Sales

A Sub-$30k Lexus Wouldn't Be Worthy of Being a Lexus

So says a senior Lexus executive.

There have been rumors recently regarding a potential new Lexus that could carry a sticker price below $30,000. In theory, it could be a crossover even smaller than the new NX. Perhaps it’d be best to think of it as a Buick Encore fighter. Sounds intriguing, but according to one Lexus executive it won’t happen. Mark Templin told Automotive News that "We could go down and build a car under $30,000, but it would be decontented, and you’d be cutting corners. It wouldn’t be a Lexus."

He may have a point there, and continued by stating that "to be honest with you, you can’t build a Lexus with the quality, the durability, the reliability, the craftsmanship, the content that we put in a Lexus and sell it profitably under $30,000. You just can’t do it." On the other hand, rivals such as Audi and Mercedes each have new entry-level models that begin just a smidgen under $30k. And to that Templin questions: "Is that luxury?" Then again, perhaps Templin should take into consideration sales figures: Lexus is currently trailing behind its German rivals in the US. Thanks to models like the A3 and the CLA, both Audi and Mercedes are seeing plenty of first-time luxury buyers walk into their showrooms. Not so much can be said over at Lexus.

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