Lexus Cancels Three Models In Europe For One Reason

Oct. 18, 2020 2:16 PM ET by Jay Traugott Industry News / 6 Comments

It's not hard to figure out.

Although Lexus continues to do extremely well in North America, it is still working hard to make a similar impact in Europe. Toyota's luxury brand is certainly healthy enough to retain its European market presence (unlike Infiniti), but it has made the decision to discontinue three slow-selling models for the 2021 model year. Not surprisingly, none of them are crossovers.

Automotive News Europe reports that the Lexus RC, IS, and CT are all goners in the Old World. Once the current inventory is sold out, that's it. "It's a decision based on the evolution of our portfolio," an unnamed spokesman for Lexus told Automotive News. "If you look at the sales of Lexus in Europe and the overall market, the evolution is going more toward SUVs."

If you recall, the CT, a luxury hybrid hatchback, was discontinued for North America back in 2017. The fact that it also dates back to 2011 is another reason why Lexus is letting it go once and for all. The CT was at one a time a strong seller in Europe, likely because hatchbacks have always been more popular there. However, just 2,344 units were sold from January to August of this year, a 35 percent decrease compared to last year at the same time.

Meanwhile, the Lexus IS, which has received a refresh for 2021, also saw disappointing sales in the first eight months of this year with only 1,101 units leaving dealership lots.

As for the RC, just 422 were sold through August. For now, it'll remain on sale in our neck of the woods. The Lexus LS flagship sedan, meanwhile, is literally a sales bomb in Europe. Only 58 examples were sold through this same time period, and yet it's not going anywhere. Why? "The LS is our flagship," the spokesman said. "Despite the lower numbers, it's a model that carries a lot of innovation and is a strong brand builder."

Fortunately, sales of Lexus SUVs like the UX, NX, and RX continue to be strong, with 10,291 units, 7,739, and 3,474, respectively, delivered through August.