By Joseph B. White
Toyota Motor Corp.'s Lexus is banking on a new sport utility to
get it back in the running for top luxury car brands in the
U.S.
Lexus this month is ramping up its launch of its NX small SUV, a
model company officials say could be one of the brand's best
sellers. "Our plan is to sell 40,000 NXs next year," Lexus General
Manager Jeff Bracken said in an interview. Lexus sold 271,510
vehicles in total this year through Nov. 30.
Through November, Lexus's U.S. sales are running behind Daimler
AG's Mercedes-Benz and BMW AG. The two German auto makers together
have sold nearly 100,000 small SUVs this year amid low gas prices
and robust light-vehicle demand.
Lexus was No. 1 among luxury auto brands in the U.S. from 2000
until 2010, having edged out Ford Motor Co.'s Lincoln brand and
General Motors Co.'s Cadillac in the late 1990s. The brand's
momentum skidded in 2011 after a devastating earthquake and tsunami
disrupted production in Japan, and BMW and Mercedes unleashed a
volley of new models in segments where Lexus didn't compete.
One reason Lexus fell behind is that it lacked a compact SUV
until its 2015 NX model launched late last month. Its absence left
the field wide open for luxury compact SUVs from BMW,
Mercedes-Benz, Acura and Audi to grab buyers moving to SUVs and
away from sedans.
Missing the compact luxury SUV trend was a reversal of fortune
for Lexus, which had set its rivals on their heels by engineering a
luxury sport-utility vehicle on the chassis of a midsize car. The
original Lexus RX, launched in 1998, propelled Lexus sales during
the ensuing years and prompted rivals to follow suit.
"I wish we had it earlier than now," Mr. Bracken said of the NX,
which is hitting dealerships this month. "But we have it. It is the
hottest segment in the luxury market."
With a starting price of $35,405, the NX competes with the BMW
X3, Mercedes GLK, Acura RDX, Lincoln MKC, Infiniti QX50 and Audi Q3
and Q5, among others. Brands that don't have compact SUVs are
rushing to develop them, including Cadillac and Volvo Car, owned by
China's Zhejiang Geely Holding Group Co. Ltd.
Competitors including Audi AG are finding that lower-priced
models--such as the $30,000 Audi A3--can pull in buyers who
previously didn't consider a luxury model. Mr. Bracken said Lexus
can close the gap with the top German brands without selling
vehicles for less than $30,000. Its lowest cost model starts at
around $32,000.
Lexus is adding other models, including a compact RC coupe. Next
year Toyota's Georgetown, Ky., assembly plant will start building
up to 50,000 Lexus ES midsize sedans.
Headed into the final weeks of this year's holiday sales, the
race for the luxury car crown in the U. S. has BMW ahead of rivals.
Sales for the BMW brand are up 10% at 298,212 during the first 11
months of the year.
Through Nov. 30, Mercedes-Benz sold 296,382 luxury cars, up 6%
from a year ago. Lexus sales are up 14% to 271,510 vehicles. Audi
has boosted sales for the year so far by 15.8% and is now in fourth
place at 162,773 vehicles sold. General Motors's Cadillac brand has
sold 154,600 vehicles, down 5.6%.
Corrections & Amplifications
Mercedes-Benz luxury cars sales this year through Nov. 30 were
296,382, up 6% from a year earlier, and behind BMW. An earlier
version of this article used an incorrect figure for Mercedes sales
and percentage change.
Write to Joseph B. White at joseph.white@wsj.com
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