Without a doubt, Lexus does build finely crafted automobiles. They are smooth, quiet, luxurious, and seemingly reliable. A "driver's car", not really (especially the first generations), but the later ones with more power and upgraded suspensions might qualify, although not quite to the same extent that Infiniti has been more "driver oriented" in their designs and equipment all along.
Having the less expensive Lexus helps sell the higher priced models and vice versa. At least when you go to buy parts, the Lexus Jr. parts are not the same as a similar Camry, from which it is based. I'm not sure why the smaller Lexus brake pads need to be different, but they allegedly are--different part numbers and all.
The definition of "luxury" is quite different now than in the past decades. Used to be that "luxury" meant power assists everywhere (including the radio tuner), leather interiors, plus something called "size" in all aspects of the vehicle. Now, it's more related to price for all of the various sales segment nomenclatures. Many American "luxury" brands are not labeled that way any more, under the "price related" nomenclatures.
Mercedes has always built less expensive cars in Europe, just that we didn't see them over here. What was exported to the US was just a small portion of their model range in the home market. Ever see an early 1980s E-class 190 that did NOT have a MB Tex perforated vinyl interior?
I highly suspect that many Lexus owners do not know that their vehicles are built by Toyota (which seems to have been not admitted to in many areas by THEM). One Lexus dealer was using Camrys in their rental/loan fleet and they got complaints from owners of the smaller Lexus cars because they were not a Lexus, but still the same car.
In the beginning, Infinity went more for the performance end of the segment as Lexus went for the smoooth luxury end. Lexus seemed to have hit better sales with their styling, though.
They were also deep into selling their used Lexus trade-ins as "certified pre-owned" cars, using some reconditioning orientations from what I understand Rolls-Royce used--meaning it had to be OEM spec in all aspects before it would go on the lot. Lexus got to be such an aspirational brand that a market for used Lexus vehicles (with new car financing rates and extended warranties). So, Lexus broke new ground in that area too.
When Toyota invented Lexus, the timing in the market was "right" for it to happen. Nissan didn't quite "get it right" with their Infinity until a few model generations later, so they were always in 2nd place to Lexus (in spite of their really inexpensive factory lease promotions). Mazda was going to get into the market too, but declined and gave us the 9 series sedans instead. It was a completely new area for Toyota and no one really suspected it would become what it did, but skillful marketing and positioning were very important too.
I'll concur that driving a Lexus is more "cruise and profile" oriented than in a BMW, for example, and also that I am not a big fan of "appliance vehicles" for the reasons mentioned above. I WANT to hear a little engine noise when I throttle into the engine plus a little coarse road road noise so I know there's still a road down there. Getting a vehcle's interior as quiet as Lexus has claimed they have might be a little too quiet in some respects. And where did they find those "high end" stereo people that we hadn't heard of before?
Just when Lexus was adjusting to Nissan evolving Infinity into a better player, here comes Cadillac. Driving the SRX against an RX300 is NO comparison in performance or handling or other aspects. DeVille's might still be "traditional Cadillac", but they could easily outperform the larger Lexus with the CTS coming up on the smaller Lexus models.
The Lincoln LS is a great car, but is more comfortable in orientation with the Jaguar S-Type and other similar vehicles. The Olds Intrigue, with a little repositioning, could have been a great player against the S-Type or LS, even if it was front wheel drive.
If you want to consider how much profit margin might be in a Lexus sales transaction, consider that those fancy dealerships are getting paid for somehow--and it's not all from oil changes or car washes. All of the other amenities from the factory are folded into the purchase price of the car to the dealer too. End result, it might well cost Toyota about another $2000.00 (max) factory cost to build a Lexus instead of an Avalon (which isn't "cheap" either!).
I know, the typical Lexus owner isn't worried about those things as they just "occur naturally in nature", so to speak. A special car deserves a special dealership and ownership experience, even if they pay for it themselves (one way or another). As long as they're happy . . . and come back for another car in a few years and about 60,000 miles later--plus it's their money and not mine.
The higher end car market segment is a constantly evolving area with much competition. Perception is everything whether the product is deserving or not. I sometimes wonder if anyone that had just bought a Lexus would really admit they ever had any problems with them--publicly or privately--as to do so might indicate that their "perfect" car really wasn't? This one psychological aspect might be further proof that whatever gains GM is making in the JD Powers surveys are significant. But then Saturn's been at the top of many of them for a long time and they aren't "luxury" at all!
I somewhat suspect the next generation DeVille will get the larger Lexus vehicles more in their crosshairs. Plus a few others too. The SLS will probably aim for Infinity with the CTS and SRX having their own respective target areas. Where will we be in 5 years? We'll have to wait and see, but the Lexus operatives will be making their own course adjustments, too, due to the American brands "uprising".
It will be interesting to see how Lexus is received when it's introduced in Japan.
Just some thoughts,
NTX5467
