Lexus losing ground in US

By Freddie Pierce
How critical can successful supply chain management be for a company? Just ask Lexus, as the luxury carmaker is about to lose its grip in the United St...

How critical can successful supply chain management be for a company?

Just ask Lexus, as the luxury carmaker is about to lose its grip in the United States as the top luxury automaker. Lexus, part of Toyota Motor Corp, expects to lose its leading market share to German competitors BMW and Mercedes-Benz.

Lexus, which makes all but one model in Japan, barely held the title as the United States’ market leader in luxury auto sales last year, holding on by 9,216 cars. Lexus has seen its disrupted supply chain limit production to 50 percent.

Through April, U.S. tallies show both BMW (71,417) and Mercedes-Benz (71,388) well ahead of Lexus’ U.S. output (64,932). BMW and Mercedes-Benz are taking advantage of Lexus’ slip in the United States market by increasing production.

Eric Noble, president of The Car Lab, had some interesting insight when talking with Bloomberg during the week.

“The house was on fire at Lexus before the earthquake hit,” he said. “If the current situation wakes then up to that, then some good may come from it.”

The Lexus image took a hit last year, when more than 10 million Toyota-brand vehicles were recalled for problems related to the gas pedal. Because of that hit to its brand, Lexus’ lead over BMW as the leading U.S. luxury automaker dipped 52 percent in 2010.

The U.S. luxury auto market is particularly important for Lexus, as the Toyota carmaker hasn’t had much luck catching on in other areas. Lexus’ market share in Europe is a paltry 0.2 percent, with the brand struggling to catch on in China as well.

Audi, Mercedes-Benz and BMW each sold over a million cars worldwide in 2010. Lexus sold less than half a million, coming in at 410,000.

Share

Featured Articles

Third-party supply risk 'key to survival' - Refinitiv report

The American-British global provider of financial market data and infrastructure, Refinitiv, has published a paper on how 3rd party is a key to survival

Logistics global air, sea rail & road news round-up

Rail freight body ERFA sounds legal warning to EC; China ports see traffic increase, despite lockdowns; US logistics report shows huge 2021 cost increases

IBM supply chain head's digital transformation insight

Speaking at Procurement & Supply Chain LIVE: The Risk & Resilience Conference, IBM Supply Chain Transformation Lead Bob Booth shares transformation insight

Uyghur Forced Labor Protection Act & US supply chains

Sustainability

Put people at heart of supply chain transformation - Loseby

Supply Chain Risk Management

Regional supply chain problems add complexity, says Kinaxis

Logistics