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Lexus Meeting Notes From NYC Dealer Meeting - The Future Of Lexus
Below you will find Lexus Dealer Meeting notes prepared by Peter Hennessy of Lexus of Atlanta.
Meeting notes from NYC dealer meeting
In past years some folks have enjoyed the product summary that I have put together for internal purposes. I am including the summary of the dealer meeting for those who have an interest in reading what I think I heard last week.
A few of my impressions of the NYC dealer meeting:
1. Lexus certainly regained their groove thing after last year's show that was long on skits and short on product reveals and marketing substance. This year's show was very heavy with both. In fact, they went further out on the product introduction calendar than I can ever remember.
2. Products they showed:
a. New RX and RXh. No great surprises here. The same thing we
saw last year in Hawaii and again at the Elite meeting in June. The cars will be here the first part of February for the base car and April for the Hybrid. The Hybrid goes up to a 3.5L engine versus the current 3.0L engine.
It will make it quicker (30+ horsepower) and more efficient. Gas mileage should improve just a bit. They also stressed that the RX was the first new car to be designed, executed and built with the new quality control standards. A hundred prototypes are being tested now. I get the sense that if we have any transmission issues right off the bat that there will be a lot of unemployed Japanese staff members. They are really hanging their hat on the fact that this car is going to be right from the start. It is being called the “next evolution cross-over.”
b. New GX460. The biggest problem with the new GX is that it looks so much like an LX, there many be no reason to buy the LX. They did not show an interior mock up of the car, but the outside looks like a 7/8th version of the new LX. The big positive: there are electric fold down rear seats in the 3rd row. The negative news: the door still opens on the side and yes, it remains on the wrong side. There are a couple of reasons for this. First and foremost this is a world car and the other global markets were not asking for a split rear hatch or a lift gate. The other driving factor is that there are new rollover standards and crash test standards that were required to be hit. The GX is already a tall vehicle to begin with, trying to engineer a lift gate as is on the Cayenne or other SUV's would have resulted in more weight being added to the top of the car. This would have contributed to a less satisfying ride and a greater chance for rollover due to being more top heavy. Other GX news. The engine goes to a 4.6 L, but horsepower will be up to 300bhp. Mileage improves, I believe 2mpg. VDIM will be standard as will kinetic suspension. The later helping with handling considerations and minimizing the impact of the vehicle being so tall and helping with the rollover concerns.
c. New variations on the LS. We all know the AWD version will be out simultaneous with the launch of the '09 standard LS. This should happen in late October/early November depending on sell down. I bet it will be sooner, rather than later. In addition for model year 2010, there will be an LS sport model available that will feature Brembo brakes, an aggressive body kit and bigger wheels. This will happen concurrently with the mild facelift that comes in 2010 as well. Lights, interior wood trim, wheels, etc are the basic changes.
d. Speaking of facelifts the IS and the ES get facelifts in the fall of 2009 as well. They showed us the changes, which is not usually the case. Expect the usual of headlights, tailights and wheels to change.
e. IS 250-C and IS 350-C. They showed a working version of the IS coupe. It looked great. It is benchmarked off of the 3 series convertible. It is a better looking coupe than the BMW. It has a little larger trunk with the top up as well as down. It may have just a little less headroom in the rear seats, but there is more leg room than in the 3
Series. The rear seat back is a bit upright, but it will be fine for short hops. The same MSRP advantage should remain between the two models as well. The top is essentially done in house like the SC, so you can expect a very dependable mechanism. Both models should include ventilated seats, power steering column & 18” wheels. It should be launched in June 2009.
f. The big news of the show was the new ERA Hybrid (2010 HS250h), or as my kids described it, the Lexus 'Prius'. It looks like a Lexus through and through. It has come a long way in 11 short months, versus what we saw last October. The HS250h will feature the first 4 cylinder engine in a Lexus mated to twin electric motors that power the front wheels alone. It features ES type styling. It will have the Lexus I-drive and a center console screen that pops out of the top of the dash sort of like a C class. It currently is returning 33 mpg, combined, but it is believed that the car can generated mileage in town of up to 40 mpg. The car was designed from the ground up to be a hybrid so much of the battery pack is carried beneath the floorboard as opposed to being sandwiched between the trunk and the rear seat. It will be a little taller. The improved packaging will result in a much larger trunk than in the LSh and GSh. The batteries were also moved further forward to improve weight distribution. Leather, moon roof, satellite radio and blue tooth will all be standard. The newest Lexus telematics will be in the vehicle.
