Thursday 7 January 2016

Forbes: Redesign of the Lexus RX - Will It Cure What Ails Iconic Pioneer of Mid-Size Luxury SUVs?

What happened to sales of the RX last year?

Two days ago, I disclosed 2015 sales figures for Lexus USA and analysed the numbers model-by-model. The Lexus NX range enjoyed a 1,390 per cent increase in sales from the previous year, followed by the Lexus RC range, Lexus' IS-based coupe, whose sales grew by 666.7 per cent. 



But the most shocking result was the year-end sales of the Lexus RX range: Lexus' most popular vehicle suffered a 6.7 per cent drop in sales in 2015, compared to 2014. Let's recall what I mentioned in that post:



Forbes investigated some of the reasons why, in their recent article. The article is reproduced here:



Forbes: Redesign of the Lexus RX - Will It Cure What Ails Iconic Pioneer of Mid-Size SUVs?


The iconic Lexus RX wheezed to a close in 2015, with sales falling off by more than 6 per cent from a year earlier. 

Was it because buyers and dealers lost enthusiasm for the 2015 version as they looked forward to the launch right now of a completely redesigned 2016 RX? Was it because of greater competition from rivals for the coveted mid-size luxury-crossover segment that has drawn more entrants? Was it because of internal competition with the compact Lexus NX crossover, just a segment below the NX, which notched 44,000 sales in its first year while the RX was fortunate to top 100,000 sales in its 17th year? Or was some of each factor to blame?

Lexus executives are hoping the actual answer becomes moot as American consumers embrace the all-new, fourth-generation RX that they're rolling out to dealers right now, with a radically streamlined new design and some new touches inside - but not enough to change that anyone could scream the brand has ruined the venerated model that essentially created the mid-sized, off-road luxury-SUV market in 1998.



The new exterior design is more chiseled and seems to lower the profile of the new RX even though it actually has increased most interior proportions. It also has a yawning black grille that some call the 'spindle' grille design but which, to me, more resembles the shape of a lab beaker or a nuclear-plant cooling tower. 

In any event, more than a few reviewers that the new RX exterior design goes too far in their opinions, and some have insisted that the 2016 version of the vehicle may be enough for the nameplate to hold on to its No.1 position in the segment - but doesn't bring much new to the market. 

"All iconic design is polarizing,"Brian Bolain, Lexus corporate marketing communications and product marketing manager told me. "With the new RX, we knew we had to build upon the model's already storied legacy and provide a fresh new perspective on a perennial category leader." He said its off to a strong sales start and that "in consumer research, the new RX was consistently chosen above its competition."

A new advertising campaign for RX showcases what Bolain calls the"duality" of the vehicle's well-established sophistication and its more modern design edge in TV ads that are meant to appeal to well-heeled millennials, although it's not positioned as a family vehicle. And unlike when it launched the single RX in 1998, Lexus is able in one of its ads to tout the family of products that has grown up around the nameplate which also offers some duality, including a hybrid model and the new F Sport performance version. 

Expect Lexus to be essentially proven right with its approach to giving the 2016 RX a clear path to success, including sales increases as well as holding on to its No.1 spot in the segment. Lexus is doing more right these days, even including just a 2-per cent decline in 2015 sales in the challenged luxury-sedan segment. And with RX being so important to the overall franchise because of how hot its segment is these days, Lexus will do all it can to make sure the icon stays iconic.

Cheers!

All Lexus






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