* Luxury Package * Mark Levinson * Factory Dvd * Intuitive Park Assist * Titled on 2040-cars

Auto blog

Lexus flagship SUV, a true three-row crossover and an EV on the way, dealer says

Lexus is working to update its mostly dormant portfolio with new cars to populate currently unfilled segments. These will include a full electric vehicle, a true three-row crossover, and a flagship SUV. Many existing models will be getting updates as well, along with a new infotainment system. The agenda was outlined by the chairman of the Lexus National Dealer Advisory Council, John Iacono, in an interview with Automotive News. It very much reads like someone trying to show how much they know by spilling the beans on random bits of info they've heard (it's definitely not anything approaching official information from a company executive), so we'll take most of it with a fistfull of salt. Still, there's plenty here that certainly makes sense given the state of the current Lexus lineup.  Iacono says that Lexus has not been quick enough to fill new segments in the last two years. It was "only the service that kept people coming back," he says. Customers turned elsewhere because they couldn't find what they wanted in the Lexus lineup, even though the cars are "bulletproof." What those customers wanted, he says, included a three-row crossover. A couple of year ago, dealers rejoiced when the RX was stretched to accommodate a third row (pictured below), but it was only a stopgap to keep dealers happy. Iacono said this people-mover will arrive "relatively soon," likely referring to the luxury crossover set to be introduced this year. Lexus doesn't want to deviate from RX's philosophy because it's the brand's most successful product. Lexus does sell two other three-row vehicles, but the GX and LX are traditional body-on-frame SUVs derived from off-road-oriented Toyotas.  View 20 Photos Speaking of the LX, Lexus will soon be producing an SUV that Iacono believes will become the marque's flagship. The halo car crown will no longer be worn by the luxurious LS sedan or flashy LC grand tourer coupe. Instead, Iacono described this SUV as a niche off-roader that won't sell at high volumes, but will serve as a must-have item that makes the brand cool. To us, that sounds a lot like the previously reported Lexus-badged version of the next-generation Land Cruiser. Curiously, Iacono later refers to upcoming refreshes of the GX and LX, so perhaps the new flag-bearer will be called something else. Or, again, perhaps the chairman of the Lexus National Dealer Advisory Council just doesn't know as much as he lets on in this lengthy interview.

These are the top luxury cars bought by people entering the segment for the first time

Let's say you just got a big promotion at work or the kids are moving out of the house, and you finally have some extra money. You decide to blow it all at once and treat yourself by upgrading your ride. Naturally, you look to a luxury automaker. What do you choose?
Models like the Audi A3 and Mercedes-Benz CLA-Class may be tailor-made to introduce buyers to the premium segment, but a new study finds that they don't garner the highest rates of non-luxury customer conquests. It turns out that a Volvo leads among folks moving up to a premium brand, and it isn't even one that's made anymore, at that.
A recent study by Polk and IHS Automotive looked at what models had the highest rates of buyers upgrading from a non-luxury segment. The information comes from its new vehicle registration data through April 2014. All ten top models boasted conquest rates of over 50 percent, but the Volvo C70 led the field with 68.01 percent of its customers coming from non-premium brands.

The next steps automakers could take after sales drop again in April

DETROIT (Reuters) - Major automakers on Tuesday posted declines in U.S. new vehicle sales for April in a sign the long boom cycle that lifted the American auto industry to record sales last year is losing steam, sending carmaker stocks down. The drop in sales versus April 2016 came on the heels of a disappointing March, which automakers had shrugged off as just a bad month. But two straight weak months has heightened Wall Street worries the cyclical industry is on a downward swing after a nearly uninterrupted boom since the Great Recession's end in 2010. Auto sales were a drag on U.S. first-quarter gross domestic product, with the economy growing at an annual rate of just 0.7 percent according to an advance estimate published by the Commerce Department last Friday. Excluding the auto sector the GDP growth rate would have been 1.2 percent. Industry consultant Autodata put the industry's seasonally adjusted annualized rate of sales at 16.88 million units for April, below the average of 17.2 million units predicted by analysts polled by Reuters. General Motors Co shares fell 2.9 percent while Ford Motor Co slid 4.3 percent and Fiat Chrysler Automobiles NV's U.S.-traded shares tumbled 4.2 percent. The U.S. auto industry faces multiple challenges. Sales are slipping and vehicle inventory levels have risen even as carmakers have hiked discounts to lure customers. A flood of used vehicles from the boom cycle are increasingly competing with new cars. The question for automakers: How much and for how long to curtail production this summer, which will result in worker layoffs? To bring down stocks of unsold vehicles, the Detroit automakers need to cut production, and offer more discounts without creating "an incentives war," said Mark Wakefield, head of the North American automotive practice for AlixPartners in Southfield, Michigan. "We see multiple weeks (of production) being taken out on the car side," he said, "and some softness on the truck side." Rival automakers will be watching each other to see if one is cutting prices to gain market share from another, he said, instead of just clearing inventory. INVESTORS DIGEST BAD NEWS Just last week GM reported a record first-quarter profit, but that had almost zero impact on the automaker's stock. The iconic carmaker, whose own interest was once conflated with that of America's, has slipped behind luxury carmaker Tesla Inc in terms of valuation.