g. LF-A: the New 200 mph+ LF-A is coming, just not for another 2 years. Expect it at the end of 2010. It will be a VERY small volume track car in the same vein as a Carerra GT or a Mercedes/McClaren. The full carbon fiber tub and exterior gives way to a very luxurious interior that is very similar to what was shown in Detroit. The final version of the exterior was shown for the first time. It had been finished so recently that they could not transport the car to NYC in time for the show. There are hood slits and side scoops and it all works. It is more aggressive than the original version shown in 2005. (Once of the big questions will be whether it looks dated when it debuts 6 years after it was first shown.) The other issue with the car is that with the use of carbon fiber, it will not provide a 'Lexus-like' ride like one might expect. It will be a more firm ride, even more so than a Ferrari F430. No decision has been made on the final name, the final pricing, the final launch date or the final volume. Expect the price to begin with a 3 though. They are thinking this will be a single run that may not last more than a year or so. It is certainly a Halo car for Lexus and you can be assured that regardless of how much they charge that Toyota will being losing a lot of money on
everyone they sell. A few statistics: A 4.8 liter, 40 valve V10, front engine, rear drive car with 6 speed sequential transmission. It is not the the IS-F transmission nor is it a duel clutch transmission. Those transmissions could not handle the 9,000 rpm's the engine runs at. The engine has been tuned to sound like a Formula 1 car and rev much high than other mass market cars. The engine should produce 560 bhp+ with 0 to 60 mph times of sub 4 seconds. The car will feature 20' wheels. As of right now it is a coupe. There is no indication whether they will offer a convertible but since it is made of carbon fiber, removing the top would not compromise the integrity of the car.
3. RX - February 2009
RXh - May 2009
IS-C - May/June 2009
HS 250h - August/September 2009
Mild facelift for IS/ES/LS - Fall 2009
LS Sport model - Fall 2009
GX 460 - January 2010
LF-A - December 2010
4. Status of Lithium technology - I spoke at length with one of the product planners and there was no real substantial news to report on when we might see the application of Lithium batteries in Lexus vehicles. Based on a conversation I had in June, Toyota is currently rolling out a test fleet of Prius's that are placing LiIon batteries in hybrids as well as for use as plug ins. Expect any change over for the HS 250h to be several years out before the new technology hits.
5. Explanation of upcoming new telematics program. Starting with the launch of the HS 250h next August, there will be new in car digital assistance features offered in every new Lexus. It will not be a rebadged OnStar program any longer. It will be a new Lexus only service. There will be a safety service for theft recovery and accident reporting and a separate service for an automotive conceriege service. The first year of service will be included in the price of a new car and dealers will be allowed to up sell subsequent years of coverage at the time of sale or during the life
Of the car.
6. Explanation of Lexus TV. There will be two channels for this new satellite service. One channel will be for internal training and information purposes, sort of like the original Lexus Satellite service that the franchise launched with. The second channel will be for customers and is intended to be shown in lounges and possible on the showroom floor. It will feature Lexus product information and lifestyle stories. Lexus of Wayzata will be one of the first dealers to see how this works since they have agreed to be a pilot dealer for the test portion of the launch.
Meeting notes from NYC dealer meeting
In past years some folks have enjoyed the product summary that I have put together for internal purposes. I am including the summary of the dealer meeting for those who have an interest in reading what I think I heard last week.
A few of my impressions of the NYC dealer meeting:
1. Lexus certainly regained their groove thing after last year's show that was long on skits and short on product reveals and marketing substance. This year's show was very heavy with both. In fact, they went further out on the product introduction calendar than I can ever remember.
2. Products they showed:
a. New RX and RXh. No great surprises here. The same thing we
saw last year in Hawaii and again at the Elite meeting in June. The cars will be here the first part of February for the base car and April for the Hybrid. The Hybrid goes up to a 3.5L engine versus the current 3.0L engine.
It will make it quicker (30+ horsepower) and more efficient. Gas mileage should improve just a bit. They also stressed that the RX was the first new car to be designed, executed and built with the new quality control standards. A hundred prototypes are being tested now. I get the sense that if we have any transmission issues right off the bat that there will be a lot of unemployed Japanese staff members. They are really hanging their hat on the fact that this car is going to be right from the start. It is being called the “next evolution cross-over.”
b. New GX460. The biggest problem with the new GX is that it looks so much like an LX, there many be no reason to buy the LX. They did not show an interior mock up of the car, but the outside looks like a 7/8th version of the new LX. The big positive: there are electric fold down rear seats in the 3rd row. The negative news: the door still opens on the side and yes, it remains on the wrong side. There are a couple of reasons for this. First and foremost this is a world car and the other global markets were not asking for a split rear hatch or a lift gate. The other driving factor is that there are new rollover standards and crash test standards that were required to be hit. The GX is already a tall vehicle to begin with, trying to engineer a lift gate as is on the Cayenne or other SUV's would have resulted in more weight being added to the top of the car. This would have contributed to a less satisfying ride and a greater chance for rollover due to being more top heavy. Other GX news. The engine goes to a 4.6 L, but horsepower will be up to 300bhp. Mileage improves, I believe 2mpg. VDIM will be standard as will kinetic suspension. The later helping with handling considerations and minimizing the impact of the vehicle being so tall and helping with the rollover concerns.
c. New variations on the LS. We all know the AWD version will be out simultaneous with the launch of the '09 standard LS. This should happen in late October/early November depending on sell down. I bet it will be sooner, rather than later. In addition for model year 2010, there will be an LS sport model available that will feature Brembo brakes, an aggressive body kit and bigger wheels. This will happen concurrently with the mild facelift that comes in 2010 as well. Lights, interior wood trim, wheels, etc are the basic changes.
