Lexus' cheapest car for now and, apparently, the foreseeable future, the $32,960 CT 200h
Last Thursday Toyota held its annual holiday lunch for Detroit area media types, bringing in high level executives from all of its brands for the event. Lexus chief Jeff Bracken took the opportunity to say that Lexus will not follow Mercedes-Benz, whose CLA is selling well, into the sub $30,000 market. "We will not head down below $30,000," Bracken said. "We have Toyota and Scion to handle that price level for us."
From its introduction in September through November, M-B has sold almost 11,000 of the compact front drive CLA, which has a MSRP of $29,900 before destination charges.
"They are off to a great start," said Bracken. "They are really doing well, and it has probably not only impacted their overall volume with CLA, but also brought in some traffic for some of the other series that they represent, and clearly helping drive the luxury segment in total."
Lexus' cheapest car is the CT 200h hybrid at $32,960, including delivery charges. BMW's lowest-priced car, the 1 series, starts at $32,425, including shipping. Through November, BMW sold 6,181 1-series cars.
One reason why Toyota isn't going downmarket are CAFE standards. Bob Carter, senior vice president of Toyota Motor Sales U.S.A., was also at the Detroit event and said that Lexus can rely on corporate siblings Toyota and Scion to meet the stricter 2016 U.S. Corporate Average Fuel Economy standards, but Mercedes and BMW don't sell many fuel efficient small cars in the U.S. Through November, M-B's smart brand sold 8,409 cars, a small fraction of the number of Mercedes-Benz cars sold new in America and BMW's Mini sold 59,900, about 20% of BMW's U.S. volume. Contrast that to Toyota's 1.7 million units sold. With that many relatively fuel efficient cars in the corporate fleet, Lexus doesn't have to sell cheaper small cars just to meet CAFE standards.
"By not diluting its brand image, Lexus will stay focused," Carter said. "It lets Lexus hit on higher levels, in segments more traditionally associated with luxury."
from The Truth About Cars http://www.thetruthaboutcars.com
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