Every day on my way to work here in Tokyo, I travel past a Lexus dealership that just opened this past weekend. It’s at the corner of Kyu-yamate-dori and Roppongi-dori, a busy intersection.
I also used to work for “TMS” or Toyota Motor Sales, USA, Inc., Toyota’s US sales and marketing company, headquartered in Torrance, CA. So I’ve always been a fan of Toyota’s vehicles, especially the Land Cruiser series (my father has an FJ60 from 1985 that he still faithfully uses) and the new hybrid-electric Prius.
I’ve wondered about the launch of Lexus in Japan, and Martin Fackler of the NYT covered many of my thoughts and considerations in his article. I thought it was well done.
Lexus did so well in the US for a myriad of reasons that every business school has gone over with a fine-toothed comb, but suffice it to say that the key pillars of success was the radically improved dealership experience (both in sales, but more importantly in the service) and a price/quality ratio that the European manufacturers still can’t touch.
Fackler states the key issues for Lexus in Japan: the dealer experience in Japan is universally worlds better than it is in the US. That cannot be a competitive factor. Toyota is already the market leader at 45% and so the market is saturated with these vehicles- a little new sheetmetal and a slightly larger engine doesn’t hide the fact that an Aristo is GS.
I think it’s also interesting to note that Honda hasn’t brought the Acura brand to Japan, nor has Nissan brought Infinit to Japan. Honda and Nissan are both struggling enough so that they probably don’t have the cash ready to fund this kind of venture.
Toyota does need to attempt to grow more in their home market, and Lexus is the best way for them to do that. That said, if it really did cost $2B to bring Lexus to Japan, I think TMC (Toyota Motor Corporation) would have done their shareholders better by investing that in developing nations (China, Brazil, Russia) rather than in Japan. There’s little growth left in the Japan market- Lexus is only going to be taking marketshare from the Europeans or from probably their own Toyota dealers.
Toyota to Sell the Lexus in Japanese Home Market – New York Times
Hi Gen. This has nothing to do with your post, but – I am doing some professional blogging, and when I searched for “searchlet,” your site came up at the top of the page. I recognized your name from Dartmouth – I think you were a senior when I was a freshman. Cool to find your site. Small world. I’ll bookmark it.
I LIKE TO SEE AND LIKE TO WORK IN YUORS DEALERSHIP
I AM WORKING NOW IN USA SINCE 2000 AS TECH I LIKE TO WORK IN JAPAN JUST LET ME KNOW HOW I CAN GET
THE JOB IN JAPAN.
Any news on how well the Lexus models have been selling in Japan since they launched the brand there? What is the word on the street? Are Japanese people excited about the Lexus brand?
we have just purchased a new rx330 and are
going to japan in a couple of weeks–is it possible
to visit the lexus factory? where is it located.
thanks for your help
head gasket -
I have a Lexus Es 250 V6 ” 2.0 ” 1VZFE Engine .It’s not the Orginal engine of this Lexus , and I looking for the head gasket complete set for this engine
Can you help?
We are trying to locate a brake master cylinder for a GS300 1999. Model JZS160.
They are in excess of two thousand pounds in the UK which we feel is excessive.
Any advice on where we can purchase one at a more reasonable rate?
Grateful for any advice.
Pls.advice the price of lexus RX300 and RX350
If you have used also fine
Does Toyota offer tours of the Lexus factories in Japan? I’m thinking of buying an IS-F and want to see the factory where they will be making them. I may have a chance to be in Nagoya this spring.