Luxury

Lexus Won't Build Cars for Poor People

But they would be happy to recommend them a Toyota or Scion.

If you haven’t noticed, Mercedes-Benz is now offering a sub-$30,000 entry-level sedan for those seeking entry into the exclusive luxury car club at an affordable price. The new CLA has been a smash hit for the German brand especially amongst younger buyers. With a starting price of around $29,000, the CLA is actually affordable, and it’s causing competing brands like BMW to rethink the price tag on its lowest priced model, the $32k 1 Series. Lexus, however, is having none of it.

It wants to remain a true luxury brand. Lexus boss Jeff Bracken has just made clear that his company will not follow Mercedes and "will not head down below $30,000." Why? "We have Toyota and Scion to handle that price level for us." The cheapest Lexus you can buy today is the $32,960 CT 200h hybrid, and if you can’t afford that, then you ain’t gonna have yourself a new Lexus. A Toyota executive also pointed out that both Mercedes and BMW need small, high-mileage vehicles to meet upcoming CAFE standards. Lexus, however, doesn’t have to worry so much. Toyota and Scion will take care of that particular task.

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