d. Speaking of facelifts the IS and the ES get facelifts in the fall of 2009 as well. They showed us the changes, which is not usually the case. Expect the usual of headlights, tailights and wheels to change.
e. IS 250-C and IS 350-C. They showed a working version of the IS coupe. It looked great. It is benchmarked off of the 3 series convertible. It is a better looking coupe than the BMW. It has a little larger trunk with the top up as well as down. It may have just a little less headroom in the rear seats, but there is more leg room than in the 3
Series. The rear seat back is a bit upright, but it will be fine for short hops. The same MSRP advantage should remain between the two models as well. The top is essentially done in house like the SC, so you can expect a very dependable mechanism. Both models should include ventilated seats, power steering column & 18” wheels. It should be launched in June 2009.
f. The big news of the show was the new ERA Hybrid (2010 HS250h), or as my kids described it, the Lexus 'Prius'. It looks like a Lexus through and through. It has come a long way in 11 short months, versus what we saw last October. The HS250h will feature the first 4 cylinder engine in a Lexus mated to twin electric motors that power the front wheels alone. It features ES type styling. It will have the Lexus I-drive and a center console screen that pops out of the top of the dash sort of like a C class. It currently is returning 33 mpg, combined, but it is believed that the car can generated mileage in town of up to 40 mpg. The car was designed from the ground up to be a hybrid so much of the battery pack is carried beneath the floorboard as opposed to being sandwiched between the trunk and the rear seat. It will be a little taller. The improved packaging will result in a much larger trunk than in the LSh and GSh. The batteries were also moved further forward to improve weight distribution. Leather, moon roof, satellite radio and blue tooth will all be standard. The newest Lexus telematics will be in the vehicle.
g. LF-A: the New 200 mph+ LF-A is coming, just not for another 2 years. Expect it at the end of 2010. It will be a VERY small volume track car in the same vein as a Carerra GT or a Mercedes/McClaren. The full carbon fiber tub and exterior gives way to a very luxurious interior that is very similar to what was shown in Detroit. The final version of the exterior was shown for the first time. It had been finished so recently that they could not transport the car to NYC in time for the show. There are hood slits and side scoops and it all works. It is more aggressive than the original version shown in 2005. (Once of the big questions will be whether it looks dated when it debuts 6 years after it was first shown.) The other issue with the car is that with the use of carbon fiber, it will not provide a 'Lexus-like' ride like one might expect. It will be a more firm ride, even more so than a Ferrari F430. No decision has been made on the final name, the final pricing, the final launch date or the final volume. Expect the price to begin with a 3 though. They are thinking this will be a single run that may not last more than a year or so. It is certainly a Halo car for Lexus and you can be assured that regardless of how much they charge that Toyota will being losing a lot of money on
everyone they sell. A few statistics: A 4.8 liter, 40 valve V10, front engine, rear drive car with 6 speed sequential transmission. It is not the the IS-F transmission nor is it a duel clutch transmission. Those transmissions could not handle the 9,000 rpm's the engine runs at. The engine has been tuned to sound like a Formula 1 car and rev much high than other mass market cars. The engine should produce 560 bhp+ with 0 to 60 mph times of sub 4 seconds. The car will feature 20' wheels. As of right now it is a coupe. There is no indication whether they will offer a convertible but since it is made of carbon fiber, removing the top would not compromise the integrity of the car.
3. RX - February 2009
RXh - May 2009
IS-C - May/June 2009
HS 250h - August/September 2009
Mild facelift for IS/ES/LS - Fall 2009
LS Sport model - Fall 2009
GX 460 - January 2010
LF-A - December 2010
4. Status of Lithium technology - I spoke at length with one of the product planners and there was no real substantial news to report on when we might see the application of Lithium batteries in Lexus vehicles. Based on a conversation I had in June, Toyota is currently rolling out a test fleet of Prius's that are placing LiIon batteries in hybrids as well as for use as plug ins. Expect any change over for the HS 250h to be several years out before the new technology hits.
5. Explanation of upcoming new telematics program. Starting with the launch of the HS 250h next August, there will be new in car digital assistance features offered in every new Lexus. It will not be a rebadged OnStar program any longer. It will be a new Lexus only service. There will be a safety service for theft recovery and accident reporting and a separate service for an automotive conceriege service. The first year of service will be included in the price of a new car and dealers will be allowed to up sell subsequent years of coverage at the time of sale or during the life
Of the car.
6. Explanation of Lexus TV. There will be two channels for this new satellite service. One channel will be for internal training and information purposes, sort of like the original Lexus Satellite service that the franchise launched with. The second channel will be for customers and is intended to be shown in lounges and possible on the showroom floor. It will feature Lexus product information and lifestyle stories. Lexus of Wayzata will be one of the first dealers to see how this works since they have agreed to be a pilot dealer for the test portion of the launch.
