Three-row SUV a smarter move than RC – Lexus CEO

NYIAS_2016_Lexus_RX_450h_005

As Automotive News understands, Toyota North America’s CEO, Jim Lentz, is lamenting the decision made by Lexus to proceed with its two-doored RC coupe instead of developing a three-row SUV. Granted, the luxury arm of Toyota does sell three-row SUVs in the form of its GX and LX models but said models are truck-based while the largest crossover it has in its arsenal is the five-seater Lexus RX (pictured above).

“In hindsight, if I was making this decision 10 years ago, seeing what I see today, the three-row [crossover] probably would have been the better play to come out first,” said Lentz. “Strategically that’s a more important vehicle to have than necessarily a lower volume, higher priced image product,” he added. By adding said crossover into its range, Lexus would be able to take the fight to the upcoming Mercedes-Benz GLS-Class.

Though the firm has yet to confirm whether or not such a model was under development, Lexus division chief, Jeff Bracken, has commented that “third-row seating is the number one issue we hear from dealers. We feel like we’re missing a 35,000-units-a-year opportunity.” With that said, Lentz is adamant that the RC is not entirely a mistake – the coupe has chalked up 4,258 sales since the start of 2015.

2015_Lexus_RC_F_001

Those figures actually better the marque’s flagship sedan, the LS, in terms of units moved for 2015. In fact, Lexus has little to worry as the brand now lags behind sales champion, Mercedes-Benz, by roughly 4,300 vehicles and second-placed BMW by around 2,400 units since the start of 2015 – close to a 17% leap compared to the same period recorded in 2014.

Spurred on by the encouraging figures, one might expect Lentz to push for the top spot. Instead, he’s chosen to keep to a different game plan by making sure that the range does not get overloaded with too many models and/or body styles. “In the luxury business, chasing volume is not a good strategy,” reinforced Lentz.

“Luxury cars cost a certain dollar amount for a reason. I don’t want to cheapen my cars just to offer a lease that’s $20 a month less,” he added, further quelling rumours of a Mercedes-Benz CLA-Class and Audi A3 competitor. For now, Lentz is content with the heights the IS sedan and CT hatch are reaching, in terms of pulling in new buyers to the brand.

GALLERY: 2016 Lexus RX 450h

Looking to sell your car? Sell it with Carro.

Certified Pre-Owned - 1 Year Warranty

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Gregory Sze

An “actor” by training, Gregory Sze realised that he has had enough of drama in his life. Following his number one passion (acting was actually number two), he decided to make the jump into the realm of automotive journalism. He appreciates the simple things in life – a simple car with nothing but back-to-basics mechanical engineering and minimal electronics on board.

 

Comments

  • Kenneth Fook on May 13, 2015 at 3:37 pm

    Cant wait for the RX to be launched in Malaysia! Lexus is always oozing out with Class and Style. Just look at them spindle grill. =D Hope the new eight speed helps in reducing the time needed for the century sprint too. Think Lexus, Think Perfection.

    Like or Dislike: Thumb up 7 Thumb down 1
  • Yes, add the 3rd row and later add 300k more to the price tag..

    Like or Dislike: Thumb up 0 Thumb down 6
  • forrest the tree on May 13, 2015 at 7:51 pm

    Come on, third row is for children only.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Same same on May 13, 2015 at 8:20 pm

    This car have no RV, worse you can’t even sell, nobody want to buy. You agree Sam?

    Like or Dislike: Thumb up 2 Thumb down 3
  • Head Hunter on May 14, 2015 at 6:32 am

    Your LX might be truck based, but it is one great car that can challenge Land Rover Range Rover any day without breaking down.The LX should be here in Malaysia by now.

    Like or Dislike: Thumb up 3 Thumb down 1
  • Sam Loo (ori1) on May 14, 2015 at 8:34 pm

    LX is the Ninja King in East Malaysia

    Like or Dislike: Thumb up 0 Thumb down 0
 

Add a comment

required

required