[Lex Luther]

Read this article today that talks about how Lexus CEO Jim Lentz wishes Lexus invested in a 3-row crossover, rather than the RC Coupe.

Lentz believes a competitor to the Mercedes-Benz GL and Audi Q7 would have been the wiser choice, rather than listening to dealer demands for a sports car.

“In hindsight, if I was making this decision 10 years ago, seeing what I see today, the three-row [crossover] probably would have been the better play to come out first,” said Lentz. “Strategically that’s a more important vehicle to have than necessarily a lower volume, higher priced image product.”

Still, Lexus doesn't say that it sees the RC as a mistake. It has been relatively successful -- selling more than the flagship LS sedan with 4,258 units through April of this year. Sales for Lexus as a whole have risen by 17 percent compared to last year.

I would think that this implies that a 3-row crossover is probably in the works from Lexus, though the company has not confirmed anything.

Lexus Three-Row Crossover Wiser than RC Coupe: CEO

 

[DCRH]

Going for the 3-row first before the RC coupe could have tuned out better for them, for both vehicles.
For the RC, they'd have more time to gauge competition and possibly create a better, more potent RC.

 

[spoonful]

would of been a dumb move. They don't get to race Super GT with a 3 row crossover. They don't get to create cool drifting rc car commercials with a three row crossover, they don't get absorbed in the F vs M debate with a three row crossover. They built what would give them the most visibility not the most volume, arguably you don't get to move volume without image. So which came first the chicken or the egg?

And don't read the autoguide article, go straight to the source http://www.autonews.com/article/20150511/OEM02/305119948/lentz-on-lexus:-few-regrets

 

[DCRH]

Good point, during a time when Lexus is creating a new image of the brand, the RC helps represent them in a way they never been able to although they have had coupes before, just none like the RC.

 

[Lex Luther]

I do think that the RC helps Lexus define its brand better, but remember that its not a matter of if the RC should have happened at all, its just a matter of if it should have come before or after a 3 row crossover. I think that the 3 row crossover would have given them more sales, and consequently more capital to to invest and develop the RC Coupe.

 

[spoonful]

I do think that the RC helps Lexus define its brand better, but remember that its not a matter of if the RC should have happened at all, its just a matter of if it should have come before or after a 3 row crossover. I think that the 3 row crossover would have given them more sales, and consequently more capital to to invest and develop the RC Coupe.

Again, you don't get to trade that as an image. Look at the publicity they've generating by being in every M4 vs Audi vs Lexus comparison and the sexy ones. Lexus has stated that they are attempting to swing their brand perception away from big and cushy, you don't get to do that by developing a big and cushy crossover.

If they did it first they now have a big and cushy heavy lineup and will be attempting to tell us that no they don;t have a big and cushy lineup. No one would give them the time of day...

 

[DCRH]

It would likely be a slight set back in projecting that image anyways, would have been much of an issue IMO.

 

[spoonful]

It would likely be a slight set back in projecting that image anyways, would have been much of an issue IMO.

There is no such thing as a slight setback when it comes to image. Image is all you have to trade on and it will be protected with life. Reputation is the only bargaining chip you have.

If image was a wash either way logic says they would of went with increasing sales as there was a huge benefit there. So to me what that says is the image trade-off was WORSE then the perceived benefit from increased growth. That my friend is not slight....

 

[Lex Luther]

All this talk of reputation I think is true, but I question whether Lexus should care more about reputation and image, or hard numbers -- sales.

 

[Sykes]

All this talk of reputation I think is true, but I question whether Lexus should care more about reputation and image, or hard numbers -- sales.

Reputation sells cars, if not Lada's would be everywhere. Its a bit hard to command volume when consumers have no reason to latch onto your product. The auto industry is well and truely a place of little differentiation. Outside of base fripperies most cars in class are identical. Brand becomes the differentiator and the key to sales when product can no longer distance you from an identical rival.

Separated by secondary differences...

 

[Lex Luther]

Reputation sells cars, if not Lada's would be everywhere. Its a bit hard to command volume when consumers have no reason to latch onto your product. The auto industry is well and truely a place of little differentiation. Outside of base fripperies most cars in class are identical. Brand becomes the differentiator and the key to sales when product can no longer distance you from an identical rival.

Separated by secondary differences...

I think that one of the things that Lexus has going for it is a very defined brand, even without the RC350. The spindle grille sets Lexus apart from every other brand. They have a very definitive look.

The Lexus RX is one of the best selling vehicles in their line-up and that was selling well before the RX. I just don't think that Lexus has a big problem with their reputation before or after the RC.

 

[DCRH]

I think that one of the things that Lexus has going for it is a very defined brand, even without the RC350. The spindle grille sets Lexus apart from every other brand. They have a very definitive look.

But that can be said for every single brand out there, they all have a brand distinctive looking grille by which they are defined by.