lexus still needs a midsize, three-row SUV to fill that gap. The most likely candidate for that is some variation on the RX. Whether or not that's the case, don't expect a BMW-like proliferation of body styles from Toyota's luxury division. "It creates problems. It creates complexity, that's hard for every step of the process," Templin said, nothing that too many models stresses the design department, manufacturing, and even dealers inventory selection. As for the bottom end of the lineup, Templin wouldn't comment on a compact SUV below the NX, saying "I think there are more potential options for us in the future, but we're not trying to grow the number of models we have in our lineup. It's not really what our core business is about." For now, Lexus and Templin are focused on launching the RX, which accounts for three of every 10 Lexus models ever sold. The 2016 model, available in RX 350 and RX 450h hybrid versions, goes on sale by the end of the year. Related Video:

Lexus back in luxury sales race after three-year absence

Think the only challengers for the title of best-selling luxury brand hail from der Vaterland? Wrong. Lexus outsold the likes of Mercedes-Benz for the second time in 2014 last month. In fact, the Japanese luxury marque's total sales this year are a mere 12,000 units behind BMW.
Lexus was able to move 26,921 vehicles last month, a year-over-year increase of 21.1 percent, respectively. Mercedes, meanwhile, was just barely beaten, moving 26,617 units in April. The difference, though, is that Lexus has made far bigger year-over-year gains than Mercedes, which recorded a YOY increase of just 4.13 percent.
This is particularly troubling for the Germans, as it marks a return to form for Lexus that we haven't seen since before the March 2011 earthquake and tsunami that decimated Japan. Prior to that natural disaster, Lexus enjoyed nearly a dozen years at the top of the luxury heap.

Thanks to smaller engines, vehicle dependability falls for first time in 16 years

As automakers have made engines smaller and smaller to improve fuel economy, problems in those vehicles have gotten bigger and bigger. That's the synopsis of a J.D. Power vehicle-dependability study, which found that dependability dropped for the first time in 16 years, largely because the proliferation of four-cylinder engines is causing the vehicles to be less reliable. Specifically, the number of problems per 100 vehicles (or what J.D. Power calls PP100) during the past 12 months for 2011 model-year vehicles rose six percent from the year-earlier figures for 2010 model-year cars. Singling out four-cylinder vehicles revealed about a 10-percent increase in problems during the past year. This issues largely related to engine hesitation, rough transmission shifting and lack of power, signaling the inability of vehicle makers to iron out some of the problems in their smaller engines as they strove for better fuel economy. Six- and five-cylinder engines proved far more reliable. Among car brands, BMW's Mini sub-brand came out as least reliable, with 185 problems per 100 vehicles during the past year. Toyota's Lexus badge was easily the most reliable, with just 68 problems per 100 vehicles. Coming in second place was Mercedes-Benz. The overall average was 133. Check out J.D. Power's press release below. J.D. Power Reports: Increased Engine and Transmission Problems Contribute to Decline in Vehicle Dependability for The First Time in More Than 15 Years General Motors Company Receives Eight Segment Awards, While Toyota Motor Corporation Garners Seven and Honda Motor Company Earns Six WESTLAKE VILLAGE, Calif.: o Owners of 3-year-old vehicles (2011 model year) report more problems than did owners of 3-year-old vehicles last year, according to the J.D. Power 2014 U.S. Vehicle Dependability StudySM (VDS) released today. The study, now in its 25th year, examines problems experienced during the past 12 months by original owners of 2011 model-year vehicles. Overall dependability is determined by the number of problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality. The study finds that overall vehicle dependability averages 133 PP100, a 6 percent increase in problems from 126 PP100 in 2013. This marks the first time since the 1998 study that the average number of problems has increased. "Until this year, we have seen a continual improvement in vehicle dependability," said David Sargent, vice president of global automotive at J.D.